Tenants

Endorsements 2010: San Francisco candidates

53

SUPERVISOR, DISTRICT 2


JANET REILLY


Frankly, we were a little surprised by the Janet Reilly who came in to give us her pitch as a District 2 supervisorial candidate. The last time we met with her, she was a strong progressive running for state Assembly as an advocate of single-payer health care. She was challenging Fiona Ma from the left, and easily won our endorsement.


Now she’s become a fiscal conservative — somewhat more in synch with her district, perhaps, but not an encouraging sign. Reilly seems to realize that there’s a $500 million budget deficit looming, but she won’t support any of the tax measures on the ballot. She’s against the hotel tax. She’s against the real estate transfer tax on high-end properties. She’s against the local car tax. She opposed Sup. David Chiu’s business tax plan that would have shifted the burden from small to larger businesses (even though it was clear from our interview that she didn’t understand it).


She talked about merging some of the nonprofits that get city money, about consolidating departments, and better management — solutions that might stem a tiny fraction of the red ink. But she wouldn’t even admit that the limited tax burden on the very rich was part of San Francisco’s budget problem.


Her main proposal for creating jobs is more tax credits for biotech, life sciences, and digital media and more public-private partnerships.


It’s too bad, because Reilly’s smart, and she’s far, far better than Mark Farrell, the candidate that the current incumbent, Michela Alioto-Pier, is backing. We wish she’d be realistic about the fiscal nightmare she would inherit as a supervisor.


On the positive side, she’s a strong supporter of public power and she has good connections to the progressive community. Unlike Alioto-Pier, she’d be accessible, open-minded, and willing to work with the progressive majority on the board. That would be a dramatic change, so we’ll give her the nod.


We were also impressed with Abraham Simmons, a federal prosecutor who has spent time researching city finance on the Civil Grand Jury. But he supports sit-lie, Prop. B and Prop. S, and opposes most new tax proposals and needs more political seasoning.


 


DISTRICT 4


NO ENDORSEMENT


We’ve always wanted to like Carmen Chu. She’s friendly, personable, intelligent, and well-spoken. But on the issues, she’s just awful. Indeed, we can’t think of a single significant vote on which she’s been anything but a call-up loyalist for Mayor Newsom. She even opposed the public power measure, Prop. H, that had the support of just about everyone in town except hardcore PG&E allies.


She’s running unopposed, and will be reelected. But we can’t endorse her.


 


DISTRICT 6


1. DEBRA WALKER


2. JANE KIM


3. GLENDON “ANNA CONDA” HYDE


CORRECTION: In our original version of this endorsement, we said that Jim Meko supports the sit-lie ordinance. That was an error, and it’s corrected below.


A year ago, this race was artist and activist Debra Walker’s to lose. Most of the progressive community was united behind her candidacy; she’d been working on district issues for a couple of decades, fighting the loft developers during the dot-com boom years and serving on the Building Inspection Commission. Then School Board member Jane Kim decided to enter the race, leaving the left divided, splitting resources that might have gone to other critical district races — and potentially helping to put the most pro-business downtown candidate, Theresa Sparks, in a better position to win.


Now we’ve got something of a mess — a fragmented and sometimes needlessly divisive progressive base in a district that’s key to holding progressive control of the board. And while neither of the two top progressive candidates is actively pursuing a credible ranked-choice voting strategy (Kim has, unbelievably, endorsed James Keys instead of Walker, and Walker has declined to endorse anyone else), we’re setting aside our concern over Kim’s ill-advised move and suggesting a strategy that is most likely to keep the seat Chris Daly has held for the past 10 years from falling to downtown control.


Walker is far and away our first choice. She understands land use and housing — the clear central issues in the district — and has well thought-out positions and proposals. She says that the current system of inclusionary housing — pressing market-rate developers to include a few units of below-market-rate housing with their high-end condos — simply doesn’t work. She supports an immediate affordable housing bond act and a long-term real estate transfer tax high enough to fund a steady supply of housing for the city’s workforce. She told us the city ought to be looking at planning issues from the perspective of what San Francisco needs, not what developers want to build. She’s in favor of progressive taxes and a push for local hiring. We’re happy to give her our first-place ranking.


Jane Kim has been a great SF School Board member and has always been part of the progressive community. But she only moved into District 6 a year and a half ago — about when she started talking about running for supervisor (and she told us in her endorsement interview that “D6 is a district you can run in without having lived there a long time.”) She still hasn’t been able to explain why she parachuted in to challenge an experienced progressive leader she has no substantive policy disagreements with.


That said, on the issues, Kim is consistently good. She is in favor of indexing affordable housing to market-rate housing and halting new condo development if the mix gets out of line. She’s for an affordable housing bond. She supports all the tax measures on this ballot. She’s a little softer on congestion pricing and extending parking-meter hours, but she’s open to the ideas. She supports police foot patrols not just as a law-enforcement strategy, but to encourage small businesses. She’d be a fine vote on the board. And while we’re sympathetic to the Walker supporters who would prefer that we not give Kim the credibility and exposure of an endorsement, the reality is that she’s one of two leading progressives and would be better on the board than the remaining candidates.


Hyde, a dynamic young drag queen performer, isn’t going to win. But he’s offered some great ideas and injected some fun and energy into the race. Hyde talks about creating safe injection sites for IV drug users to reduce the risk of overdoses and the spread of disease. He points out that a lot of young people age out of the foster-care system and wind up on the streets, and he’s for continuum housing that would let these young people transition to jobs or higher education. He talks about starting a co-op grocery in the Tenderloin. He proposes bus-only lanes throughout the district and wants to charge large vehicles a fee to come into the city. He’s a big advocate of nightlife and the arts. He lacks experience and needs more political seasoning, but we’re giving him the third-place nod to encourage his future involvement.


Progressives are concerned about Theresa Sparks, a transgender activist and former business executive who now runs the city’s Human Rights Commission. She did a (mostly) good job on the Police Commission. She’s experienced in city government and has good financial sense. But she’s just too conservative for what remains a very progressive district. Sparks isn’t a big fan of seeking new revenue for the city telling us that “I disagree that we’ve made all the cuts that we can” — even after four years of brutal, bloody, all-cuts budgets. She doesn’t support the hotel tax and said she couldn’t support Sup. David Chiu’s progressive business tax because it would lead to “replacing private sector jobs with public sector jobs” — even though the city’s own economic analysis shows that’s just not true. She supports Newsom’s sit-lie law.


Sparks is the candidate of the mayor and downtown, and would substantially shift the balance of power on the board. She’s also going to have huge amounts of money behind her. It’s important she be defeated.


Jim Meko, a longtime neighborhood and community activist, has good credentials and some solid ideas. He was a key player in the western SoMa planning project and helped come up with a truly progressive land-use program for the neighborhood. But he supports Prop. B and is awfully cranky about local bars and nightlife.


James Keys, who has the support of Sup. Chris Daly and was an intern in Daly’s office, has some intriguing (if not terribly practical) ideas, like combining the Sheriff’s Department and the Police Department and making Muni free). But in his interview, he demonstrated a lack of understanding of the issues facing the district and the city.


So we’re going with a ranked-choice strategy: Walker first, Kim second, Hyde third. And we hope Kim’s supporters ignore their candidate’s endorsement of Keys, put Walker as their second choice, and ensure that they don’t help elect Sparks.


 


DISTRICT 8


RAFAEL MANDELMAN


This is by far the clearest and most obvious choice on the local ballot. And it’s a critical one, a chance for progressives to reclaim the seat that once belonged to Harvey Milk and Harry Britt.


Mandelman, a former president of the Milk Club, is running as more than a queer candidate. He’s a supporter of tenants rights, immigrants’ rights, and economic and social justice. He also told us he believes “local government matters” — and that there are a lot of problems San Francisco can (and has to) solve on its own, without simply ducking and blaming Sacramento and Washington.


Mandelman argues that the public sector has been starved for years and needs more money. He agrees that there’s still a fair amount of bloat in the city budget — particularly management positions — but that even after cleaning out the waste, the city will still be far short of the money it needs to continue providing pubic services. He’s calling for a top-to-bottom review of how the city gets revenue, with the idea of creating a more progressive tax structure.


He’s an opponent of sit-lie and a supporter of the sanctuary city ordinance. He supports tenants rights and eviction protection. He’s had considerable experience (as a member of the Building Inspection Commission and Board of Appeals and as a lawyer who advises local government agencies) and would make an excellent supervisor.


Neither of the other two contenders make our endorsement cut. Rebecca Prozan is a deputy city attorney who told us she would be able to bring the warring factions on the board together. She has some interesting ideas — she’d like to see the city take over foreclosed properties and turn them into housing for teachers, cops, and firefighters — and she’s opposed to sit-lie. But she’s weak on tenant issues (she told us there’s nothing anyone can do to stop the conversion of rental housing into tenancies-in-common), doesn’t seem to grasp the need for substantial new revenues to prevent service cuts, and doesn’t support splitting the appointments to key commissions between the mayor and the supervisors.


Scott Wiener, a deputy city attorney, is a personable guy who always takes our phone calls and is honest and responsive. He’s done a lot of good work in the district. But he’s on the wrong side of many issues, and on some things would be to the right of the incumbent, Sup. Bevan Dufty.


He doesn’t support public power (which Dufty does). He says that a lot of the city’s budget problems can’t be solved until the state gets its own house in order (“we can’t tax our way out of this”) and favors a budget balanced largely by further cuts. In direct contrast to Mandelman, Wiener said San Franciscans “need to lower our expectations for government.” He wants broad-based reductions in almost all city agencies except Muni, “core” public health services, and public safety. He doesn’t support any further restrictions on condo conversions or TICs. And he has the support of the Small Property Owners Association — perhaps the most virulently anti-tenant and anti-rent control group in town.


This district once gave rise to queer political leaders who saw themselves and their struggles as part of a larger progressive movement. That’s drifted away of late — and with Mandelman, there’s a chance to bring it back.


 


DISTRICT 10


1. TONY KELLY


2. DEWITT LACY


3. CHRIS JACKSON


District 10 is the epicenter of new development in San Francisco, the place where city planners want to site as many as 40,000 new housing units, most of them high-end condos, at a cost of thousands of blue-collar jobs. The developers are salivating at the land-rush opportunities here — and the next supervisor not only needs to be an expert in land-use and development politics, but someone with the background and experience to thwart the bad ideas and direct and encourage the good ones.


There’s no shortage of candidates — 22 people are on the ballot, and at least half a dozen are serious contenders. Two — Steve Moss and Lynette Sweet — are very bad news. And one of the key priorities for progressives is defeating the big-money effort that downtown, the police, and the forces behind the Van Ness Avenue megahospital proposal are dumping into the district to elect Moss.


Our first choice is Tony Kelly, who operates Thick Description Theater and who for more than a decade has been directly involved in all the major neighborhood issues. He has a deep understanding of what the district is facing: 4,100 of the 5,300 acres in D10 have been rezoned or put under the Redevelopment Agency in the past 10 years. Planners envision as many as 100,000 new residents in the next 10 years. And the fees paid by developers will not even begin to cover the cost of the infrastructure and services needed to handle that growth.


And Kelly has solutions: The public sector will have to play a huge role in affordable housing and infrastructure, and that money should come from higher development fees — and from places like the University of California, which has a huge operation in the district and pays no property taxes. Kelly wants to set up a trigger so that if goals for affordable housing aren’t met by a set date, the market-rate development stops. He supports the revenue measures on the ballot but thinks we should go further. He opposes the pension-reform measure, Prop. B, but notes that 75 percent of the city’s pension problems come from police, fire, and management employees. He wants the supervisors to take over the Redevelopment Agency. He’s calling for a major expansion of open space and parkland in the district. And he thinks the city should direct some of the $3 billion in short-term accounts (now all with the Bank of America) to local credit unions or new municipal bank that could invest in affordable housing and small business. He’s a perfect fit for the job.


DeWitt Lacy is a civil-rights lawyer and a relative newcomer to neighborhood politics. He speaks passionately about the need for D10 to get its fair share of the city’s services and about a commitment to working-class people.


Lacy is calling for an immediate pilot program with police foot patrols in the high-crime areas of the district. He’s for increasing the requirements for developers to build affordable housing and wants to cut the payroll tax for local businesses that hire district residents.


Lacy’s vision for the future includes development that has mixed-use commuter hubs with shopping and grocery stores as well as housing. He supports the tax measures on the ballot and would be willing to extend parking meter hours — but not parking fines, which he calls an undue burden on low-income people.


He’s an outspoken foe of sit-lie and of gang injunctions, and with his background handling police abuse lawsuits, he would have a clear understanding of how to approach better law-enforcement without intimidating the community. He lacks Kelly’s history, experience, and knowledge in neighborhood issues, but he’s eminently qualified and would make a fine supervisor.


Chris Jackson, who worked at the San Francisco Labor Council and serves on the Community College Board, is our third choice. While it’s a bit unfortunate that Jackson is running for higher office only two years after getting elected to the college board, he’s got a track record and good positions on the issues. He talks of making sure that blue-collar jobs don’t get pushed out by housing, and suggested that the shipyard be used for ship repair. He wants to see the city mandate that landlords rent to people with Section 8 housing vouchers. He supports the tax measures on the ballot, but also argues that the city has 60 percent more managers than it had in 2000 and wants to bring that number down. He thinks the supervisors should take over Redevelopment, which should become “just a financing agency for affordable housing.” He wants to relocate the stinky sewage treatment plant near Third Street and Evans Avenue onto one of the piers and use the area for a transit hub. He’s still relatively unseasoned, but he has a bright political future.


Eric Smith, a biodiesel activist, is an impressive candidate too. But while his environmental credentials are good, he lacks the breadth of knowledge that our top three choices offer. But we’re glad he’s in the race and hope he stays active in community politics.


Malia Cohen has raised a lot of money and (to our astonishment) was endorsed No. 2 by the Democratic Party, but she’s by no means a progressive, particularly on tenant issues — she told us that limiting condo conversions is an infringement of property rights. And she’s way too vague on other issues.


Moss is the candidate of the big developers and the landlords, and the Chamber of Commerce is dumping tens of thousands of dollars into getting him elected. He’s got some good environmental and energy ideas — he argues that all major new developments should have their own energy distribution systems — but on the major issues, he’s either on the wrong side or (more often) can’t seem to take a stand. He said he is “still mulling over” his stand on sit-lie. He supports Sanctuary City in theory, but not the actual measure Sup. David Campos was pushing to make the policy work. He’s not sure if he likes gang injunctions or not. He only moved back to the district when he decided to run for supervisor. He’s way too conservative for the district and would be terrible on the board.


Lynette Sweet, a BART Board member, has tax problems (and problems explaining them) and wouldn’t even come to our office for an endorsement interview. The last thing D10 needs is a supervisor who’s not accountable and unwilling to talk to constituents and the press.


So we’re going with Kelly, Lacy, and Jackson as the best hope to keep D10 from becoming a district represented by a downtown landlord candidate.


 


SAN FRANCISCO BOARD OF EDUCATION


MARGARET BRODKIN


KIM-SHREE MAUFAS


HYDRA MENDOZA


Three seats are up on the School Board, and three people will get elected. And it’s a contested race, and in situations like that, we always try to endorse a full slate.


This fall, it was, to put it mildly, a challenge.


It’s disturbing that we don’t have three strong progressive candidates with experience and qualifications to oversee the San Francisco Unified School District. But it seems to be increasingly difficult to find people who want to — and can afford to — devote the time to what’s really a 40-hour-a-week position that pays $500 a month. The part-time school board is an anachronism, a creature of a very different economic and social era. With the future of the next generation of San Franciscans at stake, it’s time to make the School Board a full-time job and pay the members a decent salary so that more parents and progressive education advocates can get involved in one of the most important political jobs in the city.


That said, we’ve chosen the best of the available candidates. It’s a mixed group, made up of people who don’t support each other and aren’t part of anyone’s slate. But on balance, they offer the best choices for the job.


This is not a time when the board needs radical change. Under Superintendent Carlos Garcia, the local public schools are making huge strides. Test scores are up, enrollment is increasing, and San Francisco is, by any rational measure, the best big-city public school district in California. We give considerable credit for that to the progressives on the board who got rid of the irascible, secretive, and hostile former Superintendent Arlene Ackerman and replaced her with Garcia. He’s brought stability and improvement to the district, and is implementing a long-term plan to bring all the schools up to the highest levels and go after the stubborn achievement gap.


Yet any superintendent and any public agency needs effective oversight. One of the problems with the district under Ackerman was the blind support she got from school board members who hired her; it was almost as if her allies on the board were unable to see the damage she was doing and unable to hold her accountable.


Our choices reflect the need for stability — and independence. We are under no illusions — none of our candidates are perfect. But as a group, we believe they can work to preserve what the district is doing right and improve on policies that aren’t working.


Kim-Shree Maufas has been a staunch progressive on the board. She got into a little trouble last year when the San Francisco Chronicle reported that she’d been using a school district credit card for personal expenses. That’s not a great move, but she never actually took public money since she paid back the district. Maufas said she thought she could use the card as long as she reimbursed the district for her own expenses; the rules are now clear and she’s had no problems since. We don’t consider this a significant enough failure in judgment to prevent her from continuing to do what she’s been doing: serving as an advocate on the board for low-income kids and teachers.


Maufas is a big supporter of restorative justice and is working for ways to reduce suspensions and expulsions. She wants to make sure advanced placement and honors classes are open to anyone who can handle the coursework. She supports the new school assignment process (as do all the major candidates), although she acknowledges that there are some potential problems. She told us she thinks the district should go back to the voters for a parcel tax to supplement existing funding for the schools.


Margaret Brodkin is a lightening rod. In fact, much of the discussion around this election seems to focus on Brodkin. Since she entered the race, she’s eclipsed all the other issues, and there’s been a nasty whisper campaign designed to keep her off the board.


We’ve had our issues with Brodkin. When she worked for Mayor Newsom, she was part of a project that brought private nonprofits into city recreation centers to provide services — at a time when unionized public employees of the Recreation and Parks Department were losing their jobs. It struck us as a clear privatization effort by the Newsom administration, and it raised a flag that’s going to become increasingly important in the school district: there’s a coming clash between people who think private nonprofits can provide more services to the schools and union leaders who fear that low-paid nonprofit workers will wind up doing jobs now performed by unionized district staff. And Brodkin’s role in the Newsom administration — and her background in the nonprofit world — is certainly ground for some concern.


But Brodkin is also by far the most qualified person to run for San Francisco school board in years, maybe decades. She’s a political legend in the city, the person who is most responsible for making issues of children and youth a centerpiece of the progressive agenda. In her years as director of Coleman Advocates for Children and Youth, she tirelessly worked to make sure children weren’t overlooked in the budget process and was one of the authors of the initiative that created the Children’s Fund. She’s run a nonprofit, run a city department, and is now working on education issues.


She’s a feisty person who can be brusque and isn’t always conciliatory — but those characteristics aren’t always bad. Sup. Chris Daly used his anger and passion to push for social justice on the Board of Supervisors and, despite some drawbacks, he’s been an effective public official.


And Brodkin is full of good ideas. She talks about framing what a 21st century education looks like, about creating community schools, about aligning after-school and summer programs with the academic curriculum. She wants the next school bond act to include a central kitchen, so local kids can get locally produced meals (the current lunch fare is shipped in frozen from out of state).


Brodkin needs to remember that there’s a difference between being a bare-knuckles advocate and a member of a functioning school board. But given her skills, experience, and lifetime in progressive causes, we’re willing to give her a chance.


We also struggled over endorsing Hydra Mendoza. She works for Mayor Newsom as an education advisor — and that’s an out-front conflict of interest. She’s a fan of Obama’s Education Secretary, Arne Duncan, whose policies are regressive and dangerous.


On the other hand, she cares deeply about kids and public education. She’s not a big supporter of charter schools (“I’ve yet to see a charter school that offers anything we can’t do ourselves,” she told us) and while she was on the wrong side of a lot of issues (like JROTC) early in her tenure, over the past two years she’s been a good School Board member.


There are several other candidates worth mentioning. Bill Barnes, an aide to Michela Alioto-Pier, is a good guy, a decent progressive — but has no experience in or direct connection to the public schools. Natasha Hoehn is in the education nonprofit world and speaks with all the jargon of the educrat, but her proposals and her stands on issues are vague. Emily Murase is a strong parent advocate with some good ideas, but she struck us as a bit too conservative (particularly on JROTC and charter schools.) Jamie Wolfe teaches at a private school but lacks any real constituency or experience in local politics and the education community.


So given a weak field with limited alternatives, we’re going with Maufas, Brodkin and Mendoza.


 


SAN FRANCISCO COMMUNITY COLLEGE BOARD


JOHN RIZZO


The San Francisco Community College District has been a mess for years, and it’s only now starting to get back on track. That’s the result of the election of a few progressive reformers — Milton Marks, Chris Jackson, and John Rizzo, who now have enough clout on the seven-member board to drag along a fourth vote when they need it.


But the litany of disasters they’ve had to clean up is almost endless. A chancellor (who other incumbent board members supported until the end) is now under indictment. Public money that was supposed to go to the district wound up in a political campaign. An out-of-control semiprivate college foundation has been hiding its finances from the public. The college shifted bond money earmarked for an arts center into a gigantic, expensive gym with a pool that the college can’t even pay to operate, so it’s leased out to a private high school across the street.


And the tragedy is that all three incumbents — two of whom should have stepped down years ago — are running unopposed.


With all the attention on the School Board and district elections, not one progressive — in fact, not one candidate of any sort — has stepped forward to challenge Anita Grier and Lawrence Wong. So they’ll get another term, and the reformers will have to continue to struggle.


We’re endorsing only Rizzo, a Sierra Club staffer who has been in the lead in the reform bloc. He needs to end up as the top vote-getter, which would put him in position to be the board president. Rizzo has worked to get the district’s finances and foundation under control and he richly deserves reelection.


 


BART BOARD OF DIRECTORS, DISTRICT 8


BERT HILL


It’s about time somebody mounted a serious challenge to James Fang, the only elected Republican in San Francisco and a member of one of the most dysfunctional public agencies in California. The BART Board is a mess, spending a fortune on lines that are hardly ever used and unable to work effectively with other transit agencies or control a police force that has a history of brutality and senseless killing.


Fang supports the suburban extensions and Oakland Airport connector, which make no fiscal or transportation sense. He’s ignored problems with the BART Police for 20 years. It’s time for him to leave office.


Bert Hill is a strong challenger. A professional cost-management executive, he understands that BART is operating on an old paradigm of carrying people from the suburbs into the city. “Before we go on building any more extensions,” he told us, “we should take care of San Francisco.” He wants the agency to work closely with Muni and agrees there’s a need for a BART sunshine policy to make the notoriously secretive agency more open to public scrutiny. We strongly endorse him.


 


ASSESSOR-RECORDER


PHIL TING


San Francisco needs an aggressive assessor who looks for every last penny that big corporations are trying to duck paying — but this is also a job that presents an opportunity for challenging the current property tax laws. Phil Ting’s doing pretty well with the first part — and unlike past assessors, is actually stepping up to the plate on the second. He’s been pushing a statewide coalition to reform Prop. 13 — and while it’s an uphill battle, it’s good to see a tax assessor taking it on. Ting has little opposition and will be reelected easily.


 


PUBLIC DEFENDER


JEFF ADACHI


Adachi’s done a great job of running the office that represents indigent criminal defendants. He’s been outspoken on criminal justice issues. Until this year, he was often mentioned as a potential progressive candidate for mayor.


That’s over now. Because Adachi decided (for reasons we still can’t comprehend) to join the national attack on public employees and put Prop. B on the ballot, he’s lost any hope of getting support for higher office from the left. And since the moderate and conservative forces will never be comfortable with a public defender moving up in the political world, Adachi’s not going anywhere anytime soon.


Which is fine. He’s doing well at his day job. We wish he’d stuck to it and not taken on a divisive, expensive, and ill-conceived crusade to cut health care benefits for city employees.


 


SAN FRANCISCO SUPERIOR COURT


SEAT 15


MICHAEL NAVA


To hear some of the brahmins of the local bench and bar tell it, the stakes in this election are immense — the independence of the judiciary hangs in the balance. If a sitting judge who is considered eminently qualified for the job and has committed no ethical or legal breaches can be challenged by an outsider who is seeking more diversity on the bench, it will open the floodgates to partisan hacks taking on good judges — and force judicial candidates to raise money from lawyers and special interests, thus undermining the credibility of the judiciary.


We are well aware of the problems of judicial elections around the country. In some states, big corporations that want to influence judges raise and spend vast sums on trial and appellate court races — and typically get their way. In Iowa, three judges who were willing to stand on principle and Constitutional law and declare same-sex marriage legal are facing what amounts to a well-funded recall effort. California is not immune — in more conservative counties, liberal judges face getting knocked off the bench by law-and-order types.


It’s a serious issue. It’s worth a series of hearings in the state Legislature, and it might be worth Constitutional change. Maybe trial-court elections should be eliminated. Maybe all judicial elections should have public campaign financing. But right now, it’s an elected office — at least in theory.


In practice, the vast majority of the judicial slots in California are filled by appointment. Judges serve for four-year terms but tend to retire or step down in midterm, allowing the governor to fill the vacancy. Unless someone files specifically to challenge an incumbent, typically appointed judge, that race never even appears on the ballot.


The electoral process is messy and political, and raising money is unseemly for a judicial officer. But the appointment process is hardly pure, either — and governors in California have, over the past 30 years, appointed the vast majority of the judges from the ranks of big corporate law firms and district attorney’s offices.


There are, of course, exceptions, and Gov. Arnold Schwarzenegger has been better than his predecessor, Democrat Gray Davis. But overall, public interest lawyers, public defenders, and people with small community practices (and, of course, people who have no political strings to pull in Sacramento) have been frustrated. And it’s no surprise that some have sought to run against incumbents.


That’s what’s happening here. Michael Nava, a gay Latino who has been working as a research attorney for California Supreme Court Justice Carlos Moreno, was going to run for a rare open seat this year, but the field quickly got crowded. So Nava challenged Richard Ulmer, a corporate lawyer appointed by Schwarzenegger who has been on the bench a little more than a year.


We will stipulate, as the lawyers say: Ulmer has done nothing wrong. From all accounts, he’s a fine judge (and before taking the bench, he did some stellar pro bono work fighting for reforms in the juvenile detention system). So there are two questions here: Should Nava have even filed to run against Ulmer? And since he did, who is the better candidate?


It’s important to understand this isn’t a case of special interests and that big money wanting to oust a judge because of his politics or rulings. Nava isn’t backed by any wealthy interest. There’s no clear parallel to the situations in other areas and other states where the judiciary is being compromised by electoral politics. Nava had every right to run — and has mounted an honest campaign that discusses the need for diversity on the bench.


Ulmer’s supporters note — correctly — that the San Francisco courts have more ethnic and gender diversity than any county in the state. And we’re not going to try to come to a conclusion here about how much diversity is enough.


But we will say that life experience matters, and judges bring to the bench what they’ve lived. Nava, who is the grandson of Mexican immigrants and the first person in his family to go to college, may have a different perspective on how low-income people of color are treated in the courts than a former Republican who spent his professional career in big law firms.


We were impressed by Nava’s background and knowledge — and by his interest in opening up the courts. He supports cameras in the courtrooms and allowing reporters to record court proceedings. He told us the meetings judges hold on court administration should be open to the public.


We’re willing to discuss whether judicial elections make sense. Meanwhile, judges who don’t like the idea of challenges should encourage their colleagues not to retire in midterm. If all the judges left at the end of a four-year term, there would be plenty of open seats and fewer challenges. But for now, there’s nothing in this particular election that makes us fear for the independence of the courts. Vote for Nava.


 


>>BACK TO ENDORSEMENTS 2010

Downtown money hits district races

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Downtown cash is pouring into the district supervisorial races.

Ethics Department filings show that an alliance backed by the Chamber of Commerce, the SF Police Officers Association and United Health Care Workers West is dropping major money on Steve Moss in D10, Scott Wiener in D8 and Theresa Sparks in D6. 

Called the “Alliance for Jobs and Sustainable Growth,” the coalition supports the building of a mega-hospital on Cathedral Hill.

The independent expenditure alliance puts UHW, part of the Service Employees International Union, in the odd position of using membership money to attack progressive politics in San Francisco – potentially undermining years of work by another SEIU affiliate, Local 1021.

Campaign disclosure forms show that the Chamber-Police-UHW alliance has spent $20,000 on bilingual (English/Chinese) door hangers for Moss that feature photos of Chamber of Commerce President Steve Falk and United Healthcare Workers political director Leon Chow.

These same interests also spent $20,000 on robo-calls for Moss, with a heavy focus on Visitacion Valley in an effort to secure the Asian vote in the crowded D10, where there is a strong likelihood that the race will be decided by second and third place votes

Word on the street in the Bayview is that former Mayor Willie Brown is pissed off that the Chamber is backing Moss, instead of African American candidate Lynette Sweet, and that termed out D10 Sup. Sophie Maxwell is angry that big corporations are trying to buy an election in the poorest and most ethnically diverse district in town.

But unlike the rumor mill, the money trail doesn’t lie. And from that perspective this is looking like a replay of the June 2008 election, when big businesses bought support for Lennar’s Candlestick Point/shipyard development by claiming it would create thousands of jobs building condos that most workers can’t afford—jobs that have yet to materialize.

This time the battle cry is for jobs building a massive hospital, even though few workers will likely get service from this hospital, which is designed to serve as a regional center for high-end health care.

So far, the same alliance of police and corporate money has plunked down $17,000 for bilingual (English and Chinese) door hangers in support of Theresa Sparks in D6 and another $17,000 for bilingual robo-calls in support of Sparks.

And so far, Scott Wiener has gotten the relatively short end of the corporate money stick: the Alliance has only spent $15,000 on a door hanger in support of Wiener.

This means that the alliance spent $90,000 in a two-week period in September. The numbers lend credence to DCCC Chair Aaron Peskin’s belief that the alliance has a war chest of $800,000, which it intends to use to put pro-downtown candidates into power.

Asked about the support of this alliance, Sparks, Wiener and Moss gave markedly different replies that reveal as much about each candidate as the money behind them.

D6 candidate Theresa Sparks suggested that the Alliance was spending more on her and Moss’ D10 campaign, because it felt Wiener was further ahead in the D8 race than she is in D6 or Moss is in D10.

And Sparks was openly supportive of the Cathedral Hill hospital project. “I’ve been very supportive of that project,” Sparks told us.

Sparks also observed that it was logical that the Chamber would support her.

“D6 has one of the largest numbers of small businesses and one of my biggest platforms has been economic growth, and I think the Chamber has been very supportive of job creation,” Sparks said.

By comparison, Scott Wiener told the Guardian that he has not taken a position on CPMC’s proposed mega hospital on Cathedral Hill.

“Those kind of issues could come before the Board, in terms of CEQA issues, and so I could be conflicted out,” Wiener said.

When the Guardian noted that the Alliance has so far not spent any money on phone banking for Wiener in D8, Wiener said, “I have volunteers doing phone banking.”

As for Moss, he told the Guardian that said he doesn’t have a position on the mega-hospital.

“I haven’t seen the plan,” Moss said. “But I understand that there seems to be an agreement that would maintain St. Luke’s with about 300 beds, but that there is a deep suspicion among the nurses that it’s not economically viable. And there seems to be a much greater need for a hospital in the southeast.”

Moss, however, is with downtown on other key issues: He supports the sit-lie legislation on the November ballot. He also reiterated that he likes the rabidly anti-tenant Small Property Owners Association, whose endorsement he called a “mistake” during a previous interview with the Guardian.

“Landlords feel that they are responsible for maintaining costly older buildings and that they are not provided with ways to upgrade their units in ways that share costs with tenants,” Moss, who sold a condo on Potrero Hill in 2007 for the same price that he paid for the entire building in 2001, and owns a 4-floor rent-controlled apartment building in D8, near Dolores Park, that he bought for $1.6 million in 2007, and where he lived from December 2007 to February 2010.

Moss refused to provide a copy of the lease on his current rental at Vermont and 18th St—something that the Guardian requested in light of an email from his wife that indicated that the family intended to move back to Dolores Park of Moss loses the race.
‘That’s private information,” Moss said, claiming that he does not plan to move back into his apartment building in D8, if he loses in November.

Moss claimed that UHW endorsed him because his position on politicians and unions.
“I agreed that politicians should get not involved in union politics,” Moss said. “The United Healthcare Workers seem to be a worthy group,” he added. “All they said was that they wanted to make sure that they had access.”

All this campaign money drama is playing out against the backdrop of a punishing battle between United Healthcare Workers West and the rest of SEIU. And as these recent filings show, UHW is spending a huge amount of its membership dues to undermine the city’s progressive infrastructure by trying to elect candidates who are not progressive, even though its progressive sister union has endorsed Rafael Mandelman in D8.

SEIU 1021 member Ed Kinchley, who works in the Emergency Room at SF General Hospital, is furious that UHW is pouring all its money into downtown candidates like Moss, Sparks and Wiener and trying to undermine everything that its progressive sister union is trying to do.

“UHW basically isn’t participating in the Labor Council, it’s just doing its own thing,” Kinchley said.

Kinchley noted that UHW is currently in trusteeship, and is being controlled by its International, and not its local membership, thus explaining why it’s doing this dance with forces like the Chamber and the Building Owners and Managers Association, which have long been the enemy of labor.

“Sutter wants a monopoly on private healthcare, and people like Rafael Mandelman in and Debra Walker have been strong supporters of public healthcare,” Kinchley said, Kinchley also noted that he wants supervisors who are willing to state their support for public health care, rather than dodging the issue and hedging their bets, right now.

“I want someone who can straight-up say, here’s what’s important for families in San Francisco, especially something as important as healthcare,” Kinchley said. “but it sounds like UHW is teaming up with the Chamber and supporting people who are not progressive.”

“And it’s not OK for somebody in D10 to say they haven’t seen CPMC’s plans, when people from D10 use St. Luke’s all the time for healthcare, because it sounds like Sutter wants to change St. Luke’s into an out-patient clinic for paying customers,” he continued.

SEIU 1021 activist Gabriel Haaland accused the Chamber, the Building Owners and Managers Association, UHW and the Police Officers Association of putting together a massive political action committee, “to try and steal the election through corporate spending.”

All this leaves the Guardian wondering how Leon Chow, the political director of UHW, who has done good work in the past on health care issues, is feeling about seeing his photograph spreads all over town alongside that of Chamber of Commerce President Steve Falk on door hangers in support of Sparks, Wiener and Moss.
 
As of press time, Chow had not returned our calls, but if he does, we’ll update this post.

Dollars or sense?

28

rebeccab@sfbg.com

It’s no secret that San Francisco is a particularly costly place to live. It consistently ranks in the top 10 most expensive cities nationwide, and it isn’t uncommon to see people renting out their walk-in closets as makeshift bedrooms to make ends meet.

There’s ample evidence that the city’s market-rate housing is out of reach for many families, middle-class workers, and low-income populations, particularly during the recession. Yet the shortage of affordable housing is a problem that is going largely unaddressed at City Hall.

The city’s General Plan estimates that a full 61 percent of new housing would have to be affordable to satisfy the housing needs of city residents, but even the most demanding development standards fall far short, producing only about half that amount. And while most new affordable housing is built for low-income people, a sizable portion is intended for first-time homebuyers with salaries at the highest threshold of affordability. In recent years, about one-third of new “affordable housing” was built to sell to people with “moderate” incomes.

So as big plans are mapped out for new residential developments composed of mostly market-rate units, what’s the strategy for addressing the underlying affordability gap? And will it ever be enough to keep from further turning San Francisco into a city of rich people while its workers are forced to live elsewhere?

This map, which appears in San Francisco’s Five-Year Consolidated Plan, charts concentrations of low- and moderate-income households in the city using HUD 2000 income data. Under federal guidelines, people with low and moderate income could be eligible for affordable housing.

A San Francisco Unified School District proposal to create new housing for San Francisco teachers underscores just how mismatched housing prices are to income. The National Low Income Housing Coalition (NLIHC) estimates that San Francisco renters paying market rate in 2010 would have to earn $56,240 to afford rent a one-bedroom apartment, $70,400 for a two-bedroom unit, and $94,000 for a three-bedroom unit, assuming they spend no more than about one-third of their income on housing.

A starting teacher’s salary in San Francisco is $50,000, so early-career educators may feel the squeeze. A survey of teachers conducted for the proposal found that 81 percent of respondents were renters, most living with unrelated roommates. More than half had plans to relocate in five years to a city where they could afford to be homeowners.

Housing was a hot-button issue at the Sept. 16 Planning Commission hearing on the environmental impact review for a hospital and housing complex that California Pacific Medical Center wants to build near Van Ness Avenue.

“The CPMC EIR fails miserably to analyze the income of the CPMC work force, and where it’s supposed to be housed,” affordable housing advocate Calvin Welch told the Guardian. “It’s a profoundly important question. If they are [providing] jobs that produce incomes that are insufficient to pay for average market-rate housing in San Francisco, who’s responsibility is it going to be to build housing for that workforce?”

 

WHO CAN AFFORD IT?

San Francisco has a reputation as a diverse, politically engaged hub that supports emerging artists, independent thinkers, and advocates for youth, workers’ rights, healthy ecosystems, protections for the most vulnerable segments of society, and hundreds of other causes. Without economic diversity — which is only possible when housing is available to people with a range of incomes — it might be a different place.

NLIHC estimates that 65 percent of San Francisco households are renters, and a significant number are what the Mayor’s Office of Housing (MOH) calls “cost-burdened,” shelling out more than a third of their incomes on rent. To get by, tenants have been known to cram roommates in like sardines, or cling tenaciously to a rent-controlled unit.

In a thick report outlining affordable housing goals for 2010–14, MOH and two other city agencies clearly articulate the housing challenges facing low-income renters. For one thing, the report says rents are going up despite the economic recession and declining home prices. And most people’s salaries don’t stretch far enough to cover those high prices. Even though there are 16 billionaires and some fabulously wealthy CEOs residing in San Francisco, the majority of people work in more mundane occupations like waiting tables, retail, office work, nonprofit jobs, teaching, health care, or public service.

The MOH report notes that despite the city’s relatively high median income, there’s a widening gap between top earners and people on the lower end of the spectrum, so few households actually wind up in that middle zone. “In fact, over a quarter of San Francisco’s population earns under 50 percent of [area median income],” the report states. For individuals in 2010, this translates to one in four people earning $34,800 or less. Compounding that problem are recent unemployment figures indicating that nearly one in 10 is jobless.

About one half of San Francisco’s population is considered low- or moderate-income, the housing report notes, using the standards used to formulate affordable housing prices. MOH uses a tiered income matrix, calculated using federal guidelines, to determine who could qualify for housing below the market rate. If you make $20,900 or less, you’re counted as “extremely low income.” You’re “very low income” if you make between $21,000 and $34,800, “low income” if you earn between $35,496 and $55,700, and if you make between $56,376 and $83,500, you count as “moderate income.” Even these figures are skewed higher because they include data from wealthy Marin County. As a point of comparison, U.S. Census data estimates that the median income for American workers was $29,530 over the last several years.

Most of the new affordable housing constructed in San Francisco is aimed toward people in the lowest ranges, but in recent years one-third was built for those with moderate incomes, which could gentrify some parts of the city. “Supervisorial Districts 3, 6 and 10 had rates of more than 40 percent extremely low and low-income,” the MOH report notes. “These three districts make up the entire eastern part of the city.”

A Guardian analysis of Bureau of Labor Statistics occupational and wage estimates for 2009 suggests that about 71 percent of people who work in San Francisco (many commute from less expensive places) earned less than that highest “moderate” salary limit of $83,500. It suggests that the vast majority of the workforce could not afford market-rate housing unless they sought it in pairs or groups.

“A big issue is the inability of San Francisco’s employment market to produce jobs that pay people enough to afford housing,” Welch says. “There’s a mismatch between market-rate income and market-rate housing costs. We’re housing somebody else’s workforce.”

Another stab at assessing the affordable housing need gazes into the future. The Housing Element of the San Francisco General Plan includes an estimate for the city’s future housing needs for the better part of the decade. The city should build 31,200 new housing units to meet its need, the General Plan says, and “at least 39 percent of these new units must be affordable to very low and low-income households. Another 22 percent should be affordable to households with moderate incomes.”

What this adds up to is a full 61 percent of new residential development in San Francisco ought to be dedicated to some form of affordable housing. The calculation reveals a lot about the condition San Francisco is in, but it might as well be chalked up as a hollow academic exercise. Indeed, the report deems this goal “unrealistic.” The reality of the market and chronic government deficits ensures that there will not even be an attempt to meet it.

 

IF YOU BUILD IT

The trouble with affordable housing is that developers won’t build it unless there is a financial incentive. “The only way it works is not in the marketplace,” Welch said. “There’s no such thing as affordable land, affordable sheetrock, affordable architects, or affordable engineers. The profound condition … is that the market cannot produce affordable housing.” As long as developers can make higher profits building market-rate, they will.

That’s why government steps in to subsidize or mandate new affordable housing construction or preserve existing stock. Under the Inclusionary Housing Ordinance, if developers decide not to build the required 15 percent of affordable units, they must pay an in-lieu fee that gets funneled into an affordable housing fund.

In a good year, MOH Executive Director Douglas Shoemaker told the Guardian, the city receives $10 to $15 million from these fees, which is used in partnership with developers to build affordable projects. That system hasn’t worked so well lately. Last year funds for affordable housing were depleted instead of bolstered. Developers who paid their fees in anticipation of building new projects requested refunds after their projects were stalled, Shoemaker told the Guardian, so MOH gave back up to $12 million to developers instead of using that money to build new affordable housing.

This year, Mayor Gavin Newsom introduced what he called an “economic stimulus” program that allowed developers to defer payment of in-lieu fees. This guarantees that it will be a long, long time before new affordable housing can be built using those funds. So as it stands, the inclusionary housing law isn’t so effective at producing new affordable housing.

Projects done in conjunction with the San Francisco Redevelopment Agency, meanwhile, do include higher portions of affordable housing. With all of the planned Redevelopment projects combined — Treasure Island, the Hunter’s Point shipyard, and others — the city can expect to see perhaps 7,000 new affordable housing units in coming years, a portion of which will be condos meant for people in the “moderate” income range. It may well be better than other cities have offered, but it doesn’t begin to address the true need for more than 19,000 units outlined in the General Plan.

Shoemaker noted that San Francisco is a cut above the rest when it comes to affordable-housing requirements. “I just don’t think you could find a city that has more aggressive goals,” he said, noting that in major redevelopment areas, “We’re getting like 30 percent of homes to be affordable on some level.” Yet Shoemaker acknowledged, “the need is intense,” and “there’s more people we would like to serve.”

Olson Lee, deputy executive director of the San Francisco Redevelopment Agency, also described San Francisco as taking a very aggressive stance on affordable housing. Redevelopment devotes 50 percent of its tax-increment financing to affordable housing, where the state requires just 20 percent, Lee said. And some Redevelopment project areas include twice as much affordable housing as is required by state law, he added. “The city has done a tremendous amount of affordable housing,” he said. However, “the fact of the matter is, there’s a greater demand for affordable housing than the number of units.”

From 2005 to 2009, there were 3,607 new affordable housing units constructed, mostly for people at the lowest end of the pay scale, MOH reports. But in that same time frame, 3,465 rental units were converted to condominiums. One could argue that the city essentially broke even with its affordable housing stock in a decade where housing prices almost doubled. As San Francisco housing prices skyrocketed, the city’s 170,000 rent-controlled units served as the saving grace for the majority who couldn’t afford market-rate, and condo conversions continue to threaten the erosion of that very significant housing stock.

Debra Walker, a candidate for District 6 and a tenant representative on the Building Inspection Commission, told the Guardian that she believes a new financing system is needed for affordable housing. “The argument for development is that we get affordable housing money out of it,” she said, but “the inclusionary doesn’t get us enough housing. We cannot include affordable in those high-rises, because they’re so expensive to build.”

She has talked up the idea of a real estate transfer tax that would create a dedicated fund that could then be used in partnerships with affordable-housing developers. Shoemaker, for his part, noted that having a dedicated revenue stream for affordable housing would be very helpful. A committee comprised of the San Francisco Planning and Urban Research Association, Welch, developer Oz Erickson, and Shoemaker was formed earlier this year and actually arrived at a deal, but Newsom ultimately rejected it. Other creative solutions, Walker says, might include reusing shuttered commercial properties or building cheaper by design using different building materials. “It’s about looking at what it is we need,” she said, “and realizing people are in a pinch.”

The greatest complicating factor of the current system, in which the city relies on market-rate development to get new affordable housing, is that even though there a some 40,000 new residential units in the pipeline, developers can’t secure financing to start building them. For now, in the down economy, they only exist on paper.

“They’ll never get built,” Welch predicts, and as long as Newsom continues to extend entitlements for those planned projects in hopes that the market will get a jump, “it’s freezing September 2008 conditions, evidently forever,” limiting opportunities to build something more reasonable.

“They’re zombies,” Welch added. “Who the fuck is going to pay $2 million for a new condo when they can buy a $4 million building for $1 million in foreclosure?” But if the need for affordable housing began to be addressed, he said, something might start to happen. “If you converted half the pipeline units to rental,” he theorized, “they might get built.”

New website features worst landlords ever

1

Tenants Together, a statewide nonprofit advocating for tenants’ rights, has launched a new website that allows tenants to nominate their landlords as the worst ever in California.

The Landlord Hall of Shame features a listing of landlords who’ve been suggested, officially nominated, or installed by vote into the Hall of Shame. The aim is to spotlight landlords who disrespect tenants’ rights, try to force tenants out for their own economic gain, or act in some other egregious way that makes life miserable for a renter. While none of them will be dubbed Hall of Shamers until December, a couple of official nominees already sound like tough contenders.

One of them is David Taran of Page Mill Properties, who has been embroiled in an ongoing battle with Tenants Together after imposing exorbitant rent hikes in an effort to force tenants out of a rent-controlled housing complex in East Palo Alto.

The purpose of the website is two-fold, according to Dean Preston, executive director of Tenants Together. It can be a deterrent to landlord misconduct, but it can also help the tenant advocacy group gather information about problem landlords.

“There are a lot of bad landlords out there that get away with doing the same thing over and over again,” Preston said, “Because no one knows that they did it before. A lot of landlords operate in multiple communities, so people in one city may not necessarily know what they’ve done in another city.”

Preston said that Tenants Together expects to nominate a couple landlords every month. Official nominees are those that the group has researched and found that “their conduct has risen to the level where we should call them out publicly,” he added.

On the list of suggested nominees is Laramar SF, a property management company that has taken over management in many San Francisco properties formerly controlled by Skyline Realty or CitiApartments. The Hall of Shame website is sure to note that if some one has been suggested as a nominee, it’s “not an indication that they have done anything wrong or are bad landlords.” But if tenants visiting the site wish to share comments about their experience with a nominated landlord or add a new one to the roster, they can simply fill out an online form.

“We think this really has the potential to make some landlords think twice about abusing their tenants,” Preston said. “It will make bad landlords realize that there is a spotlight on them.”

The District 8 dilemma

13

tredmond@sfbg.com

Gabriel Haaland, a longtime queer labor activist, was talking to a friend from District 8 the other day, chatting about the race for a supervisor to fill the shoes of Harvey Milk, Harry Britt, Mark Leno, and Bevan Dufty. “She told me that she didn’t know who to vote for,” Haaland said, “because she didn’t know who the progressive was in the race.”

For supporters of Rafael Mandelman, that’s a serious challenge. “The polls are very consistent,” Haaland said. “Most of the voters in D-8 would prefer a progressive over a moderate, and when they know who the progressive is, they support that candidate.”

But oddly enough, although District 8 — the Castro, Noe Valley, and parts of the Mission — is one of the most politically active parts of the city, where voter turnout is consistently high, the supervisorial race is getting only limited media attention. The neighborhood and queer papers are doing a good job of covering the race, but for the rest of the media, it’s as if nothing’s happening. And that’s left voters confused about what ought to be a very clear choice.

The San Francisco Chronicle featured the District 6 race on the front page Sept. 19, with a long story about how demographic changes in the South of Market area would affect the successor to Sup. Chris Daly. District 10, with the mad political scrum of 22 candidates, no clear front runner and endorsements all over the map, has received considerable media attention.

Yet D–8 — which offers by far the most striking distinctions between candidates and the sharpest divisions over issues — has been flying under the radar.

Three major candidates are in the race, two gay men and a lesbian. All of them, for what it’s worth, are lawyers. Rafael Mandelman, who works for a firm that advises cities and counties, has the support of the vast majority of progressive leaders and organizations. Rebecca Prozan, a deputy district attorney, and Scott Wiener, a deputy city attorney, are very much on the moderate-centrist (some would say, by San Francisco standards, conservative) side of the political spectrum.

“As Barbara Boxer has said in her ads, the choice is clear,” Aaron Peskin, chair of the local Democratic Party and a Mandelman backer, told us. “Not to exaggerate, but this is like Boxer v. Carly Fiornia, and Rafael is our Boxer.”

Yet by almost all accounts, Wiener is ahead in the race.

 

ON THE ISSUES

The San Francisco Board of Supervisors has been roughly divided in the past decade between the progressive camp and moderate camp. And while those labels are hard to define (the Chronicle won’t even use the term “progressive,” preferring “ultraliberal”), most observers have a basic grip on the differences.

The moderates, who tend to support Mayor Gavin Newsom, are social liberals but fiscal conservatives. They talk about the city surviving budget red ink without major tax increases. They talk about controlling government spending and increasing public safety. The progressives generally see local government as underfunded after four years of brutal cuts and support the idea of raising new revenue to fill the gap. They support tenants over landlords, seek stronger protections for affordable housing, support Sanctuary City, and oppose sit-lie.

Certainly with Wiener and Mandelman, it’s abundantly clear where the candidates fall. The two agree on some things (they both oppose Prop. B, the pension-reform measure that would reduce health care payments for the children of city employees) and they both support nightlife. But overall, they take very different political stands.

Wiener told us, for example, that the city’s structural budget problems won’t be solved without cuts. “We’re not going to able to tax our way out of this,” he said in an endorsement interview. “We have to lower our expectations for government.”

Other than Muni, public safety, and core public health services, cuts “will have to be across the board,” he said. “What are the things we really can’t do without?”

Wiener supports the sit-lie proposal, saying that he doesn’t think the local police have the tools they need to get poorly behaving people off the streets. He doesn’t support Sup. Ross Mirkarimi’s measure mandating foot patrols because, he told us, he doesn’t think the supervisors should micromanage the Police Department.

Sup. Bevan Dufty, who currently holds the D–8 seat, has voted with the progressives occasionally — but almost never on tenant issues. And Wiener, who has the support of the rabidly anti-tenant Small Property Owners of San Francisco, is likely to follow that approach. Although he told us he supports rent control (which just about everyone in local politics agrees on at this point), he’s not a fan of additional protections against evictions and condo conversions. “I’m not prepared to go beyond what we have now” on eviction protections, he said. He supported Newsom’s plan to allow people to buy their way out of the waiting list and lottery for condo conversions.

And when it comes to public power, he’s to the right of the incumbent: Dufty has said repeatedly that he supports the city taking over Pacific Gas and Electric Co.’s infrastructure and putting the city in control of a full-scale public power system. Wiener says he supports community choice aggregation (CCA), but not full-scale public power.

Mandelman is a big supporter of local government and says, without hesitation, that the city needs more revenue. “The public sector is dramatically underfunded,” he told us in a recent interview. “There’s great wealth in the city and it needs to be tapped to preserve public services.” Mandelman said he’s not “tax happy,” but told us that the structure of how the city raises revenue is a mess. He supports a top-to-bottom review of the city’s revenue base with the goal of making taxation more progressive — and bringing in enough money to fund crucial services.

Mandelman is a foe of sit-lie, which he sees as punitive and ineffective. He opposes gang injunctions and supports Sanctuary City. And he’s a strong advocate for tenants, supporting stronger eviction protections and limits on condo conversions that take away affordable rental stock.

“You have to look at the candidates and ask what their priorities are,” he said. “Are the displacement of long-time residents critically important or something that’s not on the top of the list? Do you believe we need to rebuild the safety net? Or is queer politics all about property values?”

Prozan told us that she’s the one who can “bring the two sides together” and said that, like Dufty, she is “right up the middle.” She supports the hotel tax and the vehicle license fee and opposes sit-lie, but also thinks gang injunctions are a useful tool for law enforcement. She doesn’t see any reason to split appointments between the mayor and the supervisors for the board that oversees Muni or the Redevelopment Agency. She doesn’t think the city can or should do anything more about the conversion of rental property to tenancies in common, but supports the idea of taking over foreclosed properties to create housing for teachers, cops, and firefighters. So it’s safe to say the Prozan would probably be similar to the incumbent — with the progressives on a few things, against them on others.

 

UNDER THE RADAR?

Wiener and Mandelman agree on two basic points: there are stark differences between the candidates — and the city’s major media outlets aren’t paying enough attention. That’s probably because the relatively tame politics doesn’t compare to the sort of wild excitement you see in Districts 6 and 10.

“There’s less chaos than some of the other districts,” Wiener said. “The three major candidates are all hard-working, respected people who have all lived in the district a while.”

He also agreed that he and Mandelman have “very different visions” for the district and the city, and that there are sharp contrasts and divisions between the two candidates.

Prozan also argued that the political differences on issues aren’t going to be the only — or even the deciding — factor for many voters. “I think they’re looking for who’s got the courage and independence to do what’s right,” she told us.

But Mandelman told us there’s a crucial story here that needs to be told: “It’s a definitional fight about what the queer community is about in 2010. As goes D–8, so goes San Francisco.”

Lembi’s legacy

5

steve@sfb.com

Two of the most outrageous and intransigent political narratives in progressive San Francisco converge at the Hotel Frank near Union Square.

The first involves the relatively new namesake of a boutique hotel formerly known as the Maxwell Hotel San Francisco, Frank Lembi, the nonagenarian who was once one of the city’s largest and most notorious landlords, running CitiApartments, Skyline Realty, Lembi Group, and other related corporations with his recently deceased son, Walter, and others.

Since the Guardian first reported on allegations of illegal and unethical tactics intended to force protected renters from their homes in an award-winning three-part series (“The Scumlords,” March 2006), Lembi’s empire was sued by the City Attorney’s Office and its former tenants (“SF vs. Frank Lembi,” 10/6/09), followed by a financial crash that involved banks foreclosing on dozens of the group’s properties (“Triumph of tenacity,” 6/1/10).

That downfall has now dovetailed into a second prominent San Francisco story: the ongoing contractual impasse and labor unrest between the city’s corporate-owned hotels and workers represented by Unite-Here Local 2, whose list of boycotted local hotels grew to 10 with the addition of the Hotel Frank earlier this month.

After the Hotel Frank and Hotel Metropolis were foreclosed on by Wells Fargo Bank earlier this year, longtime union workers at the two hotels say their rights have been violated, their benefits slashed, and their workloads increased unilaterally by the bank’s management company, Provenance Hotels, whose representatives refused to comment for this story.

“These are troubling signs of the kind of relations they want to have with Local 2,” Anand Singh, a lead organizer with the union, told the Guardian.

Together, the stories that converge at the Hotel Frank are about the plight of renters and workers in San Francisco, and whether they can maintain their economic standing against attacks from powerful corporate interests.

Corporations run by members of the Lembi family once controlled more apartments in San Francisco than any other landlord, growing rapidly in the 1990s and early 2000s using highly leveraged real estate purchases and renting units under CitiApartments and other names.

Tenants in rent-controlled apartments are protected under various San Francisco laws, but as the Guardian has reported and the city’s ongoing lawsuit against the Lembi empire alleges, the group’s business model was based on trying to force, intimidate, and cajole tenants into vacating those units in order to increase rents. Those complaints were also the subject of well-attended City Hall hearings in 2006 and a campaign called CitiStop organized by the San Francisco Tenants Union.

A separate class action lawsuit by former Lembi tenants brought by the San Francisco law firm Seegar Salvas LLP in 2009 alleges that the Lembi corporations also routinely refused to return the security deposits of former tenants. Both lawsuits are ongoing, with plaintiffs’ attorneys noting that the courts have fined the Lembi corporations for not cooperating with the discovery process.

Yet while the name Frank Lembi had been tarnished in progressive political circles, it was until only recently celebrated in the business press and by downtown organizations such as the San Francisco Apartment Association, which lauded Lembi as a tough-minded visionary. And it was a name that Frank Lembi’s daughter sought to memorialize in 2007 when the company she ran, Personality Hotels, added the York and Maxwell hotels to its string of four boutique hotels near Union Square.

Yvonne Lembi-Detert changed the name of the Maxwell to the Frank Hotel and rechristened the York as Hotel Vertigo after the Alfred Hitchcock movie set in San Francisco. Those familiar with the deal say she paid top dollar for the hotels — $35 million for the Maxwell, which had sold a few years earlier for $18 million. She then borrowed another $10 million to renovate the hotel she had renamed for her father, putting up the Hotel Metropolis in the Tenderloin as collateral.

“This was a vanity project, nothing more and nothing less, Yvonne’s legacy to father Frank,” one worker at the hotels told the Guardian.

Officials at Personality said Lembi-Detert was on vacation and unavailable for comment, but Director of Operations David Chin told us, “The purchase price was what the market bore at the time” and that the renovations were prudent. “The factor that drove the hotel to foreclosure was really the economy.”

Although the loans for the hotels came from a Japanese-based corporation called Nomura, they were packaged along with other troubled loans into collateralized debt obligations (CDOs) — those toxic financial instruments that played such a key role in the crash of the banking system in 2008 — eventually coming to be controlled by Well Fargo.

As the Hotel Frank was put through extensive and expensive renovations that were never completed, the economy turned sour and the Lembis fell far behind in their loan payments. Wells Fargo finally took ownership of both the Frank and the Metropolis in May, contracting the management out to Provenance, which moved quickly to try to turn the financially troubled hotels around.

Workers at the two hotels, most of whom had been there for decades, say the new management team took an aggressive posture from day one, announcing increased workloads, longer work days, suspended vacation pay, and new medical plans with steeply higher costs to workers.

But they arrived in a town with a hotel union energized by clashes with management at hotels all over the city, so the workers at the hotels resisted the changes and their Local 2 colleagues have rallied to their defense. When thousands of workers and their progressive supporters marched through the streets of San Francisco to the Grand Hyatt in July, they stopped at the Hotel Frank along the way and unfurled a banner that read “Frank and Metropolis Hotel Workers United to Fight Provenance and Wells Fargo.” And on Sept. 8, both hotels were added to Local 2’s boycott list.

Singh said Provenance is unfairly trying to hold workers at the hotel responsible for the bad financial decisions that the Lembis made, and he called on Wells Fargo to absorb those financial losses without having its agents attack the union.

“It was not based on anything the workers have done,” Singh said of the financial situation at the hotels. “This huge bank is asking the workers to bear the brunt of this financial strategy even after being bailed out by taxpayers.”

The news that didn’t make the news in SF

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Every year, the Guardian features the Top 10 Project Censored stories presented by the Sonoma State University project that spends all year analyzing which stories the mainstream media missed. But which stories did not find their way into the mainstream press here in the San Francisco Bay Area?

News outlets other than the Guardian typically ignore Project Censored (unless you count SF Weekly’s snark), so you might say that even Censored tends to be censored. Other than that, we note that issues not hand-delivered via press release or PR campaign might receive less attention than those obvious stories. Using a rather unscientific process of surfing alternative news sites online to find out which stories didn’t get a lot of play in the mainstream, we’ve come up with an assortment of Local Censored stories – though this is by no means a comprehensive list. What other news didn’t make the news?

Local Censored stories:

* What we didn’t hear about when PG&E was pushing Prop 16

Speaking at an informational hearing in Sacramento in February 2010 about Pacific Gas & Electric Co.’s ballot initiative, Proposition 16, former California Energy Commissioner John Geesman noted that the state’s most powerful utility company was using customer money to finance a bid to change the state constitution for its own purposes. Prop 16, which earned a thumbs-down from voters in the June election, would have created a two-thirds majority vote requirement before municipalities could set up electricity services separate from PG&E. While there was no shortage of reporting about the astounding sums of cash that PG&E sank into Prop. 16, hardly anyone aside from Geesman picked up on the more salient point of what PG&E was not spending its money on.

“California’s investor-owned utilities face a Himalayan task in modernizing our electricity system and building the infrastructure necessary to serve a growing economy,” Geesman wrote on his blog, titled PG&E Ballot Initiative Fact Sheet. “They ought to focus on that, rather than manipulating the electorate to kneecap their few competitors.” It is now abundantly clear that PG&E’s aging gas pipelines in San Bruno were badly in need of replacement – and the utility’s neglect opened the door the catastrophic explosion that occurred Sept. 9, resulting in tragic loss of life and destroying homes. “The current leadership at PG&E has lost its way. Nobody is minding the ship,” senator Mark Leno told the Guardian shortly after the blast. “Enough with the self-initiated, self-serving political campaigns. … How about focusing on the current mission — to provide gas and electricity safely, without death and destruction?”

PG&E Ballot Initiative Fact Sheet: http://pgandeballotinitiativefactsheet.blogspot.com/
Huffington Post: http://www.huffingtonpost.com/christine-pelosi/deadly-priorities-why-did_b_713800.html

* What you might not have read about Johannes Mehserle’s murder trial
 
If you looked to Colorlines.com, Blockreportradio.com, the San Francisco Bay View, or Indybay.org for coverage of Johannes Meherle’s murder trial for the fatal shooting of Oscar Grant, then you got a different picture from the one offered by mainstream Bay Area news outlets. There may well be plenty of details about the trial that didn’t make the cut for mainstream news, but one particular point caught our eye as something that should’ve warranted more prominent coverage, or at very least sparked deeper questions from mainstream press. According to the witness testimony of Jackie Bryson, who was with Grant on the train platform the night of the shooting, Grant’s friends immediately urged BART police to call an ambulance after Grant had been shot, but police didn’t do it right away.

Here’s the report from Block Report Radio: “Jack Bryson said he yelled at Oscar after he was shot to stay awake and to the police to call the ambulance. The unidentified officer who was on Bryson declared, ‘We’ll call the ambulance when you shut the fuck up!’ Bryson went on to say that he was never searched on the Fruitvale platform or at the Lake Merritt BART police station, which seems ridiculous if you consider the earlier testimony of former BART police officers Dominici and Pirone, who were involved in the murder and who testified last week that they had felt threatened by Oscar Grant and his friends.” So, if it’s true that Grant’s friends were told to “shut the fuck up” when they were urging BART cops to call an ambulance, and that the supposedly threatening parties weren’t ever searched, why didn’t these points receive as much attention in the media as, say, the claim that years earlier, Grant may have resisted arrest? After witnessing the death of his friend, Bryson said in his testimony, he was detained for hours while wearing handcuffs pulled so tight that his wrists hurt, only to be told afterward that since he had not been read his Miranda rights, he was not under arrest. To be fair, the detail about calling the ambulance did make it into the Chronicle, near the bottom of a blog post, under the subhead, “Friend’s claim.”

Block Report Radio: http://www.blockreportradio.com/news-mainmenu-26/894-jack-bryson-hits-the-stand.html
Colorlines: http://colorlines.com/archives/2010/06/defense_opens_with_gripping_testimony.html

* Homelessness on the rise in San Francisco

The controversy surrounding Prop L, a proposed ordinance to ban sitting and lying down on the sidewalk, has been widely reported on — but there’s a more pressing issue related to homelessness that hasn’t gotten nearly as much ink. An article in New America Media, “Shelters predict homeless count to skyrocket,” highlighted a perceived surge in San Francisco’s homeless population, evidenced by overwhelmed service providers who can hardly keep up with demand. “We’re serving 200,000 more meals per year than two years ago, but we haven’t had the capacity to add staff,” the chief executive officer of the Glide Foundation noted in the article. The drop-in center, she added, no longer had enough seats to accommodate those in need. According to a fact sheet issued by the Coalition on Homelessness in July of 2009, 45 percent of respondents to a COH survey were experiencing homelessness for the first time. The overwhelming majority of respondents, 78 percent, became homeless while living in San Francisco.

New America Media: http://newamericamedia.org/2010/04/shelters-predict-homeless-count-to-skyrocket.php
Coalition on Homelessness: http://www.cohsf.org/en/

* The long wait for Section 8

It isn’t easy for a tenant with a Section 8 voucher to find housing in the San Francisco Bay Area. In San Francisco, there’s a barrier to getting the voucher in the first place, since the waitlist is currently closed. Those who have vouchers are often passed over by landlords, and the string of denials can drive people to unstable housing situations such as extended hotel stays. An article in POOR Magazine features the story of Linda William, a woman who left a San Francisco public housing project with a Section 8 voucher in hand only to embark on a wild goose chase, ultimately winding up in a low-end motel outside Vallejo. “Well whaddya know,” William told the POOR magazine reporter, “I found closed wait lists on almost all the low-income housing units in all of those places and all the rest of the landlords wouldn’t even return my calls when I told them I had section 8.” An article by Dean Preston of Tenants Together that appeared in BeyondChron, meanwhile, spotlights the issue of landlord discrimination against Section 8 tenants.  “In the Section 8 voucher program, participating tenants pay 30 percent of their rent and the Housing Authority pays the balance to the landlord,” Preston writes. “It takes years for eligible tenants to be able to participate in the program. Once tenants get off the wait list, the landlord must sign a payment contract with the housing authority in order to receive the portion of the rent paid by the government. By refusing to sign onto the program, some landlords seek to force rent controlled tenants into situations where they cannot pay their rent.”
POOR Magazine: http://www.poormagazine.org/node/3277
BeyondChron: http://www.beyondchron.org/news/index.php?itemid=8012

* San Francisco’s trashy secret

Despite being thought of as a beacon of sustainability, San Francisco’s not-so-green waste stream is something that didn’t make the front page of many papers – except, of course, this one. Sarah Phelan’s “Tale of Two Landfills,” a Guardian cover story this past June, examined San Francisco’s decidedly unenlightened policy of transporting waste far outside of the city despite a goal of reducing waste to zero in the next 10 years. Here’s an excerpt: “It’s a reminder of a fact most San Franciscans don’t think much about: The city exports mountains of garbage into somebody else’s backyard. While residents have gone a long way to reduce the waste stream as city officials pursue an ambitious strategy of zero waste by 2020, we’re still trucking 1,800 tons of garbage out of San Francisco every day. And now we’re preparing to triple the distance that trash travels. ‘The mayor of San Francisco is encouraging us to be a green city by growing veggies, raising wonderful urban gardens, composting green waste and food and restaurant scraps,’ Irene Creps, a San Franciscan who owns a ranch in Wheatland, told us. ‘So why is he trying to dump San Francisco’s trash in a beautiful rural area?’”

SFBG: http://www.sfbg.com/2010/06/15/tale-two-landfills

* The real unemployment rate

The Bureau of Labor Statistics makes a distinction between so-called “discouraged workers” who have stopped looking for jobs, and the jobless who are actively seeking employment, so the official unemployment rate (9.7 percent in San Francisco, according to the most recent data) may be much lower than the actual unemployment rate.

We haven’t seen any brilliant local reporting on this issue, but the problem is summed up nicely in this YouTube video produced by a personal finance software firm.

http://www.youtube.com/watch?v=Ulu3SCAmeBA&feature=player_embedded

Lynette Sweet, the “no comment” candidate

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Lynette Sweet, who is running for D. 10 Supervisor, has already declined to give the Guardian an endorsement interview. And earlier this year, when Sweet sat down for a brief interview as part of our kick-off coverage of the D. 10 race, her campaign manager Shane Meyer kept trying to answer our questions before Sweet could even open her mouth.
But yesterday Meyer took the campaign’s habit of non-communicating to a new level, making us wonder just how much access or information anyone will be able to get out of Sweet, in the event that she actually gets elected, given how she is behaving as a candidate.

“We make no comments to the Guardian,” Meyer told us, when we called to ask if Sweet knew that workers with her campaign had stuck her campaign signs on the doors of the tenants association building in the Sunnydale public housing projects

Now, aside from the fact that Sweet is running a truly off-putting campaign by refusing to communicate on even the most straighforward issues, she might want to make sure her campaign staff are properly trained.

That’s because, as John St. Croix, executive director of the city’s Ethics Commission, told us, “It’s generally illegal to post any sign on public property.”

“All political signs can only be posted on utility poles and lamp posts,” St. Croix added, noting that the Department of Public Works regulates such activity and these regulations are clearly laid out in the Elections Department’s candidate guide.

That guide also states that local law prohibits the posting of signs in excess of 8-1/2 x 11” on all street poles—and that there is a total prohibition on historic lampposts, traffic signals (duh!) and poles with directional signage.

The guide lists common violations of the law regulating outdoor political advertising, which include posting more than one sign on the same pole, and failure to remove signs after Election Day.

“Candidates are strongly advised to become familiar with all applicable laws to avoid such violations,” the guide states.

Five things you should know about Steve Moss

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Sarah@sfbg.com

In August 2010, Steve Moss, who is running for District 10 supervisor, took out an ad in the Potrero View, which he owns, titled “Five things you need to know about Steve Moss.”

The ad, paid for by Moss’ political campaign, stated that Moss “edits and publishes this very paper (but got its endorsement on his own merits).” A year earlier, when Moss filed for the D–10 race, he promised in the View that “the paper will not endorse any of the contenders.” Reached by phone, Moss said that part of the ad was intended as a joke.

The other four bullet points seemed to be factual statements about Moss’ accomplishments. But Moss’ misleading ad got the Guardian taking a closer look, and, along the way, we found a lot of other things you probably didn’t know about Moss.

As far as we know, none of these things are illegal, and Moss can certainly argue that none of them are wrong. But since this is a progressive district, we thought voters would want to know a little more before the November election.

1. He’s a carpetbagger

Moss portrays himself as a District 10 resident who spent the last decade raising his family on Potrero Hill. In fact, during 2008 and 2009, Moss wasn’t living on Potrero Hill at all. When he filed his intent to run in the D–10 race in 2009, he was living near Dolores Park in a four-floor, four-unit, $1.6 million apartment building he owns. And shortly before he filed his intent to seek office, Moss’ wife told friends that the family was only moving to District 10 so Moss could run for supervisor, and that if he lost, they would be moving back to the Dolores Park area.

In his declaration of intent to run, a legal document he signed under penalty of perjury Aug. 4, 2009, Moss listed his address as 2325 Third St. That address is where the View; Moss’ nonprofit San Francisco Community Power; and M.Cubed, Moss’ private consulting company, share space. It’s also where where the Moss campaign asked supporters to send checks. It’s not where Moss was living with his family.

Indeed, evidence that came to light in a lawsuit between Moss and his wife, Debbie Findling, and a couple who co-own the property where Moss used to reside on Kansas Street, indicate that he moved out of D-10 in November 2007 and was living at 296 Liberty Street, in District 8, until February 2010.

In a July 8, 2009 e-mail to friends, filed in court in this lawsuit, Moss’ wife noted: “Steven has decided to run for city supervisor in District 10!!! (Sophie Maxwell’s term ends in November 2010) so we’ll be moving back to the hill in early spring! If you hear of any lovely rentals let us know. Or — I know it’s a crazy idea — but if you’re interested in swapping houses with us for a year as an even trade, you can move into our place on Dolores Park! (We’re hedging our bets in case he doesn’t win, we’d be moving back to Dolores Park after the elections. If he does win, we’ll find a long-term place to live … ).”

Reached by phone, Moss told us that it was only his candidate intention statement — a form that allows a candidate to start to raise money — that he filed while living at Liberty Street in 2009, not his official declaration of candidacy form. The language on the two forms is slightly different; the intent form only asks for a “street address” while the actual declaration of candidacy asks for a “residence” address.

Moss said he filed his declaration of candidacy a few days before the deadline, this summer. That form requires candidates to have resided in the district for not less than 30 days immediately preceding the date they file.

Moss insisted that he currently lives in a rental house at 2145 18th Street. “I’m planning to win,” Moss told us. “And we’re very much enjoying the house on Potrero Hill and hoping to stay there.”

2. He managed to avoid the condo lottery.

Moss and his wife bought a two-unit house on Kansas Street in May 2000 for $648,000 and filed for a condo conversion permit in 2002. San Francisco only allows only 200 condo conversions a year. It’s tough to get a permit, it’s very lucrative if you do, and most applicants — including two-unit buildings with a single owner — have to enter a lottery. But thanks to a strange short-term loophole in the law, Moss managed to get away without doing that.

The application, which got tentative approval in March 2004, notes that Moss and his wife — single owners of a two-unit building — did not win the lottery or qualify for a bypass. Asked how he managed this, Moss pointed to a loophole in legislation that former Sup. Jake McGoldrick passed in 2001. “The McGoldrick clause allowed us to directly convert it,” Moss said.

McGoldrick’s law tightened the conversion rules, but allowed two-unit buildings that, like Moss’, had only one owner-occupant, to slip through. The odd thing is that Andrew Zacks, a lawyer who represents landlords, and the Small Property Owners of San Francisco sued to overturn the McGoldrick legislation (not because of the loophole but because of the new restrictions) and the Superior Court ruled in January 2003 that the law was “unconstitutional on its face” and ordered that the city “shall not enforce this ordinance.” That should have ended the loophole, too.

Records show that Moss’ condo application was signed Feb. 10, 2003 by Planning’s Larry Badiner and received tentative mapping approval March 2004.

Department of Public Works Surveyor Bruce Storrs told us he thinks Moss’ case fell through the cracks. “It doesn’t say it was a McTIC,” Storrs said, using the nickname for McGoldrick’s condo conversion loophole, as he reviewed Moss’ file. “But it’s the only thing that makes any sense.”

There’s no indication that Moss did anything wrong, but he sure got a sweet deal. Records show that after he got his conversion permit, he sold the upper unit of Kansas Street in 2007 for more than he paid for the entire building in 2000.

3. He has the support of some very anti-tenant folks.

Attorney Zacks, who specializes in evictions and TICs, gave Moss $500, and the candidate claimed it was because his wife knows Zacks from the playground of the school where their kids both go. Pressed, Moss confirmed that Zacks is his attorney in a court case against the co-owners of the Kansas Street property and in another action he filed against a tenant in his Liberty Steet building in May 2009.

Moss also has the support of the Small Property Owners group, which opposes almost all tenants rights and is among the most conservative, pro-property rights groups in the city. He told us he made a mistake in seeking that endorsement.

And on Aug. 24, conservative campaign finance consultant Jim Sutton, who typically represents big business interests, filed papers representingThe Alliance For Jobs And Sustainable Growth,” which is financing three independent expenditure committees, one supporting Moss; another supporting Scott Weiner in D-8; and the third supporting Theresa Sparks in D–6.

4. He’s involved in a nasty lawsuit with his former neighbor.

Records show that after Moss and Findling subdivided their property on Kansas Street, they sold the upper unit to Edward Penrose and Heather Gibbons in 2007 and moved near Dolores Park.

Court filings suggest the couples remained friendly until March 2010, when Moss and Findling tried to sell the Kansas Street lower unit for $600,000 and ran into problems.

After the deal fell through, Moss and Findling turned around and sued Penrose and Gibbons, claiming that their behavior “constitutes a nuisance.”

In their complaint, Moss and Findling claim they suffered emotional distress, loss of sale, and diminution of the value of their lower unit on Kansas Street “due to the need, going forward, to disclose to buyers that [Penrose and Gibbons] have a propensity to engage in malicious and antisocial behavior.”

On July 30, Gibbons and Penrose countersued. They claim that when they offered to purchase 673 Kansas Street, Moss and Findling never disclosed that there was a boundary line dispute or prior instances of flooding, drainage, and grading problems that had damaged an abutting property.

Now Penrose and Gibbons are asking the court to rescind the purchase agreement whereby they obtained ownership of their Kansas Street condo.

Findling and Moss responded Aug. 31, claiming that “cross-complainants have unclean hands in that, beginning in the spring of 2010, they undertook efforts to interfere with the sale of the lower unit 673 1/2 Kansas] by making unfounded noise complaints and did discourage the buyer from consummating the transaction.”

Asked about this messy legal dispute, Moss said, “We were unhappy with the outcome of a sale in escrow that they disturbed.”

5. His nonprofit pays a bunch of money to his private consulting firm.

In 2001, Moss and two partners founded a private consulting company called M.Cubed. A few months later, Moss and his partners also founded SF Community Power, a nonprofit that started using M.Cubed as a consultant. “M.Cubed was subsequently awarded a contract from SF Community Power. I’m paid directly from SF Community Power, and I’m paid a consulting fee at M.Cubed, depending how much I work,” Moss told us.

Records show that as SFCP’s director, Moss made $48,000 in 2009 and $50,000 in 2008. But more than $1 million has moved from Moss’ nonprofit into Moss’ private consulting firm since 2001.

Moss confirms that SF Power has received $350,000, some of it from Pacific Gas and Electric Co. through the California Public Utilities Commission in 2010; $440,000 in 2009; and $500,000 in 2008 — and that some of those dollars went to M.Cubed.

“I intervene in regulatory cases on behalf of SF Community Power,” Moss said, “And then, if you win a case, you get compensation after the case.”

The Potrero View shares office space with the nonprofit and the consulting firm. Last year, SFCP paid $22,000 in rent, and the View paid SFCP $5,000 toward that rent.

Alhough Moss’ campaign asked supporters to mail contributions to the office that all three of Moss’ business entities share, his campaign finance records show that as of June 30, he had paid no rent for campaign headquarters. “I haven’t had a campaign headquarters,” Moss said. “It’s pretty much been at my house.”

CityPlace, USA — and why Newsom wants developers involved in district elections

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Speaking at the San Francisco Mariott Hotel today, Sept. 14, to a room packed full of developers, land-use attorneys, building owners and managers, members of the San Francisco Convention & Visitor’s Bureau, and others who had gathered for a San Francisco Business Times event, Mayor Gavin Newsom championed a retail development project proposed for San Francisco’s mid-Market area that is being opposed by Livable Cities and the San Francisco Bicycle Coalition. The project will come under consideration at today’s Board of Supervisors meeting.

“CityPlace will be an anchor of revitalization” in mid-Market between Fifth and Sixth streets, Newsom said. Members of the Board of Supervisors may try to block it, he added, but “we can’t afford to let that happen. It’s a quarter of a million square feet, and it connects right up from Nordstrom’s.”
“CityPlace is critical,” he added. Marcia Smolens of public relations firm HMS Associates is representing Urban Realty, the developer of CityPlace, according to a file included in the Board of Supervisors meeting packet. Smolens contributed $2,500 to Newsom’s run for Lieutenant Governor. An architect with a partnering firm on the project, Gensler, plunked down $1,000 for Newsom’s campaign.

The mid-Market area has long faced issues of blight and crime. Newsom put forth a vision for its revitalized future that would include “more cops” (the development would connect with a police officers’ substation planned near Sixth and Market streets, Newsom noted), a creative bent thanks to partnerships with artists, and an area “a little less crowded with folks panhandling.”

The proposed development is essentially a large glass box with a shopping mall inside. According to the project website, Urban Realty has not yet engaged potential tenants, but appears geared toward attracting low-end retail chains. “We intend to bring affordable, value-based retail tenants to the area and expand the shopping choices available to make this section of Market Street a shopping destination that truly caters to San Francisco’s diverse demographic,” the website notes. Our guess is that they aren’t talking about unique, independently owned thrift stores that offer affordable used items and encourage shoppers to support small business, but something more along the lines of TJ Maxx.

The project would also include 188 parking spaces in an underground garage. In contrast, the Westfield mall near Fourth and Market streets was built with no new parking.

Livable Cities has filed an appeal of the Environmental Impact Report (EIR) for CityPlace on the grounds that transportation issues weren’t adequately dealt with, and the board will vote on the appeal today after opening the item up for public comment. Livable Cities executive director Tom Radulovich noted that the project would demolish the St. Francis Theater, a 1910 building that some had envisioned as a structure that could be rehabbed as part of a revived theater district in that area. He also felt the development was out of character for the neighborhood. “They’ve been given a lot of bonuses, like surplus parking and an excess floor,” Radulovich noted. “We feel like the Planning Department gave them a lot more value — millions of dollars worth. The public should get something out of it.” Partly out of a desire to improve the area, he said, mid-Market amounted to a sort of “Wild West in terms of planning. That’s been the story is that the only way to move forward is to throw away our rules.”

The developer estimates that the project would create up to 250 union jobs during construction, and 760 new permanent retail positions (that is, non-union, low-wage jobs with high rates of turnover — but at least it’s something). This could present a quandary for supervisors who might otherwise hold their nose at the idea of approving a big-box mall in the heart of San Francisco. Construction workers are in dire straits right now, and unemployment in the city is nearing 10 percent — and even higher in communities of color such as the Bayview.

Meanwhile, Newsom urged the crowd of downtown real-estate big shots to get involved in disctrict elections for the Board of Supervisors, lest “you wake up and things get worse quickly.”

The mayor issued a strong warning that “ideology is too strong in this town,” and then referenced the Guardian, speaking to some dangerous influence wielded by “these people who write these blogs.”

“You are the only thing standing between a dramatic shift off course in this town,” he told the crowd. “But our opportunities are limitless as long as we have stable leadership. Please take the time to learn about these candidates. Get involved – even in the districts you don’t reside in.”

At the end of Newsom’s speech, everyone applauded and then turned their attention to a short, flashy video about America’s Cup.

Steve Moss, carpetbagger

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UPDATE: Read Steve Moss’s response to this story here.

Steve Moss portrays himself as a District 10 candidate who has spent the last decade raising his family on Potrero Hill, working as a non-profit energy guy and publisher and editor of the Potrero View.

But in fact, during 2008 and 2009, Moss wasn’t living on Potrero Hill at all. When he filed his intent to run in the D. 10 race in 2009, he was living near Dolores Park, in a 4-floor 4-unit $1.6 million building he owns, and sending his daughter to Brandeis Hillel Day School, a private establishment near Daly City.

And shortly before he filed his intent to seek office, his wife told friends that the family was only moving to District 10 so Moss could run for supervisor, and that if he lost, they would be moving back to the Dolores Park area.

In his declaration of intent to run, a legal document he signed under penalty of perjury Aug. 4, 2009, Moss listed his address as 2325 Third Street, with a 94107 zip code. That address is where the View and Moss’s nonprofit San Francisco Community Power have their offices, along with M.Cubed, a private company that Moss and two other people founded.
In other words, the building is not where Moss was living with his family.

In fact, evidence that came to light in a lawsuit between Moss and his wife, Debbie Findling, and a couple who co-own the property where Moss used to reside on Kansas Street, indicate that he was living at 296 Liberty St, in District 8, until February 2010.

In a July 8, 2009 email to friends, filed in court as evidence in the lawsuit Moss’s wife noted:

“Steven has decided to run for City Supervisor in District 10!!! (Sophie Maxwell’s term ends in November 2010) so we’ll be moving back to the Hill in early spring! If you hear of any lovely rentals let us know. Or—I know it’s a crazy idea—but if you’re interested in swapping houses with us for a year as an even trade—you can move into our place on Dolores Park! (We’re hedging our bets in case he doesn’t win we’d be moving back to Dolores Park after the elections- If he does win, we’ll find a long-term place to live…).”

A three-day notice to cure or quit that Moss and Findling filed against one of their tenants at the Liberty Street address, which is also listed on public records as 841-849 Church Street, shows that between January 2008 and April 2009, Moss and his wife lived at the Dolores Park address.

For instance, Moss and Findling’s nuisance notice against this tenant notes that on “April 8, 2009, 7:10 a.m.—you pounded on the ceiling of your bedroom for several minutes and cursed repeatedly, “Shut the fuck up!”, severely annoying your landlords and scaring their daughter.”

Moss’s wife subsequently sent out a email in February 2010, alerting folks that the couple had moved from Liberty Street to their current address at 2145 18th Street, SF, CA 94107.

Reached by phone, Moss told us that it was only his candidate intention statement — a form that allows a candidate to start to raise money — that he filed while living at Liberty St. in 2009, not his official declaration of candidacy form. The language on the two forms is slightly different; the intent form only asks for a “street address,” where as the actual declaration of candidacy asks for a “residence” address.

Moss said he filed his declaration of candidacy a few days before the deadline, this summer. That form requires that candidates must have resided in the district for which they are running, for not less than 30 days immediately preceding the date they file. Under city law, candidates must continue to reside, if elected, in the district during their incumbency.
“I’m planning to win,” Moss told us. “And we’re very much enjoying the house on Potrero Hill and hoping to stay there.”
He added: “I have lived, worked and raised my family on Potrero Hill consistently for the last ten years.”

Pressed, Moss acknowledged that he owns an apartment building near Dolores Park. But he said he did not actually evict the nuisance tenant and has since rented out his own family’s apartment in the building.

‘We have not occupied it recently, we have a tenant there,” Moss said. Asked where he is living now, Moss said he’s renting at 18th and Vermont.

Moss confirmed that Andrew Zacks, an Ellis Act eviction specialist, is his attorney in the court case against the co-owners of the Kansas Street property and in the notice to cure that he filed on May 13, 2009.

When we called the city’s Ethics Department, a spokesperson said that they can’t comment on a specific race.
“But if someone signs a candidate form under penalty of perjury and they give an incorrect address, where they do not reside, that would add up to perjury,” the spokesperson, Mabel Ng, said.

Si se puede, making a difference: El Tecolote turns 40

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It was with relish that I awaited my interviews with El Tecolote’s managing editor, Roberto Daza, and its founding editor Juan Gonzales on a homey couch in the paper’s modest office on 24th Street. Being a community journalist, it isn’t every day that you are able to check out the digs of another community newspaper – particularly one with as storied a history as the Mission’s bilingual go-to for news on social issues that affect the historically Latino and working class neighborhood. El Tecolote is celebrating forty years of activist journalism this month, kicking off with an opening reception tonight (Wed/11) at the Mission Cultural Center for Latino Arts of an exhibit featuring their extensive photo archives. 

I’m stoked to be there, so I chill and savor the feeling that good work is being done around me. Reporter-advertising manager Francisco Barradas’ computer keys are nearly the only sounds in the office, though passing staff assure me that this is a deadline day in the office. He answers the phone and speaks alternately in Spanish and English, most often a genial mixture of the two. Calendar editor Alfonso Texidor stalks past me multiple times, his distinctive hat and cane combo instantly marking him as one of the driving forces of last week’s popular literary review issue as identified by Eva Martinez, executive director of Accion Latina, the organization which houses Tecolote. 

The office itself reads – as many of the headquarters of these rags will do – like desks and computers framed by a collection of events past. Owls (the newspaper’s namesake) stare at me wide-eyed from the corners. An owl cuckoo clock here, a mascot originally meant to frighten birds away from property perched on a potted tree next to the couch there, a kite on the back wall, the reception desk lined with a cache of ceramic hooters. The walls have a bright collection of silk-screened posters announcing EL Tecolote fundraisers going back through the history of the paper, some which announce that proceeds will also go “for Chile democratico.”  

Later, after it is determined that rush hour traffic and recent hip replacement surgery have held up Daza and Gonzales, respectively, we settle on phone interviews all around. Still sitting on the couch in the office, I ask Gonzalez which stories he is most proud of looking back on the past forty years. His three examples are all moments in which his paper made a difference in the lives of Missionites. In the ’70s, a woman came to them who had recently lost a child. She had gone to SF General Hospital complaining of stomach pains and bleeding, but with no Spanish translators on hand, staff sent her home, told her to lay down. When she returned with her English-speaking son later that day they admitted her, but it was too late: she miscarried soon thereafter.

“We jumped on it,” Gonzales tells me. The newspaper discovered woefully inadequate translator staffing levels at General, and impelled their readers to act. “We mobilized the community,” says Juan. The hospital was forced to sign an agreement with activists from the neighborhood to guarantee translators on duty – the first such accord between a hospital and a community group. El Tecolote pursued similar campaigns with telephone emergency services in the ’80s, and more recently has supported tenants in a fight against Mission Housing Development when they attempted to raise rents in one of their apartment buildings.

“It’s one thing to make people see a newspaper around all the time. It’s another one to speak to the heart of the community,” Gonzales reflects.

From the get, the creation of El Tecolote was meant to give voice to those whom it was elusive. Gonzales started the paper as an off-shoot to his work in SF State’s fledgling Ethnic Studies program, itself born of the Alcatraz occupation and its own student strikes. A recent journalism graduate from the university himself, Gonzales was tapped by the administration to put together a course syllabus that analyzed media coverage of Latinos and taught ways to talk about issues that affected the population. He called it La Raza Journalism, but also craved a place where his students could get on the job experience.

So he held a series of fund-raising events, including an amateur talent show which drummed up the necessary $300 to publish the first El Tecolote on August 24th 1970. And then some. “At that time $50 was enough to publish 500 copies,” Gonzalez muses. His team chose to locate its office in the Mission, in a space donated by non-profit organization Centro Latino on 25th Street and Potrero to avoid reliance on university funding, which they felt could be pulled at any time. Already known to the community from his efforts in covering the area for the SF State paper, Gonzales and his paper were off and running.

“The bottom line is, the paper had to reflect the neighborhood,” he tells me. In those early days, the issues weren’t that much different than now: housing, tensions with the police, immigration, bilingual services and education, schools. They took care to represent all the facts of the controversies. “Don’t be afraid to ask the other side their reaction,” Gonzales says. “They could say things that help the cause.” El Tecolote, running as it does today 90-95% on the efforts of dedicated volunteers, also published pieces on young artists, many of which were at the center of an exciting new push for Latino-centric art forms. “We had to reflect how the cultural movement was really expanding,” its founder tells me. 

Nowadays, the paper experiences its share of the challenges to adapt that are facing most print publications. “We’ve had to make concessions: the quality of the paper we print on, the number of pages,” says Daza, who at a chipper 25 years old comes to the paper as another recent SF State grad. He first entered the Tecolote offices two years ago on a field trip as part of a technical writing class, and tells me the paper’s website upgrade earlier this year was much needed. “The running joke prior to that was that we didn’t want to tell people we even had a website.” 

Which is not to say that they are moving past the paper page. “For us,” Daza says “the print edition represents something completely different. It’s for people that don’t have an iPhone, don’t spend a good percentage of their lives online. That’s the kind of people we want to provide for.” Many community members still use El Tecolote to learn a language – initially, scanning the English articles for new vocabulary words, but more recently, with changes in the neighborhood’s demographics, checking out the Spanish pieces to develop new skills in español.

Daza makes it in after the majority of our interview, in time before his staff meeting to escort me through the paper’s recently organized binders of historic photos (from which we selected this piece’s graphic of Cesar Chavez’s visit to the paper’s office for a press conference on a UFW boycott). We flip to it past shots of a struggle immortalized. Demonstrations in the playgrounds of schools, under murals who this week I will recognize as I fly past them on my bicycle. Fists raised, hands extended, changes wrought – and it’s all there in El Tecolote, typed down in two different languages so that we can remember that this neighborhood has a past (and present, and future) worth remembering. 

“El Tecolote is all about making a difference in the struggle for social change,” says Gonzales, who will reassume the managing editor position when Daza heads across the Bay to pursue a graduate degree at UC Berkeley this fall, tells me. Safe to say the paper has, and will continue to do so, si se puede.

 

Imagining the Mission: El Tecolote’s 40th anniversary

Wed/11 6:30-9:30 p.m., $5

Mission Cultural Center for Latino Arts

2868 Mission, SF

(415) 643-2785

www.missionculturalcenter.org 

 

Ideas that work: a plan for a new San Francisco

6

OPINION San Francisco is a city of tremendous riches and problems — a locus of wealth, inequality, innovation, creativity, and sometimes stifling resistance by political and economic power brokers. It’s time to break through. We have the ability, and opportunity, to create a whole new set of economic, social, and political relationships between people and government. On everything from municipal banking, to Muni reform, to public-controlled sustainable energy production and community-driven budgeting, we have a flood of ideas from thinkers and activists across the city.

The Aug. 14-15 Community Congress at the University of San Francisco will focus on turning those ideas into a political platform the city can implement. Last week, we described the vision; this week, we offer some proposals that will be discussed at the event; following the event, others will be posted at sfbg.com.

The event runs Aug. 14 from 9 a.m.–5 p.m. and Aug. 15 from 9 a.m.–1 p.m. at USF’s McLaren Conference Center. For information, go to www.sfsummitcongress.wordpress.com. (Karl Beitel and Christopher Cook)

1. A MUNICIPAL BANK


San Francisco is rich — it has $16.1 billion in assets, with a net worth of $6.5 billion, according to the city treasurer. With a little maneuvering and political will, roughly a half-billion of that money could be devoted to creating a municipal bank: a fiscally solvent, federally insured economic engine that would invest in community development projects serving underfunded activities and endeavors, providing significant economic and social benefits to the residents of San Francisco.

With its own public bank, San Francisco could begin to fund and promote more community-centered forms of economic development. Worker co-ops, for instance, could get loans for projects that are socially beneficial and economically viable. The bank could also help generate new homegrown industries that produce both revenue and social value to the city. This would help democratize the city economy, giving financial muscle to community-based projects and neighborhood-serving businesses.

Over a period of three to five years, a modest portion of the city’s liquid investments can be transferred to create to the new bank. The bank could use this pool of capital to extend low-interest, long-term loans for projects located in San Francisco. The bank would offer a full spectrum of retail banking services, such as money market accounts, to attract additional deposits to supplement funds from the city.

A municipal bank has potential to grow into a major economic force in the city for financing community-centered development. With the right up-front commitment from the city, the total asset portfolio of loans and other investments would grow far beyond this initial public investment — representing a significant infusion of loan capital into currently underserved segments of the credit market in San Francisco.

The municipal bank would be a member-owned, federally chartered, and federally insured credit union. It would engage in rigorous vetting of loan applicants. But because the bank would not run as a profit-maximizing enterprise, loan officers would explicitly consider projects in light of their economic viability and potential contribution to the economic, social, and cultural well being of San Francisco.

Priority could, for instance, be given to loans for affordable housing development and community economic development. In particular, the bank could prioritize businesses and enterprises that represent alternative models of ownership such as worker co-ops and worker collectives, and smaller, community-serving, locally-based, social enterprise-type businesses.

To ensure that the bank’s lending activities reflect the need for more democratic modes of credit and finance, governance and oversight could include representation from social groups and constituents normally excluded from corporate governance. The bank’s member-owners would elect the board of directors.

Municipal bank funds would be completely separate from the city’s general fund, with strict firewalls imposed to assure that lending activities do not become intermingled in any way with the annual appropriations process.

By creating its own bank, San Francisco would be a national model for community-based development and economic democracy. It would be a national first, and has the potential to transform how cities think about local economic development. (Beitel)

2. HOUSING SAN FRANCISCO


Since the beginning of the dot-com boom, San Francisco has seen displacement of low-income families from rent-controlled housing in alarming numbers. Much of this displacement has been happening through conversion of small residential apartment buildings (between four and 12 units) into tenancy in common units. Small-site displacement tends to target seniors, disabled people, and working class families — and many of the units that were converted were, under rent control, de facto affordable housing.

In addition, over the past 15 years the city has lost 4,370 units due to Ellis Act evictions. At the same time, the city’s housing production model favors larger projects because of the economies of scale possible for new construction of big projects, with 70 or more units. While these projects are important in adding to the city’s affordable housing stock, sites to accommodate giant developments are in short supply.

So how do we address San Francisco’s chronic affordable housing crisis. First, stabilize low-income communities and preserve diverse neighborhoods by encouraging the city to invest in developing a small sites acquisition and rehabilitation program that could help nonprofits take over and operate affordable rental housing for low-income tenants. That property could also be converted to limited equity housing cooperatives and community land trust properties.

Next, the city should ban all TICs from becoming condos. The city can give landlords and speculators a choice: If you want your property to be eligible for condo conversion, with all the economic benefits that come with that designation, then you need to follow the process and abide by tenant protections in the condo law. If you want to ignore the condo law, then you’re stuck with a TIC.

To further protect renters, prior to sale of a renter-occupied unit, the city could require the owner to offer tenants the right to buy the unit, at a price based on the last best offer from a bona fide purchaser.

The Rent Board also needs reform. The panel, which oversees rent increases, consists of five members: two landlords, two tenants, and one homeowner. All are appointed by the mayor. We suggest three tenants, two landlords, and two homeowners — with the appointments split between the mayor and the supervisors.

There also must be a permanent, local source of funding for affordable housing development. A progressive increase in the real estate transfer tax could generate $45 million annually.

We further support Sup. Ross Mirkarimi’s proposed legislation that would protect resident’s rights during relocation and ensure their right to return to buildings that have been redeveloped. (Amy Beinart and the Council of Community Housing Organizations)

3. THE CRISIS IN CARE


More than any other American city, San Francisco relies on a network of faith- and community-based nonprofits to deliver critical health and human services to its poorest and sickest residents. More than 15,000 people are employed in this sector, which had a total budget of almost $800 million in 2000.

Health and human service nonprofits play a significant role in providing a substantial portion of the city’s services for seniors, people with AIDS, the homeless, children and youth, people with special physical and mental needs, and those who suffer from substance abuse.

Yet this critical sector finds itself bearing the brunt of cuts and reduction in services caused by the fiscal crisis facing San Francisco.

So what can we do? Here are seven suggestions.

First, conduct a coordinated citywide health and human services needs assessment driven by neighborhoods and communities.

Second, working with service users, service providers, and city employees, create a 10-year plan for health and human services that can guide yearly budget considerations.

Third, as the city implements the 2009 ballot measure that calls for a two-year budget cycle informed by five-year financial plans, require department heads and commissions to include the perspective of professional service providers and service users, including a standards analysis plan and a narrative about the impact on services.

Fourth, open a dialogue with the foundation community on addressing the changing needs of the nonprofit human services community, including community needs, accountability, and funding cycles.

Fifth, depoliticize the request-for-proposals (RFP) process by moving it out of city departments and into the Controller’s Office.

Sixth, require city departments that contract with nonprofit health and human service providers to complete their implementation of the recommendations to streamline the city’s contracting and monitoring processes approved by the 2003 City Nonprofit Contracting Task Force, and ensure that current procedures and processes are consistent with those recommendations.

And seventh, preserve services for the most vulnerable San Franciscans by focusing on revenue solutions to the city’s ongoing structural budget deficit, including November 2010 campaigns to increase the hotel tax and the real property transfer tax. (Debbi Lerman, Human Services Network)

4. BUILDING WORKER COOPERATIVES


Although these are hard times, there’s an opportunity for San Francisco to realize a new model of economic sustainability — by supporting worker cooperatives.

The worker cooperative model is a business form well-suited to the diverse needs of urban areas and is already viable in a broad variety of sectors including manufacturing, service, and retail. A key aspect of worker cooperative development is that its goal is not just the creation of jobs; it’s also about making business ownership accessible.

An inspiring new model of economic development is currently taking place with the Evergreen Cooperatives in Cleveland. In an ambitious effort, anchor institutions such as the local universities, hospitals, and the City of Cleveland have established procurement agreements with developing worker cooperatives rooted in the struggling urban communities of Cleveland (where unemployment rates are as high as 25 percent). The goal is to redirect the estimated $3 billion that these anchor institutions spend on goods and services toward worker cooperatives in the communities where these institutions are located. The first two business models underway are a commercial laundry service and a solar installation company.

There’s also a lot of inspiring work already being done by the worker cooperative community in the Bay Area. The Arizmendi Association continues to develop new worker-owned bakeries despite the economic recession. This fall, Arizmendi will launch its second SF location in the Mission District, creating new jobs and opportunities for local residents to have ownership over their work. Rainbow Grocery and Other Avenues are two extremely successful, long-lasting worker-owned grocery stores in San Francisco.

The city ought to officially recognize the worker cooperative model as both viable and preferable, and include it in the city’s various efforts of economic development. And city officials should take a leadership role in reimagining what a vibrant economy could look like and begin to promote worker cooperatives as central to that vision. (Poonam Whabi, Rick Simon, Steve Rice, Inno Nagara, and Nadia Khastagir)

A new community congress

0

EDITORIAL The first time a group of activists from across San Francisco met in a Community Congress, it was 1975 and the city was in trouble. Runaway downtown development was creating massive displacement and threatening the quality of life. Rents were rising and tenants were facing eviction. An energy crisis had left residents and businesses with soaring power bills. The manifesto of the Congress laid out the problem:

"Every poor and working class community in San Francisco has learned the hard way that its interests are at the bottom of the list as far as City Hall is concerned. At the top of the list are the banks, real estate interests, and large corporations, who view San Francisco not as a place for people to live and work and raise families, but as a corporate headquarters city and playground for corporate executives. By using their vast financial resources, they have been able to persuade local government officials that office buildings, hotels, and luxury apartments are more important than blue-collar industry, low-cost housing and decent public services and facilities."

The Community Congress hammered out a platform — a 40-page document that pretty much defined what progressive San Francisco believed in and wanted for the city. It included district elections of supervisors, rent control, public power, a requirement that developers build affordable housing, and a sunshine ordinance — in fact, much of what the left has accomplished in this town in the past 35 years was first outlined in that document.

Beyond the details, what the platform said was profound: it suggested that the people of San Francisco could reimagine their city, that local government could become a force for social and economic change on the local level, even when politics in Washington and Sacramento were lagging behind. It called for a new relationship between San Franciscans and their city government and looked not just at what was wrong, but what was possible.

That’s something that too often gets lost in political debate today. With urban finances in total collapse, the progressives are on defense much of the time, trying to save the basic safety net and preserve essential programs and services. It seems as if there’s little opportunity to talk about a comprehensive alternative vision for San Francisco.

But bad times are great times to try new ideas — and when the second Community Congress convenes Aug. 14 and 15 at the University of San Francisco, that’s exactly what they’ll be trying to do. It’s not going to be easy — the left in San Francisco has always been fractious, and there’s no consensus on a lot of central issues. But if the Community Congress attracts a broad enough constituency and develops a coherent platform that can guide future political organizing efforts, it will have made a huge contribution to the city.

The event also offers the potential for the creation of a permanent progressive organization that can serve as a forum for discussion, debate, and action on a wide range of issues. That’s something the San Francisco left has never had. Sup. Chris Daly tried to create that sort of organization but it never really worked out. The city’s full of activist groups — the Tenants Union, the Harvey Milk LGBT Club, the Sierra Club, and many others — that work on important issues and generally agree on things, but there’s no umbrella group that can knit all those causes together. It may be an impossible dream, but it’s worth discussing.

The organizers of the Community Congress discuss some of their agenda in the accompanying piece on this page. It should be based on a vision of what a city like San Francisco can be. Think about it:

This can be a city where economic development is about encouraging small businesses and start-ups, where public money goes to finance neighborhood enterprises instead of subsidizing massive projects.

This can be a city where planning is driven by what the people who live here want for their community, not by what big developers can make a profit doing.

This can be a city where housing is a right, not a privilege, where new residential construction is designed to be affordable for the people who work here.

This can be a city where renewable energy powers nearly all the needs of residents and businesses and where the public controls the electricity grid.

This can be a city where the wealthy pay the same level of taxes that rich people paid in this country before the Reagan era, where the individuals and corporations that have gotten filthy rich off Republican tax cuts give back a little bit to a city that is proud of its liberal Democratic values.

This can be a city where it’s safe to walk and bike on the streets and where clean, reliable buses and trains have priority over cars.

This can be a city where all kids get a good education in public schools.

Despite all the economic woes, this is one of the richest cities in one of the richest countries in the history of human civilization. There are no economic or physical or scientific or structural constraints to reimagining the city. The only obstacles are political.

In the next two years, control of City Hall will change dramatically. Five seats on the Board of Supervisors are up in November, and the mayor’s office is open the year after that. The progressives have made great progress in the past few years — but downtown is gearing up to try to reverse those advances. The community congress needs to address not just the battle ahead, but describe the outcome and explain why San Francisco’s future is worth fighting for.

A new community congress

2

Bad times are great times to try new ideas – the second Community Congress convenes Aug. 14 and 15 at the University of San Francisco

EDITORIAL The first time a group of activists from across San Francisco met in a Community Congress, it was 1975 and the city was in trouble. Runaway downtown development was creating massive displacement and threatening the quality of life. Rents were rising and tenants were facing eviction. An energy crisis had left residents and businesses with soaring power bills. The manifesto of the Congress laid out the problem:

“Every poor and working class community in San Francisco has learned the hard way that its interests are at the bottom of the list as far as City Hall is concerned. At the top of the list are the banks, real estate interests, and large corporations, who view San Francisco not as a place for people to live and work and raise families, but as a corporate headquarters city and playground for corporate executives. By using their vast financial resources, they have been able to persuade local government officials that office buildings, hotels, and luxury apartments are more important than blue-collar industry, low-cost housing and decent public services and facilities.”

The Community Congress hammered out a platform — a 40-page document that pretty much defined what progressive San Francisco believed in and wanted for the city. It included district elections of supervisors, rent control, public power, a requirement that developers build affordable housing, and a sunshine ordinance — in fact, much of what the left has accomplished in this town in the past 35 years was first outlined in that document.

Beyond the details, what the platform said was profound: it suggested that the people of San Francisco could reimagine their city, that local government could become a force for social and economic change on the local level, even when politics in Washington and Sacramento were lagging behind. It called for a new relationship between San Franciscans and their city government and looked not just at what was wrong, but what was possible.

That’s something that too often gets lost in political debate today. With urban finances in total collapse, the progressives are on defense much of the time, trying to save the basic safety net and preserve essential programs and services. It seems as if there’s little opportunity to talk about a comprehensive alternative vision for San Francisco.

But bad times are great times to try new ideas — and when the second Community Congress convenes Aug. 14 and 15 at the University of San Francisco, that’s exactly what they’ll be trying to do. It’s not going to be easy — the left in San Francisco has always been fractious, and there’s no consensus on a lot of central issues. But if the Community Congress attracts a broad enough constituency and develops a coherent platform that can guide future political organizing efforts, it will have made a huge contribution to the city.

The event also offers the potential for the creation of a permanent progressive organization that can serve as a forum for discussion, debate, and action on a wide range of issues. That’s something the San Francisco left has never had. Sup. Chris Daly tried to create that sort of organization but it never really worked out. The city’s full of activist groups — the Tenants Union, the Harvey Milk LGBT Club, the Sierra Club, and many others — that work on important issues and generally agree on things, but there’s no umbrella group that can knit all those causes together. It may be an impossible dream, but it’s worth discussing.

The organizers of the Community Congress discuss some of their agenda in the accompanying piece on this page. It should be based on a vision of what a city like San Francisco can be. Think about it:

This can be a city where economic development is about encouraging small businesses and start-ups, where public money goes to finance neighborhood enterprises instead of subsidizing massive projects.

This can be a city where planning is driven by what the people who live here want for their community, not by what big developers can make a profit doing.

This can be a city where housing is a right, not a privilege, where new residential construction is designed to be affordable for the people who work here.

This can be a city where renewable energy powers nearly all the needs of residents and businesses and where the public controls the electricity grid.

This can be a city where the wealthy pay the same level of taxes that rich people paid in this country before the Reagan era, where the individuals and corporations that have gotten filthy rich off Republican tax cuts give back a little bit to a city that is proud of its liberal Democratic values.

This can be a city where it’s safe to walk and bike on the streets and where clean, reliable buses and trains have priority over cars.

This can be a city where all kids get a good education in public schools.

Despite all the economic woes, this is one of the richest cities in one of the richest countries in the history of human civilization. There are no economic or physical or scientific or structural constraints to reimagining the city. The only obstacles are political.

In the next two years, control of City Hall will change dramatically. Five seats on the Board of Supervisors are up in November, and the mayor’s office is open the year after that. The progressives have made great progress in the past few years — but downtown is gearing up to try to reverse those advances. The community congress needs to address not just the battle ahead, but describe the outcome and explain why San Francisco’s future is worth fighting for.

Bad faith

3

steve@sfbg.com

Mayor Gavin Newsom and his business allies are actively trying to sabotage the various revenue measures that have been put forth by the labor movement and progressive members of the Board of Supervisors, employing deceptive rhetoric, sneaky tactics, and a refusal to bargain in good faith.

In fact, Newsom — the Democratic nominee for lieutenant governor — is so averse to supporting anything that could be called a “tax” that he rejected a hard-won compromise measure created by powerful developers, affordable housing advocates, a pro-business think tank, the building trades, and his own directors of housing and economic development.

Just as that story was breaking in the New York Times (produced by Bay Citizen) on July 9, members of the Board of Supervisors Budget and Finance Committee discovered that Newsom’s proposed ballot measure to close loopholes in the city’s hotel tax that favored airline employees and online travel companies — a widely supported change, but one worth just $6 million per year — contains language that would nullify any increases in the hotel tax. Earlier in the week, labor unions turned in signatures on an initiative to increase the hotel tax by 2 percent, which would bring in more than $30 million per year.

“This poison pill is an intentionally deceptive, underhanded move,” Gabriel Haaland, an organizer with Service Employees International Union Local 1021, which sponsored the hotel tax, told us. “It’s so frustrating. It’s not even a good faith fight. He’s trying to create confusion and fool the voters. If our measure passes fair and square, it should be implemented.”

Meanwhile, Newsom and business groups have been attacking a reform measure by Board President David Chiu that would make the currently flat payroll tax more progressive, exempt more small businesses from paying it, and create a commercial rent tax to spread the tax burden more widely than the 10 percent of businesses who now pay tax to the city.

Critics complained that the measure would hurt local businesses — but that’s just not true. The city’s Office of Economic Analysis concluded that Chiu’s original proposal would have no effect on private sector jobs and would generate $34 million annually for the city, preserving some government jobs and spending.

Then Chiu amended the measure to spare even more small businesses. Now the OEA says that the measure would actually create private sector jobs — and still bring $28 million in to the city. Yet Newsom and the business community are still withholding their support.

This trio of Machiavellian moves comes just a week after Newsom pulled out of budget negotiations with board progressives concerning about $40 million in board add-backs to programs that Newsom proposed to cut after they wouldn’t agree to his precondition that they withdraw unrelated measures proposed for the November ballot, such as splitting appointments to the Rent, Recreation and Park, and Municipal Transportation Agency boards and requiring police officers to do foot patrols.

The series of events has led many progressives to say that conservative ideological blinders — a knee-jerk opposition to anything that saves government jobs and services or that Republicans might criticize — is the only logical explanation for the intransigent stance adopted downtown and by Newsom.

“It’s ideological. It’s not economic, and it’s not even political,” said Calvin Welch, the affordable housing activist who helped negotiate the transfer tax compromise with developer Oz Erickson, San Francisco Planning Urban Research Association director Gabriel Metcalf, Mayor’s Office of Housing Director Doug Shoemaker, and others.

That measure would have created a transfer tax on sales of properties over $875,000 and generated approximately $50 million annually for affordable housing (funds that were drastically reduced in Newsom’s proposed 2010-11 budget) while cutting in half the current requirements and fees on market-rate developers to create below-market-rate units. The plan would have stimulated both types of housing and created desperately needed construction work — an approach those involved called an elegant solution to several problems.

“To me, this was a win-win, solving two problems that are each a big deal,” Metcalf told us. “I don’t know what his reasons were for not supporting it. I was surprised.”

But Welch said, “It collapsed straight up because the mayor didn’t want to support a tax.” Although Newsom told the Times it was because there wasn’t broad enough consensus yet, “the mayor’s reason is whole-cloth bullshit,” Welch said, noting the role of the Mayor’s Office in brokering the deal. “The mayor walks away from it because everyone wasn’t in the room? Well, it’s your room, motherfucker. Show some leadership.”

Newsom Press Secretary Tony Winnicker refused to discuss these issues by phone, responding to our written inquires by noting that Newsom opposes taxes and thinks the best way to address budget deficits are privatizing city services and pension reform (although he opposes Public Defender Jeff Adachi’s initiative, the only pension reform measure on the fall ballot).

“The mayor is opposed to the Board of Supervisors’ proposals to increase taxes because they’re not needed to balance the budget and they will strangle our still young economic recovery,” Winnicker wrote, refusing to answer follow-up questions or support a statement about Chiu’s measure that the OEA concludes is not accurate.

Like many political observers of all stripes, those from downtown and progressive circles, Welch criticized Newsom for his lack of engagement with city business and its long-term fiscal outlook, contrasting him with former Mayor Willie Brown, who met regularly with former Board of Supervisors President Tom Ammiano even as the two ran a bitter campaign for mayor against one another in 1999. “They dealt with the city’s business like two adults who cared about the city,” he said.

Welch acknowledged that there was still work to be done building political support for the transfer tax measure. He and other progressives would have had to win over city employee unions who wouldn’t like the budget set-aside aspect, and Erickson and Metcalf would need to placate some of their downtown allies who oppose taxes on ideological grounds. But given how downtown groups are behaving right now, that might not have been an easy sell.

“There are members of the small business community that are averse to any taxes,” said Regina Dick-Endrizzi, director of the city’s Office of Small Business and staffer to the Small Business Commission, which was withholding a recommendation on the Chiu measure but planned to meet again to consider it July 12 (look for an update on the sfbg.com Politics blog). She said the small business community is having tough times and “they are just not sensitive to keeping city workers employed.”

Larger commercial interests are being even more forceful in opposing the revenue measures. While a parade of workers, social service providers, and progressive activists testifying at the July 9 Budget Committee hearing implored supervisors to place all the proposed revenue measures on the ballot, representatives from the Building Owners and Managers Association (BOMA) and San Francisco Chamber of Commerce were the only two speakers urging supervisors to drop the measures and focus instead on creating private sector jobs.

“You’re trying to create a little revenue here and it’s not going to work,” said Ken Cleaveland, director of BOMA SF, arguing that big banks and financial services companies — entities exempt from the payroll tax that Chiu is hoping to target with the commercial rent tax — will buy their buildings to avoid paying the tax. “They aren’t going to create more jobs and they really aren’t going to create more revenue.”

Yet Chiu noted that it was the business community and fiscal conservatives who pushed to create the Office of Economic Analysis, whose work they have regularly used to attack progressive legislation. Now that the office has concluded that a piece of progressive legislation is good for the local economy, Chiu told Cleaveland and the Chamber spokesperson Rob Black at the hearing, “I ask you to respect the work this office has done.”

Black said the Chamber board will consider Chiu’s amended legislation, but said businesses are in no mood to help the city. “How many times have you gone to your neighborhood merchant and had them say, ‘Gee, my rent’s too cheap’?<0x2009>” he said during his testimony.

Yet Chiu said landlords of small tenants (those paying less than $65,000 in rent per year) are exempt from the rent tax and only 26 percent of SF businesses would pay any city business tax under his plan. “I hope the mayor will support this proposal and the business community will give it a good look,” Chiu said as the hearing ended.

At the beginning of the hearing, Chiu framed the dire situation facing San Francisco, citing Controller’s Office figures showing this year’s $500 million budget deficit (out of a $6 billion total budget) will be followed by a $700 million deficit next year and a $800 million gap the following budget cycle as a result of a deep structural budget imbalance.

“We have budget deficits as far as the eye can see,” Chiu said at the hearing. “We have to consider measures that will provide more stable sources of revenue.”

He also noted that city employee unions have agreed to give back about $250 million in salary and had their ranks reduced by about 2,000 workers in the last two years. So he and the other progressive supervisors say it’s time for the rest of San Francisco to help address the problem.

“We, as a city, should not be trying to balance this budget simply through cutting,” Sup. David Campos said.

Sup. John Avalos, the committee chair, amended his transfer tax measure in the wake of Newsom’s rejection of the deal by making it a simple 2 percent tax on properties that sell for more than $5 million, and 2.5 percent tax on properties over $10 million. He estimates it will bring in about $25 million per year from the city’s wealthiest corporations and landlords.

“That’s who we’re socking it to,” Avalos told us, saying he was disappointed the compromise fell through. “The amendment is going to be more progressive than what was originally planned.”

Even Sup. Sean Elsbernd, a strong fiscal conservative who announced early in the hearing, “You want to do that [balance future budgets] by adding taxes, but I want to do it through ongoing service cuts,” later told the Guardian that he was intrigued by the amendments Avalos and Chiu made to their measures and has not yet taken a position on them.

Sup. Ross Mirkarimi is also sponsoring a measure to increase the city’s tax on parking lot operators from 25 percent to 35 percent, the first change to that tax in 30 years, and will include valet parking for the first time. The measure would bring in up to $24 million per year, and OEA analysis shows it would decrease the number of cars trips by 1.3 percent, another benefit.

SFMTA supports the measure, with board member Cameron Beach testifying that the money will be used to subsidize Muni and “it links the use of private automobiles and is consistent with the city’s transit-first policy.” Mirkarimi, who chairs the Transportation Authority, also has proposed a $10 local vehicle license fee surcharge that would bring in another $5 million per year for Muni.

All the revenue measures require six votes by the full Board of Supervisors, which is scheduled to consider them July 20, after which they would need a simple majority approval by voters in November to take effect.

The mayor has the authority to directly place measures on the ballot, so the committee hearing on his hotel tax loophole measure and a $39 million general obligation bond that he’s proposing to create a revolving loan fund for private sector seismic improvements were mere formalities, so supervisors criticized aspects of each but were unable to make changes.

Avalos even grudgingly acknowledged the hotel tax poison pill was an effective way to kill that revenue source, saying at the hearing, “This is very smart. I don’t agree with it, but it’s very smart.”

Haaland was less charitable, criticizing a provision designed to confuse voters. “This kind of move means both measures won’t pass because now we have to oppose [Newsom’s measure],” he said, criticizing the mayor for running away from the hard decisions facing the city. “He won’t be around next year, when we have an even bigger structural budget deficit, to clean up this mess. Absent new revenue sources, this city starts to fall apart.”

Alerts

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alert@sfbg.com

WEDNESDAY, JUNE 30

Green Corps benefit


Support Green Corps’ mission to train organizers and provide field support for critical environmental campaigns and celebrate the new crop of graduating environmental activists at this reception featuring a speech from environmental journalist Mark Hertsgaard and performance by the California Honeydrops.

6 p.m., $50

Temple Nightclub

540 Howard, SF

(415) 622-0033 ext. 313

Our Land, Our Rights


Hear presentations and updates from Hinewirangi Kohu, Faith Gemmill, and other indigenous women working for the health of the environment and future generations across the world as they report back from the International Women’s Symposium on Reproductive Health and Environmental Toxins.

7 p.m.; free, donations accepted

Eastside Arts Alliance

2277 International, Oakl.

(415) 641-4482

www.treatycouncil.org

Peace Corps information


Learn about how to become a Peace Corps volunteer in one of 76 countries as volunteer and recruiter. Jennifer Clowers shares her experiences volunteering in Guinea and Niger and outlines volunteer opportunities beginning this year and in 2011.

6 p.m., free

San Francisco Library Main Branch

Mary Louise Strong Conference Room

100 Larkin, SF

(510) 452-8442

THURSDAY, JULY 1

Socialism 2010


Attend this four-day conference with new and veteran activists looking for an alternative to capitalism that can bring us out of our current economic crisis and our wars of occupation abroad. Speakers will discuss issues such as "What is the Real Marxist Tradition?," "Race in the Obama Era," capitalism, climate change, abortion, women’s liberation, and more.

Thurs. 7 p.m., Fri.–Sat. 9:30 a.m.–7p.m.,

Sun. 9:30 a.m.–2 p.m.; $15-$90

Oakland Marriott

1001 Broadway, Oakl.

(773) 583-7884

www.socialismconference.org

SATURDAY, JULY 3

Food Justice Farmers Market


Attend this farmers market highlighting small farmers of color and social entrepreneurship with organic, pesticide-free local fruits and vegetables, local bakers, crafts, live music, art, and free cooking demos. Each week offers a community workshop on topics ranging from tenants’ rights to urban agriculture.

9 a.m.–2 p.m., free

Arlington Farmers Market

Arlington Medical Center parking lot

5715 Market, Oakl.
www.phatbeetsproduce.org

SUNDAY, JULY 4

Revolutionary talk


Meet fellow revolutionaries and discuss strategies for putting a national campaign for revolution on the map at this anti Fourth of July BBQ and picnic. Bring a dish to share.

1 p.m.–6 p.m., $5-$25 suggested donation

Carmen Flores Park

1637 Fruitvale, Oakl.

(510) 848-1196

Frederick Douglass Day


Attend this alternative Fourth of July celebration honoring the great American abolitionist, women’s suffragist, editor, orator, author, statesman, minister, and reformer. Performances includes readings from Douglass’ speeches and John Brown’s Truth, a musically improvised opera, the Frederick Douglass Youth Ensemble, Vukani Mawethu, and more.

7pm, $15.

Humanist Hall

390 27th St., Oakl.

(510) 835-5348
Mail items for Alerts to the Guardian Building, 135 Mississippi St., SF, CA 94107; fax to (415) 437-3658; or e-mail alert@sfbg.com. Please include a contact telephone number. Items must be received at least one week prior to the publication date.

Following Recology’s $$$ to Environment Commission and DCCC

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If you’ve been looking for a financial connection between the city’s tentative decision to award the next landfill disposal contract to Recology, which plans to dispose of our trash in Yuba County, then you’ll be interested in this campaign finance item: Because records show that Recology contributed $5,000 last year to SF Forward, a San Francisco Chamber of Commerce political action committee, which also got Money  from Bechtel, Medjool, PG&E, Charles Schwab, and Shorenstein Realty.

Recology Vice President and Group Manager John Legnitto is Chamber’s Chair Elect.

In the last two years, the Chamber contributed $10,000 to Plan C, a political action committee that advocates for more condo conversions and less tenants’ rights.And Plan C gave Commission of the Environment President Matt Tuchow $3,300 for his failed 2010 Democratic CCC bid.

So, while the transactions were legal, with the money laundered twice in between, these dollar connections will probably have folks opposed to the city’s plan to dispose of its waste in Recology’s landfill in Yuba County asking if this explains why Tuchow decided to limit public comment to only one minute when folks wanted to voice concerns at a March 23 hearing at the Environment Commission about an alleged lack of fairness and transparency in the decision to award the contract to Recology.

Especially those folks who drove three hours from Yuba County, which is where Recology proposes to send our trash. And folks who helped negotiate the city’s current trash disposal contract and were shocked that the city would set a one-minute time limit on what they claim is a $1 billion contract, once you factor in the cost of transportation, new trash processing facilities and an as yet unbuilt rail spur that Recology needs inYuba County to transfer trash from the Union Pacific line to its landfill in Wheatland,

Tuchow, who works in the Global Compliance and Ethics Division of McKesson Corporation in San Francisco, had not returned calls as of blog post  time, but if and when he does, I’ll be sure to post an update here.

Meanwhile, it doesn’t look as if Recology’s bucks and/or Mayor Gavin Newsom’s powergrabbing antics, are going to be able to help shoehorn Tuchow onto the DCCC, even in light of Newsom’s newly hatched plan for dominion for the following reasons:

1. Results from the June 8 election show that Tuchow was fourth failed runner up in the DCCC 12th district. (Milton Marks, Sup. Eric Mar, Melanie Nutter, Arlo Smith, Connie O’Connor, Tom A. Hsieh, Jane Morrison, Mary Jung, Sandra Lee Fewer, Michael Bornstein, Sup. John Avalos and Bill Fazio were the top vote getters to win seats, beating out Larry Yee, Jake McGoldrick, Hene Kelly and then Tuchow, in that order.)

2.. It’s not clear if Newsom’s plan for the DCCC is even legal.

3. Even if Newsom’s plan survives a legal challenge, it’s not clear that the law would have the retroactive effect necessary to oust Mar and Avalos.

4. And even if it did, under state law,  DCCC Chair Aaron Peskin would get to appoint folks to fill those vacancies,
“This is about clean money and good government,” Newsom spokesman Tony Winnicker told reporters of Newsom’s DCCC plan.

So, let’s hope the Mayor’s Office applies the same standards when it comes to opening the landfill disposal contract bids this summer and shining light on the money that’s influencing the city’s garbage disposal contract. 

Meanwhile, Peskin, who was reached by cell phone somewhere near Moab, in Utah, where he’s taking his annual camping and hiking trip with his wife, told the Guardian that Newsom “is not thinking very far ahead” with his latest dominion scheme.

 

 

Voters are pissed

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By Guardian News Staff

news@sfbg.com

After spending more than $70 million, two big corporations failed to convince Californians to vote their way. After spending nearly $70 million, the former head of a big corporation easily convinced Californians to vote her way. And that outcome is not as schizophrenic as it sounds.

On one level, the outcome of the June 8 election was a sign of the anti-corporate anger seething through the California electorate. “BP, Goldman Sachs, PG&E — anything that seems connected to a big corporation is in serious trouble right now,” one political insider, who asked not to be named, told us.

Yet two candidates who were very much corporate icons — Meg Whitman and Carly Fiorina — won handily in the Republican primaries and now have a real chance to become the state’s next governor and junior senator. What’s happening? It’s fascinating. The voters in the nation’s most populous state are pissed off — at big business, at government, at the oil spill, at 10 percent unemployment, at Washington, at Sacramento, at Wall Street. It’s an unsettled electorate, uncertain about its future and looking for something new, and definitely despising power.

There’s a populist fervor out there, and it’s going to define this fall’s expensive, dirty, and high-stakes battle for California’s future.

 

THE MAYOR GOES STATEWIDE

Addressing a crowd of supporters gathered at Yoshi’s San Francisco on election night, San Francisco Mayor Gavin Newsom — who easily beat opponent Janice Hahn to claim the Democratic nomination for lieutenant governor — said he was excited to be part of a crucial political year for the Golden State.

“We’re very proud to be in a position to be the Democratic nominee and to work with the other Democratic nominees,” Newsom told supporters. He lavished praise on the Democratic nominee for governor, Jerry Brown — the man who just last year he was trying to beat in a primary — telling stories about his father’s long relationship with the former governor and expressing his admiration. “I couldn’t be more proud to quasi- be on a ticket with Jerry Brown,” he said.

The race for lieutenant governor may prove one of the most interesting this election season — and not just because a victory for Newsom would transform San Francisco politics. Newsom’s opponent is Abel Maldonado, a moderate Republican who enjoys popularity among the growing, influential Latino community, and who Newsom’s team said will be a formidable challenge.

The campaign could revolve around an intriguing question. At a time when the Republican Party has been taken over by virulent anti-immigrant politicians — Whitman and Fiorina have both made harsh statements about illegal immigrants and vowed never to support “amnesty” (that is, immigration reform) — will Latino voters go for a white Democrat over a Latino Republican?

“You talk to them about all the same issues you talk to all voters about: jobs, education, and health care,” Newsom political strategist Dan Newman said when asked whether Newsom could win over Latino voters. “Latinos, like all voters, will appreciate someone with a proven record of success.”

Pollster Ben Tulchin also downplayed the trouble Newsom could encounter in winning the Latino vote. “With what’s going on in Arizona, they are very wary of Republicans,” Tulchin said, but then added: “We don’t want to underestimate the challenge we have. There’s never been a moderate Latino on the statewide ballot.”

Newsom sounded another alarm. If Whitman decides to help Maldonado, the race will get even tougher. “We’re running against Meg Whitman’s checkbook,” the mayor said.

“Expect to see Meg and Abel together a whole lot in the next few months,” one consultant predicted.

If Newsom wins, San Francisco will get a new mayor a year early — and the district-elected Board of Supervisors will choose the person to fill out the last year of Newsom’s term. Technically, the current board will still be in office then, but the task may well fall to the next board — which makes the local November elections even more important.

“Everyone is gaming this out and trying to figure out what happens,” political consultant Alex Clemens said during a post-election wrap-up at the San Francisco Planning and Urban Research Association office. “There will be a lot of dominoes to fall and deals to be cut.”

Meanwhile, Newsom’s nomination for lieutenant governor places many San Franciscans in an uncomfortable position, one that was illustrated well by Newsom’s victory speech, in which he proudly rejected taxes. Although most San Francisco progressives are disenchanted with their fiscally conservative mayor, few would rather vote for Maldonado.

Tim Paulson, the SF Labor Council president, was at the Newsom event gritting his teeth as he talked about the opportunity progressives now have to work with “a mayor of San Francisco we have issues with.” Now, he noted, “There is going to be a real campaign around this man. It could establish a narrative for what California is about.”

 

POWERFUL WOMEN

At Delancey Street on election night, San Francisco District Attorney Kamala Harris talked about getting “tough and smart on crime,” addressing gang-related criminal activity but also focusing on corporate criminals. She talked about cracking down on predatory lenders, supporting health care reform, and protecting California’s environment. And she made a point of dragging in BP.

“It must be the work of the next attorney general to ensure that the disaster and tragedy that happened in the Gulf of Mexico never happens in California,” she said, warning of attacks on AB 32, which set California’s 2020 greenhouse gas emissions reduction goal into law in 2006.

Of course, Harris now has to take on her southern counterpart, Los Angeles DA Steve Cooley, who is a moderate but comes in with much stronger law enforcement support. If Harris wins, it will go a long way to prove that opposition to the death penalty isn’t fatal in California politics, and that voters are finally ready for a women of color as the top law enforcement official — a first in state history.

But she and Newsom will both have to overcome likely attacks for the San Francisco’s crime lab scandal, one of many hits to be magnified by the size of Whitman’s war chest.

Whitman, who trounced opponent Steve Poizner in the primary, is riding the crest of a new wave of Republican-style “feminism,” starring her, Fiorina, and Fox news pundit Sarah Palin as female champions of the right-wing agenda. A few short months ago, it looked as if Brown was in serious trouble. But that was before Whitman and Insurance Commissioner Steve Poizner got into an $85 million bloodbath that left the winner of the GOP primary badly wounded. Whitman wants to play off the populist uprising by portraying herself as an outsider running against a career politician; Poizner gave her a huge scare by hammering her ties to Goldman Sachs.

That Wall Street narrative is one Democrats will push against Whitman and Fiorina. “I think it is stunningly politically tone deaf to nominate two Wall Street CEOs to the top of the ticket,” Newman said. Voters will decide whether they are fresh voices with new ideas or corporate hacks who laid off Californians and made fortunes with dubious stock market deals.

Brown leads in the polls — narrowly — but he’s vulnerable. He’s taken so many stands over so many years and Whitman’s fortune will hammer any openings they see. Brown is only slowly getting into campaign mode, but it’s no secret what he has to do. If the campaign is about Jerry Brown, unconventional politician, against Meg Whitman, Wall Street darling, then he wins.

But to take advantage of that, Brown has to offer some concrete solutions to the state’s problems — and he has to start acting like the progressive he once was. “If I were him, I’d run hard to the left,” a consultant who isn’t involved in any of the gubernatorial campaigns said.

The conventional wisdom had Barbara Boxer in trouble, too — but she’s a savvy campaigner who has beaten the odds before. And while the senator appears ripe for attack — almost 30 years in Washington, a voting record perhaps a bit more liberal than the state as a whole — her opponent, Fiorina, has baggage too.

For starters, Fiorina’s entire pitch is that she — like Whitman — would bring business-world savvy to politics. But as CEO of HP, “she was about perks and pink slips,” Newman said. “She laid off Californians and shipped those jobs overseas while enriching herself.”

Her own primary pushed her far to the right (at one point, in an embarrassing sop to the National Rifle Association, she actually argued that suspected terrorists on the federal no-fly list should be able to buy handguns). And speaking of feminist values, her anti-abortion positions won’t help her in a decidedly pro-choice state.

 

PROP. 16 GOES DOWN

The defeat of Proposition 16 will go down in history as one of the most remarkable campaigns ever. It was, Sup. Ross Mirkarimi noted, “a righteous win:” The No on 16 campaign spent less than $100,000 and still captured 52 percent of the vote. Another narrow corporate-interest measure, Mercury Insurance’s Prop. 17, faced a similar fate.

One reason: PG&E’s $50 million campaign backfired, making voters suspicious of the company’s propaganda. Another: it lost overwhelmingly in its own service area, the company rejected by those who know it best.

Now PG&E CEO Peter Darbee, who pushed to mount the expensive campaign, must return to his shareholders empty-handed — and that’s going to cause problems. “I assume the leadership of PG&E will be called to task,” Clemens said. “They truly rolled the dice.”

The day after the election, PG&E shares dropped 2.2 percent, a possible sign of shaken investor confidence. Mindy Spatt of the Utility Reform Network (TURN), a nonprofit that worked on the No on 16 effort, described the situation succinctly. “Peter Darbee’s got egg on his face,” she said. “Big-time.”

Mirkarimi has witnessed other battles with PG&E, and said this probably wouldn’t be the last. “PG&E, every time we want to have a seat at the table, tries to take us out, like assassins,” he said. “If they were smart, they would take us up on what we asked many years ago, and that is to abide by peaceful coexistence.”

On the statewide level, the bold and expensive deceptions pushed by PG&E and Mercury Insurance were countered by only a handful of super-committed activists and a broad cross-section of newspaper editorials, a reminder that newspapers — battered by the economy and technological changes — are neither dead nor irrelevant.

One of the wild cards of the election was Prop. 14, which will eliminate party primaries for state offices — and potentially shake up the state’s entire political structure. “This is a big deal even if we don’t know how it’s going to play out,” consultant David Latterman said at the SPUR event.

Interestingly, the only two counties that voted No on 14 were the most progressive — San Francisco — and the most conservative, Orange.

Progressives did well in San Francisco, expanding their majority on the Democratic County Central Committee. “In an environment where it was about hundreds of millions of dollars from PG&E and Meg Whitman and Chris Kelly outspending us, we showed that San Francisco is San Francisco and we support San Francisco values,” DCCC chair Aaron Peskin told us.

Money used to define the debates in San Francisco, but the dominant narratives are now being written by the coalition of tenants, environmentalists, workers, social justice advocates, and others who backed a progressive slate of DCCC candidates, which took 18 of the 24 seats on a body that makes policy and funding decisions for the local Democratic Party.

“This time it was the coalition that really made the difference,” DCCC winner Michael Bornstein said on election night. “Frankly, our people worked harder.”

Board of Supervisors President David Chiu agreed, telling us, “For the Central Committee, the message is people power wins.”

The lesson from this election is that people are starting to get wise to corporate deceptions. And they’re realizing that with hard work and smart coalition-building, the people can still prevail.

Steven T. Jones, Rebecca Bowe, Sarah Phelan, and Tim Redmond contributed to this report.

 

Passionate progressive people prevail

3

At risk of being overly alliterative, this primary election was about the power of progressive principles pushed by passionate people, as several politicos told me last night. That was evident in the success of the progressive slate for the Democratic County Central Committee and in the defeat of Propositions 16 and 17 despite about $70 million in corporate spending.

Money used to define the debates in San Francisco and throughout California, but the dominant narratives are now being written by the coalition of tenants, environmentalists, workers, social justice advocates, and others who backed the Bay Guardian’s slate of DCCC candidates, which took 18 of the 24 seats on a body that makes policy and funding decisions for the local Democratic Party.

“This time, it was the coalition that really made the difference,” DCCC winner Michael Bornstein told me last night. “Frankly, our people worked harder.”

Board of Supervisor President David Chiu agreed, telling me, “For the Central Committee, the message is people power wins.”

Despite the post-election punditry by the Chron’s CW Nevius that “moderates” just didn’t rise up like he had hoped, the most obvious reality is this election demonstrated the power of progressives who embrace San Francisco values – from valuing diversity and the environment to believing in economic justice – and the potential for success when we really stand up for them. One reason why even our would-be exports, Gavin Newsom and Kamala Harris, prevailed last night could be that liberal San Francisco just isn’t widely viewed with the same scorn felt by Nevius and the so-called “moderates,” who want to “take back” the city from progressives.

“In an environment where it was about hundreds of millions of dollars from PG&E and Meg Whitman and Chris Kelly outspending us, we showed that San Francisco is San Francisco and we support San Francisco values,” DCCC chair Aaron Peskin told me last night.

On the statewide level, the bold and expensive deceptions pushed by PG&E and Mercury Insurance were countered only by a handful of super committed activists and a broad cross-section of newspaper editorials, yet because the basically progressive message was so consistent – don’t let powerful corporations fool you into giving up your rights and protections – the Proposition 16 and 17 campaigns turned into epic failures that will feed distrust of corporations.

“California voters proved once again that they can’t be fooled by tens of millions of dollars in deceptive advertising by insurance companies,” Harvey Rosenfield of Consumer Watchdog said today of Prop. 17.

And that failure could feed and empower an ascendant progressive movement. The local Sierra Club’s John Rizzo told me at the DCCC slate party last night that PG&E will be hurt by its overreaching: “The $50 million they spent on this is totally backfiring. Whatever environmental reputation they had has now been totally trashed.”

As it should be. The lesson from last night is that people are starting to get wise to corporate deceptions, and they’re realizing that with hard work and smart coalition-building, the people can still prevail.

Another bloody budget

6

rebeccab@sfbg.com

In the days since June 1, when Mayor Gavin Newsom unveiled his proposal for San Francisco’s $6.48 billion budget for the next fiscal year, public sector employees and community organizations have been poring over the hefty document to determine how their jobs, services, and programs survived cuts made to close a $483 million shortfall.

For police and firefighters, a key Newsom constituency, the news is good. There were no layoffs to San Francisco firefighters, and while members of the Police Officer’s Association gave up $9.3 million in wage concessions under the lucrative contract Newsom gave them a few years ago, police officers will still receive a 4 percent wage increase on July 1.

For others, the release of the mayor’s budget signified a tough fight looming before the Board of Supervisors, one with high stakes. Cuts to homeless services, mental health care, youth programs, and housing assistance, along with privatization proposals, have raised widespread concern among labor and liberal advocacy organizations. Public input on the budget will continue at the Board of Supervisors Budget and Finance Committee until July 15, when the amended document is considered by the full board.

At a June 1 announcement ceremony, Newsom asserted that the budget was balanced “without draconian cuts,” saying, “We were able to avoid the kind of cataclysmic devastation that some had argued was inevitable in this budget.”

Nearly a week later, Board President David Chiu told the Guardian that sort of cataclysm wouldn’t be staved off for long if the city continues on the course of repeatedly making deep budget cuts without proposing any significant new sources of revenue.

“Now that the smoke has cleared, it is clear that the mayor’s proposed budget is perfect for a mayor who is only going to be around for the short term, but it does not address the long-term fiscal crisis that our city is in,” Chiu said. “Next year, we’re looking at over a $700 million budget deficit. The year after that, we’re looking at almost an $800 million budget deficit. The budget proposal that Newsom put out balances the … deficit on many one-time tricks and assumptions of uncertain revenue.”

Meanwhile, advocates said even the cuts proposed this time would bring serious consequences, especially with unemployment on the rise, state programs being cut in Sacramento, and families feeling the pinch more than ever.

“Poor and working class families, and families of color in San Francisco, are facing kind of an assault on funding and on safety net services on multiple levels,” said Chelsea Boilard, family policy and communications associate for Coleman Advocates for Children and Youth. “I think a lot of it is that families are concerned about their ability to stay in the city and raise their kids here.”

 

“NO NEW TAXES”

During the budget announcement, Newsom emphasized the positive. He found $12 million in new revenue simply by closing a loophole that had allowed Internet-based companies to avoid paying that amount in hotel taxes. He said 350 currently occupied positions would be cut, but noted that it was less than a cap of 425 that public sector unions had agreed to. Cuts were inevitable since the ailing economy inflicted the city’s General Fund with significant losses, particularly from business and property tax revenues.

Nonetheless, Newsom’s budget is already coming under fire from progressive leaders. For one, there are no new revenue-generating measures in the form of general taxes, which could have averted the worst blows to critical safety-net services and might help remedy the city’s economic woes in the long-term.

“There are no new taxes in this budget,” Newsom declared. “I know some folks just prefer tax increases. I don’t.”

Yet Chiu said many of Newsom’s assumptions for revenue were on shaky ground, prompting City Controller Ben Rosenfield — Newsom’s former budget director — to place $142 million on reserve in case the projected revenues don’t pan out.

“These budget deficits continue as far as the eye can see,” Chiu noted. “Even if those amounts come in, something like 90 percent of them are one-time fixes. So even if the mayor is right, it doesn’t solve next year’s problem, or the year after. Which is why many of us at the board believe that we have to consider additional revenue proposals to think about the long-term fiscal health of the city.”

Sup. John Avalos, chair of the Budget and Finance Committee, described Newsom’s budget as “pretty much an all-cuts budget,” noting that he and Chiu planned to introduce revenue-generating measures. They were expected to introduce proposals — including an increase in the hotel tax and a change in the business tax — at the June 8 board meeting.

Because despite Newsom’s rosy assessment, many of his proposed cuts are deep and painful: the Recreation and Park Department would be cut by 42 percent (with its capital projects budget slashed by 90 percent), Economic and Workforce Development by 34 percent, Ethics Commission by 23 percent (basically eliminating public financing for candidates), Department of the Environment by 14 percent, Emergency Management by 10 percent, and the list goes on.

 

CUTS TO SOCIAL SERVICES

Progressives say Newsom’s budget reflects skewed priorities. While relatively little is asked of public safety departments, health and human services programs face major staffing and funding losses. “Poor people are being asked to shoulder the burden,” noted Jennifer Friedenbach, director of the Coalition on Homelessness.

Nearly $31 million would be slashed from the Department of Public Health, and more than $22 million would be cut from the Human Services Agency under Newsom’s proposed budget. While this reflects only 2–3 percent of the departmental budgets, there’s widespread concern that the cuts target programs designed to shield the most vulnerable residents.

Proposals that deal with housing are of special concern. “We have more and more families moving into SRO hotel rooms. We have families in garages. We have a really scary situation for many families,” Friedenbach said.

Affordable housing programs within the Mayor’s Office of Housing would get slashed from $16.8 million currently down to just $1.2 million, a 92 percent cut. Other cuts seem small, but will have big impacts of those affected. Newsom’s budget eliminates 42 housing subsidies, which boost rent payments for families on the brink of homelessness, for a savings of $264,000. Meanwhile, a locally funded program that subsidizes housing costs for people with AIDS would be cut, for a savings of $559,000.

Transitional housing would be affected, too, such as 59 beds at a homeless shelter on Otis Street, which Friedenbach says would be lost under Newsom’s budget proposal. “We’ve already lost more than 400 shelter beds since Newsom came to office, so that’d be a huge hit,” she said. Since the recession began, she added, the wait-list at shelters has tripled. The Ark House, a temporary housing facility that serves LGBT youth, would also be closed.

Overall, homeless services delivered by HSA would take a $12 million hit in Newsom’s budget, or about 13 percent, offset slightly by homeless services being increased by $2 million within the Mayor’s Office budget, a 71 percent increase.

Outpatient mental health services, such as Community Behavioral Health Services, would also be affected (See “Cutting from the bottom”), in violation of current city law. Several years ago, then-Sup. Tom Ammiano introduced legislation establishing a “single standard of care” to guarantee access to mental health services for indigent and uninsured residents.

“If timely, effective, and coordinated mental health treatment is not provided to indigent and uninsured residents who are not seriously mentally ill, those residents are at risk of becoming seriously mentally ill and hence requiring more expensive and comprehensive mental health care from San Francisco,” according to the ordinance, which was passed in June of 2005. Newsom’s budget proposes changing this legislation to enable cuts to those services, which would result in 1,600 people losing treatment, according to Friedenbach.

Unfortunately, advocates for the poor has gotten used to this ritual of trying to restore cuts made by Newsom. “There are some sacred cows that seem to survive year after year, and then we’re left fighting over what we can get,” said Randy Shaw, executive director of the Tenderloin Housing Clinic (THC).

The Central City SRO Collaborative, which supports tenants living in single-room occupancy hotels in the mid-Market Street area and is operated through THC, is slated to be cut by 40 percent along with three other similar programs — a replay from last year when the mayor proposed eliminating funding and the Board of Supervisors restored the cut.

“I think you’d see more fires, more people dying from overdoses. You’d see really bad conditions,” Jeff Buckley, director of the program, told us of the potential consequences of eliminating the inspections and resident training that is part of the program.

Funding was also eliminated for THC’s Ellis Eviction Defense Program, the city’s only free legal defense program with capacity to serve 55 low-income tenants facing eviction under the Ellis Act.

 

THREAT TO RENTERS

One of the most controversial proposals to emerge from Newsom’s budget is a way for property owners and real estate speculators to buy their way out of the city lottery that limits conversion of rental properties and tenants-in-common (TICs) to privately-owned condos if they pay between $4,000 and $20,000 (depending on how long they have waited for conversion), a proposal to raise about $8 million for the city.

“I went back and forth because I know the Board of Supervisors can’t stand this,” Newsom said as he broached the subject at the June 1 announcement. “I still don’t get this argument completely. Except it’s a big-time ideological discussion. It’s so darn ideological that I think it gets in the way of having a real discussion.”

Yet Ted Gullicksen, director of the San Francisco Tenants Union, said the argument is quite clear: making it easier to convert rental units into condos will accelerate the loss of rental housing in a city where two-thirds of residents are tenants, in the process encouraging real estate speculation and evictions.

“It will encourage TIC conversions and evictions because it makes the road to converting TICs to condos that much easier,” Gullicksen said. “It’s going to be a huge gift to real estate speculators.”

Newsom press secretary Tony Winnicker disputes that impact, saying that “these units were going to convert anyway, whether next year or six years. This merely accelerates that conversion without altering the lottery to protect jobs and services.”

But Gullicksen said the proposal obviously undermines the lottery system, which is the only tool tenant advocates have to preserve the finite supply of rent-controlled apartments, noting that even if the condos are later rented out, they will no longer to subject to rent control. That’s one reason why the Board of Supervisors has repeatedly rejected this idea, and why Newsom probably knows they will do so again.

Avalos said he and other progressive supervisors will oppose the proposal, despite the difficulties that will create in balancing the budget. “It’s kind of like putting a gun to our heads,” Avalos said of Newsom’s inclusion of that revenue in his budget.

To offset that revenue loss, Avalos has proposed a tax on alcohol sold in bars and Gullicksen is proposing the city legalize illegal housing units that are in habitable condition for property owners willing to pay an amnesty fee.

Some housing advocates were also struck by the timing of proposing condo conversion fees while also eliminating the Ellis Eviction Defense Program. “We’re really the only ones doing this,” Shaw noted. He said the program is crucial because it serves low-income tenants, many of whom are monolingual Chinese or Spanish speakers who lack the ability to pay for private attorneys to resist aggressive landlords.

 

PRIVATIZATION PROPOSALS RETURN

The Department of Children, Youth. and Families budget would be reduced by 20 percent under Newsom’s budget, with the greatest cuts affecting after school and youth leadership programs. Roughly a $3 million cut will result in the loss of around 300 subsidized slots for after school programs, said Boilard of Coleman Youth Advocates. Another $3 million is expected to come out of violence-prevention programs for troubled youth; an additional $1 million would affect youth jobs programs.

Patricia Davis, a Child Protective Services employee who lives in the Mission District with her two teenage sons, said she was concerned about the implications for losses to youth programs, particularly during the summer. “You can imagine what’s going to happen this summer,” she said. “I feel that a lot of kids are going to do a lot of things that they have no business doing.”

Davis, who says she’ll have to look for a new job come Sept. 30 because the federal stimulus package funding that supports her position will run out, said she was not happy to hear that police officers would be getting raises just as that summer school programs are being threatened with closure. “Couldn’t the 4 percent [raise] go somewhere else — like to the children?” she wondered.

Meanwhile, privatization proposals are causing anxiety for SEIU Local 1021 members, who recently gave millions in wage concessions and furloughs along with other public employees to help balance the budget. A proposal to contract out for jail health services cropped up last year and was shot down by the board, but it’s back again.

“When you make it a for-profit enterprise, the bottom line is the profit. It’s not about the health care,” SEIU Local 1021 organizer Gabriel Haaland told us. “It isn’t the same quality of care.”

Haaland said he believes the mayor’s assumption that the proposal could save $13 million should be closely examined. Other privatization schemes would contract out for security at city museums and hospitals.

Institutional police in the mental health ward at SF General Hospital and other sensitive facilities are well trained and experienced with difficult situations so, Haaland said, “the workers feel a lot safer” than they would with private contractors.

Regarding Newsom’s privatization proposal, Avalos said the board was “opposed last year and the year before, and we’ll oppose [them] this year.”

In the coming weeks, Avalos and other members of the Budget and Finance Committee will carefully go over Newsom’s proposed budget — which is now being sized up by Budget Analyst Harvey Rose’s office — and solicit input from the public. Chances are, they’ll get an earful.

“People are scared. They are scared to death right now,” Boilard said. “As it is, people’s hours are being reduced. And it’s getting harder and harder to find a job because so many people are out of work that the level of competition has gotten really fierce. This is the time that we need to invest in safety net services for young people and families more than ever — and all those services and programs and relationships that people depend on are disappearing.”

Steven T. Jones and Kaitlyn Paris contributed to this report.

Newsom’s budget includes a few ideas “Supervisors can’t stand”

City department heads, members of the San Francisco Board of Supervisors, representatives from major news outlets, and others crowded into the Luggage Store Art Gallery at 6th and Market streets on June 1 to hear Mayor Gavin Newsom discuss his proposed 2010-2011 budget.

Colorful artwork, such as a collage fashioned from cereal boxes, adorned the walls, and Newsom said he’d selected the venue to emphasize his commitment to improving the blighted mid-Market area.

Newsom’s $6.48 billion budget is being put forth in the face of a roughly $480 million deficit, which places the city in a similar financial situation to last year, when the mayor’s budget proposal sparked an outcry from progressive supervisors and a wide array of advocacy organizations for its deep blows to public health programs and critical services.

At first glance, the Department of Public Health seems to have fared better this time around, as a partial result of outside funding through federal programs. However, Newsom proposed slashing $22 million from DPH, compared with a total department budget of approximately $1.4 billion.

Newsom’s budget eliminates a total of 993 positions that are filled and unfilled, though the mayor said he anticipated 350 actual layoffs, bringing the total number of city employees to the lowest level in more than a decade. He thanked those he referred to as “enlightened city employees” for wage concessions that made fewer layoffs possible. There were no layoffs in the San Francisco Police Department or the San Francisco Fire Department, Newsom noted. The mayor also announced that an additional $5.9 million would be allocated to remedy the plagued crime lab.

The most contentious issue to emerge from the budget announcement was a proposal to generate $8 million through condo-conversion fees, under a system that would make it easier for people to turn rental units and tenancy-in-common units into condominiums.

Newsom accounted for funding from this proposal despite a lack of support from the Board of Supervisors. “I know the Board of Supervisors can’t stand this,” he said. “But I can’t stand the alternative. … This is a debate that I want to have, because I think this is principled and right.” He added that he thought supervisors’ resistance to accelerated condo conversions was “so darn ideological that it gets in the way of having a real discussion.”

Sup. John Avalos, who chairs the Budget & Finance Committee, said that he and other supervisors fear this could lead to more owner move-in evictions, a trend that would upend tenants’ lives and ultimately deplete the city’s affordable housing stock. “That’s been a concern of mine for months,” Avalos noted. Newsom’s decision to go forward with including it in the budget means that if the Supes reject it, they’ll have to find an additional $8 million to make up for the gap. “It’s kind of like putting a gun to our heads,” he said.

Newsom asserted that the budget was balanced “Without draconian cuts,” saying, “We were able to avoid the kind of cataclysmic devastation that some had argued … was inevitable in this budget.”

Yet Avalos described it as “pretty much an all-cuts budget,” because it contained no new revenue generating measures. “There are no new taxes in this budget,” Newsom said. “I know some folks prefer tax increases. I don’t.”

Avalos said he and other members of the board were working on a number of revenue-generating measures, including a nickel-per-drink tax on alcoholic beverages that would be aimed at the level of distributors, not small independent businesses.

Expect more on the mayor’s budget in coming weeks.

Triumph of tenacity

rebeccab@sfbg.com

Nearly four years after City Attorney Dennis Herrera filed suit against Frank and Walter Lembi and their dizzying array of companies affiliated with CitiApartments for “an outrageous pattern of corporate lawlessness,” the powerful and notorious San Francisco landlords have watched their empire crumble.

The Lembi empire consisted of more 300 apartment buildings in San Francisco at its peak. Four Lembi subsidiaries that owned 16 buildings filed for Chapter 11 bankruptcy in February. Twenty Lembi properties were taken over by Lennar spin-off LNR in late May; another 24 buildings are slated to be foreclosed in early June; 51 were deeded back to UBS bank in lieu of foreclosure early last year; and still others are now held by court-appointed receivers and managed by Laramar, an unaffiliated property-management company.

CitiApartments still owns and manages a large portion of the buildings it controlled in its heyday, but it’s had to either restructure loans or get payment extensions to hold onto many of them, according to general counsel Ed Singer. The Lembi Group staff has dwindled, and a team of 18 dedicated solely to relocating tenants is now long gone.

For many renters in foreclosed units who managed to ride out what San Francisco Tenants Union director Ted Guillicksen has labeled CitiApartments’ “war of terror” against its occupants, the dust has finally settled. Gullicksen says that living in limbo is better than living under Lembi.

There are no more harassing phone calls pressuring them to move. No more sudden utility shutoffs. No armed agents showing up at the doorstep unannounced. No illegal construction projects clamoring away on the other side of paper-thin walls, destroying any hope of tranquility at home.

These are tactics CitiApartments used to drive people out, according Herrera’s 2006 complaint and an award-winning Guardian series (“The Scumlords,” March 25), in order to vacate units so they could be renovated and removed from rent control protections. A San Francisco Rent Board roster of 174 current and former Lembi properties as of May 25 lists no fewer than 1,890 cases associated with those buildings, the majority of them now settled.

While the sordid history of CitiApartments’ strong-arm tactics has been well-documented, tenant-rights advocates say the untold story of the Lembis’ rise and demise is that its entire business model hinged on evicting and relocating existing tenants — but that strategy failed, in large part because of a grassroots organizing effort that emboldened renters to stand their ground.

“The economic downturn played a role in it because the money stopped flowing,” says Gullicksen, who helped form the CitiStop Campaign in 2004 in response to reports of outrageous tactics. “But if the money kept flowing, I think they would have failed anyway. The end result was inevitable, given the tenant resistance.”

Darin Dawson moved into his apartment at 2 Guerrero St. in 1994 on a lease secured through the federal Housing Opportunities for People With AIDS program. Dawson, who was diagnosed in 1987, said things turned sour in 1998 when Trophy Properties I DE LLC — one of the Lembis’ dozens of subsidiaries — snapped it up.

Their first contact was to inform him that he would have to move “because we don’t allow those kinds of leases in our buildings,” he recalled. He fought it with the help of the Housing Authority and managed to stay put. It was the first in a series of standoffs that ultimately stopped last September when the property was repossessed.

“Basically, I just dug my heels in and knew that I couldn’t get evicted,” Dawson said. Nonetheless, he spent years embroiled in conflict with the Lembi subsidiary while also battling AIDS-related illnesses.

There was the time he was ordered to vacate his apartment for two weeks during a seismic retrofit only to find it trashed when he returned. “The floors were ripped up,” he said. “The ceiling was hanging in some places. There was black grease smeared all over the walls.” He repaired it himself. Then came the constant phone calls, which started off artificially cheerful but turned threatening if he refused to accept money to relocate.

Dawson pays a base amount of $635 per month for his rent-controlled studio, so he suspected he might be a target. Once a residential manager discreetly warned him that his name was on a “hit list” of tenants whom the owners wanted gone, he said.

According to a confidential document leaked to advocates by an anonymous source, tenants who paid the least came under the greatest pressure to relocate since San Francisco rent-control laws prohibit raising existing occupants’ rents to market rate. The document outlines how loan repayment and estimated profits were calculated wholly on the expectation that existing tenants would vacate, rather than relying on normal projections like natural turnover.

“Tenants with significantly below market rents are chosen for thorough screening to see if they might be relocated,” according to the document, a 2008 Credit Suisse prospectus concerning a pool of 24 buildings under Lembi ownership that have since been foreclosed. “Those tenants most below market and/or with the longest history are the priority for relocation.”

All 24 buildings in question — including properties on Larkin, Market, Cesar Chavez, Post, and Leavenworth streets, in addition to others — were subject to rent control. “At acquisition [Aug. 30, 2007], the portfolio was approximately 5 percent vacant,” it notes. “As of May 2008 the portfolio was 19 percent vacant, as a result of Lembi successfully executing their business plan of vacating units and rolling them to market.”

Although the paperwork spelling this out in stark terms didn’t surface until recently, advocates who worked on the CitiStop campaign essentially figured it out years ago. A collaboration between the Tenants Union, Pride at Work, and other advocacy groups, the campaign sent organizers door-to-door to inform tenants of their rights, hosted potlucks where people could swap horror stories and forge alliances, and staged demonstrations outside CitiApartments’ Market Street offices.

They tracked public records from the Assessor-Recorder Office and swooped in to warn tenants whose buildings had fallen into the Lembis’ clutches. It didn’t always work. According to the Credit Suisse document, Lembi had relocated 2,500 units as of August 2008, a fact pointed to as evidence of its “successful track record.” But the relocation team only drove out a small number of the lowest-paying tenants; the vast majority of those who took buyout offers left units that paid closer to market rate.

“They really needed to get more turnover than what they accomplished,” Gullicksen said. “The fact that they couldn’t is attributable to the CitiStop campaign.”

Singer rejected this assessment, saying the real problem was the economic downturn and the loss of capital availability. “I can see why they want to say that, why they want to take credit for bringing down the Lembis,” he said. “But I don’t think it would have made any difference if [tenants] left or not.”

A common complaint nowadays is that former tenants haven’t gotten their security deposits back, a matter that has spurred a class-action lawsuit against 57 corporate defendants associated with the Lembi Group.

“They’re claiming that they have no money,” Brian Devine, an attorney with Seeger Salvas LLP, told the Guardian. Devine estimates that he will end up representing several thousand tenants who are entitled to their deposits. In March, a judge awarded sanctions of $30,000 to Devine’s firm because the Lembi Group refused to cooperate with discovery, withholding documents necessary for the case to proceed.

Herrera has encountered a similar recalcitrance in his own suit and won court sanctions of $50,000 in February for the same reason. “We have been engaged in discovery for a long, long time,” noted city attorney spokesperson Matt Dorsey. “We’re hoping that the judge is at the edge of his patience.”

Singer said the problem was that there wasn’t enough “people power” to photocopy thousands of documents. The Lembis were never up to any nefarious purpose, Singer insisted — they only wanted to make the buildings nicer. As for the tenants who endured the most brutal relocation tactics? “I can understand why they didn’t want to leave,” he said. “Some of them didn’t leave — and they’re still there.”