Supervisors

Don’t water down campaign laws

2

EDITORIAL The San Francisco Ethics Commission, which is hardly aggressive about cracking down on campaign-finance violations, has suggested some rule changes that would water down the city’s ethics laws. The supervisors should reject most of the suggestions — and start talking about real reform.

The commission has asked Sup. Scott Wiener to bring the changes to the board, and Wiener told us that he has problems with some of them and is going to be working with his colleagues, particularly Sup. David Campos, to fix the package.

It will need a lot of amendments to be acceptable.

The current proposal would make life easier for campaigns and big donors, but would make it harder for the public to figure out who’s putting up the money and where it’s going. For example, it would exempt from the spending cap all money spent complying with the ethics laws. That sounds fair at first glance — but the amounts involved are huge. For a mayoral race, as much as $147,000 would be exempted. That’s a lot of money for “compliance.”

More important, the ethics proposal would eliminate the restrictions on how much a single donor can give in an election season. Right now, the cumulative limit is $500 for each office on the ballot, which limits the impact that a handful of big-money contributors can have on an election. Under the new rule, a wealthy person who wants to make sure that every politician in town owes him or her can donate the maximum to a long list of candidates, giving more power to a few.

Wiener says that under ranked-choice voting, donors should be able to give to more than one candidate for a single office. Fine — but the cap doesn’t have to be eliminated. It could easily be amended to account for RCV.

The plan would somewhat loosen the reporting requirements in the last days of a campaign, eliminating weekend disclosures. It would decrease the transparency rules for campaign committees that shuffle money back and forth to hide its true source. It would aalow more spending by independent committees with less disclosure.

In other words, it would undermine the ability of the voters to know who is funding which candidates and initiative campaigns. There’s no reason to do any of that.

The problem with the current law is not that it requires too much disclosure — it’s that, in many ways, the controls on political money are too weak. And if the supervisors are serious about reform, there’s plenty to be done.

Ethics laws currently bar anyone who is seeking a city contract from donating to local officials. But it’s still perfectly legal for someone seeking a permit or zoning change to throw around cash. And there are endless problems with developers who need city officials on their side. Extending the contribution ban to anyone seeking special zoning or permit approval for any project with construction costs above a certain threshold — say, $10 million — would exclude, say, homeowners who want to build a new deck, but would limit the role of real-estate money in campaigns.

The amendments need eight votes to pass; before it even gets to the full board, the Rules Committee ought to ship this mess back to the Ethics Commission and tell the supposed watchdogs to try again.

Vote yes on Prop A for competitive bidding for garbage and against Recology monopoly

12

As a reporter for the old Redwood City Tribune in 1965 or so, I got a call one day from the late  Luman Drake, then an indefatigable environmental activist in Brisbane.  “Bruce,” he said, “you are good at exposing scandals on the Peninsula, but you have missed the biggest scandal of them all. Garbage, garbage in the Bay off Brisbane, garbage alongside the Bay Shore going into San Francisco.”

He then outlined for me, his voice rising in anger, how the scavengers of an early era had muscled through a longtime contract to dump San Francisco’s garbage into the bay alongside the Bay Shore freeway.  And, he said, they are still doing it. Why can’t you fight it? I asked naively.

“Fight it, fight it,” he replied. “The scavengers are the most powerful political force in San Francisco and there’s not a goddamn thing we can do about it.” I checked out his story, then and through the years, and he was right.  Everyone driving in and out of San Francisco could watch with horror  for years as the scavengers kept dumping San Francisco garbage into a big chunk of the bay.  (Note the oral history from Drake and then Mayor Paul Goercke and others who fought the losing fight for years to kick out the scavengers from Brisbane.) http://legendarymarketingenius.com/oralhistorySBMW.html)

Five decades later, the scavengers are still a preeminent political power in San Francisco. The scavengers (now Recology) have operated since 1932 without competitive bidding, without regulation of its high residential and commercial rates, without a franchise fee, and without any real oversight. Finally, after all these years as king of the hill, Recology’s monopoly is being challenged by Proposition A, an initiative aimed at forcing Recology for the first time to undergo competitive bidding and thereby save city residents and businesses millions of dollars  in rates and service.

Let me say up front that I salute former State Senator and retired Judge Quentin Kopp and Tony Kelly, president of the Potrero Hill Boosters and the Guardian’s candidate for District l0 election (Potrero Hill/BayView/Hunters Point). They have taken this measure on when nobody else would, without much money or resources, and up against  a $l.5 million campaign by Recology and enormous, nasty political pressure.  I also salute those who publicly signed on to their brochure: Coalition for San Francisco Neighborhoods, San Francisco Tomorrow, SF Human Services Network, David Bisho,Walter Farrell, George Wooding, Irene Creps, Alexa Vuksich, the San Francisco Examiner, SF Appeal.com, and the Guardian. 

I was delighted to get a Yes on A brochure at my house in West Portal and find that Kopp and Kelly et al had money enough to make a strong statement in a strong  campaign mailer.  Kopp and Kelly persuasively summarized the key points for A and against more galloping  Recology monopoly in the brochure.  Meanwhile, the  Recology forces have been  using  gobs of money, a massive mail campaign, robot calls, and deploying the kind of political muscle their predecessors used to keep dumping garbage in the bay off Brisbane for decades. Since the Yes on A camp has trouble cutting through the cannonading and the flak, let me lay out the A  arguments verbatim from its brochure.

Question in the brochure:  “Why is Recology spending millions to buy this election? Recology has contributed $l,580,292.70 against Prop A. (Form 460 SF Ethics Commission.” Answer in the brochure;  “So they can raise your garbage rates after the election! ‘San Francisco Prepares For Recology to Raise Garbage Rates’ (Contract is Proof Recology Plans to Hike Garbage Rates Following Election’”) Then they laid out l0 reasons to vote Yes on A.

1. “71 Bay Area cities have competitive bidding or franchise agreements for garbage services. Because San Francisco doesn’t, residential trash collection rates have increased 136% in the last 11 years, with another massive increase coming after the election! We pay more than twice as much for garbage and recycling as San Jose, a city with twice the land and about 400,000 more people.

2. “The garbage collection/recycling monopoly now grosses about $220 million per year from the city’s residents and businesses, without any regulation of commercial rates.

3. “How did we end up paying so much? In 2001 the monopoly requested a 52% rate increase, Department of Public Works staff recommended 20% and the then DPW director (now Mayor) Ed Lee granted a 44 %rate increase. That’s why the Examiner said: ‘no-bid contracts generally make for dirty public policy, and this includes…The City’s garbage collection monopoly…’

4. “Don’t believe the monopoly’s 78% recycling rate claim backed only by its puppet city department. A former Recology recycling manager has testified under oath that fraudulent reporting, excessive state reimbursements and even kickbacks to and from Recology employees are behind this bogus claim.  Another ‘whistleblower’ has revealed that even sand removal from the Great Highway was included in this 78%.

5. “With a far smaller population, Oakland receives $24 million each year as a franchise fee, which supports city services and prevents other tax and fee increases.  San Francisco receives zilch from the monopoly holder in franchise fees for our General Fund.

6. “Proposition A is on the ballot through citizen/ratepayer time and effort, in the face of intimidation and harassment by the monopoly’s agents and its multi-million dollar campaign against it.

7. “Proposition A is simple: it authorizes the Director of Public Works and the Board of Supervisors’ Budget Analyst to prepare competitive bidding regulations for residential and commercial collection, recycling, and disposal, by modifying an outdated 1932 ordinance.

8. “Like all other competitive-bid city contracts, the winning garbage service bid will be ratified by the Board of Supervisors without any political tinkering.  The winning bid will contain the best deal for city ratepayers.

9. “If the monopoly is truly the corporation portrayed in its expensive campaign to defeat Prop A, it would easily win every bid.  As the Examiner stated last year, ‘…contracts won by competitive bidding are always better for the public in the long run.’

10. And then the list of endorsers ‘and tens of thousands of other ratepayers.’”

Kopp and Kelly et al are providing a major public service by challenging an arrogant monopoly of an essential public service and keeping alive the concept of competitive bidding on city contracts in San Francisco.   I drink to them from a pitcher of Potrero Hill martinis. Vote early and often for Prop A.  B3

Election turnout expected to be less than 40 percent

2

If they held an election and nobody noticed, would it still count? Because that’s what this Tuesday’s presidential primary election is starting to feel like: the election that everyone ignored.

Okay, okay, not everyone is ignoring this election. San Francisco Elections Director John Arnst tells us that his department has received about 55,000 mail-in ballots so far out of the nearly 217,000 they sent out, a turnout of about 25 percent. And 1,110 voters have cast their ballots in person during early voting at City Hall as of this afternoon, a level lower than the 2010 or 2008 primaries “by quite a bit,” Arnst said.

That’s not really surprising given that both major political parties have already chosen their presidential candidates, there are no other offices being seriously contested, and the rest of the ballot consists of the Democratic County Central Committee (and its Green and Republican parties counterparts) races and a pair each of ho-hum statewide and local ballot measures. The most interesting one is Proposition A, which seeks to break Recology’s waste collection monopoly in San Francisco by requiring competitive bidding.

“If the garbage issue is the most exciting issue on the ballot, you know it’s the most boring election ever,” says Tony Kelly, who is leading the campaign for Prop. A.

With the exception of a press conference that Kelly and other Prop. A supporters held last week to accuse Recology of being complicit in an alleged recycling kickback scheme by some of its employees, there’s been little to indicate Prop. A has much chance of success given that almost every endorsing group (except the Guardian) opposes the measure.

“Goliath doesn’t lose very often, and we’re being outspent 100 to one,” Kelly said, expressing hopes that the measure can at least garner 35-40 percent of the vote to send a message that Recology should work with the city to allow competitive bidding on some of its contracts.

But with turnout expected to be low, Recology isn’t taking any chances. Its political consultant, Eric Potashner, says the campaign has been assembling up to a couple hundred volunteers and its SoMa headquarters each weekend and “we’re doing the full grassroots outreach.” He expressed confidence that the measure will be defeated: “Folks have been well educated on this issue.”

Arnst estimates that this will be a historically low turnout election: “Top end right now, comparing the last three presidential primaries, I’m looking at 40 percent as the top turnout possible.”

But you know what that means, right? Your vote could be more decisive than ever, particularly for the 24 members of the DCCC, the outcome of which could move the ideological center of that body before its important endorsements in the fall Board of Supervisors races. So click here to take a look at the Guardian’s endorsements and don’t forget to vote.

Sup. Cohen answers some Impertinent Questions on sunshine

1

b3 Note:  I sent some Impertinent Questions to the supervisors who voted against Bruce Wolfe, an excellent task force member,  and for Todd David (See other sunshine blogs.) To their credit, Sups.Elsbernd and Malia Cohen responded, Sup. David Chiu said he could not make the deadline but would reply with a new deadline.  Sups.Wiener and Farrell and Carmen Chiu have not responded.

Dear Bruce –
It was nice to see you the other night at the Potrero Hill Boosters dinner. I believe very strongly in the Sunshine Ordinance, transparency and efficiency in government. I also believe that the Sunshine Ordinance Task Force is an essential component of ensuring that our City departments are open with members of the public. As I mentioned in my comments on Tuesday, I have significant concerns with opinions of some of the Task Force’s members that the City Charter does not apply to them in the same manner as it applies to all other elected and appointed bodies in the City. I also have concerns about the inefficiency of Task Force meetings and the process by which complaints are adjudicated. I was encouraged by the qualifications of a number of new applicants that applied to serve on the Task Force. In particular I believe that the newly appointed members bring a diverse skill set in consumer advocacy, media relations and community involvement in governmental issues. It has also been one of my commitments as a member of the Board of Supervisors to increase the diversity of the membership of our City’s appointed bodies, whether that be on the Small Business Commission, Entertainment Commission or the Sunshine Ordinance Task Force, and I believe that the new appointees bring a much needed level of diversity to this body. I also want to stress that we still have a number of seats that the Rules Committee has not yet recommended appointments to. I know that it is my intention and I would also bet that it is the intention of my colleagues to ensure that these remaining vacant seats meet the requirement to have a physically handicapped individual on the Task Force, as well as individuals who bring expertise and experience in the above mentioned areas.

Always at your service,
Supervisor Malia Cohen

B 3 comment: Your “strong” belief in the sunshine ordinance and task force is admirable but would be more so if you didn’t reject knowledgeable representatives from the organizations with open government and public access credentials and experience.  And if you weren’t voting for the big development projects that want as little sunshine as possible on their contracts and operations and lobbying. 

City attorney responds on sunshine task force attacks

4


B3 note: Here are responses from City Attorney Dennis Herrera to Impertinent Questions from B3 on why the city attorney helped facilitate the supervisorial attack on the sunshine ordinance and task force (See previous B3 sunshine blogs).

Regarding recommended SOTF candidates

Section 67.30 (a) of the San Francisco Sunshine Ordinance provides that the Sunshine Ordinance Task Force’s eleven voting members be “appointed by the Board of Supervisors.”  That same section designates that a total of four members be appointed by the Board from names submitted for consideration by: the local chapter of the Society of Professional Journalists; the League of Women Voters; and New California Media.  I’m informed that when the Board’s Rules Committee conducted its hearing and interviewed SOTF applicants, only one person was recommended for each seat by these entities.  The Rules Committee then continued action on those seats until the entities submitted additional names.  Legally, there is nothing problematic about such a continuance.

Regarding designated seats

Section 67.30 (a) includes specific designations for each of the seats on the SOTF.  It additionally provides that one of those seats be a person with a disability, although it does not prescribe which of the 11 seats be designated to a person with a disability.  I’ll be honest here: I’m not aware of whether Mr. Todd has a disability or not.  But given that the Board still has to fill four remaining vacant SOTF seats, it will comply with the Sunshine Ordinance so long as one of the SOTF seats is timely filled by “a member of the public who is physically handicapped and who has demonstrated interest in citizen access and participation in local government.”

Regarding public comment

Public comment occurs in board committees.  Each SOTF applicant spoke at the Rules Committee, and members of the public had the opportunity there to offer their comments on all of the applicants.  Although the Rules Committee forwarded six recommendations out of committee, the record transmitted to the full Board included the entire file — including all the other applicants.  The City Attorney’s Office has long advised the Board of its authority to amend appointing motions, and to instead appoint someone else, so long as that appointee’s name and application was before the Rules committee, and so long as it was subject to public comment.  That was indeed the case here.  At the committee level, applicants speak; members of the public speak about the applicants; and then public comment is closed.  The committee then decides on its recommended appointments — but public comment is not reopened to comment on the committee’s choices.  

Regarding the role of the City Attorney

With respect to your question about why the City Attorney is “allowing” certain actions by clients, I should briefly address the role of the City Attorney under San Francisco Charter § 6.102.  Beyond the particular set of circumstances addressed in this email, most questions about what the City Attorney “allows” or “disallows” really misinterpret the office’s function.  In many contexts over many years, the office has reiterated that “[t]he City Attorney is not a policy maker.”  (See: http://www.sfcityattorney.org/modules/showdocument.aspx?documentid=953 )  The City Attorney’s Good Government Guide (pages 19-21) addresses at length the role the City Attorney plays in providing legal counsel to the City and its elected officers, commissions and employees (See: http://www.sfcityattorney.org/Modules/ShowDocument.aspx?documentid=686 )  

This office provides legal advice to clients, while also acknowledging that the policy-making authority of the Board and Mayor includes the prerogative to assess for itself the relative legal risks of its actions, understanding that this office will defend its actions “so long as there are legally tenable arguments to support doing so.”  In that sense, the role is no different from that of any lawyer providing advice to a client: attorneys counsel; but clients, ultimately, decide.

Best,
MATT DORSEY
Press Secretary to City Attorney Dennis Herrera

B3 comment: The city attorney has made the case for the task force to get independent legal advice and to bring in an independent attorney to represent the task force. More: It is yet another reason to have an independent attorney as a task force member who is strong enough to go up against the city attorney as appropriate on critical issues.   This was the original reason for SPJ, with its experience in public access and First Amendment issues and litigation, to nominate an experienced attorney. This was the first time the supervisors rejected the SPJ nominee (and nominees from other organizations as mandated by the charter)  without a proper explanation or apology or a nice word of thanks. .He helped Willie Brownism prevail for the first time with the sunshine ordinance and task force.

Sunshine eclipse: Supervisors ramp up their war on sunshine

1

And so the San Francisco supervisors ramped up their war on sunshine on Tuesday (May 22) when they rejected five qualified candidates for the sunshine task force and substituted five in experienced in candidates with no experience or visible qualifications.

The key vote was to reject Bruce Wolfe, an experienced task force member, and substitute Todd David, a self-employed investor whose application for the task force said he had never attended a task force meeting and left blank the statement of his qualifications. Here’s the story I wrote for the current Guardian:

http://www.sfbg.com/2012/05/30/sunshine-eclipsed

Housing and highrise offices

0

EDITORIAL It's something of a civic shame that the only way San Francisco can build a new transit terminal is to sell a private developer the rights to stick a 1,070-foot highrise office tower on public land. In fact, it's a sad statement on the city, state, and local government: Once upon a time — and it wasn't the long ago — tax dollars collected through a progressive system paid for major infrastructure projects.

But there's no easy way to raise $4 billion in tax money for the Transbay Terminal — even though it ought to be seen as part of the high-speed rail project, and the federal and state government ought to be picking up the tab. So San Francisco ambles forward, selling land and lease rights to the highest bidder.

In this case, Gerald Hines of Houston won the right to build the largest highrise west of the Mississippi on property owned by the Transbay Joint Powers Authority. There are all sorts of drawbacks to the deal — among other things, it will cast shadows on a number of city parks, all the way to Portsmouth Square in Chinatown. Like any massive office complex, it will put pressure on Muni, on city streets, on police and fire and other city services — and no commercial office building ever pays its fair share of that burden. And since in this case the major recipient of the money from the project will be the TJPA, the city's General Fund will suffer.

Oh, and the building is ugly.

Meanwhile, city planners want to increase height limits all around the Transbay Terminal and allow hundreds of units of new (luxury) housing and more commercial office space. It's going to be a new highrise neighborhood, complete with a rooftop park and a few little patches of ground-level open space, which won't get a whole lot of sun, particularly in the morning and evening.

And at this point, there's been very little focus on what ought to be the defining issue of this and the other major developments on the city's planning horizon, and that's affordable housing.

This city has a terrible jobs-housing mix. The vast majority of the people who currently work in San Francisco can't afford to buy a house here, and many of them can only rent if they pay for more than the federal standard of one-third of their income for housing. So people who work in hotels and restaurants and city, state and federal offices and hospitals and even financial district companies wind up living far from the city and commuting. Nobody thinks that's a sound environmental policy.

And this kind of full-scale rezoning and development will only make it worse. According to the City Planning Department, the Hines project will pay about $27 million into the city's affordable housing fund, enough to pay for maybe 60 or 70 housing units. That won't even begin to cover the need created by the thousands of employees who will fill that tower. The market-rate housing on the site will almost certainly be beyond the reach of most San Franciscans, and probably many of the office workers who fill the Hines building. And only 35 percent of the new housing — at maximum — will be affordable.

San Francisco has to get a grip. The city can't keep allowing more high-end housing and highrise office space without a plan to meet its housing needs. We're glad to see the mayor talking about a $50 million a year fund, but that will barely meet existing needs; it can't possible keep pace with new development.

So before the supervisors rush ahead to approve this ambitious new downtown district, they need to ask Hines, and the TJPA, and any other developer who comes along, how it intends to meet the demonstrated need for affordable housing that these projects will create — and demand a much higher level of payment that what's currently on the city's books.

Sunshine eclipsed

1

As an advocate for the passage of the San Francisco Sunshine Ordinance in the early 1990s, I felt obligated to take my first and only City Hall position and serve as a founding member of the Sunshine Ordinance Task Force. I served for l0 years and helped with many other good members to build the task force into a strong and respected agency for helping citizens get access to records and meetings and hold city officials accountable for suppressing access and information.

The task force is the first and best local sunshine task force of its kind in the country, if not the world. It is the only place where citizens can file an access complaint without an attorney or a fee and force a city official, including the mayor, to come before the task force for questioning and a ruling on whether they had violated sunshine laws. The task force lacked enforcement powers, but it still annoyed city officials, including Mayor Willie Brown.

In fact, Brown spent a good deal of time trying to kick me off the task force. He used one jolly maneuver after another, even getting an agent to make a phony complaint against me for violating the ordinance with an email (The complaint went nowhere). I refused to budge and decided to stay on until Brown left office—on the principle that neither the mayor nor anybody else from City Hall could arbitrarily kick members off the task force.

That principle held until about 3pm last Thursday (May 17) at the meeting of the Board of Supervisors Rules Committee to appoint candidates to the task force. At that meeting, without proper notice, advance warning, explanation, apology, or even a nice word or two, the supervisors suddenly turned a normal drowsy committee meeting into an unprecedented bloodbath for the task force and its independence. Sup. Mark Farrell played the heavy, Jane Kim was the facilitating chair, and David Campos was the reluctant third party, working together to bring Willie Brownism back at the task force with a vengeance.

The committee rejected four qualified candidates from three organizations who are mandated by the Sunshine Ordinance to choose representatives for the task force because of the organizations’ special open government credentials. (Doug Comstock, editor of the West of Twin Peaks Observer; Attorney Ben Rosenfeld from the Northern California chapter of Society of Professional Journalists, sponsor of the ordinance; Allyson Washburn from the League of Women Voters and Suzanne Manneh from America New Media.)

The committee without blushing asked the organizations to come up with a “list of names,” a whiff of grapeshot aimed at members and organizations who had served the public well for years. Who wants to go before the supervisors on a list of names for a bout of public character assassination? Meanwhile, while knocking off the qualified, knowledgeable candidates, the committee approved four neophytes without experience and then unanimously appointed David Pilpel, a former task force member known for delaying meetings with bursts of nitpicking. He almost always comes down on the side of City Hall and against citizens with their complaints.

Farrell also tried to bounce Bruce Wolfe, an excellent member, but Kim and Campos supported him and his name was sent on to the full board for approval.

Then, when Wolfe’s name got to the board on May 22, it was a repeat of Willie Brownism and this time to the max. Sup. Scott Wiener moved to amend the motion and substituted Todd David. Farrell seconded. The vote was 6-5, meaning that Willie Brownism wiped the sunshine slate clean of anybody who would raise a pesky question of city officials and the City Attorney’s Office.

The infamous votes against Wolfe: Wiener (ah, yes, the heir of the Harvey Milk and Harry Britt seat in the Castro), Farrell (where is Janet Reilly when we need her?), Malia Cohen (who comes from the Potrero Hill/Bay View/Hunters Point district that needs all the sunshine it can get in facing an Oklahoma-style land rush of development), David Chiu (who was reportedly angry over the unanimous task force opinion finding he violated the Sunshine Ordinance with late submission of documents before the controversial vote to redevelop Parkmerced), Carmen Chu and Sean Elsbernd (neighborhood supes way out in West Portal and the Sunset who almost always vote the downtown line at City Hall). The good votes for Wolfe: John Avalos, Eric Mar, Cristina Olague, Jane Kim, and David Campos.

Campos told me that the organization candidates were “eminently qualified,” that they should have been appointed, and that he would fight for them. He advised the organizations to “stand by their candidates.” He is urging that the issue of organization candidates come back to the next Rules Committee.

Rick Knee, SPJ’s mandated journalist on the task force surveying the carnage, said the supervisors’ actions stem “partly from a desire by some supervisors to sabotage the task force and ordinance itself, and partly from a vendetta by certain supervisors after the task force found several months ago that the board violated local and state open meeting laws when it railroaded some last minute changes to a contract on the Parkmerced development project without allowing sufficient time for public review and comment.”

Knee is right, and it isn’t just Parkmerced, but all the high-stakes development deals flowing through City Hall these days, with their advocates preferring to cut backroom deals rather than being subjected to the full scrutiny of the public and the task force.

James Chaffee, a former chair of the task force, watched the board proceedings with outrage and fired off a letter to all supervisors later that day. He charged that the board in sacking Wolfe violated the Sunshine Ordinance on several counts. Among them: the board changed the committee recommendation on Wolfe without allowing public comment and it passed over Wolfe even though the ordinance requires at least one member of the task force to be “physically handicapped.” That was Wolfe.

Thus, Chaffee wrote, the orchestrated coup was “the perfect example of a failure to follow the sunshine ordinance that led to the sort of problem that it was intended to forestall, namely the supervisors taking an action without being informed of what they are doing.  If Scott Weiner and David Chiu and the rest of the crew did not consider the citizens the enemy and exercize judgment about whether they were complying with the spirit of open government rather than just shaving off the letter of the law as closely as possible, this could have been avoided.”

Chaffee said he couldn’t tell if David was physically handicapped but he said nothing in his application for the task force nor was any disability apparent from the video of the rules committee meeting.

Chaffee said David’s  application showed he  was “self-employed as an investor, obtained a BA from Stanford in 1993, has never attended a task force meeting, and left the statement of his qualifications blank.”

Chaffee said, “It’s easy to see why Scott Wiener likes him. He said it would be a long road before he would go against the city attorney’s office and when it came to constitutional law, he would place the city attorney’s opinion above his own because the city attorney is an ‘expert.'”

I sent Chaffee’s letter and my Bruce Blog post ( “The return of Willie Brown to the Sunshine Task Force,” 5/21) to City Attorney Dennis Herrera for comment: How can his office sit by while the letter and spirit of the sunshine laws are being violated in the move to sabotage the sunshine ordinance and task force? I also sent Chaffee’s letter, with the Bruce blog, to the supervisors with similar questions: Why  are you violating the sunshine laws to kick out the best candidates? For their answers (coming)  and the latest on this evolving controversy, follow along at  www.sfbg.com/bruce.

There you have it:  the state of sunshine and open government in city hall in San Francisco in May of 2012. Todd David over Bruce Wolfe. David  Pilpel uber alles.  Five inexperienced candidates over five experienced candidates. David Pilpel uber alles. A city attorney who rolls over and over and over again. And a whiff of grapeshot for the three organizations mandated by the charter to have represenatives on the task force  because of their open government and public access credentials (the Northern California chapter of the Society of Professional Journalists, the League of Women Voters, and America New Media.)  On guard,  b3

 

Julian Davis announces for supervisor in the key battleground district for progressives (5)

29

Julian Davis, a widely known progressive activist and organizer in San Francisco since 2002, declared Tuesday  his intention to run for supervisor in District 5, the city’s most liberal district and a battleground district for progressives seeking to regain control of the Board of Supervisors.

He joins eight other challengers to Sup. Christina Olague, appointed by Mayor Ed Lee to replace former Sup. Ross Mirkarimi. He was considered by many to be  the board’s most reliable progressive. He succeeded Matt Gonzales, a strong progressive.  The battle will center on which candidate will be the most reliable progressive vote–Olague,  whose votes are being carefully watched by progressives, or by one of her challengers.

Davis, a Bay Area native,  is a graduate of Brown University and UC Hastings College of the Law, where he graduated magna cum laude. He has worked in government and non-profit and legal sectors on community development, civil rights, social justice, public power, and environmental causes. He has worked on several candidate and ballot measure campaigns including John Avalos for mayor (20ll), Jane Kim for supervisor (2010), Prop H (2008), Clean Energy Act.) He also led a succeesful campaign in 2007 to free journalist Josh Wolf from federal prison for refusing to reveal sources in a demonstration he was covering.

“I was drawn to San Francisco by the creative energy and culture of the city–by what makes this place so special,” Davis said. “Over the past l0 years, I’ve devoted myself to developing healthy communities. I’m running for supervisor to keep the city a vibrant home for the every day people that make San Francisco real.”  b3

 

 

 

 

The battle of 8 Washington

tredmond@sfbg.com

More than 100 people showed up May 15 to testify on a condominium development that involves only 134 units, but has become a symbol of the failure of San Francisco’s housing policy.

I didn’t count every single speaker, but it’s fair to say sentiment was about 2-1 against the 8 Washington project. Seniors, tenant advocates, and neighbors spoke of the excessive size and bulk of the complex, the precedent of upzoning the waterfront for the first time in half a century, the loss of the Golden Gateway Swim and Tennis Club — and, more important, the principle of using public land to build the most expensive condos in San Francisco history.

Ted Gullicksen, director of the San Francisco Tenants Union, calls it housing for the 1 percent, but it’s worse than that — it’s actually housing for the top half of the top half of the 1 percent, for the ultra-rich.

It is, even supervisors who voted in favor agreed, housing the city doesn’t need, catering to a population that doesn’t lack housing opportunities — and a project that puts the city even further out of compliance with its own affordable-housing goals.

And in the end, after more than seven hours of testimony, the board voted 8-3 in favor of the developer.

It was a defeat for progressive housing advocates and for Board President David Chiu — and it showed a schism on the board’s left flank that would have been unthinkable a few years ago. And it could also have significant implications for the fall supervisorial elections.

Sup. Jane Kim, usually an ally of Chiu, voted in favor of the project. Sup. Eric Mar, who almost always votes with the board’s left flank, supported it, too, as did Sup. Christina Olague, who is running for re-election in one of the city’s most progressive districts.

At the end of the night, only Sups. David Campos and John Avalos joined Chiu in attempting to derail 8 Washington.

The battle of 8 Washington isn’t over — the vote last week was to approve the environmental impact report and the conditional use permit, but the actual development agreement and rezoning of the site still requires board approval next month.

Both Mar and Olague said they were going to work with the developer to try to get the height and bulk of the 134-unit building reduced.

But a vote against the EIR or the CU would have killed the project, and the thumbs-up is a signal that opponents will have an upward struggle to change the minds of Olague, Kim, and Mar.

 

DEFINING VOTES

The 8 Washington project is one of a handful of defining votes that will happen over the next few months. The mayor’s proposal for a business tax reform that raises no new revenue, the budget, and the massive California Pacific Medical Center hospital project will force board members to take sides on controversial issues with heavy lobbying on both sides.

In fact, by some accounts, 8 Washington was a beneficiary of the much larger, more complicated — and frankly, more significant — CPMC development.

The building trades unions pushed furiously for 8 Washington, which isn’t surprising — the building trades tend to support almost anything that means jobs for their members and have often been in conflict with progressives over development. But the Hotel and Restaurant Employees Union joined the building trades and lined up the San Francisco Labor Council behind the deal.

And for progressive supervisors who are up for re-election and need union support — Olague and Mar, for example — defying the Labor Council on this one was tough. “Labor came out strong for this, and I respect that,” Olague told me. “That was a huge factor for me.”

She also said she’s not thrilled with the deal — “nobody’s jumping up and down. This was a hard one” — but she thinks she can get the developer to pay more fees, particularly for parking.

Kim isn’t facing re-election for another two years, and she told me her vote was all about the $11 million in affordable housing money that the developer will provide to the city. “I looked at the alternatives and I didn’t see anything that would provide any housing money at all,” she said. The money is enough to build perhaps 25 units of low- and moderate-income housing, and that’s a larger percentage than any other developer has offered, she said.

Which is true — although the available figures suggest that Simon Snellgrove, the lead project sponsor, could pay a lot more and still make a whopping profit. And the Council of Community Housing Organizations, which represents the city’s nonprofit affordable housing developers, didn’t support the deal and expressed serious reservations about it.

Several sources close to the lobbying effort told me that the message for the swing-vote supervisors was that labor wanted them to approve at least one of the two construction-job-creating developments. Opposing both CPMC and 8 Washington would have infuriated the unions, but by signing off on this one, the vulnerable supervisors might get a pass on turning down CMPC.

That’s an odd deal for labor, since CPMC is 10 times the size of 8 Washington and will involve far more jobs. But the nurses and operating engineers have been fighting with the health-care giant and there’s little chance that labor will close ranks behind the current hospital deal.

Labor excepted, the hearing was a classic of grassroots against astroturf. Some of the people who showed up and sat in the front row with pro-8 Washington stickers on later told us they had been paid $100 each to attend. Members of the San Francisco Planning and Urban Research Association, to which Snellgrove has donated substantial amounts of money in the past, showed up to promote the project.

 

BEHIND THE SCENES

But the real action was behind the scenes.

Among those pushing hard for the project were Chinese Chamber of Commerce consultant Rose Pak and community organizer David Ho.

Pak’s support comes after Snellgrove spent years courting the increasingly powerful Chinatown activist, who played a leading role in the effort that got Ed Lee into the Mayor’s Office. Snellgrove has traveled to China with her — and will no doubt be coughing up some money for Pak’s efforts to rebuild Chinese Hospital.

Ho was all over City Hall and was taking the point on the lobbying efforts. Right around midnight, when the final vote was approaching, he entered the board chamber and followed one of Kim’s aides, Matthias Mormino, to the rail where Mormino delivered some documents to the supervisor. Several people who observed the incident told us Ho appeared to be talking Kim in an animated fashion.

Kim told me she didn’t actually speak to Ho at that point, although she’d talked to him at other times about the project, and that “nothing he could have said would have changed anything I did at that point anyway.” Matier and Ross in the San Francisco Chronicle reported that Ho was heard outside afterward saying “don’t worry, she’s fine.”

Matier and Ross have twice mentioned that the project will benefit “Chinatown nonprofits,” but there’s nothing in any public development document to support that assertion.

Chiu told me that no Chinese community leaders called him to urge support for 8 Washington. The money that goes into the affordable housing fund could go to the Chinatown Community Development Corp., where Ho works, but it’s hardly automatic — that money will go into a city fund and can’t be earmarked for any neighborhood or organization.

CCDC director Norman Fong confirmed to me that CCDC wasn’t supporting the project. In fact, Cindy Wu, a CCDC staffer who serves on the city Planning Commission, voted against 8 Washington.

I couldn’t reach Ho to ask why he was working so hard on this deal. But one longtime political insider had a suggestion: “Sometimes it’s not about money, it’s about power. And if you want to have power, you need to win and prove you can win.”

Snellgrove will be sitting pretty if 8 Washington breaks ground. Since it’s a private deal (albeit in part on Port of San Francisco land) there’s no public record of how much money the developer stands to make. But Chiu pointed out during the meeting, and confirmed to me later by phone, that “there are only two data points we know.” One is that Snellgrow informed the Port that he expects to gross $470 million in revenue from selling the condos. The other is that construction costs are expected to come in at about $177 million. Even assuming $25 million in legal and other soft costs, that’s a huge profit margin.

And it suggests the he can well afford either to lower the heights — or, more important, to give the city a much sweeter benefits package. The affordable housing component could be tripled or quadrupled and Snellgrove’s development group would still realize far more return that even the most aggressive lenders demand.

Chiu said he’s disappointed but will continue working to improve the project. “While I was disappointed in the votes,” he said, “many of my colleagues expressed concerns about height, parking, and affordable housing fees that they can address in the upcoming project approvals.”

So what does this mean for the fall elections? It may not be a huge deal — the symbolism of 8 Washington is powerful, but if it’s built, it won’t, by itself, directly change the lives of people in Olague’s District 5 or Mar’s District 1. Certainly the vote on CPMC will have a larger, more lasting impact on the city. Labor’s support for Mar could be a huge factor, and his willingness to break with other progressives to give the building trades a favor could help him with money and organizing efforts. On the other hand, some of Olague’s opponents will use this to differentiate themselves from the incumbent. John Rizzo, who has been running in D5 for almost a year now, told me he strongly opposed 8 Washington. “It’s a clear-cut issue for me, the wrong project and a bad deal for the city.” London Breed, a challenger who is more conservative, told us: “I would not have supported this project,” she said, arguing that the zoning changes set a bad precedent for the waterfront. “There are so many reasons why it shouldn’t have happened,” she said. And while Mar is in a more centrist district, support from the left was critical in his last grassroots campaign. This won’t cost him votes against a more conservative opponent — but if it costs him enthusiasm, that could be just as bad.

The war on sunshine

0

EDITORIAL The Rules Committee of the San Francisco Board of Supervisors joined the war on sunshine May 17 when it rejected four qualified candidates from three organizations who are mandated by the ordinance to choose representatives for the task force because of the organizations’ special open government credentials.

The representatives served as experienced, knowledgeable members who were independent counters to the nominees of supervisors who were often promoting an anti-sunshine agenda. The committee asked the organizations to come up with more names.

That was a nasty slap at members and organizations that have served the task force well for years. And this arbitrary demand will make it virtually impossible for these organizations to come up with a “list of candidates” to run the supervisorial gauntlet. Who wants to go before the supervisors on a list for a bout of public character assassination?

Specifically, the committee:

• Unanimously moved to sack the two incumbents (Allyson Washburn from the League of Women Voters) and Suzanne Manneh (New California Media). The League was mandated to name a representative because of its tradition and experience with good government and public access issues. New California Media was mandated to name a member to insure there would always be a journalist of color on the task force.

• Unanimously refused to seat two representatives from the Northern California chapter of the Society of Professional Journalists, the sponsor of the ordinance with a long tradition in open government and First Amendment issues. One SPJ mandated representative was for a journalist (Doug Comstock, editor of the West of Twin Peaks Observer, one of the best neighborhood papers in town and a former chair of the task force.) The second mandated seat was for an attorney (Ben Rosenfeld).

• Tried to knock out incumbent Bruce Wolfe on motion of member Mark Farrell, but Wolfe survived on a 2-l vote.

• Voted unanimously for four new persons to the task force while sacking and refusing to appoint able members with experience and expertise without a word of thanks.

Committee Member David Campos later told me that he went along because he could see he didn’t have the votes. He said the organization’s candidates “were eminently qualified,” that they should have been appointed, and that he would fight for them. He said he would ask the office of Jane Kim, who chairs the committee, to set the issue for hearing at the next rules meeting or call for a special meeting.

We asked Campos what the organizations should do. “They should stand by their candidates,” he said. We concur.

The Society of Professional Journalists, the League of Women Voters, and California New Media and their open government allies should stand by their candidates, lobby for them with the rules committee and the full board, and get out the word about this attempted coup in the most important court of all, the court of public opinion.

The Sunshine Task Force has annoyed some elected officials with its dogged efforts to promote open government. City Hall is already trying to find ways to undermine it. That needs to end, now.

Editorial: The war on sunshine

7

EDITORIAL The Rules Committee of the San Francisco Board of Supervisors joined the war on sunshine May 17 when it rejected four qualified candidates from three organizations who are mandated by the ordinance to choose representatives for the task force because of the organizations’ special open government credentials.

The representatives served as experienced, knowledgeable members who were independent counters to the nominees of supervisors who were often promoting an anti-sunshine agenda. The committee asked the organizations to come up with more names.

That was a nasty slap at members and organizations that have served the task force well for years. And this arbitrary demand will make it virtually impossible for these organizations to come up with a “list of candidates” to run the supervisorial gauntlet. Who wants to go before the supervisors on a list for a bout of public character assassination?

Specifically, the committee:

•Unanimously moved to sack the two incumbents (Allyson Washburn from the League of Women Voters) and Suzanne Manneh (New California Media now known as America New Media.)  The League was mandated to name a representative because of its tradition and experience with good government and public access issues. America New Media was mandated to name a member to insure there would always be a journalist of color on the task force.

•Unanimously refused to seat two representatives from the Northern
California chapter of the Society of Professional Journalists, the sponsor of the ordinance with a long tradition in open government and First Amendment issues. One SPJ mandated representative was for a journalist (Doug Comstock, editor of the West of Twin Peaks Observer, one of the best neighborhood papers in town and a former chair of the task force.) The second mandated seat was for an attorney (Ben Rosenfeld).

•Tried to knock out incumbent Bruce Wolfe, an excellent member,  on motion of member Mark Farrell, but Wolfe survived on a 2-l vote.

•Voted unanimously for four new persons to the task force while sacking and refusing to appoint able members with experience and expertise without a word of thanks, explanation, or apology.

Committee Member David Campos later told me that he went along because he could see he didn’t have the votes. He said the organizations’ candidates “were eminently qualified,” that they should have been appointed, and that he would fight for them. He said he would ask the office of Jane Kim, who chairs the committee, to set the issue for hearing at the next rules meeting or call for a special meeting.

We asked Campos what the organizations should do. “They should stand by their candidates,” he said. We concur.

The Society of Professional Journalists, the League of Women Voters, and America New Media and their open government allies should stand by their candidates, lobby for them with the rules committee and the full board, and get out the word about this attempted coup in the most important court of all, the court of public opinion.

The Sunshine Task Force has annoyed some elected officials with its dogged efforts to promote open government. City Hall is again  trying to find ways to undermine it. That needs to end, now.

 

The return of Willie Brownism to the sunshine task force

35

As an advocate for the passage of the  San Francisco sunshine ordinance and task force in the early 1990s, I felt obligated to take my first and only City Hall position and serve as a founding member of the task force. I served for l0 years and helped with many other good members to build the task force into a strong and respected agency  for helping citizens get access to records and meetings and hold city officials accountable for suppressing access.

The task force is the only place where citizens can file an access complaint without an attorney or a fee and force a city official, including the mayor, to come before the task force for questioning and a ruling on whether they had violated  sunshine laws, The task force lacked enforcement power, but it still annoyed of city officials, including Mayor Willie Brown.

In fact, Willie spent a good deal of time trying to kick me off the task force. He used one jolly  maneuver after another, even getting an agent to make a phony complaint against me for violating the ordinance with an email. (The complaint went nowhere.) I refused to budge and decided to stay on the task force until Willie left office—on the principle that that neither the mayor nor anybody else from City Hall could arbitrarily kick members off the task force. When Willie left office after two terms, I resigned with the hope that the Willie principle had been established.

The principle held, until last Thursday (May 17) when the board’s rules committee (Sup. Mark Farrell, Chair Jane Kim, and Sup. David Campos) brought Willie Brownism back to the task force with a vengeance. The committee moved to sabotage the task force by sacking or refusing to appoint four qualified candidates from three organizations who are mandated by the ordinance to choose representatives for the task force because of the organizations’ special open government  credentials. Their representatives served as experienced, knowledgeable members who were independent counters to nominees of supervisors who were often  promoting an anti-sunshine agenda. The committee asked the organizations to come up with more names. There was no explanation nor apology to the candidates nor to their organizations. It was a nasty slap at members and organizations that have served the task force well for years. And this arbitrary demand  will make  it virtually impossible for these organizations to come up with a “list of candidates” to run the supervisorial gauntlet.  Who wants to go before the supervisors on a list for a bout of public character assassination?

 Specifically, the committee:

+unanimously moved to sack the two incumbents (Allyson Washburn from the League of Women Voters) and Suzanne Manneh (California New Media.)  The League was mandated to name a representative because of its tradition and experience with good government and public access issues.  California New Media was mandated to name a member to insure there would always be a journalist of color on the task force.

+unanimously refused to seat two representatives from the Northern
California chapter of the Society of Professional Journalists, the sponsor of the ordinance with a long tradition in open government and First Amendment issues.  One SPJ  mandated  representative was for a journalist (Doug Comstock, editor of the West of Twin Peaks Observer, one of the best neighborhood papers in town and a former chair of the task force.) The second mandated seat was for an attorney (Ben Rosenfeld.)

+tried to knock out incumbent Bruce Wolfe on motion of Farrell, but Wolfe survived on a 2-l vote.   

+voted unanimously to approve David Pilpel, a former task force member who is known by observers for delaying meetings with is  bursts of lengthy nitpicking on almost every item.   He then usually votes against citizen complaints and for protecting  city officials on the basis of spotting   “onerous” burdens caused by the complaint

+voted unanimously for four new persons to the task force while sacking  and refusing to appoint able members with experience and expertise without a word of thanks. The four new members are “a “a bunch of neophytes,” according Rick Knee, outgoing SPJ member for 10 years.

Knee, a former task force chair surveying the carnage,  said that the committee’s actions stemmed “partly from a desire  by some supervisors to sabotage the task force and the ordinance itself, and partly from a vendetta by certain supervisors after the task force found several months ago that the board violated local and state open meeting laws when it railroaded some last minute changes to a contract on the Park Merced development project without allowing sufficient time for public service review and comment.” He noted that the developer “had slipped in a 14-page package of amendments at the llth hour”  to get board approval.

Knee said  that the rules committee is recommending sacking two incumbents and apparently hopes to sack two more. Farrell wanted to push out a fifth but was outvoted by Kim and Campos.  All five candidates, he said,  “have done excellent work, each brought a unique perspective and, while we had our share of disagreements among ourselves, all shared a passion for open government and for making sure that everyone who came before us got a fair hearing.”

Hanley Chan, an outgoing task force member,  backed up Knee’s point in an email. He  wrote that “I spoke with Sup. David Chiu and he told me that the rest of the supervisors will not appoint any incumbent, because we defied the city attorney’s opinion (the Park Merced  case). “”You should have made a right decision. I was told by the city attorney that it was legal, my aides explained it to the task force and you should have made a better judgment.'”  Chan said that the rules committee ouster move  was “retribution on how we voted that day.”  Chan said that “Bruce Wolfe and all the task force members made a wonderful argument and stuck to their guns.” The task force vote was a  unanimous 8-0 vote.The point: defy the supervisors and city attorney and the boys and girls in the back room and  get blasted off   the task force, bang, bang, bang, bang. 

The committee choreographed the move smoothly.  Farrell as the heavy  would make the move. Kim would agree and facilitate as chair. Campos would go along reluctantly. The deputy city attorney would be supine through the process  even though the supervisors were breaking precedent and misinterpreting the ordinance.  Sunshine candidates and advocates in the audience were furious and emails have been crackling back and forth ever since.

Campos later told me that he went along because he could see he didn’t have the votes. He said the organization’s candidates “were eminently qualified,” that they should have been appointed, and that he would fight for them. He said he would ask Kim’s office to set the issue for hearing at the next rules meeting or call for a special meeting. Kim did not return calls for comment.

I asked Campos what the organizations should do. “They should stand by their candidates,” he said.

I concur. The Society of Professional Journalists,  the League of Women Voters, and California New Media and their open government allies should stand by their candidates, lobby for them with the rules committee and the full board, and get out the word about this attempted coup in the most important court of all, the court of public opinion. Make this an election issue with all incumbents and candidates.  Let public officials know there are serious consequences to supporting Willie Brownism on the sunshine task force, the first and best local task force of its kind in the country if not the world.

The good news is that the rules committee has demonstrated, with its sneak attack,  the value of the task force for citizens and open government and why it is a San Francisco institution that needs to be saved and strengthened.  All of this  illustrates once again my  favorite axiom of mine. In San Francisco, the public is generally safe, except when the mayor is in his office and the supervisors are in session. b3

 

 

 

 

 

 

 

Housing for the super rich approved, 8-3

111

The progressive movement and the battle for housing balance and economic justice in San Francisco got walloped May 15 when eight supervisors sided with a developer who wants to build condos for the massively rich on the waterfront.

I watched it all, minus a few minutes while I was putting the kids to bed, all seven and a half hours of testimony and discussion, winding up with a series of pro-developer voters a little after midnight. It was stunning: Opponents of the project came out in droves, many of them seniors, others tenant activists and neighbors. Former City Attorney Louise Renne, who is by no means an anti-development type or any sort of economic radical, led off the arguments in favor of scrapping the environmental impact report and denying the conditional use permit that are needed for 8 Washington to move forward. They brought up so many points that by the end there was nothing more to say: This meets no housing need in San Francisco, further screws up the city’s own mandates for a mix of affordable and market-rate housing, caters to the top half of the top half of the 1 percent, is too tall and bulky for the site, offers the city too little in community benefits and is one of the great development scams of our time.

Then the other side spoke — the city planners who defended the EIR and, briefly, developer Simon Snellgrove. His supporters lined up — and almost all of them talked about the same thing: Construction jobs. I get it, we need construction jobs — but is that a justification for such a bad project? As Sup. David Chiu pointed out, “apartment construction is booming.  There are 22,000 units under construction and 50,000 more in the pipeline.”

Both sides were organized, but only one paid people to show up: At least five people seated in the front row, wearing pro-8 Washington stickers, confirmed that they’d been paid $100 each — in cash — to show up. They didn’t even speak, leaving once they realized that they were misled about the project. One source heard a construction worker say he knew nothing about the project and had been bused in from Sacramento.

And after hearing all of that, the supervisors did what they clearly had decided to do long before a word of testimony was uttered.

The vote to overturn the EIR went like this: favoring the developer were Supervisors Mark Farrell, Jane Kim, Eric Mar, Christina Olague, Malia Cohen, Carmen Chu, Sean Elsbernd and Scott Wiener. Opposing the project were Chiu, John Avalos and David Campos.

Approving the conditional use went along the same voting lines. Chiu couldn’t even get a continuance after arguing that there was no report from the budget analyst and no financial information about whether this is a good deal for the city.

That’s the lineup: Eight votes for the 1 percent. Three votes for the rest of us. I haven’t seen anything this bad in years.

Some fascinating information came out of the discussion. Chiu made clear that the developer doesn’t need the height-limit increase to make a profit off the deal. He estimated that the total sales revenue from the project would be around $470 million and construction costs about $177 million. That’s a huge profit margin, even if you add in another $25 million for upfront soft costs.

Snellgrove’s lawyer, Mary Murphy, tried to duck the financial issues, talking around in circles. Evenutally Chiu got Snellgrove to respond, and he said the costs would be higher and his profit would only be about $80 million. “The capital markets require a high return on these projects,” he said.
Still: $80 million is a lot of money. And while Snellgrove and his allies love to talk about the $11 million in affordable housing money for the city, that’s about 2.3 percent of his total revenue. Which doesn’t sound quite as juicy.

Chiu raised another good question: “Should a condo that sells for $5 million pay the same affordable housing fees as one that sells for $500,000?”
Mar, who is usually a strong progressive, was the big surprise of the night, not only voting the wrong way but teeing up softball questions for the city planners to make the project sound better. It was as if he was reading from the developer’s talking points.

In the end, he said he saw “a lot of benefits from this project,” but promised to work with the developer to advocate for “less bulk and less height.” Olague said the same thing.

But even if it’s a little smaller, this will still be a completely misalignment of housing priorities, a project entirely for the very rich. That’s not going to change.

If anything, they should push for more affordable housing money — a whole lot more. Because what we’re getting is enough for maybe 25 or 30 units, which means 80 percent of the new housing related to this project will be for multimillionaires and 20 percent for everyone else. Keep that pattern going — and there are few signs that it’s about to change — and imagine what this city will be like in 20 years.

It’s not over, not yet: The actual development agreement and the height-limit changes still have to come to the board early in June. And if the mayor signs off on it, opponents are talking serious about a ballot referendum that would be before the voters in November — just when Olague, Mar, Avalos, Campos, and Chiu will be up for re-election.

Tax equity

3

steve@sfbg.com, yael@sfbg.com

A broad consensus in San Francisco supports reforming the city’s business-tax structure by replacing the payroll tax with a gross receipts tax through a November ballot measure. But the devil is in the details of how individual tax bills are affected, which has divided the business community and given a coalition of labor and progressives the opportunity to overcome the insistence by Mayor Ed Lee and other pro-business moderates that any change be revenue-neutral.

Service Employees International Union Local 1021, San Francisco’s biggest city employee union, last month launched a campaign demanding that the measure increase city revenue, setting a goal of at least $50 million, which represents the amount the city has lost annually since 2001 when 52 large downtown corporations sued to overturn the last gross receipts tax. The union is threatening to place a rival measure on the fall ballot.

“This call for it to be revenue-neutral didn’t make a lot of sense given all the reductions in city services in recent years,” said Chris Daly, the union’s interim political director. “It’s fair to at least get the money back that we lost in 2001.”

The union and the city recently agreed on a new contract that avoids more of the salary cuts that SEIU members have taken in recent years, but workers could still face layoffs under a new city budget that Lee is scheduled to introduce June 1. Lee, Board of Supervisors President David Chiu, and business leaders working on the tax-reform proposal have until June 12 to introduce their ballot measure.

But they don’t yet have an agreement on what the measure should look like — largely because the technology sector (led by billionaire venture capitalist Ron Conway, the biggest fundraiser for Lee’s mayoral campaign last year), the traditional businesses represented by the San Francisco Chamber of Commerce, and the small business community are pushing different interests and priorities.

“The technology industry has to realize they have a tax obligation like any member of the business community does,” Jim Lazarus, the Chamber’s vice president for public policy, told us.

Conway is reportedly using his influence on Lee to push for a model that keeps taxes low for tech companies — even if that comes at the expense of other economic sectors, such as commercial real estate and big construction firms, which will likely see their tax obligations increase. Yet some Chamber counter-proposals could end up costing small businesses more money, creating a puzzle that has yet to be worked out.

But one thing is clear: The business leaders don’t want to see overall city revenue increase. “If there’s anything that is unifying in the business community is that it’s revenue neutral,” small business advocate Scott Hauge told us. “We’re not going to increase revenues, that’s just a given, so if we have to do battle then so be it.”

SEIU and other members of progressive revenue coalition that has been strategizing in recent weeks are hoping to exploit the divisions in the business community and arrive at a compromise that increases revenue, and if not then they say they’re willing to go to the ballot with a rival measure.

“We’re working on trying to recover what we lost in the 2001 settlement and then some,” Sup. John Avalos, who has been working with the progressive coalition, told us. “We have to have something going to the ballot that is revenue generating.”

 

 

LABOR’S CAMPAIGN

For labor and progressives, this is an equity issue. Workers have been asked to give back money, year after year, despite the fact that big corporations have been doing well in recent years but haven’t contributed any of that wealth to the cash-strapped city. Labor leaders say that after they supported last year’s pension-reform measure, it’s time for the business community to support city services.

“When we talked about Prop C, we said if our members are doing this with our pensions now, we’ll see next year what businesses do with business tax,” said Larry Bradshaw, vice president of SEIU Local 1021. “Then we read about secret meetings where the labor movement was excluded from those talks.”

Anger over the “secret meetings” of business leaders that Lee assembled to craft the tax reform measure — meetings at which no labor leaders were included — helped inspire the fierce protest campaign that defined the SEIU’s recent contract negotiations.

In the first weeks of negotiations, workers were already up in arms. Protest marches at SF General Hospital and Laguna Honda Hospital brought hundreds of hospital workers to the streets. These hospitals serve some of the city’s poorest populations: Laguna Honda patients are mostly seniors on Medi-Cal and General is the main public hospital serving the city’s poor.

On April 5, city workers got creative with a street theater protest that involved six-story projections on the iconic Hobart Building. Protesters dressed as rich CEOs and handed out thank-you cards to commuters at the Montgomery transit station. SEIU’s “The City We Need, Not Downtown Greed” campaign included a website (www.neednotgreed.org), slick video, and direct mailers portraying CEOs as panhandlers on the street asking city residents, “Can you spare a tax break?”

The most dramatic civil disobedience came on April 18, when more than 1,000 workers rallied outside City Hall — along with several progressive supervisors — and then marched to Van Ness and Market. Protesters blocked the street, resulting in 23 arrests. At that point, increases in health care cuts and pay cuts to city workers were still on the table.

That was followed the next week by hundreds of workers staging noisy demonstrations in City Hall, and then again on May Day when SEIU workers were well represented in actions that took over parts of the Financial District.

In the end, the demands of union representatives were met in the contract agreement. Health care cost increases and pay cuts were eliminated, and a 3 percent pay raise will kick in during the two-year contract’s second year, a deal overwhelmingly approved by union members. Labor leaders hope to use that momentum to force a deal with the Mayor’s Office on the tax reform measure — which some sources say is possible. Otherwise, they say the campaign will continue.

“We may end up on the streets gathering signatures soon,” Daly said. “We need to figure it out in the next few weeks.”

 

 

THOSE DEVILISH DETAILS

The Controller’s Office released a report on May 10 that made the case for switching to a gross receipts tax and summed up the business community’s meetings, and the report was the subject of a joint statement put out by Lee and Chiu. “After months of thorough analysis, economic modeling and inclusive outreach to our City’s diverse business community, the City Controller and City Economist have produced a report that evaluates a gross receipts tax, a promising alternative to our current payroll tax, which punishes companies for growing and creating new jobs in our City'” the statement said. “Unlike our current payroll tax, a gross receipts tax would deliver stable and growing revenue to fund vital city services, while promoting job growth and continued economic recovery for San Francisco.”

Daly and Avalos say progressives agree that a gross receipts tax would probably be better than the payroll tax, and they say the controller’s report lays out a good analysis and framework for the discussions to come. But despite its detailed look at who the winners and losers in the tax reform might be, Daly said, “We haven’t seen an actual proposal yet.”

Lazarus made a similar statement: “Nobody likes the payroll tax, but the devil is in the details.”

But it’s clear some businesses those with high gross receipts but low payrolls — would pay more taxes. For example, the finance, insurance, and real estate sector now pays about 16 percent of the $410 million the city collects in payroll taxes. That would go up to about 21 percent under a gross receipts tax.

“Several industries that could face higher taxes under the proposal, such as commercial real estate, large retailers, and large construction firms, felt the increase was too sharp,” the report said under the heading of “Policy Issues Arising From Meetings with Businesses.”

The report highlighted how the change would broaden the tax base. Only about 7,500 businesses now pay the payroll tax (others are either too small or are exempt from local taxation, such as banks), whereas 33,500 companies would pay the gross receipts tax, which the report identified as another issue to be resolved.

“While some businesses appreciated the base-broadening aspect of the gross receipts proposal, others felt that too many small businesses were being brought into the Gross Receipts tax,” the report said. Hauge also told us that he fears a tax increase on commercial real estate firms could be passed on to small businesses in the form of higher rents. “I don’t want to see the business community split,” Hauge said, although it’s beginning to look like that might be unavoidable. The big question now is whether progressives and labor can find any allies in this messy situation, and whether they’ll be able to agree on a compromise measure that all sides say is preferable to competing measures.

Who’s running against Chris Daly?

8

I didn’t know former Sup. Chris Daly was running for state Assembly in the 19th District. Odd — I’ve been told he splits his time between Soma and Fairfield, but I had never heard anything about him moving to the West side of town.

But there he is, right on a flier produced by candidate Michael Breyer, who probably doesn’t deserve all the attention I’m giving him, but his campaign is so strange. First he’s for “old-fashioned San Francisco values” (whatever that means) — and now he’s running against Daly. Who, according to the latest data from the Department of Elections, isn’t in the race.

Breyer has a pic of Daly’s disembodied head surrounded by a happy meal, a goldfish and a Yellow Pages phonebook, three things that (other) supervisors have had issues with, mostly for very good reasons. Daly didn’t introduce the Happy Meal ban or the pet store legislation or the phone books limits; some of that happened after he left the board.

The flier compares Daly’s “Wild Antics” to “The Real San Francisco.” Which I guess is a conservative place “of old-fashioned neighborhood concerns.” (What — the west side of the city hasn’t changed in the past 40 years, since Breyer was a kid?)

Folks, please: Daly’s no longer in any public office. He was a good supervisor while he was there and willing to fight for his constituents. But now he owns a bar and works for a union. Aren’t we all getting tired of this shit?

 

What the preservation vote says about the 2012 supervisors

64

UPDATE: Important update at the end of this story

What does it mean that a historic preservation law favored by developers and promoted by Sup. Scott Wiener passed the Board of Supervisors 8-3? Maybe nothing. Historic preservation is a strange poliltical issue, favored by some of the wealthy white homeowner types who love pretty buildings (and aren’t so good on other issues), and this thing was sold as a way to help low-income people and affordable housing. But the reality is that the Wiener measure will make it harder to declare historic districts, and thus will take away a tool that the left can use to stop uncontrolled commercial development. And remember: The affordable housing community wasn’t pushing this bill, and, for the most part, hasn’t had problems with historic preservation. The most progressive political club in the city, the Harvey Milk LGBT Democratic Club, came out strongly against the measure and urged Sup. Christina Olague, a co-sponsor, to oppose it:

We are extremely troubled that you appear to be buying into the flawed, bogus and self-serving arguments by SPUR and other supporters of this legislation that historic preservation is classist and leads to gentrification, interferes with the production of affordable housing and is a tool of San Francisco’s elite.  Nothing could be further from the truth.

There was a way to address the issues of low-income people in historic districts without making it harder to block inappropropriate development, but Wiener’s bill went much further. And while I respect Scott Wiener and find him accessible and straightforward, and I agree with him on some issues, he isn’t someone whose basic agenda promotes the interests of tenants or low-income people. His supporters are much more among the landlord class and the downtown folks. The San Francisco Chronicle, which is a conservative paper on economic and development issues, loved the legislation.

So what happened when this got to the Board? Only three people — the ones the Chron calls “the stalwart left flank of the Board” — voted no.

John Avalos, David Campos and Eric Mar. They are now the solid left flank, the ones who can be counted on to do the right thing on almost every issue. Once upon a time, there were six solid left votes. Now there are three.

What does this mean for the other key issues coming up, including CPMC, 8 Washington, and the city budget? Maybe nothing. As I say, this issue is complicated. Olague told me, for example, that she’s really worried about working-class people who can’t afford to comply with the increased regulations that come with historic districts. Her vote doesn’t mean she’s dropped out of the progressive camp, or that she (or Sups. Jane Kim and David Chiu) can’t be counted on in the future. I really want to believe that this was just an aberration, a vote where I’ll look back in the fall and say: Okay, we disagreed on that one, but nobody’s perfect

Still, it’s kind of depressing: The dependable progressive vote is down to three.

UPDATE/CORRECTION: I didn’t know when I posted this that Olague had spoken to the Milk Club leadership after the club’s statement went out and the club has since issued a correction:

Due to a misunderstanding, Supervisor Christine Olague’s position on the Historic Preservation Commission’s critical role in the life of San Franicsco was misrepresented in our weekly newsletter. Supervisor Olague is looking into ways to help continue Historic District status for the Queer community, the Filipino community in the South of Market area, and the Japantown area. She is specifically looking for wording that would help these plans remain viable and welcomes any questions on her position and on her plan. Our apologies to the Supervisor for this unfortunate mistake.

SEIU reps pleased with tentative contract

46

After heated negotiations, the city has come to a tentative two-year contract agreement with SEIU Local 1021. 

The union, which represents 12,000 city workers, has staged large protests in recent weeks while negotiators worked on the contract. The union was opposed to pay cuts and increases in health care costs that the city originally proposed.

With the new agreement, city workers will get a three percent pay increase, to kick in next year.

The arbitrator of the negotiations also ruled in favor of the union on the issue of temporary workers, who mostly don’t currently enjoy benefits or job security. Now, temporary city workers who have worked 1500 hours over the past three years will be prioritized for permanent jobs.

The SEIU did compromise on some parts of the deal. The new contract won’t include travel pay previously provided to people who commute outside the city for work. There will also be new restrictions placed on union organizing, as union stewards will need to be “escorted” into what the city deems “confidential areas,” restricting union access to work environments.

Larry Bradshaw, 1021 Vice President, has been at the table since negotiations began in February. “I’m very happy with the results,” said Bradshaw. “Its the first agreement since 2009 where the city is not going to balance the budget on the back of working families.”

In the years since 2009, city workers have had deferred pay wages, wage concessions, and increased health care costs. Bradshaw says the new contract will put base wages back at 2009 levels.

“I think in the first years of the recession our members were willing to sacrifice,” said Bradshaw. “But then year after year, they don’t want to keep doing that when the city is not going after corporations. They’re just sitting on wealth and the city is not taxing that wealth.”

http://vimeo.com/39869973

That sentiment has led to the SEIU’s call for increased taxes on some corporations in the city. That’s the issue they address in the above video, which may become a TV commercial for what may become a ballot measure in November that would restructure the business tax code.

SEIU Local 1021 members are currently in the process of voting to ratify the contract. The vote will be done by Monday evening, just in time for the Board of Supervisors to ratify the agreement at their May 15 meeting.