Supervisors

Clean energy: the next moves

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EDITORIAL Pacific Gas and Electric Co., its political hacks, and to a great extent, the San Francisco Chronicle all seem to take the same line on the defeat of Proposition H: It’s done. The people have spoken. Public power has been on the ballot 11 times, and it’s never passed.

And — as is always the case with a losing campaign — supporters of the Clean Energy Act are discussing what went wrong, looking at how the measure was written, the details, the language, the scope to see if there was something that could have been done differently.

But that ignores the central reality of the campaign for Prop. H: PG&E spent nearly $10.3 million to kill it. And it’s very, very hard to fight that kind of money.

The truth is, there was nothing wrong with the language or scope of Prop. H. If it had passed, it would have given the city the tools to create a sustainable energy portfolio that would be the envy of the nation. In fact, there is little doubt that the Clean Energy Act was well ahead in the polls when it was first placed on the ballot.

But as we’ve seen with so many races over time (and as we saw with Proposition 8 this fall) when a ballot measure it becomes a citywide or statewide race, big money has a serious impact. And we’ve never seen this kind of money in a San Francisco initiative campaign. In the end, PG&E spent about $53 per vote. That’s an outrageous sum, dwarfing any political spending that’s ever happened in San Francisco

Yet despite the barrage, the Clean Energy Act got tremendous grassroots and political support. Clean Energy has a strong constituency in San Francisco, including from the Sierra Club, and the power of this campaign won’t go away. Despite the efforts of downtown and PG&E, progressives still control the Board of Supervisors. Three of the city’s four representatives in Sacramento — Senator-elect Mark Leno, Assembly Member Fiona Ma and Assembly Member-elect Tom Ammiano — supported the legislation and will continue to back efforts to replace PG&E’s dirty power with locally- owned renewable energy. PG&E has money but it’s running out of friends in this town — and its illegal monopoly is the very definition of unsustainable.

There’s now an organized constituency for clean energy and public power, seasoned by this campaign and ready to continue the battle. That’s what needs to happen. There are numerous fronts: the city needs to be moving forward quickly with community choice aggregation, which offers the potential for cheaper, cleaner power. (The downside to CCA is that it doesn’t allow the city to make money; PG&E would still own the transmission lines, and thus make all the profits in the system.) Potentially, however, a CCA agency could begin moving toward creating local generation facilities and eventually toward building a local transmission system. A CCA also could directly access the city’s own Hetch Hetchy power and begin delivering it to local customers (once San Francisco can get out of the contracts requiring it to send too much of that power out of town).

The supervisors need a strong Local Agency Formation Commission to keep monitoring and pushing this, and the new board president needs to be sure LAFCO members are committed to and energized about renewable energy and public power.

Several supervisors — Sean Elsbernd, for example — told us they saw no reason for Prop. H to be on the ballot since so much of what it called for could be done by the board. Fine: Sup. Ross Mirkarimi, one of the authors of Prop. H, should immediately introduce legislation to do everything in Prop. H that doesn’t require a city charter change. Let’s see if Elsbernd and the mayor are really just PG&E call-up votes or if they’re willing to support an energy options feasibility study and strong renewable-energy mandates for the city.

And there are still legal options that the board should look at. City Attorney Dennis Herrera never wanted to go to court to enforce the Raker Act, the federal law requiring San Francisco to operate a public power system, but that’s an area the board can push. David Campos, the apparent supervisor-elect in District 9, is a lawyer who has worked in the city attorney’s office and sued PG&E, so this is an area where he can show leadership.

The bottom line is that this battle isn’t over.

There were other disappointments on what was generally a progressive ballot. Proposition V — the phony measure calling on the school board to reinstate JROTC — passed, narrowly. It was mostly a wedge issue to hurt progressive candidates for supervisor, and has been a horribly divisive issue in the schools. The school board, which cut off JROTC last year, is now pushing for an excellent public service alternative and doesn’t need to go back and reexamine the issue. JROTC is a terrible idea for San Francisco, and the newly elected board members shouldn’t even bring this up again.

Of course we were deeply unhappy about the passage of Prop. 8. The repeal of same-sex marriage was such a blow to San Francisco that it dampened a lot of the enthusiasm over the Obama victory. But that one’s not over, either; it has just begun. Statistics show that voters under 30 overwhelmingly support same-sex marriage — and if the campaign is run differently, and the message is positive, it’s likely that Prop. 8 can be overturned. Marriage equality advocates should think seriously about preparing now for a major campaign in November 2010 to restore equal rights for same-sex couples in California.

Money is power

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› amanda@sfbg.com

GREEN CITY While the latest public power proposal was soundly defeated at the polls, the apparent failure of a pair of electricity generation initiatives backed by Mayor Gavin Newsom and Pacific Gas & Electric Co. is fueling an existing plan to create more city-owned energy projects.

Proposition H, which would have moved the city toward 100 percent renewable energy by 2040 and allowed public power to help meet that goal, lost Nov. 4 by more than 20 percentage points. PG&E spent a record-breaking $10.3 million against the measure, or more than $53 per vote as of the Nov. 10 tally.

For that kind of money, said campaign finance expert Bob Stern of the Center for Government Studies, "they could have taken every voter out and bought them an expensive meal." But, he said, that’s a pittance for a company like PG&E. "They knew spending $10 million was going to save them a bunch of money."

Two days after the election, PG&E announced a 9 percent increase in year-to-date profits over last year, boosted partly by a 6 percent rate increase PG&E implemented Oct. 1, which it argued was needed to cover the increased cost of natural gas.

Prop. H would have moved San Francisco away from volatile fossil fuel prices, although the city is still hoping to procure 51 percent of its energy needs from renewables by 2017 through the community choice aggregation (CCA) program.

Meanwhile a plan to retrofit the Mirant Potrero Power Plant is looking shakier since Nov. 4, when the Board of Supervisors tabled legislation that would have authorized the Mayor’s Office and San Francisco Public Utilities Commission to negotiate the deal.

Prior Land Use and Economic Development committee hearings showed that retrofitting the plant to run on natural gas instead of diesel may not be as technologically or economically feasible as suggested in a report commissioned by Mirant (see "Power possibilities," Nov. 5).

But a recent report on CCA outlines ways the city may be able to procure the baseload energy demand required by the California Independent System Operator (Cal-ISO) without retrofitting Mirant or building new peak-demand fossil fuel plants (known as "peakers"), as city officials originally proposed.

The report by Local Power, the lead CCA consultant hired by the city, suggests that the SFPUC’s current plan to upgrade natural gas steam boilers in large downtown buildings can be modified to capture waste heat and turn it into energy, a process known as cogeneration.

The city Department of the Environment has already identified 106 MW of potential energy — about the same amount Cal-ISO is requiring the city to have on hand for energy reliability. Although this isn’t renewable energy because it’s capturing wasted gas heat, "it’s really clean, good quality brown power," said Paul Fenn of Local Power, noting that it makes use of something that is currently being wasted.

Local Power’s draft report, which lays the groundwork for what the city needs to do before 2010 to make CCA work, also disputes the conclusions of a tidal power feasibility study conducted for the SFPUC. In July, URS Corp. reported that tidal power in the Golden Gate would cost between 80 cents and $1.40 per kW-hour and only generate a little over 1 MW of power. "We do not consider a tidal power project located in the vicinity of the Golden Gate to be commercially feasible at this time," the report states.

Local Power contends that URS undervalued the potential energy by using computer modeling rather than actual tidal data and overlooked the strongest area for building an underwater turbine. It also failed to account for public financing at a lower interest rate, which would make city-owned tidal power much cheaper.

"We are confident you can get 10 MW," Fenn said. "The whole thing was modeled on PG&E ownership."

Local Power recommended the city get actual tidal data from the best spot and run the numbers again. "The ocean is the ultimate energy resource for San Francisco," said Fenn, who compared the challenge of constructing this kind of infrastructure to the Hoover Dam.

Newsom, who opposed Prop. H but still claims to support CCA, remains committed to tidal power. "Mayor Newsom supports advancing a tidal project at the mouth of the bay," his spokesperson, Joe Arellano, wrote in an e-mail.

The rollout of CCA is expected in 2010, when the city issues a request for proposals from companies interested in building or supplying energy. Several companies have already responded to a request for information. CCA is slated to include a 150 MW wind farm, 31 MW of solar, 103 MW of local distributed generation, and 107 MW of efficiency technologies. Funding would come from $1.2 billion in renewable energy bonds that have already been approved.

Local Power’s report includes concrete actions the city can take, including a plan to finally make Hetch Hetchy power available to citizens, a recommendation that the wind farm be built in the Delta for easy access to the Transbay Cable — a new 400 MW, 59-mile transmission line between Pittsburg and San Francisco that’s scheduled to be completed in 2010 — and urging the city to petition the California Public Utilities Commission (CPUC) for so-called public good charges collected from ratepayers that currently go to PG&E’s energy efficiency programs.

"We’re trying to put ideas on the table for the RFPs," said Fenn, who stressed that the city should make it as easy as possible for CCA to get underway, a goal that will require a lot more cooperation between departments. For example, the report outlines several hindrances to getting renewable energy up and running, from permit hassles to delayed interconnections to PG&E’s grid.

"Where we see problems in the city for permitting and zoning, we can seek to change them now," Fenn said.

That chance may come soon. The Land Use and Economic Development Committee is hearing legislation Nov. 12 to require conditional use permitting for all power plants greater than 10 MW. Though the legislation originally targeted the Mirant plant, the Planning Department, in its review of the draft legislation, suggested that all power plants be subject to the additional review. Sup. Aaron Peskin, who sponsored the legislation with Sup. Sophie Maxwell, suggested the change wasn’t appropriate. "It just means more public process."

But, Fenn said, "To set standards based on pre-CCA era is at this point confusing. Like [Sup.] Ross [Mirkarimi] said, the CCA program should be the unifying principle of energy policy in San Francisco. Integrating all the pieces is indeed the entire secret of making all the parts perform better so that we can achieve the required meet-or-beat-PG&E-rates outcome."

Mirkarimi told us the program could obviate retrofitting Mirant or pursuing the peakers. "CCA still has not been taken seriously enough by the SFPUC or the Newsom administration."

The people’s election

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› news@sfbg.com

By midnight Nov. 4, the drama was long over: John McCain had conceded, Barack Obama had delivered his moving victory speech — declaring that “change has come to America” — and the long national nightmare of the Bush years was officially headed for the history books.

But in San Francisco, the party was just getting started.

Outside of Kilowatt, on 16th Street near Guerrero, the crowd of celebrants was dancing to the sounds of a street drummer. In the Castro District, a huge crowd was cheering and chanting Obama’s name. And on Valencia and 19th streets, a spontaneous outpouring of energy filled the intersection. Two police officers stood by watching, and when a reporter asked one if he was planning to try to shut down the celebration and clear the streets, he smiled. “Not now,” he said. “Not now.”

Then, out of nowhere, the crowd began to sing: O say can you see /By the dawn’s early light …

It was a stunning moment, as dramatic as anything we’ve seen in this city in years. In perhaps the most liberal, counterculture section of the nation’s most liberal, counterculture city, young people by the hundreds were proudly singing The Star Spangled Banner. “For the first time in my life,” one crooner announced, “I feel proud to be an American.”

Take that, Fox News. Take that Sean Hannity and Rush Limbaugh and Sarah Palin and the rest of the right-wing bigots who have tried to claim this country for themselves. On Nov. 4, 2008, progressives showed the world that we’re real Americans, too, proud of a country that has learned from its mistakes and corrected its course.

President Obama will let us down soon enough; he almost has to. The task at hand is so daunting, and our collective hopes are so high, that it’s hard to see how anyone could succeed without a few mistakes. In fact, Obama already admitted he won’t be “a perfect president.” And when you get past the rhetoric and the rock star excitement, he’s taken some pretty conservative positions on many of the big issues, from promoting “clean coal” and nuclear power to escautf8g the war in Afghanistan.

But make no mistake about it: electing Barack Obama was a progressive victory. Although he never followed the entire progressive line in his policy positions, he was, and is, the creature of a strong progressive movement that can rightly claim him as its standard-bearer. He was the candidate backed from the beginning by progressives like Supervisors Chris Daly and Ross Mirkarimi (a Green). And only after his improbable nomination did moderates like Mayor Gavin Newsom and Sen. Dianne Feinstein jump on the bandwagon.

From the start, the young, activist, left wing of the Democratic Party was the driving force behind the Obama revolution. And while he has always talked to the Washington bigwigs — and will populate his administration with many of them — he would never have won without the rest of us. And that’s a fact of political life it will be hard for him to ignore, particularly if we don’t let him forget it.

For a few generations of Americans — everyone who turned 18 after 1964 — this was the first presidential election we’ve been able to get truly excited about. It was also the first presidential election that was won, to a significant extent, on the Internet, where progressive sites like dailykos.com raised millions of dollars, generated a small army of ground troops, and drove turnout in both the primaries and the general election. The movement that was built behind Obama can become a profound and powerful force in American politics.

So this was, by any reasonable measure, the People’s Election. And now it’s the job of the people to keep that hope — and that movement — alive, even when its standard-bearer doesn’t always live up to our dreams.

The evidence that this was the People’s Election wasn’t just at the national level. It showed up in the results of the San Francisco elections as well.

This was the election that would demonstrate, for the first time since the return of district elections, whether a concerted, well-funded downtown campaign could trump a progressive grassroots organizing effort. Sure, in 2000, downtown and then-Mayor Willie Brown had their candidates, and the progressives beat them in nearly every race. But that was a time when the mayor’s popularity was in the tank, and San Franciscans of all political stripes were furious at the corruption in City Hall.

“In 2000, I think a third of the votes that the left got came from Republicans,” GOP consultant Chris Bowman, who was only partially joking, told us on election night.

This time around, with the class of 2000 termed out, a popular mayor in office and poll numbers and conventional wisdom both arguing that San Franciscans weren’t happy with the current Board of Supervisors (particularly with some of its members, most notably Chris Daly), many observers believed that a powerful big-money campaign backing some likable supervisorial candidates (with little political baggage) could dislodge the progressive majority.

As late as the week before the election, polls showed that the three swings districts — 1, 3, and 11 — were too close to call, and that in District 1, Chamber of Commerce executive Sue Lee could be heading for a victory over progressive school board member Eric Mar.

And boy, did downtown try. The big business leaders, through groups including the Committee on Jobs, the Chamber, the Association of Realtors, Plan C, the newly-formed Coalition for Responsible Growth, and the Building Owners and Managers Association, poured more than $630,000 into independent expenditures smearing progressive candidates and promoting the downtown choices. Newsom campaigned with Joe Alioto, Jr. in District 3 and Ahsha Safai in District 11. Television ads sought to link Mar, John Avalos, and David Chiu with Daly.

Although the supervisors have no role in running the schools, the Republicans and downtown pushed hard to use a measure aimed at restoring JROTC to the city’s high schools as a wedge against the progressives in the three swing districts. They also went to great lengths — even misstating the candidates’ positions — to tar Mar, Chiu, and Avalos with supporting the legalization of prostitution.

And it didn’t work.

When the votes were counted election night, it became clear that two of the three progressives — Avalos and Chiu — were headed for decisive victories. And Mar was far enough ahead that it appeared he would emerge on top.

How did that happen? Old-fashioned shoe leather. The three campaigns worked the streets hard, knocking on doors, distributing literature, and phone banking.

“I’ve been feeling pretty confident for a week,” Avalos told us election night, noting his campaign’s strong field operation. As he knocked on doors, Avalos came to understand that downtown’s attacks were ineffective: “No one bought their horseshit.”

A few weeks earlier, he hadn’t been so confident. Avalos said that Safai ran a strong, well-funded campaign and personally knocked on lots of doors in the district. But ultimately, Avalos was the candidate with the deepest roots in the district and the longest history of progressive political activism.

“This is really about our neighborhood,” Avalos told us at his election night party at Club Bottom’s Up in the Excelsior District. “It was the people in this room that really turned it around.”

The San Francisco Labor Council and the tenants’ movement also put dozens of organizers on the ground, stepping up particularly strongly as the seemingly coordinated downtown attacks persisted. “It was, quite literally, money against people, and the people won,” Labor Council director Tim Paulson told us.

Robert Haaland, a staffer with the Service Employees International Union and one of the architects of the campaign, put it more colorfully: “We ran the fucking table,” he told us election night. “It’s amazing — we were up against the biggest downtown blitz since district elections.”

The evidence suggests that this election was no anomaly: the progressive movement has taken firm hold in San Francisco, despite the tendency of the old power-brokers — from Newsom to downtown to both of the city’s corporate-owned daily newspapers — to try to marginalize it.

Political analyst David Latterman of Fall Line Analytics began the Nov. 5 presentation at the San Francisco Planning and Urban Research Association election wrap-up by displaying an ideologically-coded map of San Francisco, drawing off of data from the Progressive Voter Index that he developed with San Francisco State University political science professor Rich de Leon. The PVI is based on how San Francisco residents in different parts of the city vote on bellwether candidates and ballot measures.

“Several of the districts in San Francisco discernibly moved to the left over the last four to eight years,” Latterman told the large crowd, which was made up of many of San Francisco’s top political professionals.

The two supervisorial districts that have moved most strongly toward the progressive column in recent years were Districts 1 (the Richmond) and 11 (the Excelsior), which just happened to be two of the three swing districts (the other being District 3–North Beach and Chinatown) that were to decide the balance of power on the Board of Supervisors this election.

Latterman said Districts “1, 3, and 11 went straight progressive, and that’s just the way it is.”

In fact, in many ways, he said this was a status-quo election, with San Francisco validating the progressive-leaning board. “A lot of people in the city didn’t see it as a chance for a drastic change citywide.”

In other words, keeping progressives in City Hall has become a mainstream choice. Whatever downtown’s propaganda tried to say, most San Franciscans are happy with a district-elected board that has brought the city a living-wage law and moved it a step toward universal health insurance.

The fate of the local ballot measures was another indication that Newsom, popular as he might be, has little ability to convince the voters to accept his policy agenda.

Voters rejected efforts by Newsom to consolidate his power, rejecting his supervisorial candidates, his Community Justice Center (as presented in Measure L), and his proposed takeover of the Transportation Authority (soundly defeating Proposition P) while approving measures he opposed, including Propositions M (protecting tenants from harassment) and T (Daly’s guarantee of substance abuse treatment on demand).

Asked about it at a post-election press conference, Newsom tried to put a positive spin on the night. “Prop. A won, and I spent three years of my life on it,” he said. “Prop B. was defeated. Prop. O, I put on the ballot. I think it’s pretty small when you look at the totality of the ballot.” He pointed out that his two appointees — Carmen Chu in District 4 and Sean Elsbernd in District 7 — won handily but made no mention of his support for losing candidates Lee, Alicia Wang, Alioto, Claudine Cheng, and Safai.

“You’ve chosen two as opposed to the totality,” Newsom said of Props. L and P. “Prop. K needed to be defeated. Prop. B needed to be defeated.”

Yet Newsom personally did as little to defeat those measures as he did to support the measures he tried to claim credit for: Measures A (the General Hospital rebuild bond, which everyone supported) and revenue-producing Measures N, O, and Q. In fact, many labor and progressives leaders privately grumbled about Newsom’s absence during the campaign.

Prop. K, which would have decriminalized prostitution, was placed on the ballot by a libertarian-led signature gathering effort, not by the progressive movement. And Prop. B, the affordable housing set-aside measure sponsored by Daly, was only narrowly defeated — after a last-minute attack funded by the landlords.

All three revenue-producing measures won by wide margins. Prop. Q, the payroll tax measure, passed by one of the widest margins — 67-33.

Latterman and Alex Clemens, owner of Barbary Coast Consulting and the SF Usual Suspects Web site, were asked whether downtown might seek to repeal district elections, and both said it didn’t really matter because people seem to support the system. “I can’t imagine, short of a tragedy, district elections going anywhere,” Latterman said.

Clemens said that while downtown’s polling showed that people largely disapprove of the Board of Supervisors — just as they do most legislative bodies — people generally like their district supervisor (a reality supported by the fact that all the incumbents were reelected by sizable margins).

“It ain’t a Board of Supervisors, it is 11 supervisors,” Clemens said, noting how informed and sophisticated the San Francisco electorate is compared to many other cities. “When you try to do a broad-based attack, you frequently end up on the wrong end (of the election outcome).”

We had a bittersweet feeling watching the scene in the Castro on election night. While thousands swarmed into the streets to celebrate Obama’s election, there was no avoiding the fact that the civil-rights movement that has such deep roots in that neighborhood was facing a serious setback.

The Castro was where the late Sup. Harvey Milk started his ground-breaking campaign to stop the anti-gay Briggs Initiative in 1978. Defying the advice of the leaders of the Democratic Party, Milk took on Briggs directly, debating him all over the state and arguing against the measure that would have barred gay and lesbian people from teaching in California’s public schools.

The defeat of the Briggs Initiative was a turning point for the queer movement — and the defeat of Prop. 8, which seeks to outlaw same-sex marriage, should have been another. Just as California was the most epic battle in a nationwide campaign by right-wing bigots 30 years ago, anti-gay marriage measures have been on the ballot all over America. And if California could have rejected that tide, it might have taken the wind out of the effort.

But that wasn’t to be. Although pre-election polls showed Prop. 8 narrowly losing, it was clear by the end of election night that it was headed for victory.

Part of the reason: two religious groups, the Catholics and the Mormons, raised and spent some $25 million to pass the measure. Church-based groups mobilized a reported 100,000 grassroots volunteers to knock on doors throughout California. Yes on 8 volunteers were as visible in cities throughout California as the No on 8 volunteers were on the streets of San Francisco, presenting a popular front that the No on 8 campaign’s $35 million in spending just couldn’t counter — particularly with so many progressive activists, who otherwise would have been walking precincts to defeat Prop. 8, fanned out across the country campaigning for Obama.

“While we knew the odds for success were not with us, we believed Californians could be the first in the nation to defeat the injustice of discriminatory measures like Proposition 8,” a statement on the No on Prop. 8 Web site said. “And while victory is not ours this day, we know that because of the work done here, freedom, fairness, and equality will be ours someday. Just look at how far we have come in a few decades.”

San Francisco City Attorney Dennis Herrera, joined by Los Angeles City Attorney Rocky Delgadillo and Santa Clara County Counsel Ann C. Raven, filed a legal challenge to Prop. 8, arguing that a ballot initiative can’t be used to take away fundamental constitutional rights.

“Such a sweeping redefinition of equal protection would require a constitutional revision rather than a mere amendment,” the petition argued.

“The issue before the court today is of far greater consequence than marriage equality alone,” Herrera said. “Equal protection of the laws is not merely the cornerstone of the California Constitution, it is what separates constitutional democracy from mob rule tyranny. If allowed to stand, Prop. 8 so devastates the principle of equal protection that it endangers the fundamental rights of any potential electoral minority — even for protected classes based on race, religion, national origin, and gender.”

That may succeed. In fact, the state Supreme Court made quite clear in its analysis legalizing same-sex marriage that this was a matter of fundamental rights: “Although defendants maintain that this court has an obligation to defer to the statutory definition of marriage contained in [state law] because that statute — having been adopted through the initiative process — represents the expression of the ‘people’s will,’ this argument fails to take into account the very basic point that the provisions of the California Constitution itself constitute the ultimate expression of the people’s will, and that the fundamental rights embodied within that Constitution for the protection of all persons represent restraints that the people themselves have imposed upon the statutory enactments that may be adopted either by their elected representatives or by the voters through the initiative process.

As the United States Supreme Court explained in West Virginia State Board of Education vs. Barnette (1943) 319 U.S. 624, 638: ‘The very purpose of a Bill of Rights was to withdraw certain subjects from the vicissitudes of political controversy, to place them beyond the reach of majorities and officials and to establish them as legal principles to be applied by the courts. One’s right to life, liberty, and property, to free speech, a free press, freedom of worship and assembly, and other fundamental rights may not be submitted to vote; they depend on the outcome of no elections.'”

As Board of Supervisors President Aaron Peskin told the Guardian later that week: “Luckily, we have an independent judiciary, because the voters of California have mistakenly taken away a class of civil rights.”

But if that legal case fails, this will probably wind up on the state ballot again. And the next campaign will have to be different.

There already have been many discussions about what the No on 8 campaign did wrong and right, but it’s clear that the queer movement needs to reach out to African Americans, particularly black churches. African Americans voted heavily in favor of Prop. 8, and ministers in many congregations preached in favor of the measure.

But there are plenty of black religious leaders who took the other side. In San Francisco the Rev. Amos Brown, who leads the Third Baptist Church, one of the city’s largest African American congregations, spoke powerfully from the pulpit about the connections between the civil rights struggles of the 1960s and the fight for same-sex marriage.

The next time this is on the ballot, progressive and queer leaders will need to build a more broad-based movement. That is not only possible, but almost inevitable.

The good news — and it’s very good news — is that (as Newsom famously proclaimed) same-sex marriage is coming, whether opponents like it or not. That’s because the demographics can’t be denied: the vast majority of voters under 30 support same-sex marriage. This train is going in only one direction, and the last remaining issue is how, and when, to make the next political move.

The progressives didn’t win everything in San Francisco. Proposition H, the Clean Energy Act, was taken down by one of the most high-priced and misleading campaigns in the city’s history. Pacific Gas and Electric Co. spent more than $10 million telling lies about Prop. H, and with the daily newspapers virtually ignoring the measure and never challenging the utility’s claims, the measure went down.

“This was a big, big, big money race,” Latterman said. “In San Francisco, you spend $10 million and you’re going to beat just about anything.”

But activists aren’t giving up on pushing the city in the direction of more renewable energy (see Editorial).

Latterman said the narrow passage of Prop. V, which asked the school board to consider reinstating JROTC, wasn’t really a victory. “I would not call this a mandate. I worked with the campaign, and they weren’t looking for 53 percent. They were looking for 60-plus percent,” Latterman said. “I think you’ll see this issue just go away.”

Neither Latterman nor Clemens would speculate on who the next president of the Board of Supervisors will be, noting that there are just too many variables and options, including the possibility that a newly elected supervisor could seek that position.

At this point the obvious front-runner is Ross Mirkarimi, who not only won re-election but received more votes than any other candidate in any district. Based on results at press time, more than 23,000 people voted for Mirkarimi; Sean Elsbernd, who also had two opponents, received only about 19,000.

Mirkarimi worked hard to get Avalos, Chiu, and Mar elected, sending his own volunteers off to those districts. And with four new progressives elected to the board, joining Mirkarimi and veteran progressive Chris Daly, the progressives ought to retain the top job.

Daly tells us he won’t be a candidate — but he and Mirkarimi are not exactly close, and Daly will probably back someone else — possibly one of the newly elected supervisors.

“It’s going to be the most fascinating election that none of us will participate in,” Clemens said.

The danger, of course, is that the progressives will be unable to agree on a candidate — and a more moderate supervisor will wind up controlling committee appointments and the board agenda.

One of the most important elements of this election — and one that isn’t being discussed much — is the passage of three revenue-generating measures. Voters easily approved a higher real-estate transfer tax and a measure that closed a loophole allowing law firms and other partnerships to avoid the payroll tax. Progressives have tried to raise the transfer tax several times in the past, and have lost hard-fought campaigns.

That may mean that the anti-tax sentiment in the city has been eclipsed by the reality of the city’s devastating budget problems. And while Newsom didn’t do much to push the new tax measures, they will make his life much easier: the cuts the city will face won’t be as deep thanks to the additional $50 million or so in revenue.

It will still be a tough year for the new board. The mayor will push for cuts that the unions who supported the newly elected progressives will resist. A pivotal battle over the city’s future — the eastern neighborhoods rezoning plan — will come before the new board in the spring, when the recent arrivals will barely have had time to move into their offices.

Obama, of course, will face an even tougher spring. But progressives can at least face the future knowing that not only could it have been a lot worse; for once things might be about to get much better.

Amanda Witherell and Sarah Phelan contributed to this report.

The votes are almost all counted

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By Tim Redmond

The absentee votes are pretty much tallied, and none of the results in the supervisors races have changed much. It’s time for Eric Mar to start breathing again — after running the ranked-choice voting program, he’s ahead by 279 votes. Only the provisionals are left to count, and those shouldn’t change the situation.

So Mar will almost certainly be certified as the winner.

The uncounted ballots

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By Tim Redmond

So there are still a huge number of uncounted ballots at City Hall. No surprise there — we knew that was coming on election night.

And in most races, it won’t make much of a difference. But in some, like Prop. B, the outcome might change.

Here’s the problem: San Francisco is rapidly becoming a vote-by-mail town. That’s okay; in Oregon, all ballots are cast by mail. But we are operating as if this were still an earlier time, when almost everyone went to the polls on Election Day. If we are going to be voting differently, and we clearly are, the Department of Elections needs to change with the times.

There’s no reason why absentee ballots can’t be counted as they come in, so that when the polls close, most of those results will be immediately available. It’s not as if DOE is incompetant; the department has made great strides under John Arnst. But the supervisors should put this on the agenda for next year: How do we shift priorities and funding to handle modern elections?

(Oh, and the DOE could run the RCV tally on Election Night, too. It’s not hard.)

(Oh, and will somebody — maybe Aaron Peskin or Tom Ammiano, as a parting gift to all of us as they leave the board — please, please figure out how to get WiFi on Election Night in the North Light Court, where all the reporters are trying to post results and there is no Internet access at all? That room and the Board Chambers. I will volunteer to raise money to buy the router myself, and Alex Clemens has promised he will personally install it. Just show us where to plug the cable in.)

Conservative SF capitalists waste $633,000

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pig.jpg
Click here to give something back for all downtown has given.

By Steven T. Jones

It’ll take awhile to get a full accounting of all the money that downtown’s would-be power brokers spent in their apparently fruitless effort to buy the Board of Supervisors, but my calculation of all of their independent expenditures attacking swing district supervisorial candidates Eric Mar, David Chiu, and John Avalos — and supporting their more conservative opponents — comes to about $633,000.

We won’t know for sure whether the election day results will hold after the final absentee and provisional votes are tallied and the ranked choice voting formulas are run, which starts tomorrow, but the consensus of the political number crunchers at yesterday’s SPUR post-election event was that Mar, Chiu, and Avalos look like the winners. That means the $633,000 — which was perhaps chump change for these wealthy interest groups — succeeded only in sullying the campaign with the nastiest and most dishonest attacks of the season — and clearly identifying who’s hostile to progressives, renters, labor, and other working class San Franciscans.

Is Prop. B still in the running?

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By Tim Redmond

Calvin Welch thinks it is. Here’s his analysis:

It’s not over yet folks. Were are down 2,400 votes with a significant number of votes yet to be counted from areas that we expect to do well in.

According to the information I got from the Department of Elections, there are some 113,000 absentee and early voting ballots yet to be counted, in addition to some 17,000 “provisional “ ballots. Discount the provisiona’s as most are not valid.

The election night count is weighted towards returns from district with supervisors races in order to get these races’ outcome first: Dist 1,3,4,5,7,9,and 11 with an undercounting from Districts 2,6,8,and 10. Since the election night pool of votes were weighted to the big conservative and “swing districts” (1,3,4,7 and 11) and only D5 and D9 of the progressive districts were included in the count, chances are that a significant portion of the yet to be counted votes are from D 2,6,8,and 10 — the last three of which we figure to be supportive of Prop B.

Check the DOE web site at about 4:30PM or so this afternoon as they will post an update. If the past is truce they will count about 20,000 votes or so (more or less) a day so we may have a day or two to go before this bad boy is done.

A night for progressives

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By Tim Redmond

The amazing thing tonight is that district elections — celebrated in the Harvey Milk movie, brought back by Tom Ammiano — continues to work.

I ran into Republican consultant Chris Bowman early this evening, and he told me that he thought the 2000 election, which brought a progressive majority to the Board of Supervisors, was an unusal event, driven by anger at then-Mayor WIllie Brown. This time around, he was expecting a more moderate slate to win.

But guess what: Organizing on the ground still beats big money when you elect supervisors by district.

Bait and switch

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> sarah@sfbg.com

The San Francisco Redevelopment Agency has endorsed a draft financing plan for Lennar’s massive proposed Hunters Point Shipyard/Candlestick Point development project, one that increases the company’s housing entitlements and profits.

The agency’s endorsement came during a hastily convened Oct. 27 special meeting, raising the eyebrows of Lennar’s critics. So did the details of the agency’s non-binding financial agreement with Lennar, which two citizens’ committees in the Bayview–Hunters Point community had jointly endorsed a week earlier.

Bayview–Hunters Point resident Francisco Da Costa claimed that "there was almost no public notice of the plan," while Leon Muhammad, who sits on the Bayview–Hunters Point Project Area Committee, fretted that some committee members have business ties and connections with Lennar.

"A group that supposedly represents the interests of the community needs to have transparency and full disclosure," stated Nation of Islam Rev. Christopher Muhammad, who has been a staunch critic of Lennar ever since the developer failed to properly monitor and control asbestos adjacent to his group’s K-12 University of Islam school.

"Lennar never intended to do anything with this land but bank it," Muhammad opined about the public land that Lennar is getting for free. "And now they are hoping to squeeze more profit out of the deal, so they can hedge to where they can make it more attractive to sell."

Alicia Schwartz of People Organized to Win Employment Rights (POWER) observed that the deal is likely being driven by Mayor Gavin Newsom’s unrequited desire to see the Olympics come to San Francisco — a dream that was squashed two years ago, Schwartz recalls, "amid a hoopla around toxicity at the shipyard."

Sup. Chris Daly, who has argued that Lennar’s recent $500,000 settlement with the Bay Area Air Quality Management District over Lennar’s asbestos violations was "too small and poorly handled," said he wasn’t surprised by the latest deal: "That Lennar wants to pull a fast one is not news."

But with the financing deal likely headed for the full Board of Supervisors this month, Lennar’s critics are worried that the city is being rushed into a deal that has already changed since voters approved Proposition G in June, supporting the vague outlines of Lennar’s project.

They note that while Prop. G specified that the project would create "between 8,500 and 10,000 homes" in the depressed southeast sector, the financing deal that Redevelopment endorsed last week specifies 10,500 homes —and a demand that the agency and the city cooperate to help increase Lennar’s annual rate of return.

Stephen Maduli-Williams, the agency’s deputy executive director, told the Guardian that it was always the agency’s intention to finalize Lennar’s draft financing plan by the end of 2008. Asked if Lennar increased the number of proposed housing units by reducing unit size or increasing building height, Maduli-Williams told us, "They did it by finding a way to squeeze more units into the existing space. They redesigned one of the roads."

"Things are probably going to change again in the next year or two," Maduli-Williams said. "This is a living document. And overall, it is a really nice real estate deal."

Yet critics of Lennar are openly wondering whether it’s nice for the beleaguered company, which had rapidly plummeting stock value even before the recent real estate meltdown, or nice for the city. Maduli-Williams said the deal works for all parties.

"We have strong financial partners," he said. "Any investors that look at the deal know that is it really solid. It includes mostly $600,000 homes, which are cheap by San Francisco standards. And we are not looking to break ground for another three years, by which time the economy, hopefully, will be in good shape."

Maduli-Williams also observed that despite nationwide housing woes, San Francisco remains "one of two or three top destination spots where there is only so much land left and where folks have very high incomes."

But the health of the San Francisco real estate market (compared to the rest of the nation) combined with Lennar’s ongoing financial woes, including a June 8 bankruptcy at Mare Island, is precisely why some folks are questioning Lennar’s increased profit demands. But Maduli-Williams said, "San Francisco cannot be compared to Mare Island."

According to the draft financing deal (which is non-binding), Lennar, the city, and the agency "will work cooperatively to reduce risks and uncertainties" and "find additional efficiencies and values," to achieve Lennar’s proposed 22.5 percent annual profit margin.

As Maduli-Williams explained, if the developer puts up $800 million in equity and wants a 22 percent return, it would have to get $1.2 billion in land sales. "And just like any developer, they want to get the highest return possible," he said, adding that the project’s proposed community benefits are "hard wired into the deal" and thus are "not threatened" by Lennar’s proposed target return increase.

Lennar’s proposal, which represents a 7.5 percent increase over current project projections, has also received validation from CBRE Consulting, which is a subsidiary of CB Richard Ellis — a global real estate firm headed by Sen. Dianne Feinstein’s husband, Richard Blum.

In an Oct. 15, 2008 memo (coincidentally written the day President Bush announced a partial nationalization of the US banking system) to Michael Cohen, who heads the Mayor’s Office of Economic and Workforce Development, CBRE’s Mary Smitheram-Sheldon and Thomas Jirovsky observed that, "Based on Consultants’ extensive experience in evaluating large scale mixed-use developments, including military base reuse plans, we are of the opinion that the proposed 22.5 percent per annum target return …is reasonable."

Earlier this year, as Lennar spent $5 million to support Prop. G, CBRE declared that 50 percent affordability in Lennar’s proposed mixed-use development at the shipyard, as was being recommended in Daly’s Prop. F, was "not financially feasible."

At the city’s request, CBRE analyzed Prop. F and concluded in a memo to Cohen that it would reduce Lennar’s revenue by at least $1.1 billion. Reached by phone this week, Jivorsky acknowledged that his firm has done work for different developers around the country for years, including Lennar.

"But we are not working on anything for Lennar in San Francisco," Jivorsky told the Guardian. "Our client is the city of San Francisco and we take our job very seriously. We would never make recommendations that we didn’t believe were in the city’s best interests."

Meanwhile, Cohen told the Guardian that the strain for real estate capital is likely going to push the rate of return demand up even more. Noting that the city agreed to 25 percent returns at Lennar’s previous Treasure Island and Hunters Point Shipyard deals, Cohen said, "Real estate is considered to be a greater risk than it was six months ago, even in San Francisco. So, it’s not so much that we have to negotiate this as have to understand what is required for private capital to invest."

Cohen believes that when the construction plans — which currently have few details spelled out — get more detailed, they will help increase the project’s rate of return. "Which is why," Cohen added, "the developer’s partners are willing to spend a boatload of money."

On Aug. 19, the Redevelopment Agency approved the addition of Kimco Developers and MACTEC Development Corporation as Lennar BVHP’s retail and infrastructure partners, and Scala Real Estate Partners, Hillwood Development, and Estein Associates USA Ltd. as Lennar BVHP’s equity partners.

Cohen also hopes that the 49ers’ intentions towards San Francisco will be resolved by November 2009, when Lennar hopes to enter into an agreement with the football team. The 49ers continue to pursue plans to relocate to Santa Clara, and have not signaled any desire to remain here.

To date, Lennar’s draft financing plan includes an agreement that the developer will contribute $100 million in cash toward construction of a new 49ers stadium, and that the city will enter a long-term $1 ground lease with the 49ers for a 17.4-acre Hunters Point Shipyard site.

Meanwhile, disgruntled community advocates claim that since January, when Feinstein, House Speaker Nancy Pelosi and Mayor Gavin Newsom announced $82 million in federal funding for the cleanup of the Hunters Point Shipyard site, those funds have gone primarily to cleaning up the potential 49ers site.

Power possibilities

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By Amanda Witherell


› amanda@sfbg.com

GREEN CITY San Francisco’s energy future is in flux. On Nov. 4, voters decided the fate of Proposition H, a plan for 100 percent renewable energy by 2040. On the same day, the Board of Supervisors was set to consider a proposal from Mayor Gavin Newsom to retrofit the 32-year-old Mirant Potrero power plant to meet a state mandate for local electricity generation.

The results of both votes occurred after the Guardian deadline, but either way, the city’s energy policy is uncertain, particularly after serious doubts about the viability of the mayor’s proposal were raised at an Oct. 22 Land Use and Economic Development Committee hearing.

The retrofit was hastily developed as an alternative to longstanding plans to replace heavily polluting units of the Mirant plant with new, cleaner, city-owned peaker plants. That plan was derailed after a meeting in May between Newsom and seven Pacific Gas and Electric Co. executives, who were apparently concerned about the city generating its own power.

The Mayor’s office calls the retrofit a "bridge" to a renewable energy future and contends it can be cheaper than and as clean as the city’s peakers. Yet at the hearing, Mike Martin, who’s evaluating the retrofit project for the San Francisco Public Utilities Commission, said no retrofits have ever reached the emissions goals cited in Newsom’s proposal.

Jeff Henderson, senior project manager for Mirant, defended the $80 million price tag for the project (which is about $30 million cheaper than the city’s plan) but also said that they were "giving a price on a project that’s never been done before." Martin said the permits alone would be twice the price stated in a Mirant-commissioned feasibility study.

Chair of the committee Sup. Sophie Maxwell, who represents the district where the plant is sited, cast cost aside, saying that human lives and the lowest possible emissions were more important to her. Her district has the highest incidences of asthma and cancer in the city.

The retrofit would still emit more nitrogen oxide, carbon monoxide, sulfur dioxide, and particulate matter than the city’s peaker plants but the Mayor’s Office is banking on it operating less, thus emitting less overall. The numbers crunched for the study by CH2M Hill presume Mirant operating about 156 hours a year, though it is permitted for 877 hours. The city has sued the company in the past for exceeding its permitted hours.

When questioned if the 97 percent emissions reduction proposed was possible, Henderson said, "The only thing that leads us to believe that is we had vendors who would say they could meet that under contract."

Maxwell invited three potential vendors to the hearing. All said the industry standard was 90 percent emissions reduction and that it was infeasible, if not technically impossible, to reach 97 percent. To try may even result in a net gain of particulate matter emissions because the plant would need more ammonia catalyst.

But the Mayor’s Office remained confident in the project. "The experts that presented before the committee were all experts attached to the CT project, so I would not consider them independent third-party experts," Newsom’s director of government affairs Nancy Kirshner-Rodriguez told the Guardian.

Bruce Schaller, vice president of Kansas-based power company Sega, said he wouldn’t bid on this job under the current parameters because, "We would be associated with a project that was a failure."

Tom Flagg, president of Equipment Source Company, said the project was "completely illogical and impossible to do." He pointed out that emissions vary widely. "You have surges in emissions levels. Sometimes it’s 94 percent, sometimes it’s 84 percent … A 97 to 98 percent reduction is impossible because in order to maintain that they have 100 percent reduction at times. It’s an average."

The need for new power generation in San Francisco has been pushed by the California Independent System Operator (Cal-ISO), but environmental groups have urged the city to challenge that mandate. Former California Public Utilities Commission president Loretta Lynch, who spoke against the retrofit plan at the hearing, told the Guardian afterward, "The ISO are ideologues, not engineers. They have no basis in fact that we need any peninsula power production."

Supervisors passed a resolution asking the SFPUC to develop a transmission-only plan to meet Cal-ISO’s reliability demands. The SFPUC said it will present something within the next couple of months.

Nix Lennar’s higher profit deal

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EDITORIAL The troubled homebuilder that wants to develop the Hunters Point Shipyard and Candlestick Point has come back to the city asking for a higher profit level, more market-rate housing, more retail, and more office space. In essence, Lennar Corp. wants to change the deal voters approved in June. The supervisors should give this a hard look, hold hearings, and check the numbers, because the entire project is looking more shaky and dubious by the day.

Lennar is one of the nation’s largest residential development companies, but it’s been walloped by the drop in the housing market. A Lennar project at Mare Island recently went bust and is being auctioned off. The company’s stock has tanked. And some wonder if it will be able to get the financing necessary for a multibillion dollar project in San Francisco.

But Lennar is not only moving forward — it’s demanding more. In fact, as Sarah Phelan reports on page 16, the Redevelopment Agency just signed a deal with Lennar agreeing that the city and the project sponsor "will work cooperatively to reduce risks and uncertainties" and "find additional efficiencies and values" to achieve the developer’s proposed 22.5 percent annual return target.

That 22.5 percent — which is far more profit than many San Francisco businesses ever make and seems almost obscene in this economic climate — is up 7.5 percent from when the deal was first signed. And remember, Lennar gets the land — public land — essentially free.

Of course, a consulting firm the city hired to evaluate the deal finds that perfectly reasonable. The firm, CBRE Consulting, is a subsidiary of CB Richard Ellis, a global real estate firm headed by Richard Blum, who is married to Sen. Dianne Feinstein, a big supporter of the Lennar plan.

The original plan called for 8,500 to 10,000 housing units; that’s now up to 10,500. There’s no significant increase in community amenities, affordable housing, or infrastructure payments.

If this sounds a little funky, it is. From the start, Lennar has been playing around with the numbers and promising more than it may be able to deliver. And if the project starts to go belly up before it’s finished, Lennar will walk away and leave the city with the mess.

We’ve always been a bit dubious about the way the Redevelopment Agency turns to a single "master developer" and gives that private outfit exclusive rights to build on a large piece of land. The deal always seems to be a lot better for the builder than it is for the city.

And this one was bad from the start. At the most, Lennar would offer 25 percent of the units at below-market rates; that’s less than half the amount of affordable housing mandated in the city’s general plan. Much of the land on the site is toxic, and Lennar has been steeply fined by the air quality board for failing to control asbestos dust. The whole concept of a suburban-style community of luxury condos with special freeway access in southeastern San Francisco is inappropriate, if not bizarre.

But voters approved the program after Lennar spent millions on a ballot measure campaign, so the city has to continue working with the developer. But there’s nothing that says the supervisors have to sign off on changes in the deal that don’t serve San Francisco’s interests.

The board ought to demand, at the very least, that Lennar devote some of its higher profit margin to increasing affordable housing — and that the funding for community amenities should be set aside before the builders break ground on the luxury condos. Ideally this entire thing should go back to the drawing board. But short of that, any changes need to benefit the city, not the private developer.

“We ran the fucking table”

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Tim Redmond reports from City Hall:

I just talked to labor organizer Robert Haaland, who helped run the union-backed campaigns for progressive supervisors. His comment:

“It was grassroots hard work against big downtown money — and we ran the fucking table. It’s amazing, we were up against the biggest downtown blitz ever seen in district elections. It’s obviously a big night for labor and it’s a big loss for you-know-who.”

Safai will sleep well tonight

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By Molly Freedenberg

It was a very different scene at Pissed Off Pete’s, the headquarters for District 11 Board of Supervisors candidtate Ahsha Safai, than it was at Inner Mission Bar. Where Sheehan’s party was filled with mostly 30-something white hipsters, former punks, and scruffy activist-types, Safai’s was a mix of older voters from diverse backrounds and grown-up types in suits. Safai himself looked calm and casual, if sophisticated, in grey slacks and a black fleece zip-up jacket. Though cars honked and people yelled along most of Mission Street, things seemed to be winding down at Pete’s by 10pm, when Safai took the stage. He acknowledged results for his race probably wouldn’t be in for a day or two, but thanked his volunteers and campaign managers for their “bottoms-up, grassroots” campaign – with special thanks for his wife, and childhood friend Sammy B., and Summer Branch. “Everything changes tomorrow,” he told the crowd. As he finished his brief speech, the crowd cheered “Ahsha, Ahsha, Ahsha!” before filtering out into the night. As for Safai, he admitted to the Guardian that it’s a difficult process to campaign, and especially not to know the results yet. But he was uplifted by Obama’s win. “It lifts you,” he said, adding that he’s “the other skinny guy with the funny name.” As for how Safai will sleep tonight with so much of San Francisco politics up in the air, he didn’t hesitate: “I’m exhausted. I’ll probably sleep like a baby.” It probably doesn’t hurt that as soon as he rejoined the crowd, his advisors said his numbers looked good.

The party’s on at Joey and Eddy’s

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by Meghan McCloskey

At this hip restaurant in North Beach, many people gather to support Joe Alioto, who is running for District 3 Board of Supervisors. But most attendees just want a cool place to hang out and watch Obama on the big screen. Someone even dropped and shattered a beer bottle in the midst of the excitement.

Big-time Alioto supporter Peter Bails says Alioto would be great for the job. “He’s left but not off the edge,” he says. Along with other issues, Bails likes Alioto’s stance on increasing policemen on our streets, along with the fact that he’s not about drama. But Bails thinks Alioto won’t do so great in the polls. “His sister’s already there. People are afraid of that.”

Alioto’s cousin, Joe Alioto II, is in an outstanding mood. “I watched history tonight,” he says. Despite the Guardian’s skepticism on Alioto’s leadership abilities, Joe says, “I think Joe is easily the most qualified person I know–as a gentleman, as an attorney, as a family man, and as a student of history and of life.”

Obama wins, but no SF results yet

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by Amanda Witherell

TomAmmiano11.4.08.JPG
Soon to be Assemblymember Tom Ammiano greeted by supporters at Campos for Supervisor headquarters

Up and down Valencia Street you could hear cheers echoing from bars and balconies when Florida flipped for Barack Obama. We have a new president.

But here in San Francisco, the new slate of supervisors is still pending. Outgoing supervisor Tom Ammiano just stopped by the David Campos headquarters at 24th and Mission Streets. He said the word from City Hall is “There’s a long line at SFSU still waiting to vote and they’re not releasing any results until everyone has voted.” He’s predicting no results on local races until 9:45.

In the meantime, a crowd of Campos supporters just took in Sen. John McCain’s brief concession speech. “Good-bye,” several waved to the campaigner’s departing figure shown by projection on a blank wall in the back of the campaign office.

Vote; it’s not over

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By Tim Redmond

If you’re reading this, and you haven’t voted yet, get out of the house and do it. Now. Yes, the Fat Lady is humming her practice chords and it’s pretty clear that Barack Obama will be the next president. In fact, it’s shaping up as a night that will change the balance of power in DC dramatically, with major Democratic wins in the Senate. And Obama has already re-written the electoral map and changed American politics.

But he still has to win CA — and Californians still have to — have to — reject Prop. 8.

And the future of San Francisco is in the balance. We can move to clean energy (Yes on H!) affordable housing )Yes on B!) and elect progressive supervisors.

So this is going to be an historic night, and you still have an hour to be part of it. I just saw Gavin Newsom on TV saying that nobody would be turned away if they are in line outside a polling place at 8 pm. Go.

Election day luncheon in SF

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willie.jpg
Former Mayor Willie Brown, with luncheon co-hosts Angelo Quaranta (left) and Alex Clemens (right) behund.

By Steven T. Jones

I ran into Willie Brown as we were both headed into today’s Election Day luncheon at the California Culinary Academy – a two-decade-long tradition hosted by political power brokers Angelo Quaranta and the late Bob McCarthy (with Alex Clemens now stepping into that host role) – and asked for his electoral predictions.

“There’ll be no surprises,” Brown told me, “not a one.”

I took that as a hopeful sign that Barack Obama will win the presidency by an electoral landslide and Democrats will add significantly to their congressional majorities, but it didn’t tell me much about tonight’s nail biters, including the fate of the same sex marriage Proposition 8 or the balance of power on the Board of Supervisors.

Inside, many of the political luminaries expressed real anxiety over Prop. 8, including Sen. Dianne Feinstein, who warned Brown and the media against any early Obama victory parties that might hurt Prop. 8, the high-speed rail bond measure Prop. 1A, or the other crucial measures that need every Obama supporter they can muster.

Election night parties in SF

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By Bay Guardian News Staff

There will probably be hundreds of parties in the Bay Area marking this historic election. But with 22 local ballot measures and seven of the 11 seats on the Board of Supervisors up for grabs, there are more official campaign parties than ever before (which we’ll do our very best to cover as we bring you our usual live election coverage here on this blog).
All the parties are free and they generally start around 8 p.m. when the polls close. So take a look at our list so far and feel free to add to it in the comments section with the ones we’re missing. And don’t forget to vote.

The Chron’s supervisors

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By Tim Remond

Interesting endorsements from the Chron.. I’m not surprised they gave Ross Mirkarimi the nod in D5; he has no real competition, and has done a great job in office from almost any perspective. But the nice words

he’s shown an ability to find common ground on many issues – and has pushed the mayor for more police foot patrols, authored a crackdown on rogue pot clubs and led efforts to ban plastic bags.

fit in with the Chron’s obvious bias in this election. Although Mirkarimi can push the political edge as well as anyone on the board (jeez, did the Chron even support the plastic-bag ban?), the daily paper lauds him for “an ability to find common ground.”

That seems to be why the Chron, which is typically in lock step with downtown’s agenda on local issues, chose Mark Sanchez, another Green, in D9. Sanchez, the paper says, has

proved to be a reasonable consensus builder as president of the Board of Education, and he’s promised to make civility and compromise a priority as supervisor.

I think civility is the word he used with us, and it’s a fine one (actually, I think all three of the D9 progressives can claim they’ll bring civility to the board). But what the Chron wants is “compromise,” which is a buzz word for getting along with, and not defying, the mayor.

It’s not exactly what I think of when I think of Sanchez, who as a progressive on the school board fought bitterly with Arlene Ackerman when she was school superintendent. And in fact, I just called Sanchez and he told me that “I didn’t use the word compromise.” But he did point out that he has a good relationship with the mayor on education issues, and that glimmer of hope was apparently enough for the Chron.

In D 11, the endorsement of Ahsha Safai comes as no surprise, but it’s a bit warped. The district, the Chron says,

needs an active leader who can work with other supervisors and City Hall figures.

(Who do you suppose those “other City Hall figures might be?)

The problem is that Safai has no real political experience and isn’t going to get along at all with the progressives on the board. He won’t even talk to us.

And in D3, Denise McCarthy gets the nod because

In facing a worsening city budget, she’s willing to consider the tough options of budget cuts and layoffs. Though her policy position put her on the left of the spectrum, she is open to other viewpoints and groups in this fractious corner of the city.

You see a pattern here?

The Chron wants people who will avoid fights and all play nicely with Newsom. That’s not what the legislative branch of government is supposed to do, particularly with a mayor who is so focused on running for governor that he isn’t spending much time running the city.

I’m not sure Sanchez is really going to be as willing to compromise as Chron seem to think… but then, I’m not sure the Chron endorsement means that much in D9.

Yes on Prop H rally at PG&E’s house

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by Amanda Witherell

Clean Energy Act supporters gathered in front of Pacific Gas & Electric corporate headquarters on Wed., Aug. 29, to mock the $10 million the utility company has spent opposing the legislation.

Dressed as construction workers, activists from the Sierra Club, Greenpeace, Green4All, and Green Guerrillas against Greenwashing, successfully erected three wind turbines in front of the PG&E building.

PG&E employees, penned behind a barricade and standing underneath a “Stop the Blank Check” banner watched the activists wrestle with enormous burlap bags of money, signifying the millions PG&E has dumped into the campaign opposing the measure that would move San Francisco more rapidly toward 100 percent renewable energy. PG&E alleges the measure is a blank check for supervisors because it allows them to issue revenue bonds to finance renewable power infrastructure. In fact, PG&E has written the entire check for the No on H campaign. As we pointed out in this week’s issue, it’s also shunting some of that money into supervisors’ races to support Mayor Gavin Newsom’s picks for the Board in districts 1, 3, and 11. Besides the fact that Newsom’s campaign director, Eric Jaye, also runs PG&E’s No on H committee, why might it be important for PG&E to have friends on the Board of Supervisors?

Well, if Prop H does pass, unlike the “blank check” lies PG&E is telling you about it, the SFPUC will conduct a study to explore the best way toward 100 percent renewables. If that includes a publicly-owned utility system (that would, by default, put PG&E out of business in San Francisco) the supervisors will still have to vote for it and vote for the bonds to do it. So, PG&E needs a board that’s friendly.

Backroom brokers

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› tredmond@sfbg.com

It’s not the invisible hand of Adam Smith tossing hate mail on your doorstep this fall like ugly confetti. It isn’t a distinct and independent group of candidates and civic organizations that just happen to be saying the same things, either. There is a carefully orchestrated campaign going on to undermine the progressive agenda, block affordable housing and clean energy, and give Mayor Gavin Newsom a majority on the Board of Supervisors.

It’s well funded; it’s serious; it’s based on lies — and it’s a threat to rent control, sustainable environmental policies, universal health care, the city’s living wage law, and the rest of the accomplishments and goals of the progressive majority on the board.

If that sounds overblown, listen to what the organizers of this campaign are saying themselves.

On Aug. 15, after progressives took control of the Democratic County Central Committee and installed Sup. Aaron Peskin as chair, John Keogan, the head of a year-old organization called the San Francisco Coalition for Responsible Growth, a pro-downtown group founded to counter the progressive movement, announced his intentions in a letter to allies.

"CRG are [sic] preparing for an all-out attack with other like-minded groups and now is our time to stand-up [sic] and be counted," Keogan wrote. He asked members to support "taking SF on a sharp turn to the right."

Those "other like-minded groups," according to campaign finance reports, are a Who’s Who list of downtown-based organizations that have consistently fought to roll back tenant protections and slash government spending on social services: the Building Owners and Managers Association, the Committee on Jobs, Pacific Gas and Electric Co., the Association of Realtors, the Chamber of Commerce, Plan C, and the Police Officers Association.

By law, political candidates can only raise and spend limited amounts of money. But organizations like BOMA, the Realtors, and Plan C can put as much cash as they want into supporting and opposing candidates — as long as the efforts are "independent."

But the orchestration of the attacks on supervisorial candidates Eric Mar, John Avalos, and David Chiu, and the support for their conservative rivals, Sue Lee, Ahsha Safai, and Joe Alioto, is so sophisticated it’s impossible to believe that these groups and candidates aren’t working together.

Between Sept. 9 and Oct. 20, public records show, the groups spent a combined $363,754 ($178,177 in District 1, $104,308 in D3, and $81,269 in D11) on independent expenditures attacking Avalos, Mar, and Chiu and supporting their opponents. They also spent $20,000 supporting Eva Royale in her long shot race for the solidly progressive District 9 seat.

The landlords and downtown aren’t the only ones organizing. All that spending, and the threat of even more to come considering the hundreds of thousands of dollars these downtown groups still have in the bank, has served to unite tenant and labor groups in ways unseen in previous San Francisco elections.

"There’s an unprecedented coalition between tenants and labor," labor activist Robert Haaland told us. "We’re working together to defeat the landlord candidates, who are also anti-labor."

"We have a tremendous fear that the spending and progress on health care and social services will be rolled back," Tim Paulson, president of the San Francisco Labor Council, told us. "Anything less than our candidates [being elected in each of the three swing districts] will pose a real danger to the movement."

NEWSOM’S SLATE


One of the central players in this attempt to take the city away from the progressives and hand it over to downtown is Mayor Gavin Newsom, who is actively supporting Alioto, Lee, and Safai.

Eric Jaye, the mayor’s chief political advisor, has no formal role in the three district campaigns, but Newsom rarely makes a move in local politics without consulting Jaye. In fact, when reporters call the mayor’s press office to ask for comments on local candidates and initiatives, they are typically referred to the private consultant.

Jaye told us he’s talked to all of Newsom’s candidates. "I told them to run on district issues," he said.

The mayor and the latest member of the Alioto clan to seek office (Joe’s sister, Michela, is already on the board) have walked precincts together. And Newsom is so involved with the downtown effort he’s skipping a major Democratic Party gala (where he was slated to get an award) to spend time instead with the Republican-led Coalition for Responsible Growth (CRG).

Jaye’s main job this fall is running the PG&E campaign against the Clean Energy Act, Proposition H. So far PG&E has spent more than $10 million on the effort, and that number will grow in the final week before the election. Part of that same campaign has been propping up Newsom ally Carmen Chu, who has benefited from thousands of dollars of PG&E spending on her race. Chu’s face is all over PG&E’s No on H fliers.

Another central operator is Alex Tourk, the former Newsom aide who resigned after learning that the mayor had been sexually involved with Tourk’s wife. Tourk is now running the CRG operation.

"They brought me on board to do a volunteer campaign that, yes, they funded, but which seeks to inform voters in a non-partisan fashion where the candidates in D1, 3, and 11 stand on key issues," he said.

That campaign’s goal was to get 10,000 people to mobilize — he called them, using a term popularized by Richard Nixon, the "silent majority."

Tourk maintains that door-hangers the group has been distributing don’t endorse any candidates or push any initiatives. But the messages fit exactly with the overall downtown strategy — they seek to discredit the progressives by linking them with controversial ballot measures such as Proposition V, which would urge the School Board to save the military recruitment program, JROTC.

The supervisors have nothing to do with JROTC, but downtown and the Republican Party are using it as a wedge issue.

CRG is facing some political heat of its own: SF Weekly reported in its Oct. 22 issue that CRG’s recently elected president, engineer Rodrigo Santos, accepted money for professional work from someone who had business before the Building Inspection Commission while he served as commission president. Santos is a Republican, like several key Newsom appointees.

Making matters worse are revelations that Mel Murphy, vice president of the inspection commission and a CRG member, distributed invites in City Hall to an Oct. 17 CRG fundraiser for Safai and Alioto. City officials aren’t supposed to do political work at City Hall.

Alioto’s filings show that on Oct. 17, he received $500 from the firm of Santos and Urrutia’s structural engineer Kelton Finney and $250 from S&U engineer Calvin Hom.

PG&E’S FAKE DEMOCRATIC CLUBS


Political consultants Tom Hsieh Jr. and Jim Ross are involved in the District 1 race (Hsieh also responded to the Guardian on Safai’s behalf) — and are using PG&E and downtown money to support Sue Lee.

Beyond Chron reported Oct. 27 that Hsieh has been sending robocalls in Cantonese to voters saying that Lee is endorsed by the "San Francisco Democratic Party Club." Actually, the Democratic Party endorsed Mar.

What is this new "party club" anyway? Well, the Web site reported, the club started raising money just two weeks ago, and already has collected $30,000 from PG&E, $2,000 from the Chamber of Commerce, $5,000 from GGRA (Golden Gate Restaurant Association), and $70,000 from the Committee on Jobs. Another new club, called the Richmond Reform Democratic Club, is opposing Mar — and has $18,000 from the Committee on Jobs, $5,000 from PG&E, and $2,000 from BOMA.

In television ads paid for by the Realtors, a voiceover tries to link Mar, Avalos, and Chiu to Sup. Chris Daly, whose popularity outside his district is low — although neither Mar nor Chiu has much of a discernable connection to Daly. Avalos was a Daly City Hall aide.

One of the Realtors ads was so utterly inaccurate and deceptive — it claimed Chiu and Avalos support decriminalizing prostitution, when both have publicly opposed the decriminalization ballot measure — that Comcast pulled the ad off the air when Chiu filed a complaint.

Fog City Journal uncovered what appears to be illegal collusion between the police union and Safai. Although candidates are barred from coordinating with groups making independent expenditures on their behalf, POA president Gary Delagnes told FCJ editor Luke Thomas that Safai had given the group a photo of him to use on a mailer, a copyrighted image that Thomas took. Safai denied wrongdoing, but refused to answer further inquiries about the matter.

It’s a pitched battle — labor, the tenants, and the Democratic Party against the landlords, PG&E, downtown interests, and the Republicans. It’s pretty clear which side you want to be on.

Steven T. Jones, Sarah Phelan, and Amanda Witherell contributed to this report.

Housing for whom?

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San Francisco is currently experiencing an unprecedented shortage of affordable housing, a reality that threatens to change the city’s socioeconomic character. If city officials stay the course, building mostly market rate housing, even more lower and middle-class families will be forced to move elsewhere.

Proposition B would stabilize — and probably increase — affordable housing funds by setting aside 2.5 cents out of every $100 in property taxes, or about $30 million a year, in a specific affordable housing account. Prop. B would not create any new taxes, and would allow for public participation in deciding how funds are spent. A long-term revenue source seems the only way to combat the affordable housing problem, yet Mayor Gavin Newsom has called the measure "unnecessary" and "ballot-box budgeting at its worst."

Newsom’s Oct. 15 press conference announcing that San Francisco is on pace to build a "historic number" of affordable homes by 2010 is likely an attempt to dissuade voters from voting for Prop. B. Newsom cited a dizzying array of statistics to support his claim that Prop. B is unwarranted: with 13,000 new affordable homes currently in the works, he insinuates, there is no need for such a measure.

Yet he doesn’t address the question of how the city will facilitate such an affordable housing boom without Prop. B. According to Doug Shoemaker, deputy director of the Mayor’s Office of Housing (MOH), the city spends around $220 million a year on affordable housing from multiple sources in multiple programs. He admits that this money is essentially impossible to track; which means it’s equally impossible to judge how productive the programs actually are or how much money is left.

Based on the San Francisco Planning Department’s preparation to update its Housing Element next year, as well as information provided by the MOH, Newsom’s statistics are grossly exaggerated. The discordance between Newsom’s embellished statistics and the department’s numbers illustrates that we need a more coherent solution — whether that means more funds, more organization, or both — to solve the affordable housing crisis.

In his press conference, Newsom asserted that "newly adopted and pending neighborhood plans will create over 13,000 new affordable homes." Although he failed to specify exactly when these homes would be completed, one would assume he meant by 2010, since the press conference was an update on the Home 15/5 initiative (which vows to produce approximately 15,000 new housing units between 2005-10).

According to affordable housing activist Calvin Welch, this plan is "an outrageous lie, a cynical lie, based on [Newsom’s] absolute and complete certainty that no one will understand what that means." The SF Planning Department’s Housing Need Assessment backs Welch’s sentiment: from 1999-2006, the city only produced about 800 low- and very-low affordable housing units a year. It would take more than 16 years to produce 13,000 new and affordable homes at that rate, leaving aside the question of how to pay for them.

Think it’s unfair to judge Newsom’s statements based on the past? Newsom also said in his press conference that "1,547 affordable homes have been completed since 2006." But statistics provided by the Mayor’s Office of Housing show that only 646 of these 1,547 housing units are below or at 50 percent of the area median income, or AMI. In other words, most of these units aren’t as affordable as one might think.

These dismal statistics prove that the Home 15/5 initiative so far has failed to significantly increase the city’s production of affordable housing. Since Newsom opposes Prop. B and has refused to spend affordable housing money allocated by supervisors in the past, it’s unclear how he plans to create 13,000 affordable housing units anytime soon.

Newsom also said that the Home 15/5 plan "increases the city’s production of housing affordable to low- and very-low income households to the highest levels ever, comprising 33 percent of all new homes built." This percentage is similar to the SF Planning Department’s production goals for 2007-14: the city strives to create 31,000 housing units, 39 percent affordable. Both aims fall far below the SF Housing Element’s objective, which states that 64 percent of the city’s housing units should be affordable. But they’re a start, or would be — if they actually come true.

A look at the SF Planning Department’s housing production statistics show that only 4,705 low- or very-low affordable housing units had been built as of June 2008. That’s a mere 19 percent, a far cry from Newsom’s 33 percent assertion. It wasn’t just a slow year — the number of moderate and market-priced housing built over the same period surpassed target production goals by more than 500 units. If San Francisco continues to produce at this speed, the city will not only fail to produce enough affordable housing units, but will increase the ratio of the very rich among city residents.

With help from Prop. B, the city could start working its way toward meeting the mandate of the city’s Housing Element, which states that two- thirds of city housing should be affordable. Unfortunately the Housing Element may also be under attack this November: the Planning Department is holding a public scoping meeting Nov. 6 — two days after the election — to discuss preparations for an environmental impact report.

Although 64 percent affordability may seem like a lofty goal now, a decrease in Housing Element aims and the lean budgetary years ahead could mean a continuation of policies that build mostly market-rate housing that remains unaffordable to most San Franciscans.

Voting to save the local economy

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EDITORIAL On Oct. 21, a string of economists and advisors from the Newsom administration, the Chamber of Commerce, and the Convention and Visitors Bureau appeared before the San Francisco Board of Supervisors to present a picture of the local economy that was stunning in its lack of reality.

The experts talked about how San Francisco isn’t really hurting that much right now. They said the downturn would hit eventually, but that housing and jobs are still relatively strong here. And what we need to do to boost the economy, the mayor and his experts said, is to promote downtown business, cut fees — and further reduce the city budget.

Cut taxes? Cut spending? Boost big business? That sounds a lot like the economic prescriptions we’ve been hearing from the right wing of the Republican Party for decades. And it hasn’t exactly worked out well.

In fact, for many San Franciscans, the recession is already here — and is deep and painful. Small businesses are struggling. People are losing jobs and finding it hard to pay the rent. Like Washington, DC, San Francisco needs to be taking this seriously — but what we’ve seen from Mayor Gavin Newsom is a bunch of hot air. The mayor wants to accelerate capital spending. Fine. But he’s counting on projects like rebuilding Airport Terminal Two that rely on bond sales — and this isn’t a great time to be selling bonds — and that create jobs mostly for big out-of-town construction firms. And he wants to cut fees on business — which has never proven to be an economic stimulus, but would require deeper cuts in city programs and layoffs of city staffers. The worst thing you can do in a recession is cut public jobs.

At the Oct. 21 hearing, the supervisors were a bit dubious. "We need to be straightforward and real," said Board President Aaron Peskin. "Not half-baked schemes and empty promises." But if Newsom and his downtown and landlord allies get their way, the board that takes office in January could be very different. The progressives who have held the line on cuts, pushed for higher taxes on the wealthy, and promoted measures that will actually help the economy could wind up in the minority. And we could see a dramatic shift to the right in economic policy.

The November election is critical — and the top of the ticket isn’t the only vote that matters. Preserving the progressive majority on the board and passing the key ballot measures will take the city a long way toward avoiding the worst of what could be a catastrophic economic downturn.

Let’s look at the ballot from that perspective:

<\!s> Proposition H would inject millions into the economy. San Francisco residents and businesses pay some of the highest electric rates in the country, and money that goes to Pacific Gas and Electric Co. is sucked right out of town and invested elsewhere. Since electricity is a necessity, cutting electric rates would instantly inject cash into the economy. In fact, a 2002 study by Hofstra University economist Irwin Kellner showed that public power expanded the economy of Long Island. by $10 billion over the first four years after that region got rid of its private electric utility.

Based on his methodology and calculations, we estimated in 2002 that PG&E cost the local economy $620 million over the previous two years (see "The $620 million shakedown," 10/4/02). Updating those figures today shows a dramatic impact: In the past decade, PG&E rate hikes have taken 1.015 billion out of the local economy. And if, as we have estimated, a public power agency could cut rates by 15 percent, that would inject $477 million a year into the local economy (see sfbg.com for a detailed calculation). That’s a lot more money than the city would see from any of Newsom’s proposals.

Proposition B would create thousands of new jobs. Building a new terminal at the airport attracts big national construction companies. Affordable housing in a much more home-grown operation. The nonprofits that build below-market housing in San Francisco hire local construction workers, at union scale; that money stays in the economy. Affordable housing also helps stabilize and upgrade neighborhoods, adding small business and cultural institutions that create more jobs and economic impact. "It’s a monster source of jobs," Rene Cazenave, who is working on the Yes on B campaign, told us. In fact, Prop. B alone would create a lot more jobs than the mayor’s entire economic stimulus plan.

Propositions N, O and Q would save jobs. As the city’s budget deficit continues to grow, Newsom is talking about cutting more services — and that means cutting public sector jobs. Many of those workers live in San Francisco; eliminating jobs hurts the local economy. Prop. O would prevent the city from losing $80 million in tax revenue every year; Props. N and Q would bring in millions more. That would save jobs and help stave off a deeper recession.

Preserving an independent board will keep Newsom’s worst economic policies in check. If supervisorial candidates Sue Lee, Joe Alioto, and Ahsha Safai win in Districts 1, 3 and 11, Newsom will have a loyal majority — and the city’s economy will be in trouble. The mayor of San Francisco is a Democrat, but his economic policies are much closer to what John McCain is proposing — and they won’t work. San Francisco needs a strong independent board to keep asking the tough questions and demanding alternatives. It’s critical to elect Eric Mar, David Chiu, and John Avalos in those swing districts.

There’s so much at stake in this election. Vote early, vote often, and vote all the way to the bottom of the ballot.