Supervisors

Editor’s Notes

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Tredmond@sfbg.com

The first time the Guardian made an issue of the role small businesses play in the local economy, official San Francisco freaked out.

It was 1985, and only a handful of people were talking about sustainable local economies, about the connection between environmentalism and community-based economics, about how malls and chains stores were ruining America, and how spending money locally would create more jobs, with less waste of energy, than shopping at Wal-Mart or Home Depot.

The Guardian hired MIT economist David Birch to produce a study on job generation in San Francisco. His conclusion: small, locally-owned, independent businesses generated the vast majority of jobs in San Francisco. That directly contradicted the fundamental thesis driving city planning at the time; the planners and the mayor (Dianne Feinstein) argued that high-rise office development was the city’s prime source of new jobs.

The day the study came out, the city planning director (Dean Macris) called in his senior staff and directed them to work all weekend poring over our study and trying to figure out how to discredit it. Feinstein ignored us. The supervisors continued to allow high-rises to sprout, damaging small business and the local economy. The Chamber of Commerce was so disdainful of small business that a group of Fisherman’s Wharf merchants quit in disgust.

Today that battle is over. Done. The argument isn’t even an argument anymore. Everyone, from Mayor Gavin Newsom and the Chamber on down, agrees that locally-owned businesses are the lifeblood of the San Francisco economy. The mayor goes around urging people to "shop local."

But as we suggest in this special issue on San Francisco small business, the city itself isn’t doing such a great job at that. In fact, the public sector in general has been trained for so long to do business with the lowest bidder that the role a major institution like the city and county of San Francisco can play in boosting the local economy has gotten lost.

A 2007 study sponsored by the San Francisco Locally Owned Merchants Alliance shows that if local residents shifted just 10 percent of their purchases from big chains to local businesses, the city’s economy would pick up $200 million and 1,300 new jobs a year. Imagine if City Hall, BART, state agencies, the school district — every public sector agency in this city — did the same. *

Making sunshine work

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EDITORIAL The Sunshine Ordinance Task Force and the Ethics Commission are talking to each other, which is some small progress on one of the most annoying lingering issues in San Francisco. But the joint meeting last week, while positive in tone, didn’t solve the basic problem.

Under the city’s Sunshine Ordinance, the task force investigates complaints about city agencies improperly withholding records or meeting in secret. If the task force members find that there’s been a violation — and that the matter is serious enough to merit enforcement action against the city officials involved — the file is forwarded to Ethics, which can charge elected and appointed officials with misconduct.

But that never happens.

Fourteen times the task force has asked Ethics for action, and 14 times those cases have been dismissed — with little serious investigation. In fact, at the April 24 meeting, John St. Croix, the executive director of Ethics, admitted that his staff doesn’t always interview the complainants in these cases. Instead, Ethics asks the respondent for his or her side, and relies heavily on the advice of the city attorney.

That’s a problem in itself, because sometimes City Attorney Dennis Herrera will advise a department to keep something secret when the task force — which has its own lawyer, also from the City Attorney’s Office — disagrees. And in some cases it’s very clear that city officials have willfully ignored, defied, or sought to circumvent the open-government law.

Mayor Newsom, for example, refuses to release his full appointments calendar, which would show the public whom he’s meeting with — a key way for San Franciscans to understand who is influencing, and seeking to influence, city policy. The New York Times just published a detailed investigative report on Treasury Secretary Timothy Geithner’s ties to Wall Street financiers, basing the story in significant part on a review of Geithner’s appointment calendars. The New York City Federal Reserve Bank — a secretive institution if ever there was one — released the calendars of Geithner’s appointments when he was bank president. Newsom can certainly do the same, and the law requires him to. But he simply ignores that mandate.

The district attorney also has the authority to enforce the law, but has never filed a single sunshine violation case.

The San Francisco Sunshine Ordinance is supposed to be the best and most comprehensive law in the state ensuring public access to government activities. But it’s rendered almost meaningless when city officials can defy it, routinely, and suffer no consequences.

The current enforcement system is simply not working. The supervisors should hold hearings on this with the goal of placing a charter amendment on the ballot giving the task force the independent authority to order documents released and adopting a more effective way to sanction officials who disregard the law. The task force should also have the right to take cases directly to the Ethics commissioners and prosecute them in public before the full commission. It’s the biggest open government issue in the city right now. Which supe wants to take it on? *

Recurrent Energy project passed on 7-4 vote

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By Rebecca Bowe

The Board of Supervisors voted 7 to 4 this afternoon to approve a 25-year power purchase agreement with Recurrent Energy, a private firm that plans to construct a 5-megawatt photovoltaic array at the Sunset Reservoir. Supervisors John Avalos, David Campos, Chris Daly and Ross Mirkarimi voted against the agreement, voicing concerns that the city would be locked into a bad financial deal for years to come and asserting that the city could strike a better deal with Recurrent. Part of the problem, Mirkarimi noted, is that the city would be locked into paying a fixed price for solar energy even if the going rate drops significantly in coming years.

The Guardian has weighed in on the project at several junctures. While everyone at the table believes that the end goal is laudable – adding 5 megawatts of clean energy to the city’s renewable portfolio – Supervisors Mirkarimi and Campos have expressed opposition to contract terms that they say would ultimately sell San Francisco ratepayers short. At a joint meeting between LAFCo and the SFPUC on April 24, Mirkarimi also worried that the Recurrent Energy project could undercut the efforts of San Francisco’s fledgling Community Choice Aggregation initiative.

The power purchase agreement was originally put forth by Mayor Gavin Newsom and Supervisor Carmen Chu. Chu advocated strongly for it during today’s meeting, saying she believed it was a good deal and noting that it would create 71 jobs.

Daly weighed in heavily against it, calling the deal a politicized “rush job.” The result, in his opinion, is that “we get electricity that is green, but it is too expensive to give anyone else the opportunity to do it too. … Going green doesn’t mean going green stupid. If it seems like gymnastics for a deal, there is a better way.”

Editorial: Making sunshine work in San Francisco

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Fourteen times the Sunshine Task Force has asked the Ethics Commission for action on sunshine violations.
And l4 times Ethics has dismissed thsoe cases with little investigation. The supervisors need to hold hearings with the goal of placing a charter amendment on the ballot to give the task force independent authority to order the release of documents and to sanction city officials who flout the law.

EDITORIAL The Sunshine Ordinance Task Force and the Ethics Commission are talking to each other, which is some small progress on one of the most annoying lingering issues in San Francisco. But the joint meeting last week, while positive in tone, didn’t solve the basic problem.

Under the city’s Sunshine Ordinance, the task force investigates complaints about city agencies improperly withholding records or meeting in secret. If the task force members find that there’s been a violation — and that the matter is serious enough to merit enforcement action against the city officials involved — the file is forwarded to Ethics, which can charge elected and appointed officials with misconduct.

But that never happens.

The real defenders of San Francisco values

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By Steven T. Jones
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While Mayor Gavin Newsom gallivants around the country – he’s been back east accepting accolades for same-sex marriage and Healthy San Francisco and trying to shore up White House support for his Treasure Island and Hunters Point redevelopment schemes – other city leaders are doing the hard work of restoring San Francisco values.

On Wednesday, there are two shining examples of this uphill battle that take place on opposite ends of Civic Center Plaza. First, SF Public Defender Jeff Adachi hosts “Justice Summit 2009: Defending the Public and the Constitution,” which highlights the importance of constitutional guarantees of quality legal representation for all defendants, regardless of income level, a right that has been eroded by budgetary pressures in San Francisco and around the country.

Among the long list of respected legal thinkers will be a keynote speech by US District Judge Thelton Henderson, who has ordered California to finally do something about severe overcrowding and substandard medical care in its prisons – a laudable and courageous stand that has been met with utter cowardice, contempt, and pandering by state officials. That event begins at 10 a.m. in the main library’s Koret Auditorium.

Then, at 1:30 in City Hall, the Board of Supervisors Budget and Finance Committee will consider a proposal by Board President David Chiu to reject the terrible and short-sighted budget that was just approved by the Municipal Transportation Agency, which reduces Muni service and increases the fare to $2 while asking little from motorists (who will increase in numbers as more people eschew taking transit) or from Muni chief Nat Ford, whose $316,459 salary is the highest in city government (again, Newsom’s doing).

These are difficult issues that require hard work (and more revenue from the well-heeled city residents that Newsom is siding with in blocking a special election on tax measures), but it’s good to see we still have some public-spirited elected officials who are willing to take risks and work for San Francisco values instead of simply campaigning on them.

CBDG switcheroo is not a done deal

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For anyone who believed that Mayor Newsom was merely proposing a) to merge the Mayor’s Office of Community Investment with the Office of Economic and Workforce Development and b) change how community block development grants are spent, and that none of this would happen until he got the Board of Supervisors’s approval, as is required, according to the City charter, here’s a letterthat suggests that the MOCI/OEWD merger is a done deal, and that changes to community development block grants use are about to be rammed through, give or take a community comment, or two.

Dated April 16, the missive states that, “The Mayor’s Office of Community Investment (MOCI), now merged with the Office of Economic and Workforce Development, is proposing to amend the 2005-2009 Consolidated Plan.”

The Consolidated Plan, in case you are wondering, sets forth the strategy and goals for the city’s use of four federal funding sources: community block development grants, emergency shelter grants, home investment partnerships and housing opportunities for persons with AIDS.

According to the OEWD April 16 missive, Newsom’s proposed amendment seeks to undertake “economic development, housing and public service activities with CDBG funds” and promote “innovative programs in economically disadvantaged areas.” It also designates the Western Addition as a “neighborhood revitalization strategy area.”

You can check out the entire draft plan here.

The solar project heads for a vote

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By Tim Redmond

Lots of talk about the Sunset reservoir Solar proposal over the weekend; the Chron weighed in with a fairly weak story that just did the he-says-she-says without getting into any of the real issues. And Julian Davis has a pretty detailed analysis here, at Fog City Journal.

The simple point is that the contract the supes are about to sign off on isn’t a great deal for the city. We’re going to be paying a lot of money to a private company to do something the city ought to be able to do itself.

I had conversations last week with a number of supervisors, and it’s looking like some of the progressives — John Avalos and Eric Mar, for example — are leaning toward supporting the project. Mar told me he’s been listening to the Sierra Club, which is often a good thing to do when it comes to alternative energy, but in this case I think the traditional enviros are so thrilled that there’s actual a viable solar project on the horizon that they’re not spending enough time on the details.

In fact, I spoke with John Rizzo, the Sierra Club’s point person on the project, and he told me that “The Sierra Club doesn’t care about the details of the contract. We’re not contract experts. We just want to see this happen.”

He agreed that it’s infuriating that so much of the federal alternative-energy money is going to the private sector, and said he’d support legislation that would give public agencies access to the same sort of money private companies get in tax breaks. “But global warming isn’t waiting,” he said. “Let’s build this one with this kind of a deal, and try the have the city build the next one.”

I with Rizzo in spirt, but the truth is, we’re going to regret this deal.

The only reason it makes sense to pay Recurrent Energy to do this is that Recurrent gets a $12 million tax break, and the city, as a public agency, doesn’t qualify for that money.

Let me make a humble suggestion. Rep. Nancy Pelosi is, I believe, still the speaker of the House. She’s managed to get San Francisco something like a billion dollars for the Chinatown subway. I’m willing to bet a case of Bud Light (and I don’t make bets that valuable easily) that if the mayor of San Francisco called Rep. Pelosi and told her that the difference between building a five-megawatt solar project and not building it was $12 million in federal money — so little in terms of federal spending that it’s what Mirkarimi calls “decimal dust” — San Francisco would have a promise of that cash so fast that Newsom couldn’t even find a shovel to break ground before the check arrived.

And the thing that frustrates me is that nobody’s even trying.

The supes ought to send this deal back to committee and take a real look at ways the city can do the same project, and own it, for less money. I refuse to believe that’s not possible.

And if Gavin Newsom wants to say he can’t make this work, then he’s going to have a hell of a time convincing any of us that he has the ability to run the State of California.

Celebration, cigars, and a bloody nose at Mirkarimi baby bar crawl

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Text by Steven T. Jones, photos by Tim Daw
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Friends, colleagues and supporters of Sup. Ross Mirkarimi gathered last night to celebrate the recent birth of his son, Theo Aureliano Mirkarimi, with an event dubbed the Mirkarimi Man-Baby Shower and Bar Crawl that started at Molotov’s in Lower Haight.

Among those taking part in an event centered around drinking, cigar smoking, carousing, congratulatory support, wearing custom trucker’s caps, and general male bonding were Board of Supervisors President David Chiu, his predecessor Aaron Peskin, City Attorney’s Office spokesperson Matt Dorsey, Chiu board aide David Noyola, former mayoral candidate Quintin Mecke, Mirkarimi aide Rick Galbreath, Guardian publisher Bruce Brugmann, former Santa Monica mayor Mike Feinstein, Entertainment Commissioner John Wood and local political activists Julian Davis, Andy Blue, Dan Nguyen-Tan, Amandeep Jawa, and Boris Delepine.
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Macanudos and Mecke

Short-sighted solar

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By Tim Redmond

The supervisors voted yesterday to continue for one week the proposal to let a private company build a solar plant on the Sunset reservoir. I’m glad the supes didn’t approve the project, but a week’s delay isn’t enough. This contract has real problems, and needs to be sent back to committee for a complete overhaul.

Harvey Rose, the supervisors budget analyst, pointed out one flaw that he urged the board not to accept: The deal would require the supes to waive their right to oversee annual appropriations for the project, essentially locking the city into spending money on it every year for the next 25 years.

The Sierra Club is pushing this, arguing that right now the city doesn’t have the money and only a private contactor can make this sort of project happen. I disagree: The city has the ability to float bonds for a project like this, and a solar bond act would pass by about 75 percent in San Francisco, and if local officials think there’s no way to lverage some federal money for this, they aren’t trying hard enough.

In fact, the appropriations deal means that the city will be financing the project, anyway, for all practical purposes. The vendor, Recurrent Energy, wants to use the contractual guarantee of annual funding to convince lenders to support the project.

Why is San Francisco so insistent on letting the private sector run our energy business? Oh, I can think of one reason: I see campaign video now.

“Gavin Newsom built the largest solar energy project in any American city — without taxypayer money.”

Great campaign line when you’re running for governor. And by the time the taxpayers actually get stuck with the bill, this mayor will be long gone.

Historic proportions

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news@sfbg.com

GREEN CITY "110 The Embarcadero" is the stately address of a building that doesn’t exist yet. But the battle that continues to be waged over this proposed development, along with skirmishes that are brewing over other proposed buildings nearby, speaks volumes about a complicated tug-of-war that is emerging over a prominent slice of the city’s northern waterfront.

Preservationists are concerned about saving a union hall on Steuart Street that housed the International Longshoremen’s Association during the strike of 1934, which would be razed to build 110 The Embarcadero. That’s one of a number of historic properties critics say could face the wrecking ball as new building plans are drafted. Other proposals, among them 8 Washington and 555 Washington, have neighborhood activists anxious about long skyscraper shadows that could be cast on public parks, the development pressure that would result from allowing skyscrapers to exceed height limits, and views of the bay that would be enhanced from inside luxury high rises but blocked to others.

On the other side of the coin, building-trades union members increasingly desperate for work are fervently advocating for new construction projects that would open the spigot on jobs. And the Port of San Francisco hopes development money will help cover its huge infrastructure backlog.

Meanwhile a report released in early April by the Bay Conservation and Development Commission noted that the waterfront stretch from Pier 35 to the Bay Bridge is one of the most vulnerable to sea-level rise. As plans for this part of the Embarcadero are hashed out in public hearings and architects’ sketches, a new reality must be factored into the mix: some of that land could soon be underwater.

MISSING HISTORY


110 The Embarcadero initially won praise for its goal of attaining the highest certification level for nationwide green-building standards. Sponsored by Hines Interests, it was a shining example of ecodesign that even featured living vines climbing the sides. Even though it would shoot 40 percent above the allowable height limit of 84 feet, the San Francisco Planning Commission gave it a green light.

Enthusiasm waned, however, when historic preservationists pointed out that the building slated for demolition — 113 Steuart St. — was an ILA labor hall during the famous maritime strike of 1934, which erupted into violence after two union members were gunned down by police and led to a four-day general strike that paralyzed the city. "Harry Bridges rose to fame in this building," says architectural historian Bradley Weidmeier, referring to the famous labor leader. "Labor historians from around the country are going to be blocking this."

Hines hired a leading historic architecture firm, Page & Turnbull, to conduct a historic assessment of that building as part of the planning process. Yet the initial report neglected to mention anything about the building being at the center of a profound moment in San Francisco’s labor history.

Former Board of Supervisors president Aaron Peskin, an opponent of the project, says the gaps in information weren’t hard to miss. "The fact that it was ground zero for bloody Thursday, that it was ground zero for the general strike … that people were shot in front of there, that their bodies lay inside. You want to know how we found that out? We got it online," Peskin said.

Page & Turnbull later submitted an addendum, including historic photos depicting people crowding into the two-story building to pay respects to the slain union members. The firm acknowledged its historic significance this time, but asserted that the now-empty building had undergone too many retrofits to comply with historic landmark requirements.

This, too, was challenged by project opponents. "You can look at pictures of dead people laying there on the sidewalk with that building in the background, and look at it today, and godammit, it’s pretty much the same building," Peskin says.

The Board of Supervisors in mid-March approved an appeal of the project and instructed city planners to prepare an environmental impact report. Ralph Schoenman, a preservation advocate who says he met with board members about the project, told us that "members of the board were plainly shocked by finding out that the historic report was so flawed and untrue."

That feeling may have lingered for some at the April 21 bard meeting when Supervisors voted 7-4 to reject Mayor Gavin Newsom’s nomination of Ruth Todd, a Page & Turnbull principal, to the city’s Historic Preservation Commission.

WHOSE WATERFRONT?


Though the project has been stalled, the issues it stirred are gaining momentum. The picture of what this stretch of the Embarcadero could look like is shaping up to be quite different from developers’ gauzy artistic renderings. Sue Hestor, a land-use lawyer, is a driving force behind a community-led meeting scheduled for June 24 at the headquarters of International Longshore and Warehouse Union Local 34 (the successor to ILA) to initiate a new approach to development along the western edge of the Embarcadero.

"Threatened demolition of the 1934 Waterfront Strike headquarters at 113 Steuart has pulled us together," Hestor wrote in a widely disseminated e-mail. "The community will proactively start defining changes we want. No more waiting for a developer proposal, then meekly responding. The community gets to define how the city should look … along the northeast waterfront. When you start at the Embarcadero it is possible to weave in so many areas, so many neighborhoods, so much of our political and immigrant and labor history."

ILWU members are joining with preservationists in the effort to preserve 113 Steuart. "We are at a historic moment when working people are under unprecedented attack," a team of six Local 34 leaders wrote in a recent statement opposing the demolition. "That living history is a prologue to our struggles of the future."

Not all labor unions agree. At a picket staged by San Francisco’s Building and Construction Trades Council outside a Democratic Party luncheon April 21, protesters carried a few flew signs reading "How can we feed our kids with history?" The signs referenced the city’s Historic Preservation Commission, but the same question might be asked of 110 The Embarcadero, which was favored by building-trade workers.

Neighborhood groups are also worried because the construction of the two proposed 84-foot condominium towers at 8 Washington could cause the adjacent Golden Gateway Tennis and Swim Club to lose half its facility. "Six hundred to 700 kids come every summer to learn to swim and to play tennis," Club director Lee Radner says. "To us, it’s just a matter of the developer not considering the moral issues of the neighborhood club that has given so much to the community." Friends of Golden Gateway (FOGG), which formed to preserve the club in the face of development, has hired Hestor as its attorney.

Because the development would be partially built on a surface parking lot controlled by the Port Commission, a parcel held to be in the public trust under state law, developers proposed a land-swap to get around provisions prohibiting residential uses in those parcels. Renee Dunn, a spokesperson for the Port Commission, noted that the Port’s annual revenues total $65 million, while the amount that would be needed for repairs and maintenance of its century-old infrastructure is almost $2 billion. In general, "Public-private developments provide the dollars needed to make improvements," she told us.

In the wake of concerns about 8 Washington, Board of Supervisors President David Chiu sent a letter to the Port Commission requesting an update to the waterfront plan for that area. "Concerns are currently being raised regarding the proposed development … and the future development of seawall lots along the northern waterfront, and I share many of these concerns," Chiu wrote. In response, the Port agreed to conduct a six-to-eight month focus study for those seawall lots.

Meanwhile, a quietly growing problem may mean that plans for this stretch of the Embarcadero will get more complicated. A report released in early April by the Bay Conservation and Development Commission predicts a 16-inch rise in the level of the San Francisco Bay by 2050, and a 55-inch rise by 2100, based on data from the Intergovernmental Panel on Climate Change. Along San Francisco’s waterfront, the most vulnerable area will be from Pier 35 to the Bay Bridge, the report found. "Sea-level rise has been linear, and it’s continuing, and we expect that based on what we know about climate change, it will accelerate," notes Joe LaClair of BCDC. In the event of storm surges, he adds, "we will have to find a way to protect the financial district from inundation."

As local governments begin to get up to speed on mitigating the effects of climate change, new questions — beyond developers’ plans vs. neighborhood input — will have to come into play. One that BCDC plans to tackle in coming months, LaClair notes, is: "What does resilient shoreline development look like?" It’s a good one to start asking now.

Editor’s Notes

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Tredmond@sfbg.com

Gray Davis was a pretty poor governor. He ran as a moderate who could manage the state, but utterly failed to deal with the energy crisis of 2000-01, leaving rolling blackouts and skyrocketing electricity bills as his legacy. He cost the state billions. He presided over a legislative budget stalemate. He was a captive of the California Correctional Peace Officers Association. He gave the Democratic Party a bad name.

And for all that, nothing he did was close to what his replacement, Arnold Schwarzenegger, and the Republicans in Sacramento are doing today.

Under Gov. Davis, California reduced the size of public school classes, mandating that K-4 teachers have no more than 20 students. That has made a huge difference in the classrooms, and the results show it. But it’s going to be almost impossible for most school districts to stick to that target now, because the schools are getting huge budget cuts.

So are all the other state services, and aid to counties, which means more layoffs and cuts at the local level. And still, the state is $8 billion more in the hole.

Democrats in the Legislature have tried everything they could think of. They negotiated with the Republicans, who have a veto over the budget because of the crazy two-thirds rule. They came up with a plan that fit what Schwarzenegger had been asking for, and he still refused to accept it. And now the Democratic leadership is forced to try to sell a series of state propositions that nobody likes, that will put California in worst financial straights, and that will have as bad a long-term impact on the state as Proposition 13.

Propositions 1A-1F are a terrible deal, the result of GOP blackmail and extortion — and they won’t even solve the problem. This governor is going to leave the state in the worse shape it’s been since the Great Depression. Almost makes you long for the days of Gray Davis.

In 1967, at the height of the antiwar movement, when American cities were in political chaos, a young tenant organizer named John Ross ran for San Francisco supervisor as a radical out of the Mission advocating rent control and an end to U.S. involvement in Vietnam, among other things. But one of his opponents discovered that Ross was a convicted felon who served two years and six months in federal prison for refusing the draft, so they took his name off the ballot.

Now, 42 years later, Ross — the writer, poet, unrepentant radical, and longtime Guardian correspondent, may be getting some recognition from the city. Sup. John Avalos is going to introduce a resolution honoring Ross for his extensive literary and political contributions to San Francisco. The May 12 ceremony, at 3:30 in the Board of Supervisors chambers, will be followed by "poems under the dome" — a poetry reading at City Hall at 5:30. If you want to help out (or donate money — please) contact Diamond Dave Whitaker at 240-0286 or Avalos’ office at 554-6975. *

Soft (or smart) on crime?

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By Tim Redmond

So the Contra Costa County district attorney is driving everyone crazy with his vow to stop prosecuting minor crimes unless the county supervisors rescind his budget cuts.

Now, he’s suggesting that burglary and reckless driving won’t be prosecuted any more, which is probably not the smartest thing to say; CoCo county has a bad reckless driving problem, and announcing that burglars are free to come and go might not be so nice for the welathy homeowners with their big-screen TVs nad abundant jewelry in fancy subdevelopments.

But imagine if the DA in Contra Costa (and DAs in San Francisco and Alameda Counties) instead pledged to stop prosecuting, say, simple drug posession cases? Suppose small-time sales were included, too, along with prostitution. The counties would save a ton of money, millions of dollars that’s wasted every year putting people through the court system, and sometimes into jail, for offenses that shouldn’t be criminal anyway.

You could still bust the burglars and the people who run over old ladies. But you’d save even more money and the streets would be safer. No?

Send the solar project back to committee

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By Tim Redmond

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

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

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

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

Sunset solar project moves forward

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By Tim Redmond

The Examiner claims the Sunset Reservoir solar project has run into problems, but actually, the supervisors Budget Committee sent it forward to the full board yesterday on a 2-1 vote. That means the board will vote on it this Tuesday.

I’ve got problems with the project — I’m not sure it’s a good idea to sign a long-term contract with a private company to do something the city ought to be able to do itself. And I have a suspicion that 15 years from now we’ll look back at this as a bad deal.

At the very least, the city ought to take the position that it intends to exercise its right to buy the plant in seven years. But it’s going to be harder to amend language like that into the contract at the full board.

Interestingly, Sup. Ross Mirkarimi, who sits on the Budget Committee, has been opposed to the current deal and wants it amended; he asked the chair, Sup. John Avalos, to continue the item, since Mirkarimi, whose son was born Tuesday, was a bit distracted this week. Avalos got Sup. David Campos, who is also a critic of the project, to take Mirkarimi’s seat for the hearing.

But when the vote came down, Avalos voted to send the matter forward without a recommendation. “The room was full of people who had come to speak on this, and I didn’t want to send them away thinking we’d just continued it,” Avalos told me. “I thought we should act on it.”

Avalos said he’s not gung-ho on the deal, but is a “soft supporter.” He promised that he would look at it again at Tuesday’s board meeting and consider resending it to commitee.

That’s what ought to happen — there are two many issues on this to just approve it without more discussion and amendments.

Slow down the solar project

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EDITORIAL The concept is so good it’s hard to imagine why anyone would criticize it: the San Francisco Public Utilities Commission wants to cover the Sunset Reservoir with solar panels, creating the largest municipal solar generating project in the country. The money would come from existing SFPUC revenue — no new taxpayer dollars. The Sierra Club loves the idea, and Mayor Gavin Newsom is pushing it.

We agree that the reservoir is a perfect place for a solar project, and that the city ought to be pursuing this.

But the structure of the deal makes us uncomfortable — and the financing shows a serious flaw in how federal money for renewable energy is allocated.

Under the terms of the proposal, a private company, Recurrent Energy, would finance and build the plant at a cost of perhaps $40 million. The facility would have the capacity to generate 5 MW of electricity, enough to power 2,500 houses. The city, in turn, would agree to buy that power for the next 25 years, at about 23.5 cents per kilowatt hour — far more than the current market rate for electricity but less than what other cities have agreed to pay for long-term solar contracts.

The city would have an option to buy the plant from Recurrent after seven years for $33 million.

The good news is that this would be a public-power project — the city would own the electricity and could use it to power public buildings and eventually, once the community choice aggregation (CCA) system is running, could sell it as retail power to residents and businesses.

But Sups. Ross Mirkarimi and David Campos have asked the obvious question: Why is a private company even involved? Why can’t the city build the solar generating station itself? The CPUC’s answer: It’s cheaper to let Recurrent do the work — because the private outfit will get a $12 million tax break from the federal government.

That’s a serious problem — why is the Obama administration giving tax breaks for private projects that aren’t available to cities? "What we should be looking at is why San Francisco, with all its clout in Washington, can’t get that same sort of subsidy for a public project," Campos told us.

Or as Mirkarimi put it: "This only makes sense to me if there’s some guarantee that the city will actually buy the plant in seven years. Otherwise we’re going to look back at this in year 15 and realize it’s not such a good deal."

The city’s energy future is very much up in the air right now — CCA is on the cusp of viability, there’s still an active public-power movement, and it’s very hard to say what the city’s needs will be (or what the price of solar energy will be) 10 years from now, much less 25. So we’re very nervous about signing a contract of that length with a private company.

Yes, the Recurrent deal offers solar now — and that’s important. But the supervisors shouldn’t rush this through. At the very least, they should pass a resolution asking House Speaker Nancy Pelosi to seek to direct the same subsidies that private companies can get to public solar projects — and to delay a final vote on this until there’s a better analysis of why a private company should be given a long-term contract for what ought to be a public project. *

Uncivil unions

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steve@sfbg.com

Who really cares about an appointment to the Golden Gate Bridge, Highway and Transportation District Board of Directors? There isn’t a delicate balance of power on the board or any major initiative at stake in this fairly obscure district. San Francisco certainly has more pressing issues and concerns.

Yet the Board of Supervisors’ April 14 vote to reject Larry Mazzola Jr. and select Dave Snyder for that board says more about San Francisco’s political dynamics, the state of the American labor movement, the psychological impact of the recession, how the city will grow, and the possibilities and pitfalls facing the board’s new progressive majority than any in recent memory.

It was a vote that meant nothing and everything at the same time, a complex and telling story of brinksmanship in which both sides of the progressive movement arguably lost. And it was a vote that came at a time when they need each other more than ever.

"It was a win for the Newsom-oriented elements of labor," Sup. Chris Daly, who helped spark the conflict, told the Guardian.

The bloc of six progressive supervisors who shot down Mazzola — who helps run the powerful plumbers union and was the San Francisco Labor Council’s unwavering choice for an appointment that has traditionally been labor’s seat on the bridge board — is the same bloc the unions helped elected last year. It is also the same bloc that has been fighting the hardest to minimize budget-related layoffs.

The vote says a tremendous amount about the crucial alliance between progressives and labor, how that delicate partnership formed, and what the future holds.

PLUMBERS VS. PROGRESSIVES


The Mazzola name carries a lot of weight in San Francisco labor circles. The Web site for the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry Local 38 (UA 38) features a photo of U.S. Secretary of Labor Hilda Solis standing between Larry Mazzola Sr. and Larry Mazzola Jr., the father and son team that runs the union.

But the Mazzolas and their union are also controversial. As the Guardian has reported ("Plumbers gone wild," 2/1/06), the union owns a large share of the Konocti Harbor Resort (which a lawsuit by the Department of Labor said was a misuse of the union’s pension funds) and owns the Civic Center Hotel, which tenants and city officials say has been willfully neglected by a union suspected of wanting to bulldoze and develop the site. The plumbers and other members of the building trades have also fought with progressives over development issues and generally back moderate-to-conservative candidates.

Sup. Chris Daly and several progressive groups locked horns with the union over the hotel a few years ago, and Mazzola Sr. responded by opposing Daly’s 2006 reelection campaign, targeting him with nasty mailers and donating office space to Daly’s opponent, Rob Black. Yet more progressive unions like Service Employees International Union Local 1021, which represents city employees, convinced the Labor Council to back Daly and union support helped Daly win.

So when Mazzola Jr. came before Daly’s Rules Committee last month, the supervisor unloaded on him, and Mazzola gave as good as he got, telling Daly he didn’t want his support and defiantly telling the committee he didn’t know much about the bridge district, or its issues, but he expected the job anyway. Those on all sides of the issue agree it was a disaster.

"He was just patently unqualified for the position," Daly told the Guardian. Mazzola tells us his experience with labor contracts would be an asset for the position, but he admits the committee meeting didn’t go well. "I was caught off-guard and put in a defensive mode that altered my planned presentation," Mazzola told us.

Whatever the case, Sup. David Campos joined Daly in keeping the Mazzola nomination stuck in committee while the progressive supervisors privately asked labor leaders to offer another choice. "We said, ‘Give us anyone else as long as they can intelligently talk about transportation issues and the bridge district," Daly said.

But labor dug in. "It seemed as though the board was trying to dictate to labor what labor should do," Michael Theriault, who heads the San Francisco Building and Construction Trade Council. And the other unions decided to back the trades, for a number of complicated reasons.

"The reason we supported Larry Mazzola is because this was important to the plumbers union," said Mike Casey, president of the Labor Council and head of Unite Here (which includes the Union of Needletrades, Industrial and Textile Employees and the Hotel Employees and Restaurant Employees International Union). "To the extent we can support the trades, we want to."

So when the four most conservative members of the Board of Supervisors used a parliamentary trick to call the Mazzola nomination up to the full board on April 14, the stage was set for the standoff.

THE STATE OF LABOR


Labor is truly a house divided, despite its universal interest in minimizing recession-related layoffs and taking advantage of a new Congress and White House that is generally supportive of labor’s holy grail: the Employee Free Choice Act, which would make it far easier to form unions.

The April 25 founding convention of National Union of Healthcare Workers (NUHW) in San Francisco caps a years-long battle between Sal Rosselli’s United Healthcare Workers (UHW) and their SEIU masters (see "Union showdown," 1/28/09). Rosselli and many others say SEIU under Andy Stern has become undemocratic and has climbed in bed with corporate America, while SEIU says getting bigger has made the union better able to advocate for workers. Both accuse the other of being power-hungry and not fighting fair.

"Inside SEIU, we’ve been struggling for four years basically on a difference of ideology and vision of what the labor movement is," Rosselli told us. David Regan, who SEIU named as a UHW trustee after ousting Rosselli, told us the union divisions have been overstated by the media. "Everyone is together in pushing the Employee Free Choice Act," he said, glossing over the fact that the legislation is in trouble and recently lost the support of U.S. Sen. Dianne Feinstein.

Nationally, SEIU has been at war with all of the most progressive unions. The union recently made peace with the California Nurses Association after a particularly nasty struggle that involves many of the same dynamics as SEIU vs. NUHW, including accusations by CNA that SEIU was a barrier to achieving single-payer healthcare and was illegally meddling in its internal affairs.

SEIU is also accused of breaking up Unite Here, which fought the most high-profile labor battle here since Newsom became mayor in its contract fight with the big hotel chains. Last month, a large faction from the old Unite affiliated with SEIU, whose officials say they were just helping out after the end of what all knew was a bad marriage. "This is an example of a merger that didn’t take," SEIU spokesperson Michelle Ringuette told us. But the building trades have backed Unite Here in its fight against Sterns’ SEIU. As Casey told us, "We’re in a major fight over our right to exist. There’s no other way to characterize it."

Yet in San Francisco, SEIU plays a different role. Local 1021 is the advocate for the little guy, representing front-line city workers who deliver social and public health services. It is the union facing the deepest layoffs in the coming city budget fight and is still negotiating contract givebacks with the Mayor’s Office. The union’s biggest allies in City Hall are the exact same six supervisors who voted against Mazzola.

So why this standoff? SEIU, Unite Here, and other progressive unions share the Labor Council with the building trades, which are traditionally more conservative and friendly with downtown and, these days, starting to really get desperate for work. "We have thousands of guys on the verge of losing their homes and families," Theriault said. "We are desperate."

That was one reason the San Francisco Labor Council last year cut a deal with Lennar Corporation to back Proposition G, which lets Lennar develop more than 10,000 homes in the southeast sector of the city. Daly, who wanted firmer guarantees of more affordable housing, was livid over the deal and has been at odds with the council ever since. But Daly said labor’s undercutting of progressives goes back even further and includes the early reelection endorsement Rosselli’s UHW gave Newsom in 2007, which helped keep big-name local progressives out of the race.

Tenants groups, affordable housing advocates, and alternative transportation supporters form the backbone of progressive politics, but on development projects, they often clash with the trade unionists who just want work. And labor expects support from the progressive supervisors. As Mazzola pointed out, "It was labor that got most of those guys elected."

But labor has its own fights on the horizon. SEIU fears deep city job cuts if the Mayor’s Office can’t be persuaded to start supporting new revenue measures. NUHW is getting challenged by SEIU for every member the try to sign up. And Unite Here’s hotel contracts start expiring in six months, reopening its battle with downtown hotel managers.

"We’re going to be in a real war with some of those employers," Casey said. Yet he said its actually good time for the otherwise distracting fights with SEIU over how nice to play with big corporations. "I embrace this fight because I think this is exactly the struggle we need to have in the labor movement."

But the Mazzola fight was one that neither side relished.

TO THE BRINK


The Board of Supervisors chambers was filled with union members flying their colors on April 14, but the progressive supervisors were just as unified, voting 6-5 to reject Mazzola. All that was left was the political posturing, the decision of what to do next, and the fallout.

"I am disappointed and surprised by the board’s action," Sup. Sean Elsbernd (who voted for Mazzola and publicly called it "a sin" to deny him) told us, refusing to confirm the private joy over the outcome that many sources say he has expressed. "What shocked me is a majority of the board turned their back on labor."

Daly admits that the standoff hurt progressives. "I’m not sure who came up with it, but it’s certainly true that the Sean Elsbernds of the world were able to take full advantage of the situation to drive a wedge between unions and progressives," Daly said.

Yet Daly noted how ridiculous is was for Sups. Elsbernd and Michela Alioto-Pier to be publicly professing such fealty to labor while opposing revenue measures that would minimize layoffs. "At the same time the plumbers were attacking me, I was sponsoring paid sick days," Daly said. "It’s the six members of the board that are the most pro-labor who voted against Larry Mazzola."

Politically, Elsbernd says the progressives misplaced their hand. "I think the easy middle ground for them was to reject Mazzola and send it back to committee," Elsbernd said. Others echoed that point. Instead, supervisors appointed Synder, a widely acclaimed transportation expert who created the modern San Francisco Bicycle Coalition then started Transportation for a Livable City (now Livable City) before becoming the first transportation policy director for the San Francisco Planning and Urban Research Association (SPUR).

"I don’t like how that went down, and I’m not happy with the inability of the board and labor to come to an agreement," Snyder told us. "I was stuck in the middle. I wish they had sent someone the board could have agreed to."

After the vote, Snyder went back to the SPUR office and resigned. SPUR director Gabriel Metcalf admits that labor leaders lobbied him to pressure Snyder to withdraw his name, and that he asked Snyder to do so. But Metcalf said he didn’t want to lose Snyder, whose vast knowledge of transportation issues as been a real asset to SPUR. "It was his choice and not my preference."

"This issue is not why I left SPUR, but it was the precipitating event," said Snyder, whose progressive values have occasionally differed from SPUR’s stands. "My sense of social justice has more to do with class issues than I was able to pursue at SPUR."

In fact, the clashes between progressives and developers (who are often backed by the trade unions) often revolve around how much affordable housing and community benefits will be required with each project approval. Snyder said the defining question is, "How do we accommodate development in San Francisco and maintain progressive values in a capitalist economy?"

He didn’t answer that question, but it is one the building trades also understand. Theriault said he supports holding developers to high standards, even when progressives have block certain projects to get them. "I’m okay with that as long as I see the endgame," Theriault said.

He expects the progressive board to listen to labor more than Daly or Democratic Party chair Aaron Peskin, who Theriault said helped shore up the progressive opposition to Mazzola (which Peskin denies). "With the exception of Daly, the relationships are reparable. But they have to show some independence from Daly and Peskin," Theriault said. "The real fear for me is what comes next."

Theriault was referring to things like new historic preservation standards that supervisors will soon consider, as well as the string of big development projects coming forward this year. And for progressives, they hope their efforts to save city jobs will be followed by labor support for progressive candidates for the Board of Supervisors (such as Debra Walker and Rafael Mandelman) in next year’s election.

"The one thing I know about labor is, we’ve been screwed by politicians on the left and the right," Casey said. "Are we angry about this and disappointed? Yes. But does that mean the alliance between labor and progressives is dead? No. We’re going to work through this stuff, talk, take deep breaths, and move forward."

NUHW’s founding convention takes place April 25 from 10 a.m. to 5 p.m. at Everett Middle School, 450 Church St., San Francisco.

Behind the Democratic Party lunch picket

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Chris Daly amid the picketers. Photo: Luke Thomas, Fog City Journal
By Rebecca Bowe

Imagine it’s a sweltering day, and you’re on a crowded sidewalk in a dark suit surrounded by about 200 tough, angry men who are booing you in unison, clamoring for your resignation, and yelling inches away from your face as you pass by. Do you try to dodge the swarm and duck into the building you’re headed to? Not if you’re Supervisor Chris Daly.

This afternoon, when Daly showed up downtown for the San Francisco Democratic Party Unity Luncheon at the Sir Francis Drake Hotel, a crowd of building-trades union members greeted him with shouts and jeers. With cameramen shadowing his every move, Daly paraded up and down the line, seeming almost as if he enjoyed soaking in all the negative attention, getting into heated exchanges with some of the protesters and shaking hands with others. At one point, when the tradesmen started chanting, “What do we want? Jobs! When do we want them? Now!” Daly simply joined in with the chorus, punching his fist into the air for emphasis. Once people caught on, they stopped chanting and booed him all over again.

According to San Francisco Building and Construction Trade Council head Michael Theriault, the protest was over proposed changes to the city’s planning code that would strengthen historic preservation standards, which he said he feared would “freeze the entire city as a historic preservation district” and put a drain on already-scarce construction jobs. Much anger was directed toward the Historic Preservation Commission, a city body created by Prop J — a ballot measure authored by San Francisco Democratic Party chair and former Board of Supervisors president Aaron Peskin, placed on the ballot by an 11-0 vote of the supervisors, and approved by nearly 60 percent of the voters last November.

But the underlying issue was the Board of Supervisors’ 6-5 vote on April 14 that rejected Larry Mazzola Jr. as board director of the Golden Gate Bridge, Highway and Transportation District. Mazzola, who helps run the plumbers’ union, was the San Francisco Labor Council’s choice for the seat, but his appointment was blocked by the board’s six progressive members, who were more inclined to go with Dave Snyder — a transportation expert who was deemed more qualified. “The majority of the Board of Supervisors has taken up a war against labor, and they disrespect labor. It’s all about us losing our jobs and our health coverage,” Mazzola told the Guardian just before he turned and started chanting, “Daly, resign!” about three inches away from Daly’s face.
But in an interview for a Guardian story that will hit stands tomorrow, Daly said, “at the same time the plumbers were attacking me, I was sponsoring paid sick days. It’s the six members of the board that are the most pro-labor who voted against Larry Mazzola.”

Shades of green

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sarah@sfbg.com

When President Barack Obama signed the American Reinvestment and Recovery Act in mid-February, folks across the country were hopeful that the $787 billion stimulus package would help preserve and create decent jobs in their communities.

And in mid-March, when the Obama administration announced that Bay Area social justice activist Van Jones was joining the White House Council on Environmental Quality, advocates for green jobs took it as a sign that Obama shares Jones’ belief that we can fix our nation’s two biggest problems — excessive greenhouse gas production and not enough good jobs for the working class — by creating a green-collar economy.

Jones cofounded Oakland’s Ella Baker Center for Human Rights, which opposes police abuse and promotes alternatives to incarceration, and founded Oakland’s Green for All, which aims to create green-collar jobs in low-income communities. He defines a green-collar job as "a family-supporting, career-track job that directly contributes to preserving or enhancing environmental quality."

"Think of them as the 2.0 version of old-fashioned blue-collar jobs, upgraded to respect the Earth and meet the environmental challenges of today," Jones wrote in his New York Times bestseller The Green Collar Economy: How One Solution Can Fix Our Two Biggest Problems (HarperOne, 2008).

But is Jones’ definition codified into Obama’s Recovery Act? And in San Francisco, where Mayor Gavin Newsom speaks incessantly about green jobs and regularly praises Jones, will the jobs we create be for the people who need them most? And how will that play out in a city where blacks, Latinos and Asians experience higher unemployment, poverty, and incarceration rates than whites, and building construction has stalled, pitting skilled union workers against training program graduates?

Last month, an alliance of community and worker organizations from San Francisco’s working class neighborhoods sent a letter to Newsom outlining concerns about the Recovery Act’s equity, job quality, and transparency requirements.

Antonio Diaz of PODER (People Organizing to Demand Environmental and Economic Rights), Alex Tom of the Chinese Progressive Association, Steve Williams of POWER (People Organized to Win Employment Rights), and Terry Valen of the Filipino Community Center asked Newsom to ensure that ARRA funds would be used to create "green jobs and opportunities primarily for low-income people and people of color" and "high quality jobs with family-supporting wages and benefits, safe and healthy working conditions, and career ladders."

"We ask for your commitment to greater transparency and community input in shaping and monitoring the infusion of ARRA funds for San Francisco’s developing green collar economy," they wrote.

Two weeks later Newsom announced the launching of www.recoverysf.org, a Web site that seeks to track stimpack funds coming to San Francisco. Although the Web site shows that $150 million of the first quarter-billion of formula funding is headed toward infrastructure projects, it does not include estimates of the numbers of green jobs created.

Wade Crowfoot of the Mayor’s Office told the Guardian that the city is focused on ensuring that green jobs are created with these funds and that the City Attorney’s Office is figuring out what is "allowable" under Recovery Act’s guidelines.

On April 3, the U.S. Office of Management and Budget issued a 172-page memo outlining the Recovery Act’s policy goals. The goals included ensuring compliance with equal opportunity laws and principles, promoting local hiring, providing maximum practicable opportunities for small business and equal opportunities for disadvantaged business, encouraging sound labor practices, and engaging with community-based organizations.

"But will all cities include achievable, measurable requirements?" Crowfoot said. "I don’t think so, without federal guidelines."

This lack of specifics, Crowfoot says, has the City Attorney figuring out if San Francisco can include "first source" hiring requirements, in which hiring halls agree to interview graduates from local training programs first. If so, Crowfoot says, the city will seek to leverage existing funding for energy efficiency programs and conduct hire-locally campaigns in low-income communities.

But as Crowfoot notes, although we know that $1.5 million in ARRA funding is coming to San Francisco for weatherizing homes — helping to decrease the energy costs of low-income residents, reduce the city’s energy demands, and increase the number of people hired from the local community to do energy audits and retrofits — we still don’t know how many jobs will be created per project, which is the basic goal of economic stimulation.

"If we spend the dollars, say, on boiler replacement, that’s more equipment and less labor," Crowfoot said. "But the more you hire locally, the more those folks get experience, the more they’ll be well positioned to get jobs in the non-subsidized sector once the stimulus funds are gone."

Acknowledging the tension between laid-off union workers and graduates of apprentice training programs, Crowfoot said, "We are trying to figure out a balance, whereby the community is not shut out, but the unions’ needs are addressed. We want to be careful about how many jobs we say are going to be created. We don’t want to build hope in populations who already have a lot of mistrust in the government."

Michael Theriault, secretary and treasurer of the San Francisco Building and Construction Trades Council, told us that 25 percent of the region’s 16,000 building trades workers are out of work, compared to nearly full employment last year.

In the past, the Northern California Carpenters Regional Council provided CityBuild with instructors and took the lion’s share of the program graduates, Theriault explains. But under present conditions, the Council isn’t keen on another CityBuild cycle.

"I think they should work to sponsor another cycle, but the ball is also in the city’s court," Theriault said, noting that the ARRA-funded weatherization program could soon be offering prevailing union wages ($20 an hour for roofers, $40 to $50 for plumbers and electricians) that could help ease the tension. And then there’s the inconvenient truth that some union members view non-unionized solar panel installers as "scabs," creating another barrier to using green jobs to lift the underemployed.

Mayor Newsom has until June to secure and implement stimpack funding as part of upcoming local budget proposals, a timetable that has Green for All issuing a call for action to ensure that Recovery Act implementation creates green-collar jobs, ensures transparency and accountability, and supports pathways out of poverty.

"This may be the most important opportunity you’ll ever have to bring green-collar jobs to your community," Green For All wrote in a public statement. "But the planning process will be over in the blink of an eye, and your community could miss out. That’s why we’re calling on you to take action now."

Green for All field organizer Julian Mocine-McQueen is scheduled to sit down with Crowfoot this week in an effort to get Newsom to sign his group’s pledge. He said there’s been an expansion of the city’s lighting and refrigeration cooling retrofitting program, starting with small business owners who speak English as a second language. "It’s good," McQueen said. "But it’s not enough."

He believes green job success will depend, in part, on including hiring parameters. "A job in the city’s southeast sector may not pay $70,000 a year, but it would be a huge step toward creating a family-sustaining job," McQueen said, noting that the Obama administration has "to a certain extent" adopted Jones’ definition of green-collar jobs. "I’m not sure that they have codified it," McQueen said. "They have recommendations."

Asked to define green jobs during a recent media roundtable on projected budget deficits, Newsom talked about weatherization and sustainability and plans to expand the city’s training academies before handing the floor to the Office of Economic and Workforce Development’s Kyri McClellan, whom he described as his "green czarina."

McClellan, who describes herself as "the lead cat-herder" of Recovery Act funds, told reporters that San Francisco is expected to receive a quarter of a billion dollars in formula funds in the coming fiscal year, 95 percent of which have been allocated to "shovel-ready" projects that were already queued up under the city’s 10-year capital plan.

During a subsequent board committee hearing, McClellan shared job estimates — 30 jobs from the $11 million Department of Public Works street paving allocation and 250 jobs from the $18 million Housing Authority retrofitting allocation — that raised eyebrows.

McClellan said that OEWD is "moving as quickly as possible to take the dollars we’ve been allocated, get approval from the Board of Supervisors, and get programs up and running."

Observing that the city also has parallel funding for training programs such as CityBuild and a Green Academy, McClellan added that "no one is working harder than Rhonda Simmons." Reached by phone, OEWD’s Simmons said she has been working with San Francisco State University professor Raquel Pinderhughes to identify five job sectors that have "the capacity to grow the greatest number of green jobs."

These include solar installation, energy efficiency, landscaping/public greening, recycling, and green building. "In an economy like this, you have to be competitive," Simmons said. "And almost all the programs that come out of my shop are geared toward low-income to moderate-income folks."

Observing that OEWD is using a $238,000 federal earmark to seed a Green Academy and that will expand the GoSolarSF workforce incentive, compete for a $500,000 EPA brownfield cleanup training grant, and coordinate with the San Francisco Public Utilities Commission to develop "workforce incentive language" for biodiesel reuse program and energy efficiency projects, Simmons notes that it was the unions that helped create CityBuild in the first place, and the city is working to ease current concerns.

"It is our intent as OEWD designs the academy that any training programs must demonstrate that they train individuals for occupations with opportunity for upward mobility," Simmons said, after emerging from a meeting cochaired by Crowfoot and Pinderhughes to help community-based organizations understand green jobs and figure out how to link with the Green Jobs Corps that Pinderhughes set up in Oakland.

Eric Smith runs the Bayview-based Green Depot, a nonprofit that promotes biodiesel use in neighborhoods facing environmental justice issues and ran a $9,000-per intern pilot program with Global Exchange. He worries that administrative costs will chew up much of the stimulus money, citing SFPUC figures that the cost ratio for trainers to interns is about 3:1.

"There is a lot of concern in the Bayview that the money will end up going to consultants and administrators when we have people who are hungry and desperate to work," Smith said.

After two green jobs hearings, Sup. Eric Mar says that he and Sups. Sophie Maxwell and David Chiu have concluded "that unless the board takes action and gives clear guidelines and expectations, green collar job creation will be miniscule."
Noting that Oakland’s Green Job Corps and Richmond’s solar program seem years ahead of San Francisco’s efforts, Mar said his next step will be to talk with labor, environmental groups, businesses, and nonprofits to get a sense of an appropriate structure to prioritize the low-income communities as the main beneficiaries of green-collar job creation. "It’s pretty clear that the [Newsom] administration’s commitment to the numbers of jobs created is pretty small," Mar said. "The community is going to have to push for more."

Gavin Newsom’s Earth Day

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EDITORIAL Here’s a snapshot of the state of green San Francisco, as we approach Earth Day 2009:

San Francisco ought to be getting $18 million a year for energy-efficiency programs, but the money instead goes to Pacific Gas and Electric Co., which is wasting half of it.

Mayor Gavin Newsom went to Washington, D.C. to participate in a Newsweek panel on the environment and called for a transformation of the American automotive industry just a few days after the city’s transportation agency decided to cut $56 million out of Muni, increase transit fares by $30 million — and hike fees for car parking by just $11 million.

The city stands to get millions in federal stimulus money for green jobs — but nobody knows how many jobs the money will create, where they will come from, or who will get them.

This doesn’t seem the best way for one of the most liberal cities in America to respond to the environmental and economic crisis.

As Rebecca Bowe reports on page 10, PG&E is managing part of a multibillion dollar program aimed at cutting electricity demand. It’s a laudable goal — in fact, the cheapest way to reduce the use of fossil fuels and dirty power is to use less in the first place.

But the private utilities are a bad fit for any program that seeks to cut demand. Every year PG&E tells Wall Street how it expects to grow — and since the company’s product is electricity and natural gas, that means PG&E has no incentive at all to shrink its market. Not surprisingly, the giant utility has done a crappy job of running the program, failing to meet even its modest goals.

But state law allows cities to apply to run the local programs themselves — and data from across California show that public sector, non-utility programs do a far better job of lowering electricity use. So why isn’t San Francisco applying for that money? Because the San Francisco Public Utilities Commission thinks it’s "premature."

That’s crazy — the money could create local green jobs, reduce energy demand, and cut PG&E waste. It’s an obvious choice, and the supervisors should pass a resolution directing the PUC to take on this program.

The supervisors no longer have control over Muni fare hikes, but when they examine the city budget, they should take a hard look at what Newsom’s transit planners are doing. Cutting bus service during a recession, when low-cost transportation is needed more than ever, is generally a bad idea. So is raising Muni fares. Why are the car drivers, who are generally richer (and many of whom are commuters from wealthier suburbs) getting off so cheap?

The supervisors also need to be monitoring closely the federal stimulus money and the creation of green jobs. The single most important thing San Francisco can be doing right now is creating jobs in the green economy. In fact, there ought to be a city loan fund just for local green-collar startups. Instead, while Newsom is prancing around the country running for governor, his staff seems flummoxed by the whole process. The city needs a goal — say, 5,000 new green-collar jobs for unemployed San Franciscans in the next five years — a plan to create them, and a program to use the available federal money.

Newsom seems to have plenty of ideas for Detroit. We’d love to see him start to focus on San Francisco. *

No balance in two-year budget

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OPINION There’s no more important decision made by the Board of Supervisors than that of the city’s annual budget. Every year the board sets the city’s priorities by appropriating more than $6 billion. In good economic times, the board uses the budget process to set new policy directions for San Francisco. In bad times, the annual budget is the board’s only real chance to save vital services by making targeted appropriations while strategically reducing other parts of the budget.

That’s why a charter amendment to have only biannual budgeting is a bad idea.

The fact that a two-year budget is being pushed by the Newsom administration and the San Francisco Chamber of Commerce should give progressives pause. Unfortunately, downtown forces have successfully used the worst budget year ever to woo some progressive budget stakeholders.

Their argument sounds good on its face. A multiyear budget would help smooth out the highs and lows, requiring City Hall to deal with pending fiscal emergencies sooner. It would also mean every other year off from having to spend all that energy turning people out to endless budget meetings and lobbying to save the programs we care about.

But the way a two-year budget would actually play out would mean that progressive budget stakeholders would have only half the opportunities for budget input through the generally more responsive Board of Supervisors. Meanwhile, the Mayor’s Office would be able to centralize more power without having to get annual approvals from the board. In other words, a two-year budget would make the Office of Mayor even more insulated from the public and members of the board on the decisions that affect us the most.

Additionally, two-year budgets would be unwieldy and inaccurate. Over the past nine years of out-year projections by the Controller’s Office, the average difference between the projected and actual surplus or deficit was nearly $250 million. For example, last year the controller estimated our 2009-10 budget deficit would be about $46 million. This year it’s pegged at $438 million. Of course, as our real revenue data comes in, this number will surely change again. Unfortunately, we won’t know how much revenue we received for this upcoming budget year until we are a month or two into the following fiscal year.

There are serious flaws with our annual budget process. In difficult years, the mayor has too much unchecked power to make mid-year budget changes. Earlier this year, Mayor Gavin Newsom enacted a $118 million budget package that included tens of millions in health and human service cuts and more than 400 layoffs without approval of the Board of Supervisors. Meanwhile, when a majority of board members voted to cut pork from the mayor’s budget, he was able to avert that cut with his veto pen.

Leaving the decision about millions of dollars’ worth of service cuts in the middle of the year turns the democratic budget process — with checks and balances between the mayor and board — on its head. Correcting this problem with the current budget process would surely be a worthwhile effort.

Meanwhile, we must stay focused on this year’s budget process to preserve as many of the vital services as we can. *

Sup. Chris Daly represents District 6. Ed Kinchley is a labor activist.

 

Reclaim San Francisco’s corporate-sponsored public spaces

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By Steven T. Jones

I love the idea of temporarily closing streets to cars and transforming them into open space, a concept known as cicolovia that San Francisco has adopted under the moniker Sunday Streets and which now take place in Portland, Miami and New York City, as well as a host of foreign cities where the idea began many years ago.

Last year, the Guardian heavily promoted the first Sunday Streets events and even defended Mayor Gavin Newsom against attacks from supervisors and business interests for supporting them. This year, the first of six Sunday Streets is coming up on April 26. But after looking through the details of this year’s corporate-sponsored events, I’m having a hard time summoning much enthusiasm for them.

San Francisco is slowly becoming a place where it takes corporate backing just to throw a simple street party, or even to ride your Big Wheel down the street, and where failure to fill out the proper forms and display the sponsors’ logos will get you shut down by the cops.

Bus riders balance the MTA’s budget while drivers get a free pass

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By Steven T. Jones

If you want to get a real sense of how screwed up this city’s budget priorities are, just look at how the San Francisco Municipal Transportation Agency is looking to close its whopping $129 million budget deficit.

A good chart
in the Examiner the other day detailed the proposals, but it didn’t add them, so let me break it down for you: over $30 million in increased Muni fares, $56.4 million in Muni service cuts, and $11 million in higher parking fees. So poor bus riders contribute almost $90 million to the problem and drivers kick in $11 million.

And to make up the difference, Mayor Gavin Newsom is proposing to sell off taxi medallions, privatizing a public resource in a way that will enrich and give more power to the cab companies. So the average San Franciscan gets screwed and continues to subsidize the automobiles that clog our roadways – a problem that will only get worse as Muni becomes more expensive and less efficient.

It’s no wonder people are pissed and supervisors are threatening to reject the MTA budget. And the MTA’s budget problems are exacerbated by Newsom allowing other city departments — mostly notably the cops — to treat the MTA as a piggy bank for solving their own budget gaps. San Francisco is better than this, and Newsom should pay a heavy political price if he continues on this path.

Law vs. Justice

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steve@sfbg.com

City Attorney Dennis Herrera relishes his reputation as a crusading reformer. For several years, his official Web site prominently displayed the phrase "Activism defines SF City Attorney’s Office," linked to a laudatory 2004 Los Angeles Times article with that headline.

"Doing what we can do to ensure civil rights for everyone is not something we are going to back away from," was the quote from that piece Herrera chose to highlight on his homepage, referring to his work on marriage equality. The article also praises the City Attorney’s Office practice of proactively filing cases to protect public health and the environment and to expand consumer rights.

But more recently the City Attorney’s Office also has aggressively pushed cases that create troubling precedents for civil rights and prevent law enforcement officials from being held accountable for false arrests, abusive behavior, mistreatment of detainees, and even allegedly framing innocent people for murder.

Three particular cases, which have been the subject of past stories by the Guardian, reveal unacceptable official conduct — yet each was aggressively challenged using the virtually unlimited resources of the City Attorney’s Office. In fact, Herrera’s team pushed these cases to the point of potentially establishing troubling precedents that could apply throughout the country.

Attorney Peter Keane, who teaches ethics at Golden Gate University School of Law and used to evaluate police conduct cases as a member of the Police Commission, said city attorneys sometimes find themselves trapped between their dual obligations to promote the public good and vigorously defend their clients. "Therein lies the problem, and it’s a problem that can’t be easily reconciled," he told us.

"A lawyer’s obligation is to give total loyalty to a client within ethical limits," Keane said, noting his respect for Herrera. But in police misconduct cases, Keane said, "it is desirable public policy to have police engage in ethical conduct and not do anything to abuse citizens."

RODEL RODIS VS. SF


Attorney Rodel Rodis is a prominent Filipino activist, newspaper columnist, and until this year was a longtime elected member of the City College of San Francisco Board of Trustees. So it never made much sense that he would knowingly try to pass a counterfeit $100 bill at his neighborhood Walgreens in 2003 (see "Real money, false arrest," 7/9/08).

Nonetheless, the store clerk was unfamiliar with an older bill Rodis used to pay for a purchase and called police, who immediately placed Rodis in handcuffs. When police couldn’t conclusively determine whether the bill was real, they dragged Rodis out of the store, placed him in a patrol car out front, and took him in for questioning while they tested the bill.

There was no need to arrest him, as subsequent San Francisco Police Department orders clarified. They could simply have taken his name and the bill and allowed him to retrieve it later. After all, mere possession of a counterfeit bill doesn’t indicate criminal intent.

The police finally determined that the bill was real and released Rodis from his handcuffs and police custody. Rodis was outraged by his treatment, and sued. He insisted that the case was about the civil rights principle and not the money — indeed, he says he offered to settle with the city for a mere $15,000.

"I told my lawyer that I didn’t want a precedent that would hurt civil liberties," Rodis told the Guardian.

To his surprise, however, the City Attorney’s Office aggressively appealed rulings in Rodis’ favor all the way up to the U.S. Supreme Court, which found that the officers enjoyed immunity and ordered reconsideration by the Ninth Circuit Court of Appeals. Last month the Ninth Circuit ruled in the city’s favor, thus expanding protections for police officers.

Rodis can now name cases from around the country, all with egregious police misconduct, that cite his case as support. "Even with that kind of abuse, people can no longer sue because of my case," Rodis said.

Herrera disputes the precedent-setting nature of the case, saying the facts of each case are different. "We’re defending them in accordance with the state of the law as it stands today," Herrera said, arguing that officers in the Rodis case acted reasonably, even if they got it wrong. "We look at each case on its facts and its merits."

Herrera said he agrees with Keane that it’s often a difficult balancing act to promote policies that protect San Francisco citizens from abuse while defending city officials accused of that abuse. But ultimately, he said, "I have the ethical obligation to defend the interests of the City and County of San Francisco."

While it may be easy to criticize those who bring lawsuits seeking public funds, Rodis says it is these very cases that set the limits on police behavior and accountability. As he observed, "The difference between police in a democracy and a dictatorship is not the potential for abuse, but the liability for abuse."

MARY BULL VS. SF


In the run-up to the U.S. invasion of Iraq in 2003, there were months of antiwar protests resulting in thousands of arrests in San Francisco. Activist Mary Bull was arrested in November 2002. Bull said she was forcibly and illegally strip-searched and left naked in a cold cell for 14 hours.

San Francisco’s policy at the time — which called for strip-searching almost all inmates — was already a shaky legal ground. Years earlier Bull had won a sizable settlement against Sacramento County because she and other activists were strip-searched after being arrested for protesting a logging plan, a legal outcome that led most California counties to change their strip-search policies.

So Bull filed a lawsuit against San Francisco in 2003. The San Francisco Chronicle ran front page story in September 2003 highlighting Bull’s ordeal and another case of a woman arrested on minor charges being strip-searched, prompting all the major mayoral candidates at the time, including Gavin Newsom, to call for reform. Sheriff Michael Hennessey later modified jail policies on strip searches, conforming it to existing case law.

But the City Attorney’s Office has continued to fight Bull’s case, appealing two rulings in favor of Bull, pushing the case to the full Ninth Circuit Court of Appeals (from which a ruling is expected soon) and threatening to appeal an unfavorable ruling all the way to the U.S. Supreme Court.

"It’s pretty outrageous and humiliating to strip-search someone brought to jail on minor charges," Bull’s attorney Mark Merin told the Guardian. "If they win, they establish a bad precedent."

Herrera said the case is about inmate safety and that his office must follow case law and pursue reasonable settlements (neither side would say how much money Bull is seeking). "We do it well and we do it with a sense of justice at its core," Herrera said.

Yet Merin said the city’s actions fly in the face of established law: "In the Bull case, he’s trying to get 25 years of precedent reversed."

Merlin noted that "the problem is not with the city, it’s with the U.S. Supreme Court." In other words, by pushing cases to a right-leaning court, the city could be driving legal precedents that directly contradict its own stated policies.

"It would be nice if this city was in a different league, but they look at it like any defense firm: take it to the mat, yield no quarter" he added.

JOHN TENNISON VS. SF


For the Guardian, and for all the attorneys involved, this was a once-in-a-lifetime case. In 1990, Hunters Point residents John J. Tennison and Antoine Goff were convicted of the 1989 gang-related murder of Roderick Shannon and later given sentences of 25 years to life.

Jeff Adachi, Tennison’s attorney and now the city’s elected public defender, was shocked by a verdict that was based almost solely on the constantly mutating testimony of two young girls, ages 12 and 14, who were joyriding in a stolen car, so he continued to gather evidence.

Eventually Adachi discovered that police inspectors Earl Sanders and Napoleon Hendrix and prosecutor George Butterworth had withheld key exculpatory evidence in the case, including damaging polygraph tests on the key witnesses, other eyewitness testimony fingering a man named Lovinsky Ricard, and even a taped confession in which Ricard admitted to the murder.

After writer A.C. Thompson and the Guardian published a cover story on the case (see "The Hardest Time," 1/17/01), it was picked up pro bono by attorneys Ethan Balogh and Elliot Peters of the high-powered firm Keker & Van Nest LLP, who unearthed even more evidence that the men had been framed, including a sworn statement by one of the two key prosecution witnesses recanting her testimony and saying city officials had coached her to lie.

In 2003, federal Judge Claudia Wilken agreed to hear Tennison’s case and ruled that the prosecution team had illegally buried five different pieces of exculpatory evidence, any one of which "could have caused the result of Tennison’s new trial motion and of his trial to have been different."

She ordered Tennison immediately freed after 13 years in prison. The district attorney at the time, Terrence Hallinan, not only agreed and decided not to retry Tennison, he proactively sought the release of Goff, who was freed a few weeks later.

"The only case you can make is that this was an intentional suppression of evidence that led to the conviction of any innocent man," Adachi told the Guardian in 2003 (see "Innocent!" 9/3/03). In the article, Hallinan said "I don’t just believe this was an improper conviction; I believe Tennison is an innocent man."

But the pair has had a harder time winning compensation for their lost years. State judges denied their request, relying on the initial jury verdict, so they sued San Francisco in 2003, alleging that the prosecution team intentionally deprived them of their basic rights.

"What happened to these guys was a horrible miscarriage of justice," Balogh said.

The City Attorney’s Office has aggressively fought the case, arguing that the prosecution team enjoys blanket immunity. The courts haven’t agreed with that contention at any level, although the city spent the last two years taking it all the way to the Ninth Circuit, which largely exonerated Butterworth. The case is now set for a full trial in federal district court in September.

"They are unwilling to admit they made a mistake," Elliot said. "They are doing everything not to face up to their responsibility to these two guys."

The lawyers said both Herrera and District Attorney Kamala Harris had an obligation to look into what happened in these cases, to punish official wrongdoing, and to try to bring the actual murderer to justice. Instead the case is still open, and the man who confessed has never been seriously pursued.

Harris spokesperson Erica Derryck said the Ninth Circuit and an internal investigation cleared Butterworth "of any wrongdoing," although she didn’t address Guardian questions about what Harris has done to close the case or address its shortcomings.

In fact, the lawyers say they’re surprised that the city is so aggressively pushing a case that could ultimately go very badly for the city, particularly given the mounting lawyers’ fees.

"When we filed the case, we never thought we’d be here today," Balogh said. "They had a bad hand and instead of folding it and trying to pursue justice in this case, they doubled down."

Herrera doesn’t see it that way, instead making a lawyerly argument about what the prosecution team knew and when. "Our belief is there is no evidence that Sanders and Hendrix had information early on that they suppressed," Herrera said. "Based on the facts, I don’t think they, Hendrix and Sanders, violated the law. But that’s a totally different issue than whether they were innocent…. It’s not our role to retry the innocence or guilt of Tennison and Goff."

Herrera said he’s limited by the specific facts of this case and the relevant laws. "If the Board of Supervisors wants to do a grant of public funds [to Tennison and Goff], someone can legislate that. But that’s not my job," Herrera said.

As far as settling the case in the interests of justice or avoiding a precedent that protects police even when they frame someone for murder, he also said it isn’t that simple. Keane also agreed it wouldn’t be ethical to settle a case to avoid bad precedents.

"I’m always willing to talk settlement," Herrera said. "This is not an office that makes rash decisions about the cases it chooses to try or settle."

Deputy City Attorney Scott Wiener is the point person on most police misconduct cases, including the Rodis and Tennison cases, as well as another current case in which Officer Sean Frost hit a subdued suspect, Chen Ming, in the face with his baton, breaking his jaw and knocking out 10 teeth.

Wiener, who is running for the District 8 seat on the Board of Supervisors and is expected to get backing from the San Francisco Police Officers Association, recently told the Chronicle that Frost "did not do anything wrong." Contacted by the Guardian, Wiener stood by that statement and his record on police cases, but said, "I consider myself to be fair-minded." He also denied having a strong pro-police bias.

Yet those involved with these cases say they go far beyond the zeal of one deputy or the need to safeguard the public treasury. They say that a city like San Francisco needs to put its resources into the service of its values.

"It raises the broader question of what is the city attorney’s mandate? Is it fiscal limitation regardless of the truth?" Balogh said. "Dennis Herrera has had a very aggressive policy in defending police officers."

Herrera says he is proud of his record as the city attorney, and before that, as president of the Police Commission. "I believe in police accountability and have made that a big part of what I’ve done throughout my career."

The budget mysteries

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sarah@sfbg.com

San Francisco’s top budget advisors are predicting that dollars from President Obama’s stimulus package will help reinvigorate the economy over the next three years. But they also warn that the recovery will be slow, and that deficits will be part of political life for some time to come.

The findings are contained in a three-year budget projection report jointly compiled by the Mayor’s Office, the Controller’s Office, and the Budget Analyst’s Office and released to the news media at a hastily announced March 31 roundtable.

During the roundtable, Mayor Gavin Newsom announced that the city faces a "staggering" $438 million budget shortfall in fiscal year 2009-10 — a deficit, financial experts warn, that could balloon to $750 million by fiscal year 2011-12 if cuts and wage concessions aren’t made and structural reform and revenue creating measures aren’t undertaken.

Those future numbers are scary — and a bit apocryphal. Nobody seriously thinks the city will simply ignore this year’s problems and put them off until next year, which means future deficits should be smaller.

But the decisions that will have to be made to keep the red ink under control have been the subject of intense speculation since December, when Newsom announced that the city was facing a deficit equal to cutting every other dollar in the city’s discretionary general fund.

REFORMS? WHAT REFORMS?


In January newly elected Board of Supervisors President David Chiu sought to address the anxiety crashing over the city’s business and labor leaders by inviting stakeholders, including Newsom, to budget meetings at City Hall. But Newsom only agreed to get involved once the youthful board president’s other bright idea — a special election that combined cuts, revenue generating measures, and structural reforms to save as many jobs, programs, and services — was off the table.

And with only two months to go until he submits his 2009-10 budget proposal, Newsom still has not clarified what budgetary reforms he will support this fall, even as the labor unions are being asked to give back $90 million in promised benefits, and the Board of Supervisors gets ready to prepare an annual appropriations ordinance by the end of July.

Newsom did announce last week that he will be is asking some, but not all, departments for 25 percent cuts in the coming fiscal year. Human Services Director Micki Callahan confirmed that 730 pink slips have been sent out since July 2008.

Yet the actual cuts remain a mystery. "I will not be accepting 25 percent cuts from some departments, but from others, I will," Newsom said. "I don’t believe in across-the-board cuts."

Asked which departments he would accept 25 percent cuts from, Newsom told reporters: "You’ll find out when you read my budget."

Within days of Newsom’s statement came news of a deal between the Mayor’s Office and Service Employees International Union Local 1021, the largest city-workers union.

"The goal of this tentative agreement is to protect vital services for San Franciscans, minimize layoffs to employees, preserve the integrity of the collective bargaining agreement, and assist the city with its economic recovery," read a joint public statement.

As of press time, SEIU’s 1021’s Robert Haaland told the Guardian that the two sides are still in negotiations, but confirmed that the union is discussing giving up about $40 million over 16 months, including furloughs and other benefits.

"At the end of the day, our members recognize that they need to share the pain," Haaland said. "The idea is to save jobs and programs."

These givebacks from SEIU are part of the $90 million in concessions the city hopes to get from unions, including those that represent police, firefighters and nurses.

THE PERILS OF TWO-YEAR BUDGETING


As it becomes clear that givebacks and cuts won’t be enough to solve the city’s fiscal crisis, there is talk that the mayor wants to switch to a two-year budget process. Critics say that could represent a massive transfer of power to the Mayor’s Office, unless the Board of Supervisors also gets the power to approve the mayor’s midyear cuts.

"As it is right now, we have power through the Board of Supervisors for one month of the year," said one community organizer, who asked to remain anonymous. "The rest of the time Newsom moves his own agenda through his midyear cuts."

A summary of a March 16 Controller’s Office "budget improvement project" recommends that "the board’s add-back process should require that program restorations and enhancements be reviewed and analyzed by department staff and the board’s budget analyst;" that the "mayor and board should outreach to the general public regarding budget priorities;" and that the "city should adopt a two year budget process consistent with the city’s financial plan."

Sup. Chris Daly said he thinks this year’s grim three-year budget projections make a strong argument against a two-year budget process. "Projections are never right," said Daly, who used to chair the powerful budget committee. "Two years ago we weren’t projecting how bad it was going to be. We can’t do budgets for years out past the current fiscal year. It just doesn’t work."

Sup. David Campos, who sits on the current budget committee, said he wants to see the increased Federal Medical Assistance Percentage (FMAP) funding being provided to the city’s public health and human services departments used to restore proposed cuts, jobs, and services.

Much of the federal money will be earmarked for non-General Fund infrastructre projects at the Municipal Transporation Agency, Housing Authority, airport, and San Francisco Public Utilities Commission.

"We’re saying that if FMAP is coming in so that revenue cuts are not made in the public health area, then why not use these monies to fill gaps, replace cuts, restore funds, preserve programs?" Campos asked.

Campos also wants the mayor and the board to sit down and talk about the November ballot. "I don’t think the budget hole is going to be closed on backs of labor alone," Campos told us. "We’re focused on cuts, elimination of programs, layoffs … But why aren’t we talking about what revenue measures we are putting on the November ballot?

Chiu said he thinks Newsom is committed to some form of tax-based revenue measure. "Just as we can’t solve our budget deficit by taxing our way out of it, so we can’t solve it by cutting our way out of it either," Chiu said. "None of our tax or revenue-generating options would come close to filling 25 percent of that gap."

Noting that business is "more open to taxes that share the burden of who pays," Chiu observed that "it’s important to balance the cuts so it’s not just social services and the health department taking the burden."