Supervisors

Shutting down Sunshine

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EDITORIAL The unwillingness of the San Francisco Board of Supervisors to follow the City Charter’s rules on open government has reached a new level of absurdity: The Sunshine Ordinance Task Force voted July 11 to stop meeting, because the supervisors wouldn’t appoint the legally mandated members.

Technically, the fuss is over a provision in the law creating the Task Force that mandates one member must be a physically disabled person with a demonstrated interest in open-government issues. That was written into the law in part because access to meetings for people with disabilities is an ongoing area of concern.

But the supervisors refused to reappoint Bruce Wolfe, a longtime task force member who met that criterion — and who had the respect of independent and progressive leaders all over town. And none of the six people the board did appoint qualify as physically disabled.

So the City Attorney’s Office advised the task force that it would be violating the charter if it met and took any action — and although the chance that the courts would invalidate task force decisions might be slim, the members could face fines. So the panel did the prudent thing and quit meeting.

Now, for all practical purposes, there is no Sunshine Ordinance Task Force, and it will be in legal and political limbo until the supervisors appoint a disabled member.

That follows on the heels of the board refusing — for the first time since the creation of the task force in 1999 — to seat the nominees of the Society of Professional Journalists, New American Media, and the League of Women Voters. Those organizations were given the right to submit names for three seats as a way to ensure that some of the task force members were from outside City Hall and represented media and good-government groups.

So the agency that it supposed to protect the public’s right to access records and meetings has been stacked with City Hall-friendly appointees and now is unable even to hear complaints.

There’s no question that some supervisors are annoyed with the task force, in part because it’s issued some rulings that board members disagreed with. But the task force is supposed to come down on the side of public access whenever possible, and if the agency is doing its job, it’s going to piss off politicians. The response shouldn’t be to seek retribution by denying its ability to function.

The supervisors are demanding that SPJ, NAM and the League submit new lists of nominees, with multiple names, which is unprecedented and difficult: These grassroots groups are supposed to line up a group of volunteers for a difficult, time-consuming, unpaid job — then tell them that all but one of them will be rejected by the supervisors? Who’s going to want to be in that position?

The three organizations should hold their ground, resubmit their nominees and ask the supervisors to follow the City Charter. And the City Attorney’s Office needs to offer some clarity here: Can the supervisors, in a fit of pique, shut down a Charter mandated watchdog agency? Really?

 

Feeling the heat, Olague kills RCV repeal for now

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After reviving a controversial effort to repeal the city’s ranked-choice voting (RCV) system and paying a political price for her shifting stands on the issue, Sup. Christina Olague today made the motion to send all three competing reform proposals back to the Board of Supervisors Rules Committee, effectively killing efforts to place them on the November ballot.

“The public would benefit from more public discussion on the issue,” Olague said, adding that she doesn’t think the measures should be on the crowded fall ballot competing with other important priorities.

Olague had been torn between supporting the desires of Mayor Ed Lee (who appointed her to the seat) and downtown interests to repeal RCV and those of her longtime allies in the progressive community who sought to defend it from total repeal – and she hadn’t been returning calls or indicating where she now stood before today’s Board of Supervisors meeting.

But after hearing more than 30 minutes of impassioned public comments on both sides of the issue, she made the motion to end the controversy for now, which was unanimously approved by the board. Olague also addressed the heat she felt indirectly, saying RCV “should not be a litmus test for whether someone is progressive” and “sadly, the discussion had degenerated to be about personalities.”

Her colleagues seemed happy to be done with this fight for now as well. Sup. Mark Farrell, who sponsored the measure to repeal RCV for all citywide offices, said it would be a “huge mistake” to have competing voting system measures on the fall ballot. Olague had previously offered an alternative to repeal RCV for just the mayor’s race, like Farrell’s measure using a September primary election and November runoff. Board President David Chiu responded to the RCV repeal effort by proposing another alternative, that one using RCV in the November election but having a December runoff between the top two mayoral finishers.

Chiu said he was happy to delay his proposal, saying, “I have thought the system we have is working quite well.”

Black Young Democrats rally against stop and frisk

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A group organized by the San Francisco Black Young Democrats rallied at City Hall today. Their message: no to stop and frisk.

Members of the group, as well as the ACLU and the Asian Law Caucus, said the policy would violate the civil rights of San Franciscans.

Supervisors Malia Cohen, along with Avalos, Campos, and Mar also attended the rally and expressed their support. They co-sponsored a non-binding resolution, introduced by Cohen,  that condemned the idea of implementing stop and frisk in San Francisco.

Mayor Ed Lee said he was considering implementing the controversial policy a few weeks ago.

Under a stop and frisk policy, police have the leeway to stop and search people that they consider suspicious. On average, 85 percent of those stopped in New York City are young African American and Latino men.

Opponents say racial profiling is inevitably involved and that, for people who may be carrying minor contraband but no dangerous weapons, this racial profiling leads to selective enforcement of laws. About 87 percent of those stopped in New York were completely innocent, according to numbers compiled by the New York Civil Liberties Union.

Lee said he suggested the idea after a spike of gun violence in June. But it has generated a backlash, and at today’s rally about 75 showed up to present a petition signed by more than 2,000 asking the mayor not to implement the policy.

Joaquin Torres, director of that office, accepted it on Lee’s behalf.

Lee himself didn’t engage with the protesters, but he did issue a statement not an hour after they left City Hall “clarifying his position” on stop and frisk.

“I want to be clear that I have not considered implementing a policy in San Francisco that would violate anyone’s constitutional rights or that would result in racial profiling,” the statement reads.

Ellington said the statement was not enough. “We want Mayor Ed Lee to say that he will not implement stop and frisk in San Francisco, nor any policies that are like stop and frisk. No policies that infringe upon our civil liberties,” Ellington told the Guardian.

“These are predatory policing practices that we don’t want in our city,” he said.

Guest opinion: RCV is good for progressives

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Since San Francisco began using ranked choice voting in 2004 and public financing of campaigns in 2002, the city has been a leader in the types of political reform badly needed at state and national levels. People of color today have an unprecedented degree of representation and progressives are a dominant presence in city government. Elections are being decided in November, when turnout usually is highest, and the combination of public financing and deciding races in one election minimizes the impact of independent expenditures and Super PACs .

Yet progressive stalwart Calvin Welch, whose work we have long admired, recently authored a Bay Guardian oped against RCV. His charges against RCV are as wrong today as they were when he first made them 10 years ago when he opposed RCV on the ballot. And given the horrible Supreme Court ruling known as Citizens United, which has opened the floodgates on corporate campaign spending and did not exist when San Francisco last used separate runoff elections, returning to two elections is a direct threat to the future of San Francisco progressivism. 

The most serious of his claims is that RCV favors “moderate to conservative candidates” because “left-liberals do very well in run-off elections” since “in low-turnout elections, left-liberals vote more heavily than do conservatives.” He cites the 2000 supervisorial races and 2001 city attorney race, in which “the more liberal candidate for City Attorney, Dennis Herrera” bested “Chamber of Commerce functionary Jim Lazarus.” He asserts “that’s a verifiable San Francisco political fact.”

But San Francisco State University professor Richard DeLeon, author of the acclaimed book of Left Coast City about San Francisco politics, debunked that claim with real election data in his 2002 paper, “Do December runoffs help or hurt progressives?”

He found that in the November 2001 city attorney election, for every 100 voters who turned out in progressive precincts, 107 turned out in conservative precincts. But in the December 2001 runoff, for every 100 voters who turned out in the progressive precincts, 126 turned out in the conservative precincts, an 18 percent increase. Wrote DeLeon, “This dramatic increase in the ratio of conservative to progressive voters occurred despite (or perhaps because of) the 44 percent drop in voter turnout citywide between November and December.”

He continued: “If San Francisco had used [ranked choice voting] in November, Herrera most likely would have won by an even greater margin. In November, the liberal/progressive candidates for city attorney won a combined 60 percent of the vote…In the December runoff, however, Herrera won with only 52 percent of the vote. Thus, due to the proportionally greater decline in progressive voter turnout, Herrera probably lost approximately 8 percent of his potential vote, making the election close.”

DeLeon also rebutted Welch’s citation of the supervisorial races in 2000 as ones that demonstrated a progressive advantage in low-turnout runoffs, writing:

 “Progressive success that year was NOT due solely to a one-time surge in turnout among progressive voters…Many powerful forces converged in that election, not least the anti-Willie Brown backlash, the cresting of the dot-com invasion, and the return to district elections, which forced despised incumbents to stand trial before angry neighborhood electorates.”

DeLeon concluded:  “Based on the evidence presented, I conclude that December runoffs have hurt progressive voters, candidates and causes in the past and (absent same-day runoffs) will continue to do so in the future, even under district elections.”The Bay Guardian cited Professor DeLeon’s study in March 2002 (see  and scroll down to “A is OK”), and Mr. Welch is ignoring these results today just as he did then.

Certainly progressives haven’t won 100% of RCV elections — should any political perspective? — but they have done well nonetheless, electing  Bay Guardian-endorsed candidates like John Avalos, David Campos, Eric Mar, David Chiu and Ross Mirkarimi, despite those candidates not being incumbents. Other progressive incumbents first elected before RCV elections, like Aaron Peskin, Chris Daly, and others, were re-elected under RCV. And Mirkarimi was elected citywide in the sheriff’s race. On  the flip side, progressive Eileen Hansen most certainly would have beaten moderate Bevan Dufty in a November RCV contest for D8 supervisor; instead she lost in December after finishing first in November.

What’s actually at stake here is how we define progressivism. Since we began using RCV in 2004, 8 of the eleven members of the Board of Supervisors come from communities of color, a DOUBLING from pre-RCV days. At the citywide level, all seven officials elected by RCV come from communities of color. So out of the 18 elected officials in San Francisco, a whopping 15 out of 18 come from communities of color, the highest percentage for a major city in the United States.

The proposed repeal amendment would launch low-turnout September elections in San Francisco. In fact, the December 2001 city attorney race in which Welch cites as exemplary had a turnout of 15 percent of registered voters, the lowest in San Francisco’s history. New York City’s last September mayoral primary had a turnout of 11.4 percent. In Charlotte NC (population 750,000, similar to San Francisco) its last mayoral primary had a turnout of only 4.3 percent. Cincinnati had a September turnout of 15 percent, and Boston and Baltimore had September mayoral primaries with turnout in the low 20s. Many cities in Minnesota have September primaries with extremely low turnout; the two largest cities, Minneapolis and St. Paul, have switched to RCV largely to eliminate September primaries.

Research has demonstrated that voters in low turnout elections are disproportionately more conservative, whiter, older, and more affluent; those who don’t participate are people of color, young people, poor people — and progressives. So having a mayoral race in a low turnout September election has real consequences not only on voter turnout but on the demographics of the electorate.

While we share the priorities of Welch’s progressive economics, we believe progressivism must be more inclusive, especially if it wants to enjoy the support of these burgeoning demographics. While disappointed by the lack of progressive achievements of President Barack Obama, we still view the election of the first African American as president as a major progressive achievement.

Finally, we would assert that the ranked ballots used in RCV have been important for San Francisco democracy. Just look at the recent “top two” primary on June 5, and you can see the defects of the methods proposed to replace RCV. In many races across the state – including in the Marin County congressional race where progressive Democrat Norman Solomon lost by 0.2 percent — too many spoiler candidates split the field and candidates got into the top two with extremely low vote percentages, some as low as 15 percent of the vote. In one race where there was a Latino majority and a solid Democratic district, the Democrats ran so many candidates that the Democratic vote split and two white Republicans made the runoff with low vote percentages.

San Francisco risks such elections if we get rid of RCV. Think of the last mayoral election, and the choice for Asian voters if we used single-shot plurality voting instead of RCV. Which Asian candidate would they vote for with their single-shot vote — Lee, Chiu, Yee, Ting, Adachi? What kind of vote split might have occurred? And to avoid that, what kind of backroom dealing would have occurred BEFORE the election to keep that many candidates out of the race to prevent that vote-splitting?  We saw such vote splitting in the 2003 mayoral election as well, with various progressive candidates running and splitting the progressive vote. Going back to plurality elections would be damaging for constituencies that often run multiple candidates, such as the Asian and progressive communities.

RCV has been good for San Francisco, and we should keep it. For those who would like to see a runoff in mayoral races, Board president David Chiu has proposed a compromise that, while increasing the costs of running for mayor, is far better than the repeal measure for September elections. Chiu’s proposal would keep RCV to elect the mayor, but with a December runoff if no mayoral candidate won a majority of first rankings in November. The 2011 mayoral election would have gone to a runoff, with John Avalos as Ed Lee’s opponent.

San Francisco progressives should embrace a view of progressivism that is inclusive, promotes higher turnout and is based on a politics that is looking forward instead of backward to some golden age that never existed. Ranked choice voting and public financing are two parts of the puzzle for ensuring a vibrant progressivism.

Steven Hill led the campaign for ranked choice voting in San Francisco, and Matt Gonzalez was President of the Board of Supervisors and legislative author of the RCV charter amendment. See www.SFBetterElections.org for more information

 

 

Gonzalez withdraws his endorsement of Olague

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Matt Gonzalez – the attorney and former president of the Board of Supervisors whose 2003 run for mayor galvanized the city’s progressive movement – has withdrawn his endorsement of Sup. Christina Olague for his old District 5 supervisorial seat, citing her positions on the 8 Washington project and replacing ranked-choice (RCV) voting with a September mayoral primary election.

It is perhaps the biggest political blow that Olague has suffered since being appointed to her first elective office by Mayor Ed Lee in January, and a sign that she may be siding more solidly with Lee and his pro-development allies than with the progressive political community she has long identified with – and that could complicate her race in one of the city’s most progressive districts.

Gonzalez, who helped launch Olague’s political career by appointing her to the Planning Commission in 2004, confirmed his decision and the reasons for it, but he told the Guardian that he didn’t want to make a formal public statement yet. That could come later in the week, possibly coupled with a new endorsement in the race.

But he did say that he’s been frustrated with Olague’s actions on both 8 Washington – a housing project for the super-rich on the Embarcadero – and with her recent antics on RCV. In both cases, it wasn’t just the votes, but the way they were made that have raised doubts about Olague with Gonzalez and other progressives.

Olague and Sup. Jane Kim (another former Gonzalez protege who has disappointed many of her one-time progressive supporters on several high-profile issues) not only voted for the 8 Washington project, but also for a series of amendments that made the already lucrative project even more profitable for the developers and costly to the city.

On RCV, as I reported on Friday, Olague surprised progressives by giving new life to efforts by the most conservative supervisors to repeal the system, then has made a shifting series of statements and pledges on the issue, in the end supporting a system that will repeal RCV only for the mayor and create a September election.

The fear is that election would be extremely low turnout, and Lee could win it outright with at least 65 percent of the vote and avoid the normal November election, and Olague has been unwilling to fully explain her position or address concerns that she is simply doing Lee’s bidding. Olague hasn’t returned our calls on that issue or for her reaction to Gonzalez’s decision to withdraw his endorsement.

Guardian Voices: The case against RCV

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“The Cure for the Ills of Democracy is More Democracy”
                                 — old Progressive Party slogan

My friends here at the Guardian have elevated support for ranked choice voting to a defining requirement for being considered a progressive. This is not only historically incorrect,  it is actually politically silly. There are many progressive reasons to oppose RCV — not the least of which is the undeniable fact that it overwhelmingly favors incumbents, has failed to deliver on the 2002 ballot promises, and now poses real threats to progressive political advancement in key supervisor districts. 

First, a little history. 

The two greatest national political victorys  of the Progressive Era were the 1913 adoption of the 17th Amendment of the US Constitution, which required direct elections of US Senators, and, at the tail end of the era,  the 1920 passage of the 19th Amendment, which gave women the right to vote. Both expanded people power in elections, curing the ills of democracy by more democracy.

Historically, to be a Progressive is to favor MORE elections, MORE political opportunities for more people at the local level.  How can it be that it is now progressive to favor FEWER elections at the local level?

In the March, 2002 Voters Handbook, ballot arguments against RCV were authored by several progressive activists (Sue Bierman, Jane Morrison, David Looman, Larry Griffin, David Spiro and me, to name a few). We argued then that replacing local elections with a mathematical formula that few understand and even fewer could explain was political foolishness. While were outvoted, I think we were right a decade ago.

Left-liberals do very well in run-off elections in San Francisco — from 1975, when Moscone beat Bargbagalata in a December run-off, to the run-off victory of the more liberal candidate for City Attorney, Dennis Herrera, over Chamber of Commerce functionary Jim Lazarus in 2001. The reason is that in low-turnout elections, left-liberals vote more heavily that do conservatives, and that’s a verifiable San Francisco political fact.

But it was the 2000  supervisors races that showed just how well left-liberal forces did in run-off elections at the district level: Jake McGoldrick, Aaron Peskin, Matt Gonzales, Chris Daly, Sophie Maxwell, and Gerardo Sandoval, the very heart of the progressive majority, were elected in December run-off elections.

In 2002, three arguments were made for RCV: first, that it would reduce negative campaigning; second, that it would increase turnout in local elections and third, it would reduce costs by eliminating the run off election. Of the three  arguments only the last has been met, a dubious achievement in that even more such savings could be made by eliminating ALL elections.

Can anyone actually claim that last year’s mayoral election, the first contested one conducted under RCV, was anything but a negative free-for-all? Or, how about the 2010 D6 race between Debra Walker and Jane Kim, or the D8 race between Mandelman and Weiner? Or the 2002 D4 Ron Dudum – Ed Jew race? RCV did not end negative campaigns.

How about turnout?  Last year’s mayoral race had the lowest turnout in a contested race for mayor in the modern history of San Francisco. Every supervisorial race in 2008 had a lower turnout than  the citywide average. Turnout in 2010 was below citywide levels in the RCV supervisor races in D4, D6 and D10.

No, the record is clear RCV has not resulted in higher turnout, either.

RCV creates a political system in which candidates make deals with other candidates, behind closed doors, before the voters vote.  Runoff elections result in a system in which voters make deals with candidates AFTER they vote in the polling booth. What’s wrong with giving voters two choices in two elections instead of three choices in one election? Oh, that’s right, we save money by giving voters fewer elections.

Left-liberals tend to field fewer candidates for races than do moderates and conservatives because, especially in San Francisco, left-liberals simply don’t know how to raise political money, while moderates and conservatives do. RCV elections reward multiple candidates of the same political persuasion as these candidate can agree to appeal to their similar voters to vote for them as a block.  Thus, RCV will always favor, in an open contest in which there is no incumbent, moderate to conservative candidates because there are  usually more of them running.

That’s what happened to Avalos in last years mayoral election: he picked up nothing as the moderate candidates’ second and third votes went to the moderate Lee. The same happened in D10 two years ago: moderates voted for multiple moderate candidates and the only real left-liberal in the race did not pick up any of these votes and lost — although he outpolled the eventual, moderate winner.

RCV favors incumbents, and that’s why at least two of the Class of 2000 progressive supervisors told me they voted for it. Lets see how well it works to defeat Sup. Scott Wiener, who is far to the right of the average voter in D8, or Supervisor Malia Cohen in D10 who was supported by less than 30 percent of the election day vote.

What seems to be going on here is an incredibly silly political association game.  Because repealing RCV is supported by conservative supervisors and the Chamber of Commerce we should be opposed since they are for it. Haven’t we seen this year conservative Republicans make one self defeating political move after another?  When your enemy is threatening to shoot himself in the heard why are we trying to pull the gun away? It time to pull the trigger on RCV.

Olague’s antics on RCV alarm her progressive supporters

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As Sup. Christina Olague was being appointed to the District 5 seat on the Board of Supervisors by Mayor Ed Lee in January, we noted how difficult it might be to balance loyalty to the moderate mayor with her history as a progressive and someone running for office in one of the city’s most progressive districts.

By most indications, Olague doesn’t seem to be handling that balancing act — or the pressure that goes along with it — very well at all, to the increasing frustration of her longtime political allies. And that’s never been more clear than on the issue of repealing the city’s ranked choice voting (RCV) system.

As you may recall, earlier this year the board narrowly rejected an effort by its five most conservative, pro-downtown supervisors to place a measure repealing RCV on the June ballot. So chief sponsor Sup. Mark Farrell tried again in March with a ballot measure for November, this time just for citywide offices, and Olague surprised progressives by immediately co-sponsoring the measure, giving it the sixth vote it needed.

Since then, she’s offered shifting and evasive explanations for her actions, telling RCV supporters that she would withdraw her support then going back on her word. Sources close to Olague say that she’s been taking her marching orders on the issue directly from the Mayor’s Office, even as she tries to appease her progressive supporters.

Even trying to get a straight answer out of her is difficult. Two weeks ago, as the Farrell measure was coming to the board for a vote, I called her on her cell phone to ask whether she still supported the measure, and she angrily complained about why people care about this issue and said “you’re going to write what you want anyway” before abruptly hanging up on me.

I left her a message noting that it was her support for repealing RCV that had raised the issue again, that I was merely trying to find where she now stood, and that we expect accountability from elected officials. She called back an hour later to say she was still deciding and she denied hanging up on me, claiming that she had just run into someone that she needed to talk to.

At that week’s board meeting, she offered an amended version of Farrell’s proposal – which would replace RCV with a primary election in September and runoff in November for citywide offices – repealing RCV only for the mayor’s race. She has not directly addressed the question of why she supports a September election, which is expected to have even lower voter turnout than the old December runoff elections that RCV replaced.

So RCV supporters worked with Board President David Chiu to fashion an third option, this one maintaining the ranked-choice election for all offices in November, but having a December runoff between the top two mayoral finishers.

Going into this week’s board meeting on the issue, nobody was quite sure where Olague stood on that proposal or the overall issue, again because she’s been making different statements to different constituencies. And as the issue came up and various supervisors stated their positions, Olague stayed silent, as she has remained since then, refusing to return our calls or messages on the issue.

But because of technical changes to the three measures requested by the City Attorney’s Office – which Farrell made to Olague’s option, which he said he would support if his is defeated – consideration was delayed by a week to this coming Tuesday.

RCV supporters and Olague’s progressive allies didn’t want to speak on the record given that she is still the swing vote on the issue, but privately they’re fuming about Olague’s squirrely temperament, lack of integrity, and how she’s handling this issue (as well as her bad votes on the 8 Washington high-end housing project and her role in the Lee perjury scandal).

But rival supervisorial candidates like Julian Davis – who came to the hearing at City Hall Tuesday and proclaimed his unqualified support for RCV – are less reticent.

“Silence or avoidance are not acceptable, so we’re calling for her to explain why a low-turnout, plurality election in September is good for San Francisco. Help us understand,” he said, noting that such a election especially hurts minority groups and other progressive constituencies that don’t vote as reliably as conservatives. “Why should Christina Olague have anything to do with it? You and the rest of San Francisco deserve an answer.”

Meanwhile, Davis recently won the endorsement of local Democratic Party Chair Aaron Peskin, while fellow progressive candidate John Rizzo announced his endorsement by Assembly member Tom Ammiano. And there are rumors that some prominent progressives who have already endorsed Olague are considering withdrawing their endorsements because of her recent behavior.

All of which make for some interesting dramas going into Tuesday’s RCV vote.

We can stop 8 Washington

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There’s a week left to stop the sale of San Francisco’s waterfront to the 1 percent.

The Board of Supervisors approved the 8 Washington project, and a coalition that (for various reasons) opposes this giant pile of housing for the very, very rich is trying to put the issue on the ballot. That takes a lot of signatures, and there’s only one week left to collect them.

I could tell you the story of why this project sucks, or you could just read it here. In my mind, it’s simple: If we are using public land to build housing for the richest people in the country, allowing a developer to clear a couple hundred million dollars while offering the city only $11 million for affordable housing — nowhere near enought to equalize the housing imbalance inherent in this deal — then we’re losing the city’s future.

But there’s still time. If you want to help, go here. Stop by 15 Columbus Ave or call 415-894-7008.

Hell, I’m willing to have a discussion this fall about the really, really dumb idea of tearing down the Hetch Hetchy dam. Let’s at least give the voters a chance to look at the future of the city’s housing policy.

 

The malling of San Francisco

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steve@sfbg.com

Shopping malls filled with national chain stores and restaurants are in many respects the antithesis of San Francisco. They’re the bane of any metropolis that strives to be unique and authentic. And those just happen to be qualities that make tourism this city’s number one industry.

The logic of modern capitalism, and its relentless growth into new markets, has already placed a Target or a Walmart, and a Nordstrom, Macy’s, Ross, or a JCPenney — along with a bevy of Starbucks, Applebee’s, Jamba Juice, and McDonald’s and myriad other formulaic corporate eateries — in just about every town in the country.

Do people really need them here, too? And in a city renowned worldwide for its scenic beauty and temperate (albeit sometimes foggy) climate, do people want to shop in the enclosed, climate-controlled malls popularized in the small or suburban towns that many residents came here to escape?

For me, the answer is no. Frankly, malls have an aura of artificiality that gives me the creeps — but I freely acknowledge that not everyone feels that way. Some San Franciscans may like malls and chain stores while others don’t.

But it doesn’t really matter what any of us think. Left unchecked, it’s the market that matters — and the logic of the market gives chain stores a huge competitive advantage over the mom-and-pops. Their labor and supply costs are lower, their financial resources are more extensive and appealing to commercial landlords, and their business models are based on constantly opening new stores.

All cities have to do is just say yes. And San Francisco has been increasingly saying yes to malls and chain stores.

The economic desperation that set in since the financial crash of 2008 has overcome the trend of resistance to so-called “formula retail establishments” that had been building in San Francisco during the years before the recession.

So now, rather than dying from neglect, the Metreon mall has been brought back to life by a huge Target store set to open this fall, the second Target (the other one at Masonic and Geary) going into a city that had once eschewed such national mega-retailers.

Just down the street, in the heart of the city’s transit-rich commercial center, the CityPlace mall that had been abandoned by its previous owners after winning city approval two years ago is now being built by new owners and set to open next spring with “value-based” national chain stores like JCPenney.

Projects funded with public money aren’t immune either. The new Transbay Terminal transit center now under construction will have its own mini-mall, with 225,000 square feet of retail, much of it expected to house national chains. Even more retail will be built on the ground floor of the dozen other nearby residential and office buildings connected to the project.

And it isn’t just these new malls going in a stone’s throw from the Westerfield Mall, Crocker Galleria, San Francisco Center, and other central city malls. All over town, national chains like the Whole Foods and Fresh & Easy grocery stores are replacing Cala Foods and other homegrown markets, or going into other commercial shells like the S&C Ford building on Market near the Castro.

Just a few years ago, the approval of Home Depot on Bayshore Boulevard (since then sold and opened as Lowe’s, another national chain) was a hugely controversial project approved by the Board of Supervisors on a closely watched 6-5 vote. Now, Lennar is building an entire suburban-style complex of big box stores on Candlestick Point, hundreds of thousands of square feet — without much controversy at all.

Even Walmart — the dreaded poster child for huge corporations that use their market power to drive down wages or force local stores out of business — is reported to be actively looking to open “a couple” of stores in San Francisco (see “Walmart sets sights on San Francisco,” June 24, San Francisco Chronicle).

To Livable City Executive Director Tom Radulovich and others who have long encouraged San Francisco to embrace the kind of urbanism advocated by famed author and activist Jane Jacobs — which emphasizes unique, neighborhood-based development that enhances public spaces and street life — accepting the malls feels like giving up on more dynamic urban models.

“It’s sort of an admission of failure,” Radulovich said. “It’s the failure of urbanism in San Francisco.”

 

 

MID-MARKET SYMBOLISM

Mid-Market Street is a bellwether for the type of city San Francisco may become. Every mayor since at least Dianne Feinstein in the late 1970s has called for the redevelopment of Mid-Market into a more active and inviting commercial and social corridor, and few have done so more fervently than Mayor Ed Lee.

Several city studies have explored a wide variety of ways to accomplish that goal, from eliminating automobiles and transforming Market Street into a lively pedestrian promenade to using redevelopment money, tax breaks, and/or flashy lighted signs to encourage distinctive development projects unique to San Francisco.

“But the city failed, so the market filled the void,” Radulovich said.

It isn’t that all shopping malls or enclosed commercial areas are necessarily bad, Radulovich said, citing the influential work by writer Walter Benjamin on the roles the enclosed “arcades” of Paris played in public life. “They work when they are an extension of public spaces,” Radulovich said.

Yet that isn’t what he sees being built in San Francisco, where what gets approved and who occupies those spaces is largely being dictated by private developers who are more interested in their bottom lines than with the creation of a vibrant urban environment where people are valued as more than mere consumers or workers.

San Francisco isn’t alone in allowing national chains to increasingly dominate commercial spaces. In fact, Stacy Mitchell, a researcher with the Institute for Local Self-Reliance, said that until recently San Francisco was one of the best big US cities in controlling the proliferation of chain stores.

But the city has lost ground since its anti-chain high water mark in 2007, when voters approved Proposition G, which expanded the controls on formula retail outlets — generally requiring them to get a conditional use permit and go through public hearings — that the Board of Supervisors had approved in 2004.

Those controls are only as good as the political will to reject a permit application, and that doesn’t happen very often. A memo prepared last July for the Planning Commission — entitled “Informational Presentation on the Status of Formula Retail Controls” — found that of the 31 formula retails applications the city received since 2007, just three were rejected by the commission, six were withdrawn, and 22 were approved.

It’s gotten even worse since then, as the two Targets and other chains have been courted and embraced by Mayor’s Lee’s administration, whose key representatives didn’t respond to Guardian interview requests by press time.

Mitchell said it’s not nearly as bad in San Francisco as it is in Chicago, New York City, New Orleans, and other iconic US cities whose commercial spaces have been flooded with chains since the recession began.

“It’s nothing compared to the no-holds-barred stuff going on in New York City right now,” Mitchell said. “Walking down Broadway now is like a repeating loop of the stores you just saw further up the street.”

It isn’t that these cities are actively courting the national chains in most cases. It’s just that in the absence of strong local controls, developers and large commercial landlords just prefer to deal with chains, for a variety of reasons.

“If you’re just going with the flow of what developers are doing,” she said, “you always end up with national chains.”

And that’s what San Francisco has started to do.

 

 

MALLS LIKE CHAINS

Stephen Cornell, the owner of Brownie’s Hardware and a board member of the nonprofit advocacy group Small Business California, said chains have a huge competitive advantage over local businesses even before either one opens their doors.

“In general, landlords tend to like chains more,” said Cornell, whose business has struggled against Lowe’s and other corporate competitors. “The landlord always worries: is this guy going to make it and do they have the funds to back it up?”

Big corporate chains have lawyers and accountants on staff, and professional systems established for everything from buying goods to opening new stores, whereas most local entrepreneurs are essentially figuring things out as they go along.

“They’re very good at selling themselves,” Cornell said. “They’re going to manipulate the system perfectly, whether it’s the city and its codes or dealing with neighborhood merchants.”

And for large malls, Cornell said the problem is even worse. Brokers that fill malls have standing relationships with the national chains — most of which are publicly traded corporations seeking to constantly expand and gain market share — and no incentive to seek out or take a chance on local entrepreneurs.

“Chains have a lot of advantages,” Cornell said.

Mitchell said there are two main ways in which malls favor national chains over local businesses. In addition to the relationship between mall brokers and national chains, malls are often built with financing from financial institutions that require certain repayment guarantees.

“What they want to see are credit-worthy clients signed onto those places, and that means national chains with a credit rating from Standard & Poors,” Mitchell said, noting how that “automatically locks out” most local businesses.

Cornell also noted that national chains have already figured out how to maximize their efficiency, which keeps their costs down even though that often comes in the form of fewer employees with lower pay — and less reliance on local suppliers, accountants, attorneys, and other professionals — which ends up hurting the local economy. In fact, big chains suck money out of the city and back to corporate headquarters.

“All those people are making money and spending money here, so you have to look at the full circle,” Cornell said.

Mitchell said there are often simple solutions to the problem. For example, she said that city officials in Austin, Texas recently required the developer of a large shopping mall to set aside a certain percentage of the units for locally owned businesses.

So rather than hiring a national broker to find tenants, the developer hired a local broker to contact successful independent businesses in the area who might be interested in expanding, and the project ended up greatly exceeding the city’s minimum requirements.

Mechanisms like that, or like the formula retail controls pioneered in San Francisco, give her some hope. But she said, “Whether the counter-trends will be enough to counter the dominant trend, I don’t know.”

 

 

PUBLIC SUBSIDIES

The increased malling of San Francisco isn’t simply the result of official neglect. Often, the city’s policies and resources are actively encouraging the influx of chain stores. A prime example is the massive redevelopment project on Hunters Point and Candlestick Point that city voters approved in 2008 after mega-developer Lennar and most San Francisco political officials pushed the project with a well-funded political campaign.

“If you’re selling the land to Lennar for a dollar, and then building all the automobile infrastructure for people to get there, then that’s a massive public subsidy,” Radulovich said of the big-box mall being built on what was city-owned land on Candlestick Point.

That public subsidy creates a cycle that makes San Francisco less intimate and livable. Creating commercial spaces on the city’s edge encourages more people to drive on congested regional roadways. These spaces are filled with national chain stores that have a direct negative impact on small, locally owned stores in neighborhood commercial districts all over the city, causing some of these businesses to fail, meaning local residents will need to travel further for the goods they once bought down the street.

“Those neighborhoods are going to be less walkable as a result,” Radulovich said, noting how the trend contradicts the lip service that just about every local politician gives to supporting local businesses in neighborhood corridors. “There’s a certain schizophrenia to San Francisco’s economic development strategy.”

Sup. Eric Mar has been working with Jobs with Justice San Francisco and other groups to tweak city policies that have allowed the chains to proliferate. Last year, Mar held high-profile hearings in City Hall on how national chains impact local businesses, which pointed to the need for additional protections (see “Battling big box,” Jan. 3).

This year, he’s working on rolling out a series of legislative initiatives designed to level the playing field between local interests and those of Wall Street and the national chains it champions.

Last month, the Board of Supervisors approved Mar’s legislation to add banks to the city’s formula retail controls, a reaction to Chase Bank and other national banks snapping up vacant stores in neighborhood commercial corridors such as Divisadero Street.

Now he’s working on legislation that would mandate minimum labor and community benefit standards for chain stores — including grocery outlets such as Fresh & Easy — and study how chains affect San Francisco’s overall economy.

“There should be good neighbor policies when they come into a neighborhood,” Mar said. “Some neighborhoods are so distressed they may want a big box grocery story coming in, but we need to try to mitigate its negative impacts.”

One of his partners in that effort is his brother, Gordon Mar of Jobs with Justice, who argues the city needs to have a clearer picture of how national chains impact local communities.

“We’ve definitely seen an increase in corporate chain stores coming into San Francisco in the last year, and nobody has really been tracking it,” he said.

While the Planning Department’s quarterly pipeline report shows that applications for retail outlets has held steady at about 3 million square feet on the way in recent years, it doesn’t break out how much of that is national chains — let alone how that impacts the city’s economy and small business sector.

The city’s Legislative Analyst is now studying the matter and scheduled to release a report later this summer, which Gordon Mar said will be helpful in countering the narrow “jobs” rhetoric that now dominates City Hall.

“They are exploiting the economic recession by saying they’re bringing much needed jobs into the city and serving low-income residents,” he said. “But when you bring out the facts about the impact of these low-road retail stores on neighborhoods and small businesses, there is a net loss of jobs and a lowering of labor standards.”

 

 

VALUING MALLS

Yet the fate of those controls is uncertain at best, particularly in a tough economic environment in which the city needs revenue, people are desperate for jobs, and many residents have seen their buying power stagnate, making the cheap goods offered by Target and Walmart more attractive.

“It’s complicated stuff,” Michael O’Connor, a local entrepreneur and former member of the Small Business Commission who favors formula retail controls, told us. “Stores like Target do appeal to lower income families…The progressive agenda needs to understand that working-class families need somewhere to shop.”

O’Connor acknowledges how small businesses like those he owns, including a clothing store, often can’t compete with national chains who buy cheap goods in bulk. So he said he favors protections in some neighborhoods while allowing chains in others, telling us, “I don’t have a problem with the Target going into the Metreon.”

That argument also held sway with city officials when they considered approving the CityPlace project two years ago, which was presented as a mall filled with “value-based” stores that would be affordable to median income San Franciscans.

“At the time, the decision was around whether a value-based retail operation made sense in that location, and the answer was an emphatic ‘yes,'” Barbary Coast Consulting founder Alex Clemens, who represented the project, told us.

On a national or global level, there are good arguments against reliance on national chains selling cheap imported goods, which has created a huge trade deficit between the US and countries such as China that costs American jobs — ironically, the very things that some use as arguments for approving chain stores.

“The recession has created a climate of desperation where cities are more easily swayed by the jobs argument,” Mitchell said, noting the falsity of those arguments by pointing to studies showing that the arrival of chain stores in cities usually creates a net loss in employment. Finally, supporters of chain stores say the cash-strapped city needs the property and sales tax revenue “Because they say they’ll produce a lot sales tax revenue, they’re going to get away with all kinds of shit,” Cornell said, arguing that shouldn’t justify city policies that favor big corporations, such as tax breaks and publicly financed infrastructure. “I certainly don’t think [city officials] should be giving them any advantages.” There are few simple solutions to the complex and interconnected problems that result from the malling of San Francisco and other cities. It’s really a question of balance — and the answer of whether San Francisco can regain its balance has yet to be answered. “Given the mayor’s approach to economic development, it’s inevitable that we’ll have more coming into the city,” Sup. Mar said. “But the ’50s car culture, and the model of malls that came in the ’60s, don’t build communities or strong neighborhoods.”

What if the mayor lied?

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EDITORIAL The case Mayor Ed Lee is presenting to the Ethics Commission is no longer about whether Sheriff Ross Mirkarmi injured his wife, Eliana Lopez, or whether his actions were atrocious and unacceptable. Those facts are not in dispute — although Mirkarimi pled guilty to a less-serious misdemeanor, he has not denied that he grabbed Lopez’s arm and squeezed hard enough to leave a bruise. Even his strongest defenders aren’t condoning that or dismissing the seriousness of this incident of domestic violence.

Much of the evidence Lee has presented goes to different issues — for example, the allegation (so far, without any proof) that Mirkarimi sought to dissuade witnesses from coming forward .

And formally, the question Lee is raising is a larger one: Did Mirkarimi’s action rise to the level of official misconduct — or, in the words of Lee’s testimony, did his conduct “fall below the standard of decency, good faith, and right action that is impliedly required of all public officials?”

Now Lee is facing that same question. It’s something the commission needs to address — not only because it goes to the heart of this particular case but because the public has a right to know if the mayor of San Francisco lied under oath on the witness stand.

In fact, now that two credible witnesses — one a city commissioner, the other a former supervisor — have made public statements that indicate Lee was dishonest in his testimony, the District Attorney’s Office should open an investigation. Perjury is a felony crime — and while it’s hard to prove, there are critical facts that are missing. The only witnesses who have direct (non hearsay) corroboration have been unwilling to discuss the matter in detail, and only the DA and Ethics have the ability to issue subpoenas and ask them the key questions under oath.

Lee testified that he hadn’t discussed the case or his deliberations over filing charges with any member of the Board of Supervisors. But Building Inspection Commission member Debra Walker told reporters that her friend and ally, Sup. Christina Olague, had recounted having a conversation with the mayor on that topic right before the charges were filed. Olague denies that, but has declined further comment.

Then Lee testified that he never offered, or authorized anyone in his office to offer, a job to Mirkarimi in exchange for his resignation. Former Sup. Aaron Peskin says Lee ally Walter Wong approached him and asked him to convey exactly such an offer to the sheriff on behalf of the mayor. Peskin recalls the exact date, time and place of his meeting with Wong, and he mentioned the offer to Guardian reporters long before this trial began. Wong has declined to speak to reporters.

So at the very least, there are grounds for the commission members to allow Mirkarimi’s lawyers to question Olague and Wong — and if either of them contradicts the mayor’s sworn statement, it would raise serious doubts about Lee’s credibility. And that’s central to the official misconduct case: Mirkarimi’s lawyers argue that the sheriff was never given due process and that the mayor never tried to learn Mirkarimi’s side of the story. The mayor says Mirkarimi refused to tell that story. The commission vote could hinge on that dispute — and if Lee lied about other parts of his testimony, it would be fair to question everything he said. And if Lee can’t hold himself to the standards of decency and good faith, the voters need to know that.

And whatever the outcome, it’s clearly time for the supervisors to look at the City Charter section on official misconduct. Because the current law allows the mayor to suspend and charge any elected official in the city, entirely on his or her own discretion — but there’s no way (short of a recall election) to charge, impeach, suspend or remove the mayor. It’s an imbalance that gives the chief executive extraordinary powers with little accountability. That’s not good government.

Hearing could work out flaws in Lee’s housing trust fund proposal

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Mayor Ed Lee’s proposed Housing Trust Fund charter amendment — which he proposed during his inaugural address in January — will be up for review before the Board of Supervisors Rules Committee tomorrow (Wed/11) in the hopes of making its way onto the November ballot. The meeting is at 1:30pm in City Hall Room 263.

The measure, which would guarantee money for affordable housing for the next 30 years, was drafted primarily by the Council of Community Housing Organization (CCHO) and the Mayor’s Office, but included input from housing developers, the San Francisco Planning and Urban Research Association (SPUR), and some supervisors.

Supporters intend the housing trust fund to provide a consistent stream of funding that guarantees $1.2 billion over a 30-year period for affordable housing. Each year the fund would take in between $20 million and $50 million. In addition to building new housing, it would create a $15 million homebuyers assistance program, doubling the current funds, and a $15 million home stabilization fund to help homeowners facing foreclosure. But Lee hasn’t convinced his business community allies to adequately fund the measure and there are doubts about its revenue projections.

Sup. John Avalos is cosponsoring the measure and helped draft some content, but he isn’t ready to vote for it yet. He is concerned with some of the big concessions the measure grants to market-rate developers, which could end up actually hurting existing affordable housing programs.

“I am watching closely,” Avalos said, “to make sure we don’t give too much away.”

Here are the three concessions: 1) High-rise residential developers would be allowed to pay inclusionary housing fees for affordable housing after construction instead up upfront. 2) Low to mid-rise developers would have the percentage of onsite affordable housing unit requirements lowered from 15 percent to 12 percent. 3) Developers of small five-to-nine-unit buildings would no longer have the inclusionary housing fee or the onsite affordable housing requirement.

The housing trust gets its funding by trying recapture the disbanded Redevelopment Agency’s bond repayments and hotel tax funds, but Fernando Marti of CCHO doesn’t believe that would capture nearly as much as Lee hopes. Marti estimates that the money would eventually lead to $13 million a year, which is a far cry from the previous $50 million needed.

Marti said the rest of the funding he hopes will come from the two competing business tax reform measures developed by Lee and Avalos, although Avalos has make clear that the $40 million his measure would raise is intended for the General Fund to maintain city services that have been cut in recent years. Lee’s measure would generate $13 million that he would earmark for the housing trust fund.

Marti said if the housing trust is approved by voters but the business tax reform fails, Lee has inserted language into the measure that would allow him to unilaterally abolish the housing trust fund. Marti said the CCHO doesn’t want the money for the housing trust to come out of the cash-strapped general fund.

Avalos is skeptical of Lee’s approach, telling us, “That doesn’t sound like anything I’d vote for.”

If Mayor Lee lied

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What’s going to happen to Mayor Ed Lee?

That’s the big question after a series of news reports have suggested that the mayor was less-than truthful under oath in his statements to the Ethics Commission. If he actually lied on the stand, that would be considered perjury, which is a felony.

But the reality is that the mayor’s not going to jail. First of all the District Attorney’s Office would have to investigate and file charges — and does anyone really think this DA, George Gascon, is going to subpoena Walter Wong and demand that he talk under oath about his interactions with Lee (who is a close friend)? I think Gascon ought to do it; there’s clear evidence that a crime may have been committed, and the public has a right to know about it, but I suspect that will never happen.
And even if the DA pushed, and Wong told the truth, and the truth contradicted the mayor, would a jury believe Wong over Lee?

It’s really hard to prove perjury. Maybe one of Lee’s staffers talked to Wong and the mayor wasn’t directly involved. Maybe the recollections of the two men have faded in the past few months. Maybe the mayor’s defense would be able to throw up enough chaff that nobody in the courtroom could figure it out.

So it’s not going to be about a criminal case against the mayor. But the revelations of what’s gone down here go far beyond any possible perjury indictment.

For starters, Ross Mirkarimi’s lawyers have every right and responsibility to demand that the Ethics Commission members hear from Debra Walker, Walter Wong, and — I would argue — every member of the Board of Supervisors. Here’s why:

The crux of Mirkarimi’s legal case at Ethics is that the mayor had no grounds to remove him from office — and that Lee never gave Mirkarimi due process or a chance to explain himself. The way the suspended sheriff tells it, the mayor never asked for an explanation of what happened that New Year’s Eve, never tried to talk to Eliana Lopez — never, in short, did any investigation into the incident before deciding the file misconduct charges (except for talking to Ivory Madison).

The way the mayor tells it, Mirkarimi refused to provide an explanation.

That distinction is critical, and the only basis for deciding what happened is for the judges — the commissioners — to use their best information and judgment about who’s telling the truth.

In other words, the mayor’s credibility is central to the entire case.

So if there’s any evidence that Lee lied about his discussions with Walter Wong or about whether he talked to any supervisors, then the commissioners would have the responsibility to consider that when evaluating the rest of his testimony. If you can’t believe everything he said, can you believe anything he said?

Some commissioners may argue that it’s not their business to determine if the mayor perjured himself, and on one level, that’s true — Ed Lee isn’t on trial here. But his credibility either makes or breaks the case. So the panel needs to hear from witnesses who can address that question.

Then there’s the much larger, more disturbing possibility that the mayor sought to influence (or might have been in a position to influence) members of the Board of Supervisors, who will be sitting as the final judges of Mirkarimi’s fate.

There’s a reason that the City Attorney’s Office has advised board members not to talk about the case. They’re sitting in a judicial role, and they can’t legally fulfill that obligation if there’s any indication they’ve already made up their minds. And if the mayor has talked to any of them — and there’s any indication at all that anything he said could be seen as seeking to influence their votes — well, in a courtroom you’d call that jury tampering. It’s a little different in a political forum, but still: Any supervisor who had a conversation with the mayor will be under pressure to recuse himself or herself — and every recusal helps Mirkarimi.

It doesn’t matter how many supervisors are in the room, in the country, recused or otherwise unable to vote — the mayor still needs nine to remove the sheriff. Three recusals and the whole thing collapses.

That’s why all of this is so fascinating and potentially explosive.

Oh,and by the way: When Lee set this process in motion, he should have known that he’d be testifying under oath and that anything he said or did might come out. You’d think he’d have been a little better prepared. 

So what’s going to happen to Ed Lee? Legally, nothing. But he may have done serious damage to his own case.

Perjury allegations against Lee gain more support

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San Francisco Democratic Party Chair Aaron Peskin has confirmed his role in extending a city job offer from Mayor Ed Lee to Sheriff Ross Mirkarimi if Mirkarimi had been willing to resign in March, bolstering allegations that Lee may have committed perjury when testifying under oath before the Ethics Commission on Friday.

But even as more media outlets report the possible perjury (a story we broke first here), which is further complicating the already complicated official misconduct proceedings that Lee brought against Mirkarimi, the Mayor’s Office and key Lee allies have refused to comment on the perjury allegations or the strange circumstances surrounding the alleged bomb threat that temporarily got Lee off the hot seat.

As we reported in this week’s Guardian, Building Inspection Commissioner Debra Walker said Lee was lying when he said that he hadn’t spoken with any members of the Board of Supervisors before charging Mirkarimi with official misconduct. Walker said Sup. Christina Olague told her she had spoken with Lee about the matter, which Olague now denies.

Lee also responded “absolutely not” when asked by Mirkarimi attorney Shephard Kopp whether he authorized Peskin or development consultant Walter Wong, a close Lee ally, “to convey to Sheriff Mirkarimi if he would stop down, you’d get him another job.”

At press time for this week’s article, Peskin was backpacking in the Sierras and couldn’t be reached, but he has now confirmed to the Guardian that he met with Wong at 11:30am on March 19 – just hours before Lee met with Mirkarimi to say he would be removed from office unless he resigned – at Cafe Trieste.

In that meeting, Peskin said Wong asked him to convey to Mirkarimi an offer from the mayor of a job with the San Francisco Public Utilities Commission or the Airport Commission if Mirkarimi would voluntarily resign. Asked whether Wong indicated that he had discussed the offer with the mayor, Peskin told us, “He certainly left me with that impression.”

Mirkarimi refused to accept the offer, insisting on fighting to keep his job, which was one factor in Peskin’s subsequent public statement calling for Mirkarimi to resign. “There were a lot of things that factored into that,” Peskin said of his call for Mirkarimi to step down, although he wouldn’t discuss other factors on the record.

Efforts by both the Guardian and the Examiner to reach Wong have been unsuccessful, and messages to the Mayor’s Press Office on this and related issues also haven’t been answered. But just as Walker has offered to do, Peskin said he’s willing to testify under oath if asked.

“I am prepared, if subpoenaed, to tell the truth, the whole truth, and nothing but the truth,” Peskin told us.

Lee hasn’t had any public events or made any public comments on the matter since the scandal broke on Friday. The other unanswered mystery is why Lee was whisked from the hearing room just 15 minutes into his testimony, shortly after making the statements that Walker alleges amounted to perjury.

As we reported, neither the SFPD nor the Sheriff’s Department ordered the room evacuated, meaning that decision must have been made by someone within the Mayor’s Office. Press Secretary Christine Falvey’s last statement to the Guardian, on July 2, said, “Again, the mayor’s office did not recess the meeting. I still have to refer you to the Police Department which maintains Mayor Lee’s security or the Ethics Commission about the decision to recess the meeting for (I believe) about 90 minutes.”

Yet neither body seems to know who made the call, and follow-up questions asking the Mayor’s Office to disclose any information they have about that decision have gone unanswered. District Attorney George Gascon — whose office would need to pursue the perjury allegations considering the city’s official misconduct rules don’t apply to the mayor — also didn’t return our call asking generally how allegations of this fashion should be handled.

The official misconduct proceeding continue in front of the Ethics Commission on July 18 and 19 when Mirkarimi’s wife, Eliana Lopez, is scheduled to testify. But that has also been complicated by the Mayor’s Office’s refusal to authorize payment for a plane ticket for Lopez to return from her native Venezuela to testify. Mirkarimi and his legal team say they can’t afford to pay for that plane ticket after Lee suspended Mirkarimi without pay.

RCV repeal effort gets tricky with three alternatives

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The Board of Supervisors is scheduled to vote on July 10 whether to place a controversial charter amendment on November’s ballot that would largely repeal San Francisco’s ranked-choice voting (RCV) system, but the outcome of that effort has become murky with the introduction of two competing alternatives.

The original charter amendment, sponsored by Sup. Mark Farrell, would eliminate RCV for all citywide elected officials, instead holding a primary in September and runoff in November. The board rejected an earlier effort by Farrell to repeal RCV, but Farrell came back with a modified measure that was co-sponsored by Sup. Christina Olague, much to the dismay of her progressive supporters, particularly Steven Hill, the father of RCV in San Francisco.

Hill said runoff elections in September, a month notorious for having low-voter turnout, will invariably favor the conservatives who always vote in high numbers. He said that RCV is a fairer representation of what voters want and a November election allows for more voters to be heard.

After widespread criticism from her progressive constituents, Olague publicly turned away from the measure, telling Hill and board members she would remove her name from it. Yet instead of removing her name, in a surprise move she proposed her own amendment to the charter, which only angered progressives more.

“Progressives are pretty furious with Christina right now because she is working with conservatives and went back on her word,” Hill said.

Olague’s proposal would eliminate RCV for only mayoral elections, with the primary still in September, even though she previously told the Guardian that she opposes having an election in September. Olague didn’t respond to email inquiries from the Guardian, but she has maintained in previous interviews that she is only trying to create a compromise between opposing parties on the board.

It’s unclear whether Farrell and the other center-right sponsors of his measure might back Olague’s alternative, but her colleagues who support RCV have put forward an alternative of their own. Board President David Chiu introduced another proposal amending Farrell’s measure that keeps RCV intact—more or less.

Although Chiu told the Guardian he thought the current RCV method has worked well for the city so far and that most people seem to understand how to use the system, he offered the amendment to address certain issues which have arisen because of Farrell’s measure and Olague’s amendment.

“My amendment addresses the concerns that have been raised in an appropriately tailored way,” Chiu told us.

Chiu’s proposal incorporates run-off elections for the top mayor candidates, but only after rank choice voting has narrowed the field to two candidates. It supports elections in November with the mayoral runoff in December.

However, this still allows for a second election, which RCV advocates think is a costly and unnecessary alternative that RCV was designed to eliminate – an imperative they see as more important than ever given court rulings that now allow unlimited spending by wealthy individuals and corporations to influence elections.

Although Hill isn’t happy with any repeal of the current voting methods, he said he reluctantly supports Chiu’s amendment.

“These are poorly made proposals,” Hill said. “It’s like being at the factory and watching sausage getting made.”

Hill fears that if Olague’s co-sponsorship of Farrell’s charter amendment or her own proposed amendment are approved by the board and allowed on the ballot in November that conservative money and power would most likely influence the election enough to pass the RCV repeal.

Guardian Voices: Stop and Frisk didn’t work last time

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Mayor Lee’s musings before the Chronicle editorial board, in which he revealed his thoughts about instituting a “stop and frisk” policy in San Francisco, set off a very quick negative responses from two of his high-profile supporters in the African American community, Willie Brown and Supervisor Malia Cohen. But that’s only part of the surprise the mayor will face if he pursues this policy.

It wasn’t a real good week for Mayor Lee, who seemed to repeatedly trip himself up:

— In  the chat about stop and frisk;
— In the admission at a Board of  Supervisors hearing by Sutter/CPMC that the economic modeling of the hospital chain’s proposed  project so undermined key elements of the deal that Mayor Lee demanded that it be redone;
— And in his testimony before the Ethics Commission on the Mirkarimi case that brought specific charges of  perjury he has yet to answer.

But the stop and frisk was the most sobering of the three, for it shows a fundamental misunderstanding of the very nature of the city that he seeks to govern and an astounding insensitivity to its not-too-distant past.

The last time stop and frisk was implemented by the San Francisco Police Department was in 1974, at the height of the “Zebra” murders during which, over a six-month period from the end of 1973 to the beginning of 1974, 16 whites were murdered and another six wounded (one of whopm was a young Art Agnos) in shootings using a similar caliber hand gun. What made sensational headlines was the fact that the six survivors all agreed that the shooters were  black. 

Mayor Joe Alioto, facing a steep decline in tourist visits to the city and a drumbeat of headlines, surprised eferyone by announcing a stop and frisk policy aimed at young Black males. Within the first week some 500 stops were made. Not a single Zebra suspect was found.

The San Francisco NAACP and ACLU quickly filed suit in Federal Court where the policy was banned as being un-Constitutional racial profiling. The Zebra case was broken using the time tested technique of offering a reward for information. An informant stepped up, and in the summer of 1974, four men were arrested based upon his information. In 1976 the four men were convicted –and the stop and frisk policy had nothing to do with either their arrest or conviction.  Nothing remained of the failed policy for 38 years.

What did remain was a deep and bitter memory of stop and frisk in the San Francisco African-American community — a memory neither Willie Brown nor Malia Cohen forgot.

If the mayor really believes that stop and frisk will work in the face of deep seated community resentment, based on actual local historic experience – for his remarks were all about “getting the guns” off the street in African American neighborhoods — then he has a profound misunderstanding of the nature of San Francisco.

San Francisco is perhaps one of the two or three most humanly diverse cities in North America. There is a bewildering mix of humans in our city, which confronts any policy based upon appearances — such as stop and frisk — with complexities that often render its actual use on the street ineffective. Simply stated, people are not as they seem in San Francisco, and many San Franciscans prefer to live no other way. Good cops understand this and work hard to learn who is who on the street. That’s called community policing and it often works in San Francisco.  

But many times it doesn’t. Let me tell you a personal story.

During the school year, I try to pick up my two grandsons, Jalius and Jacob, every Tuesday. We spend some time together walking from their school, George Peabody, in the Inner Richmond, to the 33 Stanyan bus stop at Clement and Arguello for a bus ride back to the Haight-Ashbury. We walk and talk and then wait for the bus and talk some more.

A few months ago, we were waiting for the bus, the boys sitting on the bench, me standing and talking. I noticed a cop across the street doing a foot patrol, talking to merchants and customers. He kept looking at us. He was Chinese and my grandsons are half Chinese.  Finally, he walked over to us and with a polite smile asked me why was I talking to these children.

I had an idea that was why he came over so I was expecting the question. I smiled back to him and said, proudly, “these are my grandsons, Jalius and Jacob”.  He looked at me and then turned to the boys and said “is he?” They said “yes” and he looked back at me and said “just doing my job,”  and turned and walked away.

And what a tough job it is as people are often other than they look in San Francisco. Old white men are not always what they seem, and young black men are not always what they seem, no matter how low they ware their pants. Policies based upon things being exactly as they appear will be overwhelmed by the human reality of the City of St. Francis.

There is a connection between people in this physically compact city of ours that forms a foundation for a common political outlook when it comes to personal and group rights and freedoms. San Francisco is a center-left city on matters of civil and human rights. Local elections have shown time after time that on civil and human rights the usual political divisions between the various parts of San Francisco don’t obtain. Trying to push a center-right stop and frisk policy on San Francisco will politically isolate Ed Lee, making all other parts of his agenda that much more difficult to accomplish. And as a city we need to get some big things done, quickly. Let’s move on, together, and get them done.

Davis launches D5 campaign with fortuitous timing

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When progressive activist Julian Davis formally launched his District 5 supervisorial campaign late last week with a well-attended kickoff party at the Peacock Lounge in Lower Haight, timing and circumstances seemed to be on his side.

Days earlier, Quintin Mecke – a rival for the progressive vote in this staunchly leftist district – announced to supporters that he needed to care for his ailing mother and wouldn’t be running after all. At the same time, appointed incumbent Christina Olague seemed to be rapidly falling from favor with many progressives.

First came the viral video of Olague gushing over all the support she’s received from Chinatown power broker Rose Pak during a fundraiser where she raised nearly $50,000, then her squirrely role in helping the moderates repeal ranked-choice voting, and finally the bizarre episode of clashing with a close progressive ally and friend to defend Mayor Ed Lee from perjury allegations.

Davis has sought to capitalize on the rapidly unfolding developments, today sending out a press release blasting Olague for having “joined the conservatives on the Board of Supervisors to repeal ranked choice voting for mayoral elections,” and telling the Guardian that Mecke’s exit will help clarify the choice D5 voters face.

“The fact that he’s out allows us to consolidate the progressive base,” Davis said, not mentioning that candidates John Rizzo and Thea Shelby will also be vying for the progressive vote.

At his kickoff party, Davis also demonstrated that he has substantial support from another significant D5 voting block – African Americans – for which he’ll be competing with political moderate London Breed, director of the African American Arts & Cultural Complex.

Davis said that with Olague’s support by Mayor Ed Lee and the city’s economic and political establishment, he’ll need to run a strong grassroots campaign based on “people power and shoe leather,” an approach that he’s also displaying with regular street corner campaigning.

“We’re at an economic, social, and political crossroads in San Francisco,” he said at his launch party. “Rogue developers are corrupting City Hall with a vision of luxury condos, corporate tax breaks, chain stores, and parking garages. It’s a vision of San Francisco that doesn’t include us. Everyday, progressive reforms are being dismantled and progressive values are being abandoned.”

Davis is hoping that Olague’s ties to Lee will drag her down in a district that voted almost 2-1 in favor of progressive John Avalos (whose campaign Davis actively worked on) over Lee in last year’s mayor’s race.

“Look what’s happening on the waterfront where Olague voted to approve the 8 Washington development. These are condos for the Kardashians, vacation homes for the ultra rich and the 1 percent. That’s not keeping it real for San Francisco,” he said at the kickoff. “So we’ve got to ask ourselves: how do they get away with it? The only way they can. By choosing your leaders for you. Over the past two years in San Francisco, we’ve had an appointed mayor, an appointed district attorney, an appointed sheriff, and an appointed District 5 supervisor. Does that sound like participatory democracy to you? Does that sound like your vote counts?”

And as Avalos also tried to do in his mayoral campaign, Davis says he wants to use his campaign to help restart the city’s progressive movement, which has been in tatters since being divided and nearly conquered by the politicians and political operatives who helped elevate Lee into Room 200 18 months ago.

As he told supporters, “We can re-launch the progressive movement in San Francisco from this district. We can take back City Hall. We will win this election with people power, street by street, block by block, neighbor to neighbor, shop by shop.”

Brown, Pak, and Olague

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Christina Olague was a great planning commissioner. I’ve always liked her, and when she was appointed we pointed out how strongly she was rooted in the progressive community.

Olague has strong progressive activist credentials, from working with the Mission Anti-Displacement Coalition to protect low-income renters during the last dot-com boom to her more recent community organizing for the Senior Action Network. She co-chaired the 2003 campaign that established the city’s minimum wage and has been actively involved in such progressive organizations as the Milk Club, Transit Riders Union, and the short-lived San Francisco People’s Organization.

She also served two terms on the Planning Commission — appointed by Board of Supervisors then-President Matt Gonzalez in 2004 and reappointed by then-President Aaron Peskin in 2008 — where she was known for doing her homework on complicated land use issues and usually landing on the progressive side of divided votes.

We’ve had some disagreements since she took office — particularly around 8 Washington. (I also disagreed with the Labor Council on that one, and only three of the supervisors agreed with me.) And it’s not the first time an elected official I supported turned around and infuriated me on a development vote.

I want Olague to succeed; I want her to come to us in the fall with a record that makes us want to endorse her for a full four-year term. She’s been talking seriously about violence in the district and about young people, predominantly African Americans, getting killed. I feel like she wants to do the right thing.

But her reelection effort is starting to feature some bad actors.

At a recent fundraiser in Chinatown, former Mayor Willie Brown, who ranks as one of the most corrupt public officials in modern San Francisco history and whose administration was a disaster for poor and working-class people (he once even said that poor people ought to just get out of town because this city is too expensive for them), stood up and made a speech, warmly endorsed Olague and said he would be with her “all the way.” Olague then thanked Rose Pak, the Chinatown power broker, for “all of her support over the last few months.”

This makes me nervous. And it hasn’t helped my nerves that I’ve been trying to talk to Olague about these issues for the last week, and she keeps avoiding the conversation by not returning calls or cutting conversations short when I do reach her.

Willie Brown, with his Chron column, has taken on this funny, warm, man-about-town persona, but when he was running City Hall, everything was about money. He cut deals right and left that destroyed communities and neighborhoods. He oversaw, aided and encouraged what we called the “Economic Cleansing of San Francisco.” Tens of thousands of working-class people, artist, writers, young people … were driven out of the city by a steamroller of gentrification — all with the mayor’s blessing.

Now he’s working as a private attorney, and last time we checked was getting $200,000 a year to represent PG&E. We have no idea what other big corporate clients he has or what he does for them — but it’s clearly not writing legal briefs and handling litigation. He gets paid for being a political fixer. For the bad guys.

And he’s going to be with Olague “all the way.”

Damn.

Under oath

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steve@sfbg.com

Mayor Ed Lee and suspended Sheriff Ross Mirkarimi each took some lumps on June 29 as they were cross-examined by opposing attorneys in front the Ethics Commission, which is conducting the official misconduct case that Lee brought against Mirkarimi over a Dec. 31 domestic violence incident. But the hearings proved unexpectedly dramatic when the room was suddenly cleared for an undisclosed security threat — following testimony by Lee that a city commissioner alleges included perjury.

The incident raises a number of issues that officials hadn’t yet answered by Guardian press time. Was the security threat real? If so, why wasn’t the room or the rest of City Hall properly secured after the mayor was whisked away? If not, who ordered the room cleared and why?

Undersheriff Paul Miyamoto, who ran against Mirkarimi last year, told the Guardian that the San Francisco Police Department notified his office that a caller claimed to have planted bombs outside of City Hall and on the Golden Gate Bridge. Deputies conducted a search and found nothing, and his office didn’t order the recess of the hearing. “We did not evacuate anyone,” he told us.

Speculation about the incident was heightened during the break when Debra Walker, a Mirkarimi supporter and longtime member of the city’s Building Inspection Commission, told the Guardian that Lee committed perjury when he denied speaking with any members of the Board of Supervisors before filing official misconduct charges. Lee was responding to a direct and pointed question from Mirkarimi attorney Shepherd Kopp — one that that Lee’s attorneys had unsuccessfully objected to.

Specifically, Walker said that her longtime friend and political ally Sup. Christina Olague — who Lee appointed to serve the last year of Mirkarimi’s term for the District 5 seat — had told her repeatedly that Lee had asked her advice before filing the charges against Mirkarimi, and that Olague’s advice was that Lee should ask for Mirkarimi’s resignation but drop the matter if he refused.

That allegation, which was first reported on the Guardian’s Politics blog shortly after the commission went into recess (Olague had not yet returned a call from the Guardian asking whether she had spoken to Lee about Mirkarimi), prompted reporters to confront Olague in the hallway outside her supervisorial office, where she tersely denied the allegation and then took refuge behind closed doors.

When the reporters lingered and persisted, waiting for a more complete answer, Olague finally emerged, reiterated her denial, refused to speculate about why her friend Walker would make that claim, and said, “We’re not allowed to discuss this matter with anyone before it comes to the board…I may have to recuse myself from voting on this.”

It was unclear why she thought recusal might be necessary, but if she does disqualify herself from voting on Mirkarimi’s removal later this summer after Ethics completes its investigation and makes its recommendations to the board, that would hurt Lee’s effort to get the nine votes needed to remove Mirkarimi.

When the Ethics Commission hearing resumed after a couple hours, Lee was again placed in a position of denying specific factual allegations that others have made, again raising the possibility that he committed perjury in his sworn testimony, which could expose him to felony criminal charges while undercutting his moral authority to remove Mirkarimi over the single misdemeanor count of false imprisonment that he pleaded guilty to in March.

The second instance was when Kopp asked Lee, “Did you ever extend any offer through third parties that you would find him another job if he resigned?”

“I don’t recall offering Sheriff Mirkarimi any job,” Lee replied.

Kopp specifically asked whether that job offer had been extended on Lee’s behalf by permit expediter Walter Wong or by San Francisco Democratic Party Chair Aaron Peskin, to which Lee replied, “Absolutely not.”

Mirkarimi supporters have told the Guardian that Peskin had made that offer, which Mirkarimi refused, shortly before the party chair publicly called for Mirkarimi’s resignation. The outgoing message on Peskin’s cell phone said he was unavailable and wouldn’t be checking his messages until July 5. Mirkarimi’s attorneys said they’re still figuring out how to respond to the developments and had no comment, but Walker said she’s willing to testify under oath.

But the dramas underscore the treacherous grounds opened up by these unprecedented proceedings, the first involving the Ethics Commission and the broadened definition of official misconduct placed into the City Charter in 1996. As baseball great Barry Bonds and former President Bill Clinton learned, being forced to testify under oath about sensitive topics can be a tough trap to negotiate.

 

MIRKARIMI TESTIMONY

Deputy City Attorney Peter Keith also seemed to be trying to spring that perjury trap on Mirkarimi as he took the stand on the morning of June 29 following an hour on the stand at the previous night’s hearing. Keith reminded Mirkarimi that he was advised not to discuss his testimony with anyone and asked, “Who have you spoken to since last night?”

“My attorneys,” Mirkarimi answered.

“What did you say to them?” Keith asked, drawing objections about attorney-client privilege that Commission Chair Benedict Hur sustained.

“Did you stop for coffee?” Keith then asked, seemingly concerned that Mirkarimi may have discussed his testimony with someone at the coffee shop that morning, which Mirkarimi denied. Keith let the allegation go but maintained an accusatory, hectoring tone throughout the next three hours that he had Mirkarimi on the stand, two more hours than he had told the commission he would need.

Much of the time was spent trying to establish support for the allegation that Mirkarimi had dissuaded witnesses and sought to thwart the police investigation, which was triggered by a call from Ivory Madison, a neighbor to whom Mirkarimi’s wife, Eliana Lopez, had confided. But the testimony yielded little more than the city’s unsupported inference that Mirkarimi must have directed Lopez and his campaign manager, Linnette Peralta Haynes, to contact Madison after she had called the police and urged her to stop cooperating with them.

Mirkarimi has maintained that he did nothing to dissuade Madison or anyone from talking to police, and that he wasn’t aware of the investigation or that Madison had made a videotape of Lopez showing a bruise on her arm until hours after the police were involved. He even sent a text to Lopez saying there was nothing he could do, as he noted.

“It was after 4pm on January 4 when I first learned of any of this,” Mirkarimi testified, later adding, “I was very clear to her in saying you can’t unring the bell, we have to follow through with this.”

Yet Lee and the deputy city attorneys who are representing him also maintain that they needn’t prove witness dissuasion or other allegations they have made, and that the Dec. 31 incident and Mirkarimi’s guilty plea to a single misdemeanor count of false imprisonment are enough to constitute official misconduct and warrant his removal, an interpretation that Mirkarimi’s attorneys dispute.

Keith sought to hammer home how Mirkarimi should have admitted to and publicly atoned for his crime right away rather than telling reporters it was a “private family matters” (which Mirkarimi admitted was a mistake) or fighting the charges by trying to discredit Madison publicly, an allegation he denies.

After unsuccessfully trying to get Mirkarimi to admit to directing efforts to question Madison’s credibility in local media accounts, Keith asked, “Did you ever direct anyone not to attack Ivory Madison?”

“I never directed anyone to attack or not attack,” Mirkarimi replied.

Keith also clarified that Mirkarimi denies the allegation Madison made that the physical abuse on Dec. 31 went beyond grabbing Lopez’s arm once in the car, as the couple has maintained. “It’s your testimony there was no punching, pulling, or grabbing in the house?” Keith asked, which Mirkarimi confirmed.

Yet Keith said that given the totality of what happened, Mirkarimi should have known he couldn’t continue on as sheriff. “Under those circumstances, wouldn’t resigning be the honorable thing to do?” Keith said, to which Mirkarimi replied that it’s a hard question and that he’s doing what he thinks is right.

Faced with friendlier questions from his own attorney, David Waggoner, Mirkarimi apologized for his actions, saying “I feel horrible and ashamed,” but that he was “sad and scared” to have his family torn apart against their will. He also said that he believes he can still be effective as sheriff because “what makes San Francisco special is our forward-thinking approach to criminal justice.”

Longtime Sheriff Michael Hennessey — who endorsed Mirkarimi and continues to support him — established a variety of programs emphasizing redemption and rehabilitation, hiring former convicts into top jobs in the department to emphasize a belief in restorative justice that Mirkarimi ran a campaign promising to continue.

“Never in my wildest dreams did I think I would be an example of what this redemption process looks like,” Mirkarimi said, choking back tears.

But Keith had the last word before Mirkarimi left the stand, belittling the idea that Mirkarimi offers an example to follow by noting how much probation time and court-ordered counseling he still has to undergo and asking, “The process of redemption doesn’t happen overnight, right?”

 

LEE ON THE STAND

Under questioning by Kopp, Mayor Lee admitted that he doesn’t have a written policy on what constitutes official misconduct, that his decisions are made on “a case by case basis,” and that he’s not sure whether conviction of a crime would always constitute official misconduct “because I’ve never confronted this before.”

“Were you aware that many members of the Sheriff Department have criminal convictions?” Kopp asked. Lee said he was not aware. Asked whether he was aware that Sheriff Hennessey had hired a convicted murderer into a top command staff position (see “The unlikely sheriff,” 12/21/11), Lee said he wasn’t.

Lee’s insistence that Mirkarimi’s crime makes him unable to deal effectively with other officials was also attacked by Kopp, who asked, “Isn’t it true that people get elected who have disagreements with other city officials?” He pointed out that City Attorney Dennis Herrera had nasty conflicts with Lee when they ran against each other for mayor last year, but that they’re working well together now.

Kopp also drilled into Lee about his decision to bring official misconduct charges before conducting an investigation or speaking with any witnesses besides Madison — an answer Lee blurted out just as city attorneys objected to the question. Much of Madison’s written testimony has been rejected by the commission as prejudicial hearsay evidence (see “Mayor vs. Mirkarimi,” July 27).

But the public’s perception of this case, if not it’s outcome, could turn on whether Lee is holding Mirkarimi to standards that he himself — as someone appointed mayor on a later-broken promise not to run for a full term — couldn’t meet. It was what Kopp seemed to be driving at before the bomb scare.

“You have asserted in your written charges that Sheriff Mirkarimi’s conduct fell below the standard of decency, good faith, and right action that is impliedly required of all public officials, correct?” Kopp asked.

“Yes,” Lee replied.

“We expect certain things of our elected officials, right?” Kopp asked.

After a long pause, in which Lee appeared to be thinking through his answer, he replied, “That’s generally true, yes.”

“And when the charter speaks of official misconduct, it doesn’t say we expect a certain standard for the sheriff, a different standard for the mayor, a different standard for the DA, a separate standard for the assessor, it just speaks in general terms about official misconduct for public officials, right?” Kopp asked.

Kaiser objected to the question on three counts, sustained on the grounds that it calls for a legal conclusion.

“Do you yourself believe there’s a separate standard for sheriff than for other elected officials?” Kopp asked, and this time the city’s objection was overruled and Lee replied, “It should be the same standard.”

“And would you agree with me that one of the things that is expected of elected officials is for them to be honest and forthright when dealing not only with their constituents, but with other elected officials?” Kopp asked, his final question before Chair Benedict Hur announced that the hearing would be suspended and the room would need to be cleared.

After the hearing reconvened, Kopp drew parallels to other city officials who remained on job after scandals, including former Mayor Gavin Newsom (who had an affair with a subordinate who was married to his campaign manager), former Sheriff Dick Hongisto (who was jailed for refusing to carry out a court’s eviction order), and current Fire Chief Joanne Hayes White (whose husband reported that she hit him in the head with a pint glass).

Asked about the latter case, Lee responded, “I don’t know all the circumstances around that and I don’t believe I was mayor at the time.”

 

Leaked documents add to CPMC’s credibility problems

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Three key members of the Board of Supervisors today presented what they say are documents leaked by a whistleblower within California Pacific Medical Center showing it will likely shut down St. Luke’s Hospital by invoking an escape clause in the development agreement that the Mayor’s Office negotiated and the board is now considering.

The CPMC internal financial documents sent to the supervisors Sunday from an anonymous whistleblower predict a financial scenario in which the operating revenue will fall below a 1 percent margin by 2018.  The predicted loss would allow CPMC to exit its 20-year commitment to St. Luke’s and close the hospital in 2020, just five years after its scheduled reopening.  Sups. David Chiu, Malia Cohen, and Christina Olague say they worry the financial shortfall would also limit CPMC’s charitable donations while its Sutter Health parent company cuts hundreds of hospital jobs to save a projected $70 million per year.

 CPMC has promised to seismically retrofit St. Luke’s and run it for 20 years. In return, the medical group gets to build a massive hospital on Cathedral Hill. Inserted into the deal is what Chiu calls the fine print, which states if CPMC operating margin falls below 1 percent for two years it may close the hospital. Chiu said CPMC presented the escape clause as a very unlikely event, occurring only in a catastrophic scenario.

Instead, the leaked documents present a negative operating margin as an incredibly probably situation that CPMC has known about for months and misrepresented to city officials. “CPMC knew it was possible and likely they would default on their commitment,” Cohen said, adding that her greatest grievance is CPMC’s refusal to do anything about the situation.

Cohen said the financial revelations aren’t surprising considering Sutter Health has a reputation for shady practices. She said we should all wonder how a supposedly not-for-profit corporation is able to make so much profit.

CPMC spokesman Sam Singer said the documents are fraudulent, flawed financial reports that CPMC threw away a long time ago. He suggested someone must have dug them out of the garbage in a conspiracy like fashion. Singer said the mayor had learned about the document a few weeks ago.

Chui said that may help explain why  the Mayor’s Office recently acknowledged it reentered negotiations with the CPMC after becoming concerned about the viability of St. Luke’s, telling supervisors it was based on CPMC’s revised revenue estimates, sparking a controversy during last week’s hearing.

Whatever the reason, the three supervisors want more time to investigate the matter.

“Let’s be clear,” said Cohen said, “these contract negotiations should be informed by actual financial information and not just by the word of CPMC leadership, which we’ve unfortunately found to be untrustworthy.”

 

 

Mayor and Mirkarimi testify in Ethics probe before dramatic disruption

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After Sheriff Ross Mirkarimi endured about four hours of questioning in his official misconduct proceedings, mostly from Deputy City Attorney Peter Keith, Mayor Ed Lee took the stand a little after 1pm. But just as Mirkarimi attorney Shepherd Kopp was beginning to pin Lee down on the selective manner in which he decided to launch these unprecedented proceedings, the commission suddenly announced the hearing was being suspended and the room would need to be cleared immediately.

There is speculation that there was a bomb threat or other security emergency, but officials have so far offered no explanation for the dramatic development or whether the hearing would reconvene today. Yet the room is still half-filled with journalists and audience members, some speculating that that the clearing of the room was simply an effort to get the unusually grim-faced Lee off the hot seat.

Kopp’s questioning included pointed questions about whether he consulted any members of the Board of Supervisors before deciding to bring official misconduct charges against Mirkarimi in March. The city’s objection was overruled after Kopp noted that the supervisors will ultimately decide Mirkarimi’s fate. Forced to answer under oath, Lee said no, he didn’t speak to any supervisors before filing charges.

But progressive activist Debra Walker says Sup. Christina Olague — women who are close political allies and speak regularly — has repeatedly told her that Mayor Lee asked her opinion before filing the charges. If true, that would mean Mayor Lee committed perjury, which is a felony. Yet as reporters confronted Olague outside her office, she denied ever speaking with Lee about the case and then barricaded herself in her office.

When the reporters lingered and persisted, she finally emerged, reiterated her denial, refused to speculate about why her friend Walker would make that claim, and said, “We’re not allowed to discuss this matter with anyone before it comes to the board…I may have to recuse myself from voting on this.”

It was unclear why she thought recusal might be necessary, but if she does that would hurt Lee’s effort to get the nine votes on the board needed to remove Mirkarimi.

We’ll have complete analysis of the testimony and other developments in next week’s Guardian.

 

CPMC’s new numbers threaten St. Luke’s and the mayor’s deal

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Can San Franciscans trust California Pacific Medical Center (CPMC) not to shutter St. Luke’s Hospital once the company gets what it wants from the city? And has the Mayor’s Office, in its desire to please the business community and building trades, accepted and promoted a bad deal that doesn’t adequately protect the city’s interests?

Those are some of the questions that arose Monday during a hearing on CPMC’s $2.5 billion, multi-hospital development proposal before the Board of Supervisors Land Use Committee when officials from the Mayor’s Office revealed that the development agreement they negotiated with CPMC might not be good enough to keep St. Luke’s open.

As we’ve reported, CPMC (a subsidiary of Sutter Health, a not-for-profit corporation that nonetheless has a well-earned reputation for profiteering and other bad corporate behavior) is seeking to build a 550-bed regional luxury hospital atop Cathedral Hill. In exchange, the development deal requires CPMC to rebuild St. Luke’s, a seismically unsafe hospital in the Mission District that is relied on by many low-income San Franciscans (as well as the city, which would otherwise have to shoulder more of that burden at General Hospital).

After years of stalled negotiations between CPMC and two consecutive mayors, Mayor Ed Lee announced a deal in March that would have CPMC build a smaller version of St. Luke’s (with just 80 beds) and agree to keep it open for at least 20 years as long as CPMC’s operating margins didn’t dip below 1 percent in two consecutive years.

Activists had criticized the deal as too small, too short, and without enough guarantees, but Mayor’s Office officials have consistently said they were confident it was enough to keep St. Luke’s from being shuttered. But now, based on new revenue projections offered by CPMC, even those officials have lost confidence in the deal and say it needs to be renegotiated.

“These new 2012 projections, while still showing CPMC will not breach the 1 percent margin, do not offer the same comfort level we previously had,” Ken Rich of the Mayor’s Office of Economic and Workforce Development told the committee.

The news hit like a bombshell, shaking the confidence of even supervisors who strongly supported the deal, such as Sup. Scott Wiener, who called it a “surprising, critical piece of information” and said, “It’s very, very important that this issue is quickly resolved.”

For supervisors who were already skeptical of the deal and CPMC – such as Sup. David Campos, whose District 9 includes St. Luke’s – it was further evidence that this was a bad deal that needed more work before being brought to the board. The Planning Commission has already approved the project and the full board was scheduled to consider it in just a few weeks.

“What does that say about the way the negotiation was done?” Campos told us. “How half-baked can something be? What have we done to verify the numbers that CPMC gave us? And what does this say about CPMC?…If the numbers on St. Luke’s aren’t accurate, how can we trust the rest of what they’re telling us?”

Yet during the hearing, when Campos tried to get reassurances from CPMC officials and requested that the board be allowed to review the company’s financial records, he was rebuffed and belittled by CPMC attorney Pam Duffy – who later tersely apologized for her comments after Committee Chair Eric Mar criticized them as “insulting to the board.”

Campos had questioned Rich about why the city was relying on CPMC rather than independently assessing the numbers. “Maybe if you had done an audit, you wouldn’t be in this position of being surprised by the numbers that were given to you,” Campos told Rich.

But Rich said “projections are guesses, we can’t ever guarantee that they are right,” noting that CPMC had revised its revenue estimates downward for the years after St. Luke’s would open (when it would be absorbing the high costs of construction), making its profit margin slimmer. “CPMC took a more conservative approach to forecasting the rate of increase in hospital charges as well as patient volumes in light of the greater uncertainty in health care finance,” Rich said.

So Campos asked whether the supervisors could review CPMC’s data. Rich, who has reviewed it, replied, “The conditions under which we were shown CPMC’s projections is that those are confidential.”

Campos noted that it is the board’s job to review and approval this deal to determine whether it’s in the city’s best interests, which shouldn’t simply involve trusting CPMC. “Why should the executive branch of the government see those numbers but not the legislative branch?” he asked.
“It’s really not our call,” said Rich, noting that he had no objections to the request.

But when Campos asked CPMC’s Duffy, she offered a legalistic refusal, and when Campos tried to explain his reasoning, she said, “I heard your speech a moment ago” and added, “this isn’t really a game of gotcha.”

When Campos said the board was simply exercising its due diligence over an important project. she said “nothing unusual or untoward has occurred here, and the suggestion that might be the case, I think it unfair.”

But Campos wasn’t alone in wanting more reassurance from CPMC, who supervisors, labor leaders, and community activists have criticized for its secrecy and bad faith negotiating tactics with both the city and its employee unions.

“This announcement is shocking, on a number of levels,” Board President David Chiu said at the hearing, noting that he had met with CPMC officials just days earlier and they hadn’t mentioned the new developments, instead assuring him that their operating margins were high and the deal protected St. Luke’s. “It’s not a great way to build the trust we’ll need to move this forward.”

Rich said he had learned of the new numbers 12 days earlier, drawing a rebuke from Campos and others who said the supervisors should have been notified earlier. But Rich said that he was hoping that the problem would be solved through negotiations with CPMC before the hearing, but that talks over the issue have so far been fruitless.

“We would have vastly preferred to have an agreement in hand,” Rich told the committee, reassuring the supervisors that the Mayor’s Office will not support the project until the St. Luke’s issue is resolved to its satisfaction.

But Sup. Malia Cohen criticized CPMC as an untrustworthy negotiating partner. “CPMC has an interesting corporate culture,” she said, noting that the company has repeatedly misled supervisors and community leaders, accusing it of being “disingenuous in its negotiations.”

Chiu emphasized that this is a make-or-break issue: “This is an escape clause that could allow St. Luke’s – and what St. Luke’s means to the city – to not be operational. So this is an incredibly important question.”

Campos said this latest episode only added to his suspicion that CPMC will play games with its finances to shutter St. Luke’s – whose construction must be completed before CPMC can build Cathedral Hill Hospital – once it gets the lucrative regional medical center that it really wants.

“How do we know they aren’t transferring money out of CPMC into Sutter in order to shut down St. Luke’s?” Campos said, adding that he wants to see a clear guarantee that St. Luke’s will remain open as a full-service hospital. “This deal, as far as I’m concerned, is not ready for prime time.”

Artificial turf project appealed as opponents decry use of kids as lobbyists

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As opponents of a controversial plan to install artificial turf soccer fields in Golden Gate Park appealed the project’s approval to the Board of Supervisors – with a hearing set for July 10 – they criticized how a soccer coach inappropriately used children to lobby for the project and raised hopes that a new alternative plan would be supported by supervisors.

Responding to the recently approved plan threatening to pave over seven acres of natural grass playing fields in Golden Gate Park, the main organizing opposition, SF Ocean’s Edge, and its attorney, Richard Drury, submitted the 300-page appeal to the board on June 12. The appeal challenges the environmental impact report, citing many of its inadequacies, including the renovation’s aesthetic and environmental inconsistencies with that of the Golden Gate Master Plan and its failure to consider other possibly better alternatives.

The Beach Chalet Athletic Fields Renovation was approved by the Planning Commission and Parks and Recreation on May 24 after a joint hearing that lasted more than six hours. During the hearing, opponents criticized many of the project’s features, but an especially outrageous concern came weeks afterward when a letter from an upset parent began circulating. In the letter, an angry father accuses a Vikings League soccer coach of using his unknowing son as a political pawn to support the renovation project.

“I was shocked and angered to learn that our eleven-year-old son was taken by his soccer coach, without our knowledge or consent, to attend the joint committee meeting in support of converting the Beach Chalet soccer fields to artificial turf.  He was one of the dozens of kids in team uniforms,” said the letter.

The parent said his son was picked up from school and was already dressed in uniform ready for practice but instead was taken to City Hall.

“It is really an outrage,” said Katherine Howard, SF Ocean’s Edge organizer, “to use children to further one’s own agenda instead of having an open and honest discussion.”

Renovation supporters argue that replacing the fields with artificial turf and bright lighting will allow children greater access and contribute to a growing need for more athletic fields throughout the City.

The letter accused the Vikings League of appointing itself speaker for San Francisco’s youth when not every parent or child agrees. And in this case, the boy was said to be in tears after the hearing.

“If my children were brought before a hearing for political purposes,” said Drury, “I would be livid.”

Drury and others maintained the park should be kept as a retreat from the pressures of urban life. Contained in the appeal is an alternative hybrid project that opponents are calling a “win-win solution.”

They propose renovating the playing fields at West Sunset Playgrounds with artificial turf and adequate lighting while keeping the Golden Gate Park fields natural with maintenance that includes adequate drainage and gopher control.

“It’s a very simple and very reasonable alternative,” Drury said, adding that the hybrid plan meets all the objectives of the city’s current proposal and wouldn’t increase the costs.

Although Parks and Recreation were uncooperative and refused to consider the hybrid plan, Drury and Howard feel optimistic about the appeal and think they will have better luck dealing with the Board of Supervisors.

Olague is the swing vote on voting system repeal

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Conservative Sup. Mark Farrell’s effort to repeal San Francisco’s ranked-choice voting system for citywide elected officials is headed to the Board of Supervisors tomorrow, and all eyes are on swing vote Sup. Christina Olague. She surprised her longtime progressive allies with her early co-sponsorship of the measure when it was introduced in March, but she’s now expressing doubts about the measure.

The board rejected an earlier effort by Farrell and Sup. Sean Elsbernd to repeal RCV outright, but then Farrell tried again with a measure that excludes supervisorial elections and has a primary election in September, and if nobody gets 65 percent of the vote then the two two finishers have a runoff in November.

“I’m not going to support something that calls for a runoff in September,” Olague told the Guardian, referring to the primary election, although she did echo the concerns from RCV’s critics who claim that it confuses voters. She also said that it hasn’t helped elect more progressives and that “some progressives I talked to aren’t 100 percent behind it.”

Such talk worries Steven Hill, the activist who helped create the voter-approved system, and who has been battling to shore up support for it in the face of concerted attacks by more conservative politicians, newspaper columnists, and downtown interests, all of whom preferred the old system of low-turnout, big-money December runoff elections.

“I think it’s working well. San Francisco saves a ton of money by not having two elections,” Hill said. He said downtown money will skew the runoffs elections even more in the wake of the Supreme Court’s Citizen United ruling allowing unlimited political spending. “With Citizen’s United,” he said, “they’ll just do a ton of independent expenditures.”

He said Olague had told him she intended to withdraw her co-sponsorship of the measure, but she hadn’t done so yet. Olague told us that she wanted to discuss the matter with Farrell before withdrawing her support, that she hasn’t been able to reach him yet, and that she’s been focused on other issues she considers more important, such as crime prevention.

The measure currently is being co-sponsored by the board’s five most conservative supervisors and Olague, meaning it will go before voters on the November ballot if they all remain supportive. Hill said that the measure may not be voted on tomorrow because of an administrative snafu dealing with noticing requirements, but the hearing would proceed anyway, possibly offering clues as to the measure’s chances of success.