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Fighting for the right to party

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› steve@sfbg.com

It’s become increasingly difficult and expensive to stage street fairs, concerts, or other parties in San Francisco, a trend chronicled by the Guardian over the past two years (see "Death of fun," 05/23/06 and "Death of fun, the sequel," 04/25/07). But event and nightlife promoters have responded with a proposed ballot measure that would write the right to party into the city’s charter.

The "Promoting and Sustaining Music and Culture in San Francisco" charter amendment would acknowledge the importance of special events to the city’s character, streamline the process for obtaining city permits, and require the nine-plus city departments that promoters must deal with to submit reports outlining how their policies and fee structures will need to be altered to comply with the new mandate for fun.

The measure was developed by the Save SF Culture Coalition, whose members include the Entertainment Commission, Black Rock City LLC (which stages Burning Man as well as events here in town), the Late Night Coalition, and the Outdoor Events Coalition (a group formed last year to counter city policies and neighbor complaints that threatened to scuttle the North Beach Jazz Festival, How Weird Street Faire, concerts in Golden Gate Park, and other events). The measure is sponsored by Sup. Ross Mirkarimi and has picked up four other supervisors as cosponsors, so it needs just one more vote for the Board of Supervisors to place it on the November ballot.

"It was long overdue that the city produce a master plan and vision that promotes a sustainable environment for music, culture, and entertainment throughout the city," Mirkarimi said.

In fact, event promoters say they’ve been hit by a quadruple whammy that threatens their livelihoods and the vibrant nature of the city: rising fees charged by city departments looking to close budget gaps, increased concern over alcohol consumption and other liability issues, more conflicts over noise in increasingly dense neighborhoods such as SoMa, and the ability of a handful of complaining neighbors to create event-killing permit conditions. And those last two problems are only likely to get worse as the city grows.

"We want the city to create a sustainability policy that will save our outdoor events in the face of all the development that is going on," said John Wood, a member of the Late Night Coalition and a promoter who also serves on the San Francisco Love Fest board of directors. "We need to be able to say, ‘This is city policy and you’re not following it.’"

Promoter and club owner Terrance Alan was an original member of the Entertainment Commission, which was formed in 2003 in part to resolve complaints over noise and manage relations between nightclubs and their neighbors. But he said the agency has little staff and no leverage over other city departments involved in permitting, which includes the Planning, Building, Port, Police, Fire, Health, and Recreation and Park commissions and departments, as well as the Municipal Transportation Authority and Interdepartmental Staff Committee on Traffic and Transportation (ISCOTT), the body that approves street-closure permits.

"We have been completely unsuccessful at getting their attention," Alan said. But this new measure, he said, would "set the stage for ongoing discussions that need to be happening."

Or as Wood put it, "It would give us ammunition in the future battles we’re going to have. It’s not going to make those battles go away."

Recreation and Park Department spokesperson Rose Dennis said her agency must deal with many competing concerns, ranging from budgetary issues to being responsive to complaints raised by citizens. "We understand that it might feel heavy-handed, but we have a duty to do so because we have to balance a number of concerns," Dennis said. "[Event promoters] have a bottom line, and we have a bottom line. We have a lot of people to serve."

Yet she said the department will comply with the measure and adjust its policies, fees, and procedures as needed if the measure is approved by voters.

At a June 27 Board of Supervisors Rules Committee hearing, there was lots of support for the measure and no real opposition. "We’re concerned about the future of arts and culture in San Francisco," Steven Raspa, who does special events for Black Rock City, said at the hearing.

All three committee members voiced support for the measure, but because it needed some minor changes, a final vote was pushed back to July 9. Proponents characterize the measure as trying to bring some balance to a situation in which the loudest wheels — those of NIMBYs complaining about noise or party detritus — keep getting greased.

"The bureaucracy is hearing from these neighborhood groups all the time," Wood said. "We feel that we are the majority and we need to demonstrate that politically."

Amanda Witherell contributed to this report.

To read the measure or learn more, visit www.savesfculture.com

Bad grades

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› gwschulz@sfbg.com

A much-anticipated audit of City College of San Francisco’s spending of bond money finds that school officials promised voters more than they could possibly deliver and then didn’t allow proper oversight of hundreds of millions of dollars in public funds.

A minority faction on City College’s Board of Trustees has for years sought a performance audit of the school’s bond projects, which includes $441.3 million authorized by voters during elections in 2001 and 2005. The audit by Sacramento-based MGT of America was released June 4.

The faction, led in large part by longtime trustee Milton Marks, often publicly quarreled with former Chancellor Phil Day over the matter, arguing that Prop. 39, a state ballot measure that passed in 2000 and made it easier for school districts to get voter approval for bond financing, legally required full annual performance audits of its capital spending on new classrooms, laboratories, a gymnasium, and a performing arts center.

But school administrators denied they were necessary or claimed that the cursory, more limited financial audits done each year met the legal mandate. Pressure on Day’s administration finally became insurmountable last year as San Francisco’s District 12 state Assembly Member Fiona Ma began threatening to have the state conduct its own audit, offering deeper scrutiny and wider disclosure than City College officials were perhaps prepared to stomach.

"My overall feeling is that we appreciate their efforts, accept their findings, and will implement all of the recommendations," a conciliatory Vice Chancellor Peter Goldstein told the Guardian in response to the report.

While mostly mild in its language, the audit shows that the school may have violated state law by granting several small contracts to the same construction companies so City College could avoid the headache of competitive bidding.

The state’s Public Contract Code requires that projects costing more than $15,000 go to the lowest responsible bidder through a competitive process, a provision designed to save money for taxpayers. But between 2005 and 2006, the community college entered into seven separate no-bid contracts with one construction firm totaling $83,545 for work at its Cloud Hall facility on Ocean Avenue.

"It’s unfortunate that two of the project managers were not aware or did not appreciate the importance of that rule," Goldstein said. "They’ve been counseled and we don’t expect to have any more occurrences of that type."

The auditors found "similar multiple contracts" — totaling less than $100,000, Goldstein said — where the work should have been combined into one larger contract and approved by the school’s independently elected Board of Trustees.

The audit reserved special criticism for a bond oversight committee required by Prop. 39 to watchdog the school’s capital spending. The Guardian reported last year that such committees in other districts, for example, West Contra Costa County routinely received full performance audits and met more often than City College’s oversight committee (See "Who’s following the money?", 07/10/07).

But the group of citizens here, which includes San Francisco Treasurer José Cisneros and former San Francisco Chronicle publisher Steve Falk, who’s now head of the San Francisco Chamber of Commerce, has done far less than what the law asks it to do.

The report says that one oversight committee member, who goes unnamed, told the auditors that it wasn’t the committee’s responsibility to determine how City College actually spends the funds. The auditors also watched former Chancellor Day tell the committee at a January meeting that its reach was limited solely to ensuring that City College complied with certain provisions of the state’s Constitution.

That turned out to be totally untrue. "The intent of this law is to provide a broad oversight role for the committees, thereby encouraging cost-effective use of bond funds," the report states.

"Many of these things that are in the report are things that people on the board have been saying all along," Trustee Marks said. "We really shouldn’t have had to spend $250,000 for someone on the outside to tell us this."

The original estimate for all of City College’s ambitious bond projects amounted to about $539.7 million, and the school has offset many of those costs by securing tens of millions of dollars in matching funds from the state. But as of January, the total cost has ballooned to $968 million. Last year the Guardian reported that the school gutted several projects promised to voters by "reallocating" roughly $130 million from their budgets to save other projects suffering from skyrocketing cost overruns (See "The City College shell game," 07/03/07).

Trustee John Rizzo, who joined Marks in asking for an audit, said he wished the report had done more to explain why many of the projects were poorly planned, leading to millions of dollars in higher costs. He cited as examples the new Mission Campus and a health and wellness center for athletes.

Rizzo told us, "Just from what contractors say and what staff has been reporting, that still needs to be looked at."

MUD money

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Originally published October 10, 2001 A San Francisco public power agency could buy out Pacific Gas and Electric Co., cut residential electricity rates by 20 percent, dramatically reduce the city’s reliance on fossil fuels – and still operate with a $18 million annual surplus, a Bay Guardian analysis shows. Our study’s figures directly contradict the argument that’s at the heart of PG&E’s campaign against public power: they show that a municipal electrical system can be bought and run at no cost to the taxpayers – with plenty of money left over. Our figures are all taken from public sources and are consistent with the financial reports of other major public power agencies in the state. In fact, if anything, our figures are conservative; the real benefits are almost certainly higher. The financial issues are essentially the same for a municipal utility district and for a city power agency, so our figures would apply to either the MUD, which would be created under Measure I, or the Water and Power Agency, which would be created under Proposition F. Calcuutf8g the financial feasibility of a municipal utility district or city power agency in detail is a complex process. Consultants typically charge upward of $1 million for detailed feasibility studies that use all sorts of models and assumptions to come up with the sorts of figures you can take to the bank (or to Wall Street to sell bonds). So our analysis isn’t anywhere near as detailed as what the MUD or the WPA will eventually have to produce. But we’ve covered all of the major revenues and costs; if we’re missing anything, it won’t radically change the bottom line. And it’s safe to say that we haven’t over<\h>estimated the financial viability of public power. The questions on the minds of most voters this fall are relatively simple: Can public power pay for itself? Will the MUD or the Water and Power Agency be a financial success? And our research shows that the answer is a resounding yes. We’ve run through two scenarios, a worst-case scenario and a best-case scenario. In each case, we’ve found, a San Francisco public power agency is more than financially viable. Our study is the rough equivalent of what a MUD’s or WPA’s annual energy report to the public would look like once the agency was up and running. In fact, we’ve pretty much followed the model of the Sacramento Municipal Utility District (SMUD) and the Los Angeles Department of Water and Power (LADWP), and we’ve relied on those two agencies’ figures to estimate some of what the city’s comparable costs would be. We’ve discussed our study with Ed Smeloff, the city’s top energy expert, and while he couldn’t verify our conclusions (since he hasn’t run the numbers himself), he said that there were no major costs that we had ignored. The results are summarized in the two accompanying charts. Where’s the money? Based on how other MUDs have been set up, the process in San Francisco would look something like this: The elected MUD (or WPA) directors would commission a detailed feasibility study outlining the financial future of the agency. Then they would begin negotiations with PG&E to buy the company’s local transmission and distribution system. If PG&E wouldn’t sell, the MUD or WPA would seize the system through the power of eminent domain. The agency would then issue revenue bonds to cover the cost of the acquisition and start-up, hire a staff, and go into the retail power business. Sales of electricity would bring in revenue that would cover operating costs and pay off the revenue bonds; any money left over at the end could be turned back to the city’s General Fund, used to reduce rates, or used for conservation and environmental projects. So the first step in analyzing the finances of a MUD is to figure out how much revenue would be available each year. That’s a relatively simple calculation. According to the California Energy Commission, PG&E currently sells about 5.4 billion kilowatt-<\h>hours of electricity to customers in San Francisco. (This figure doesn’t include energy used by the city government, since government agencies use power from the city’s Hetch Hetchy dam.) Residential, commercial, and industrial customers all pay different rates. If a MUD sold power at current PG&E rates (as provided to us by PG&E spokesperson Ron Low), it would bring in $562 million in revenue (enough to create a big annual surplus – roughly $36 million.) But a MUD or power agency almost certainly wouldn’t sell power at PG&E’s high rates – one major attraction of public power is that it offers cheaper electricity. So in both of our scenarios, we assumed that the rates would be at least 10 percent below PG&E’s rates. In fact, as our study shows, rates could drop as much as 20 percent without harming the MUD or WPA’s viability. What’s it cost? There are three basic categories of costs that the agency would have to cover. The first is payments on the bonds, the second is generating or buying power, and the third is basic operations and maintenance (paying the staff to keep the system up and running, to send out bills, to read meters, as well as operating the repair trucks, etc.). Electricity can’t just be delivered to the doorsteps of customers like canned ham in a UPS box. It has to be distributed through a network of transformers, substations, wires, and poles and measured with individual meters. And until the public power agency owns that distribution network, it can’t sell a single kilowatt. Unfortunately, the system that’s now in place in San Francisco is owned by PG&E – and almost everyone involved agrees that it would be cheaper, easier, and quicker for the city to take over that system than to build a new one from scratch. That’s what SMUD did and what most other public agencies that have gotten into the power business in the past half century have done. A MUD or a city power agency would have the right to seize PG&E’s property by eminent domain. But PG&E would be entitled under law to fair compensation for the taking of its property, and one of the most complex, bitter – and crucial – issues involved in establishing public power will be the price tag. “This is not an easy case at all,” Richard Epstein, a professor of law at the University of Chicago and a national expert on eminent domain, told us. “I can guarantee you that nobody, but nobody, has any idea right now what fair compensation would be.” The issue will almost certainly be settled in court. PG&E insists that its San Francisco property is worth a small fortune – as much as $1.4 billion. In a 1996 study the Economic and Technical Analysis Group suggested that the price could be anywhere from $315 million to $1.2 billion. The ETAG study, which was highly favorable to PG&E, suggested that the most likely figure was around $795 million. The reason those figures are so widely divergent is that there are numerous ways of evaluating what a utility’s property is worth. The simplest is to establish what PG&E originally paid for the property, then factor in depreciation. That’s how insurance companies decide what they have to pay you if your car is stolen. The process generally leads to a low figure favorable to the city. But courts have recently been somewhat more friendly to an analysis that recognizes that utility property is more valuable than, say, a private car, because the utility property produces income. One way to address that is by valuing the property at its replacement cost and factoring in the value of a “going concern” – which, of course, leads to a much higher price. Real market value But there’s another way to look at the issue, and that involves going to the state agency that appraises the actual market value of PG&E’s property for tax purposes: the Board of Equalization. Every year the board’s appraisers evaluate exactly what PG&E’s property is worth – and the agency’s record is pretty good. When California’s private utilities sold 22 power plants under deregulation, the board checked its appraisals against actual market prices, and while sale prices for some plants varied from estimates, the board was accurate to within 1 percent overall, chief appraiser Harold Hale told us. The Board of Equalization estimated that as of January 2001, all of PG&E’s property in San Francisco was worth $962,140,298. That includes property that isn’t at all relevant to running an electric utility. The value of the property actually used in the electricity business, the board says, is $753,978,471. But that figure includes PG&E’s huge 77 Beale St. headquarters office complex, which the city almost certainly wouldn’t want or need to buy in an eminent domain action. If you subtract 77 Beale St. (which one real estate expert we contacted said was worth about $225 million as of Jan. 1), then the value of the property the city might actually buy is about $528 million. It may be even less than that: the real estate market has fallen almost 15 percent since Jan. 1, according to our expert, a senior executive at one of the city’s biggest firms, who asked not to be identified by name. However, to be conservative, we’re sticking with the Jan. 1 figure. Epstein, who has worked as a consultant fighting municipalization efforts and thus isn’t inclined to be biased in favor of a public buyout, agreed that using the Board of Equalization figures is “certainly a good place to start.” There’s no guarantee that the courts will accept this approach (although, with PG&E in bankruptcy court right now, it’s also entirely possible, experts say, that PG&E might be forced to accept a much lower value for its property and sell it without a fight, in order to pay off some creditors with cash). So we also analyzed a worst-case scenario, essentially accepting the figures of ETAG’s much maligned report and assuming that, under a replacement cost-<\d>plus-<\d>”going concern” analysis, the city would have to spend $795 million to take over the system. (Even ETAG concluded that it’s unlikely the final price would be as high as PG&E’s estimate; nobody whose property is up for seizure starts off by quoting a realistic price.) No matter what the price, the bond sale will have to include some money for contingencies – the actual cost of the bond sale, start-up cash, etc. We’ve added $50 million for those costs. Paying the staff, buying power PG&E doesn’t publicly reveal its operating costs for San Francisco (or any other specific service area). And it’s difficult to use the company’s system-<\h>wide operating costs as a basis for estimating San Francisco costs, since the population of San Francisco is so much denser than in most of the company’s northern California territory. The denser the population, the cheaper it is to serve; the distance between customers is smaller, so you need less transmission line per customer. Reading meters is faster, since the employee doing that work doesn’t have to drive long distances between each house. Repairs and maintenance are cheaper for the same reason. And PG&E’s costs aren’t a fair comparison for a public power agency anyway: PG&E pays huge executive salaries (see “Public Power vs. PG&E,” page 24), which are included in the operations overhead. So we based our cost estimate on LADWP, which is about as close a comparison to San Francisco as we could find. Los Angeles is not quite as dense as San Francisco, so the L.A. figures are almost certainly higher than what San Francisco would pay, but they provide a reasonable, if conservative, estimate. LADWP’s cost per customer is $383; multiplied by the number of customers in San Francisco, that cost is $131 million a year. Then there’s the question of generating or buying the electricity. Here San Francisco has a huge advantage over other public power agencies: The city owns a large hydro<\h>electric dam that can generate enough to cover some of the local power needs – and it’s already paid for. Power from the Hetch Hetchy dam is cheap: the cost of operating the system is only about 2¢ a kilowatt-<\h>hour. Unfortunately, the city also has to pay PG&E to ship the power over its lines to the city borders, since the city has no complete transmission line to carry the power here; San Francisco pays PG&E $9.6 million a year in what’s known as “wheeling fees.” San Francisco currently sells most of the available Hetch Hetchy power to the Turlock and Modesto Irrigation Districts. Our analysis assumes that those contracts will be broken and that much of the power – 425 million kilowatt-<\h>hours’ worth – will be available to the MUD or WPA. The city also has a very expensive contract with Calpine to provide backup energy when water is low at the dam. The wheeling fees and Calpine deal boost the actual cost of Hetch Hetchy power to about 4¢ a kilowatt-hour. But the Calpine deal ends in five years, at which point Hetch Hetchy power will be far less expensive – and the MUD’s costs will go down. Green power Our analysis is based on the assumption that San Francisco will move as rapidly as possible to reduce its reliance on fossil fuels (see “Green City,” 9/26/01). Not all of the alternative-<\h>energy sources that should ultimately be part of the city’s mix are likely to be online when the MUD starts operating, so we’ve again been conservative, assuming in our worst-case scenario only a modest amount of solar power to supplement Hetch Hetchy power. In our best-case scenario we assume that the city will be able to develop 200 megawatts of solar and wind power – five times as much as projected in the solar bond measure, Proposition B, and enough to power 200,000 homes. The cost of solar and wind is easy to determine: it’s the cost of the interest on the bonds needed to buy and install the windmills and panels. Once they’re up and running, they cost very little to operate – and the fuel, of course, is free. Based on the San Francisco Public Utilities Commission staff’s analysis of Prop. B), 40 megawatts of solar, wind, and efficiency programs – the equivalent of 98 million annual kilowatt-<\h>hours – will cost about $7.5 million a year. Our ambitious plan – for five times that much solar and wind power- would cost $38 million a year. (Again, the actual costs will probably be lower; once a big agency orders a large amount of solar- or wind-<\h>generating facilities, the price goes down substantially.) The rest of the power the city needs will have to be bought on the open market. Because the market is so volatile, it’s hard to say exactly what that cost would be. But futures contracts for power are listed on the New York Mercantile Exchange Web site, and they’re currently running at less than 4¢ a kilowatt-hour. That price is expected to decline in the future. Again, we’ve stuck to conservative numbers, assuming the MUD or WPA would have to pay 6.9¢ a kilowatt-<\h>hour for power generated locally, by Mirant Corp.’s Potrero Hill power plant (one energy expert told us that Mirant is unlikely to accept less than the 6.9¢ the state is now paying for power), and 5.5¢ a kilowatt-<\h>hour for power bought from out-of-town sources. We assumed that the Potrero plant would operate at its capacity. The power the city would import can’t exceed the amount that can be carried along the one transmission line leading into San Francisco, and our projection meets that criterion. PG&E pays a substantial amount of taxes to the city, and almost all of the San Francisco-<\d>Brisbane MUD Board candidates have pledged to make sure that, at the very least, the city’s General Fund doesn’t lose any money if the private utility is replaced with a public agency. So part of the MUD’s expense would be the payment of a fee to replace what PG&E paid in taxes. The utility pays three major taxes: property taxes, a franchise fee, and business taxes. Based on the Board of Equalization’s assessed value for PG&E ($962 million) and the city’s property tax rate, PG&E’s property taxes are about $1 million. The franchise fee – 1.5 percent of sales – adds another $8.4 million. It’s impossible to say how much PG&E pays San Francisco in business taxes, since that figure is not public, but even at several million dollars a year, it wouldn’t significantly change our bottom line. Unanswered questions There are plenty of questions our analysis doesn’t – and can’t – answer, factors that are impossible at this point to predict with any accuracy. PG&E customers, for example, have to pay a substantial surcharge on their electric bills for what’s known as the CTC, or competitive transition charge. In essence, that’s the money ratepayers have been forced to cough up to cover the cost of PG&E’s bad investments in nuclear power. It’s possible that a San Francisco power agency would have to include some of those charges in its bills – but according to Mindy Spatt, media director at TURN, it’s unlikely. The CTC is expected to end next year and probably wouldn’t be a factor by the time the MUD or WPA was up and running. It’s also unclear whether the MUD or WPA would have to pay a share of the costs of the expensive long-term power contracts that the state Department of Water Resources has signed to buy power for the bankrupt PG&E. There would almost certainly be some substantial legal fees, possibly in the millions of dollars, that would reduce the surplus during the first few years (but not once the eminent domain issues were settled). Most of the MUD candidates have voted to shut down PG&E’s Hunters Point plant, and it’s unclear how much it will cost to decommission that facility. The MUD or WPA could also buy the Potrero plant (it recently sold for $330 million) and pay less for the power generated there. And, of course, it’s uncertain how much electricity will cost on the open market in the next few years. That’s why the MUD or WPA would probably want to move aggressively to increase its own generating capacity. But if power prices go up, one thing is clear: PG&E’s prices will go up higher, and faster, than the prices of a public power agency. Voters won’t have to take our word alone on the subject. The public will have more information on San Francisco’s energy plans in the coming weeks. The county’s Local Agency Formation Commission is planning to bring in experts on public power and energy for hearings, and Smeloff is hiring Amory Lovins’s Rocky Mountain Institute to assess the city’s energy alternatives. Both reports are expected before the Nov. 6 election. Our analysis isn’t that radical or unusual; it just confirms the experience of every other major public power agency in the state. We’ve found what just about everyone who’s gotten out from under the private utilities already knows: public power is cheaper. It’s that simple. Public power in San Francisco: Best-case scenario (Low rates, extensive renewable energy) Revenue1 Residential sales 1.481 billion kwh @ 11.5¢ per kwh $170 million Commercial/industrial sales 3.942 billion kwh @ 9.5¢ per kwh $374 million TOTAL $544 million Expenses Payment on revenue bonds $578.9 million @ 8 percent2 $50.9 million Cost of power * <\i>Hetch Hetchy 425 million kwh @ 4¢ per kwh3 $17 million * <\i>Solar, wind, efficiencies 500 million kwh4 $38 million * <\i>Potrero Hill plant 1.6 billion kwh @ 6.9¢ per kwh $110 million * <\i>Contract purchases 2.90 billion kwh @ 5.5¢ per kwh5 $160 million Operations and maintenance6 $131 million Replace PG&E’s city taxes7 $9.4 million Public benefits8 $10 million TOTAL $526 million Surplus $18 million This chart shows how a San Francisco public power agency could take over Pacific Gas and Electric Co., reduce the city’s reliance on fossil fuels, provide all of the electricity the city needs, and still have money left over. The analysis would apply to either a municipal utility district or a city water and power agency. Proposals for both are on the November ballot. (The MUD proposal would include both San Francisco and Brisbane, but since Brisbane is a very small area – only about 4,000 residents – and since it’s difficult to get accurate data on Brisbane’s current usage, our numbers include only San Francisco. The cost of providing service to Brisbane and the revenue from that jurisdiction would not significantly change the analysis.) The scenario presented here is an optimistic one – although, based on our research, the figures are quite realistic. All of the figures we’ve used are conservative – if anything, our analysis underestimates the financial viability of the MUD or a city WPA. The bottom line: Even with residential rates 20 percent below what PG&E currently charges, and with a huge investment in solar and wind power (five times the size of what the city is currently planning), the MUD or WPA would run a large surplus. This study reflects what a MUD or WPA would be facing several years into its existence. In the first few years, the agency would probably have to buy more power on the open market and would generate less from solar and wind (which take time to set up). But on balance that probably lowers the cost of power (solar is comparatively expensive). There are certain to be factors that we missed – although our cost and revenue projections are very similar to what we found in the annual reports of other large public power agencies such as the Sacramento Municipal Utility District (SMUD) and the Los Angeles Department of Water and Power (LADWP). But we’ve accounted for every foreseeable big-ticket item, and the projected surplus is large enough to cover unexpected costs. 1Revenue is based on sales of 5.4 billion kilowatt-hours: the amount PG&E currently sells in San Francisco, according to the state Energy Commission. A MUD or WPA could set rates at any level it wanted; for this analysis, we set residential rates at 20 percent below PG&E’s current rate of 14¢ a kilowatt-hour rate (which is projected to rise sharply). We assumed that commercial and industrial rates would be at the low end of PG&E’s scale. 2This assumes the MUD or WPA can buy PG&E’s assets at current market value, as assessed by the state Board of Equalization as of Jan. 1, 2001 (see story for details). Ken Bruce of the Board of Supervisors’ Budget Analysts Office told the Bay Guardian that 8 percent would be a reasonable projection for the interest on revenue bonds. 3Hetch Hetchy currently generates about 1.7 billion kilowatt-hours a year, and half of that goes for city government needs – Muni, the lights at City Hall, etc. We assumed that the city would pay the MUD what it pays now – the actual cost of generating the power – so the power sold to the city would be a financial wash. Thus it’s not in our analysis as either a cost or a revenue item. The cost we project for Hetch Hetchy power is high – it includes unfavorable contracts that will expire in five years (see story). The actual future cost would be closer to 2¢ a kilowatt-hour. 4The cost of solar and wind is based on financial estimates for Prop. B. 5It’s impossible to determine exactly what it would cost the MUD or WPA to purchase power in the future, but future contracts currently listed on the New York Mercantile Exchange are going for less than 4¢ a kilowatt-hour, and that price is expected to drop. Again, we took a conservative estimate; actual costs might be lower. 6Based on the cost per customer of operations and maintenance at LADWP (see story). 7The MUD would have no obligation to pay city taxes, but almost all of the candidates for MUD director have pledged to make sure the city doesn’t lose money – in other words, the MUD would almost certainly pay fees equivalent to what PG&E was paying in taxes (see story). 8The state mandates that power companies or agencies spend 2 percent of revenues on “public benefits” – conservation, environmental programs, and the like. Public power in San Francisco: Worst-case scenario (Moderate rates, less renewable energy) Revenue Residential sales 1.481 billion kwh @ 12.6¢ per kwh1 $186 million Commercial/industrial sales 3.942 billion kwh @ 9.5¢ per kwh2 $374 million TOTAL $560 million Expenses Payment on revenue bonds $850 million @ 8 percent3 $74.4 million Cost of power * <\i>Hetch Hetchy 425 million kwh @ 4¢ per kwh $17 million (includes wheeling and backup)4 * <\i>Solar, wind, efficiencies 98 million kwh5 $7.5 million Purchased power6 * <\i>Potrero Hill plant 1.752 billion kwh @ 6.9¢ per kwh $120 million * <\i>Contract purchases 3.098 billion kwh @ 5.5¢ $170 million Operations and maintenance7 $131 million Replace PG&E’s city taxes8 $9.4 million Public benefits9 $10 million TOTAL $539 million Surplus $21 million This chart shows how a public power system in San Francisco would operate if some of the worst-case assumptions are true: if, for example, the municipal utility district or power agency had to spend $800 million to buy out PG&E’s system (the highest likely figure, even according to pro-PG&E studies) and if the MUD was unable to fund and site affordable renewable-energy systems and was thus forced to rely on buying a large amount of its power from the Potrero Hill plant (owned by Mirant Corporation) and from other generators through long-term contracts. Even under those circumstances, the chart shows, the MUD could cut residential rates by 10 percent, keep commercial and industrial rates at the low end of PG&E’s rates, and still end the year with a surplus. As in all of our calculations, the numbers are very conservative; expenses would probably be considerably lower. 1The MUD could set rates at any level it wanted; for this scenario, we’ve set residential rates at 10 percent below PG&E’s current rates. 2The commercial/industrial rate is at the low end of PG&E’s equivalent rate. 3See story for details on the $850 million figure. The bond rate of 8 percent is based on an estimate from Ken Bruce of the Board of Supervisors’ Budget Analyst’s Office. 4See story and “Public Power in San Francisco: Best-Case Scenario” for details. 5This is the amount of solar and wind power projected in the city’s report on the solar bond measure, Proposition B. 6See story and “Best-Case Scenario” for details. 7Based on comparable costs per customer at LADWP. 8See story. 9See story.

The commissioner’s conflicts

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› gwschulz@sfbg.com

Before the June 5 special meeting of the San Francisco Planning Commission got underway, Michael Antonini had an announcement.

Dressed in a charcoal suit and red-checked tie, with his white hair combed back over his skull, the longtime commissioner disclosed that he was a part owner of a condominium in the eastern neighborhoods, where a years-long rezoning effort is nearly complete. That means Antonini is among the people who could benefit from increased land values due to zoning upgrades.

As a result, Antonini begrudgingly declared that he would have to recuse himself from hearings involving the eastern neighborhoods until the potential conflict is dealt with.

"Hopefully this can be resolved in the next few weeks and I’ll be able to participate at later hearings," Antonini said at the meeting.

But it was a bit late to be complying with the state’s conflict-of-interest laws: Antonini had already actively taken part in meetings in which the plan was discussed. And Antonini also neglected to mention that after he and his son purchased the condo, he voted on two other projects that appear to be within steps of it.

Public records show that Antonini bought the $515,000 condo at 200 Townsend Street in 2003 with his real estate agent son, John. Commissioner Antonini and his wife own a 25 percent stake in the property through a family trust the couple created in 1997. His son holds the majority interest.

Antonini worked hard to play down his stake in the condo at the June 5 meeting. It’s not an investment property, he made clear to the commissioners. There’s no rent generated from it. He’s a mere minority holder in a family trust that controls the condo, and it was purchased as a residence for his son and his wife.

"Because I did not believe our fractional interest in John’s condo represented a conflict, I did not consider reclusing [sic] myself from projects near the condo," Antonini wrote to the Guardian.

But the laws on this are pretty clear. The state’s Political Reform Act of 1974 prohibits public officials from participating in decisions that will have a "foreseeable material financial effect on one or more of his/her economic interests." It also states that any "direct or indirect interest" worth more than $2,000 poses a potential conflict, for which a 25 percent stake in a half-million dollar condo would seem to qualify.

RECUSE ME


Other public officials in similar situations have recused themselves long before the issue became a potential political liability.

Sup. Bevan Dufty bought into a three-unit residential property on Waller Street with two co-tenants in December 2006. He immediately sought advice from the city attorney, who told him he no longer could vote on the Market-Octavia Plan, a series of land-use changes in Hayes Valley, Duboce Triangle, and elsewhere that was similar in scope to the current rezoning efforts in the eastern neighborhoods. The supervisor also couldn’t vote on a major Laguna Street redevelopment project or on legislation making it easier for seniors to convert rental units to condos.

Antonini told us that "only in the last month" did the city attorney warn some officials involved with plans for the eastern neighborhoods that if they held property in the area, there could be a conflict of interest.

"We’ve been working on [the eastern neighborhoods] for the whole six years I’ve been on the planning commission," he said at the meeting. "It’s a little troubling that this issue of conflict is raised now rather than at the very beginning."

The law does make an exception when the economic interests of the "public generally" could also be enhanced by a government decision such as those that have an impact on a large section of the city like the eastern neighborhoods. But the city attorney’s office concluded for now that the condo indeed may pose a conflict. And in the meantime, Antonini told us that the Fair Political Practices Commission in Sacramento, which helps enforce the state’s Political Reform Act, is being consulted to determine "whether our fractional interest in the condo truly represents a conflict of interest."

The eastern neighborhoods planning process isn’t the only legislation that created a potential conflict for Antonini. The commissioner voted in January 2007 to approve construction of 26 new single-room occupancy units at 25 Lusk Alley, not far from his property at 200 Townsend. The project’s sponsor, Michael Yarne, is a land-use attorney who today works for the mayor’s economic development office. The project was approved, according to meeting minutes.

The project itself relied on a contentious legal loophole in which developers claim their units are "single-room occupancy," a necessity because the area permits residential efficiency hotels where the poor and working-class used to live. Allowing such SRO hotels in areas zoned for light industrial uses enabled the city to preserve some forms of affordable housing. But builders can turn around and lease the opulently large units such as the ones at 25 Lusk, which bear little resemblance to genuine SRO rooms, to well-heeled clients.

"They are allowed where normal residential units are not allowed, because historically SROs were always extremely affordable housing," community organizer Calvin Welch said. "The whole notion of market-rate SROs is a new invention, and that’s why they’re controversial. They’re basically the new version of live-work lofts."

In November 2006, Antonini also voted to approve a liquor license for a new full-service restaurant and wine bar at 216 Townsend, even closer to his son’s condo.

TOO CLOSE FOR COMFORT


State ethics laws say that a public official has a conflict if his or her property comes within 500 feet of a project the official will be scrutinizing and voting on.

Conservatively measuring from the furthest corners of each property, Google Earth puts both the proposed restaurant and SRO within 500 feet.

Bob Stern, president of the Los Angeles–based Center for Governmental Studies and co-author of the state’s Political Reform Act, said a public official could face $5,000 in civil penalties for each conflict-of-interest violation. But it’s not common for the chronically under-resourced FPPC to go after local officials, he said.

Mayoral spokesperson Nathan Ballard wrote in an e-mail that "we take any allegations of conflicts of interest seriously" but added there is a disagreement over whether the "public generally" exception applied to the eastern neighborhoods and that the City Attorney’s Office was seeking additional input from the FPPC.

As for the two projects he voted on near the condo, Antonini apparently told the mayor’s office he had looked into whether 25 Lusk fell inside 500 feet. "Based on his understanding at the time," Ballard wrote, "they didn’t."

That’s a stretch, at best. The projects are in the same block. We walked them off and found that Antonini would have to be splitting hairs to argue that they are outside the boundary — and even in that case, it would be only by a few feet. The rusty red paint job, black trim, and stylish, outsize windows of 200 Townsend are easily viewable from the backside of 25 Lusk.

"If there is a legitimate argument that they did fall within the 500-foot radius, this should be clarified," Ballard stated. "However, given the relative insignificance of the two projects cited in your e-mail and Antonini’s long-standing reputation as an ethical and hard-working commissioner, we don’t have any reason to believe that he would have knowingly and/or willingly violated the state’s Fair Political Practices Act."

But the Lusk Street project was by no means insignificant. "They are highly regulated," Welch said of SROs. "You cannot convert them to tourist hotels without going through a very long and cumbersome process. They are valued for affordable housing so highly that the city regulates their conversion to tourist uses." So instead, the "corporate suites," as Welch calls them, masquerade as SROs. The project was approved in the end, but two commissioners — Christina Olague and Sugaya Hisashi — voted against it.

Antonini told us that he believes 25 Lusk is more than 500 feet away, and as for the restaurant, planning staff recommended approval.

The commissioner told us, "I was the one who brought public attention to the issue of my possible conflict. I believe it is a small issue when compared to my body of work on behalf of San Francisco over the last six years."

The June 5 meeting where Antonini made the disclosure about his son’s condo was part of a long and detailed process that will determine the fate of vast sections of Potrero Hill, SoMa, the Mission District, and Dogpatch. The official planning process for the targeted 2,200-acre area began back in 2001, and the commissioners could approve new zoning plans next month before sending the proposal to the Board of Supervisors.

For much of San Francisco’s history, the city sections poised for rezoning have been home to light industry and blue-collar jobs. But housing has encroached over the last 15 years, and the planning commission is prepared to allow between 8,000 and 10,000 new units over the next 20 years. That will almost certainly increase the value of land in the area.

Residential developers built thousands of pricey condos in the SoMa District during the 1990s, exploiting another divisive zoning loophole that created waves of animosity across the city and aided in a takeover of the Board of Supervisors by a progressive bloc of candidates.

Live/work lofts, as developers called them, were built in areas zoned for light industrial commercial purposes. Wealthy buyers would ostensibly operate businesses out of their homes or live in them as working artists as the zoning required, but few have complied with the letter or — having found ways to narrowly abide by it — the spirit of the law.

"The city turned its head," housing attorney Sue Hestor said. "We have 3,000 units that are supposed to be occupied by artists and probably 90 percent of them are not occupied by artists at all. It’s blatantly illegal."

Antonini has managed to maintain friendships with local moderate Democrats over the years despite being an elected member of San Francisco’s Republican Party County Central Committee. Willie Brown first appointed him to the powerful planning commission in 2002, and he’s been a reliable vote for developers and other large business interests. Mayor Gavin Newsom reappointed him in 2004 and earlier this year tried to engineer Antonini’s election as president of the commission.

Tie the same-sex knot

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› culture@sfbg.com

For opposite-sex couples, getting married never had to be difficult; it was as simple as a jaunt to City Hall for a marriage license or a flight to Las Vegas for a midnight ceremony.

As of June 17, San Francisco became a worthy competitor for same-sex couples. Since the California Supreme Court ruling legalized same-sex marriages that day, choices for weddings have begun to expand.

Indeed, if you’re in town for Pride Weekend and you feel the urge, the decision to marry may not call for any planning at all. For a spontaneous ceremony, head to the Heart of the Castro Wedding Chapel (4052 18th St., SF; 415-626-7743, www.heartofthecastro.com).

Designed to offer the convenience and accessibility of a Las Vegas–style wedding chapel, the Heart of the Castro was founded by the Rev. Victor Andersen after he learned of the Supreme Court’s ruling.

"Las Vegas was the original inspiration for the chapel, but we’re definitely trying to make it classy and more San Francisco," Andersen said. "But we adopted the convenience aspect of Vegas, and we’re trying to keep it affordable for people who just want a sweet and simple wedding."

The Heart of the Castro already has booked several couples for ceremonies, and Andersen projects that plenty more will arrive during Pride Week, when the chapel will serve couples on a walk-in basis.

"We have a notary on hand for couples who can’t get an appointment at City Hall," Andersen said.

At the Heart of the Castro, the ceremony can take place as soon as the license is issued in as little as 30 minutes. The chapel has two rooms connected by double-doors and can comfortably seat 30 to 40 guests. Andersen says the two rooms will enable simultaneous ceremonies during Pride Week.

Future wedding ceremonies can be as extravagant as couples wish, including costume and theme weddings, and ceremonies in Spanish. "In the future, we will work with couples to plan more elaborate ceremonies," Andersen said. "We encourage couples to take their weddings to a more playful place."

If couples want to take a short drive south, Kate Talbot of California Marriages in San Mateo (www.californiamarriages.com, 650-571-5555) can perform the ceremony and issue a marriage license. No witnesses are required, but couples can bring guests. Talbot, a licensed notary, has been performing weddings for 10 years, and is excited that she is now able to provide same-sex couples with her services.

"I take great pride in making each ceremony really special," said Talbot, who offers a variety of poems and blessings to be read at the couple’s request. "I can reduce everyone to tears if they want, or I can make the ceremony all bang-bang in one stop," she said.

While small ceremonies can be held in her San Mateo home, many couples choose the public Japanese Friendship Garden across the street. For an additional $25, Talbot will go anywhere the couple chooses. "People can come anytime," said Talbot, who can carry out a couple’s nuptials with as little as an hour’s notice. "I can issue the license and perform the ceremony the same day."

Although Marcinho Savant recommends that couples "seriously consider planning" their weddings instead of marrying impulsively, a couple can still show up at City Hall for quickie marriage.

Savant is the senior events coordinator for www.savvyplanners.com, a wedding-planning service that caters to same-sex couples. "In theory, couples can get married instantly," he said. But in practice, that depends on the number of people who have the same idea at the same time.

"The challenge is that there are so many couples trying to do this," Savant said, recalling the enormous crowd at City Hall in 2004 when Mayor Gavin Newsom first legalized same-sex marriage in San Francisco. "It’s completely dependent on the crowd that has amassed."

Theoretically, a ceremony can be scheduled at City Hall 30 minutes after the license is issued, providing that appointments are available. Savant recommends that couples download the marriage license application from City Hall’s Web site to save time waiting in line. "But don’t sign it or else it’s invalid," he advised. "The application needs to be signed on site."

The license is good for 90 days. And, you don’t need a minister or notary; in California, a couple can have a friend or family member perform the ceremony, although the person must acquire a license from City Hall within 60 days of the ceremony.

If a couple decides to take the religious route, many churches and some synagogues are available, although most require some advance notice:

The First Congregational Church of San Francisco, United Church of Christ (1300 Polk, SF; 415-441-8901, www.sanfranciscoucc.org) has been performing same-sex ceremonies for more than 20 years, according to the Rev. Dr. Wilfred Glabach. The church can accommodate religious services with a minister on staff, or couples can have the minister sign their licenses. Couples are also welcome to hire their own officiant.

Swedenborgian Church (3200 Washington, SF; 415-346-6466, www.sfwedding.org) also offers services. Services will be free Wednesday, June 25 and Thursday, June 26.

The Metropolitan Community Church (415-863-4434) of San Francisco has been performing same-sex marriage ceremonies since 1971. The Rev. Lea Brown said that while they are unable to provide a place to hold weddings, they can provide clergy and music. Call for details.

For Jewish couples, Congregation Sherith Israel (415-346-1720) is available for members. And Congregation Sha’ar Zahav (290 Dolores, SF; 415-861-6932, www.shaarzahav.org) will perform ceremonies regardless of membership.

Additional churches conducting ceremonies for same-sex couples are First Unitarian Universalist Society of San Francisco (1187 Franklin, SF; 415-776-4580, www.uusf.org); Interfaith Center at the Presidio (130 Fisher Loop, SF; 415-561-3930, www.interfaith-presidio.org); and Unity Christ Church (2960 Ocean Ave., SF; 415-566-4122, www.unitychristchurch.org).

The Hot Pink List 2008

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>>ALLAN AND LEO HERRERA



Yes, they’re gay brothers, which is, like, totally hot. But even if they weren’t related, their individual artistic creations would have us on the hook. Heads of HomoChic (www.homochic.com), the new gay mafia collective that combines gallery shows, fashion design, and nightlife craziness into mind boggling events, they’re inspiring the latest generation to revel in its scandalous past. Leo’s photography mixes porn with historical reference to dizzying, stimuutf8g effect. Allan’s costuming and styling brings bathhouse and backroom gay culture to light. Currently the Chihuahua, Mexico-born siblings have pieces in the queer Latino "Maria" show at Galería De La Raza. Leo features pants-raising boy-pics and a video installation centered on Harvey Milk. Allan, whose Money Shots underwear line graces many an alternaqueer’s backside, displays a chandelier made of 2,000 pink condoms.

MARIA

Through July 4

Galería De La Raza

2857 24th St., SF

(415) 827-8009

www.galeriadelaraza.org


>>ANNIE DANGER



Who’s the superbusy M-to-F artist and activist stirring up trouble with the mighty force of a Dirt Devil — the one they call Annie Danger? She’s sketched flora and fauna for environmental manifesto Dam Nation (Soft Skull Press, 2007), appeared as a blackjack-playing nymph in a shit-stirring Greywater Guerillas performance, dressed like a wizard at a recent Gender Pirates party, and just played Pony Boy in a queered-up "Outsiders." Right now at Femina Potens gallery (www.feminapotens.org), you can see her as Sister Wendy, the wimpled PBS art nun, in her video for "Untold Stories: Visual and Performative Expressions of Transwomen." In a rare occurrence, you can meet Annie Danger as herself at the National Queer Arts Festival’s edgy "TransForming Community" spoken word event. Who she’ll be when she MCs Friday’s thrilling Trans March (www.transmarch.org) is anyone’s delightful guess.

TRANSFORMING COMMUNITY

Thurs/26, 7:30 p.m., $8–$15

LGBT Community Center

1800 Market, SF

(415) 865-5555

www.queerculturalcenter.org


>>DEXTER SIMMONS



"I worry not just for fashion, but for the future of television," this multitalented fashion designer, stylist, hair and makeup artist, model, and Oakland native told us with a laugh backstage at the Vans Warped Tour, where he was frantically preparing bands for the stage. "There’s a cheesy aspect creeping in right now because of fashion reality TV that scares me. It looks too easy, and creates too many followers. Wise people want one-of-a-kind, personalized looks. That’s why I love San Francisco," he adds. "It’s small but big — global even — and it likes to take risks." Dexter’s company, FLOC (www.teamflocouture), formed with his best amigo Lauren Rassel, has been taking local runways and nightclubs by fierce, feathery storm since it was formed two years ago, and local rockers like Von Iva and Svelt Street swear by FLOC’s Warriors-inspired designs. Now working as a stylist for SF-based online retail giant Tobi.com, Dexter seems destined for the big time — his designs are penetrating the world and making heads turn a wee bit sharper.


>>CHELSEA STARR



She’s too-too much, this Miss Starr. A genre-straddling DJ and ubiquitous promoter celebrated for her many regular parties (including new weekly Buffet at Pink, a fabulously popular all-female DJ weekly shindig, and Hot Pants, a queer biweekly that draws out the crème de la crème of the city’s thigh-baring night owls), as well as a groundbreaking writer who just toured the country as part of the Sister Spit all-girl spoken word road show, and a fashion designer with her very own eponymous line of eminently wearables — there are just so many ways to love her. This week she’ll find time to spin at umpteen Pride parties, as well as at her very own special Pride edition of Hot Pants. "I’m also a twin, a Gemini, and a cookie monster," Chelsea tells us with a wink.

HOT PANTS

Fri/27, 10 p.m., $5

Cat Club

1190 Folsom, SF

(415) 703-8964

www.myspace.com/hotpantsclub


>>JOSH CHEON



We can’t fib — smarties turn us on. So when we heard that cutie DJ Josh Cheon, host of West ADD Radio’s thuper-queerific "Slave to the Rhythm" program (www.westaddradio.com/slavetotherhythm) held advanced degrees in cell biology, neuroscience, and psychology, we suddenly had to hide our pointiness. An integral member of San Francisco’s gay vinyl-fetishist collective Honey Soundsystem (www.honeysoundsystem.com), Cheon just got back from rocking London’s premiere alternaqueer club, Horsemeat Disco. While his radio show’s name pays homage to Grace Jones, his eclectic sets encompass Candi Staton classics and Detroit Rock City jams. As a featured disc-meister at Bibi, San Francisco’s glorious, charitable party for Middle Eastern and North African queers, he taps his Lebanese roots with Arabian and Persian pop and disco favorites like Fairuz, Googoosh, and Dalida — and some surprise grin-givers from the likes of Boney M.

BIBI

Fri/27, 9 p.m., $20

Pork Store Café

3122 16th St., SF

(415) 626-5523

www.myspace.com/BibiSF


>>MONISTAT



She’s everywhere, lately, this feisty mistress of the night. Trash drag fanatics, glamorous electro freaks, after-hours hipster hot tub revelers — she’s a muse to many, with a sharp tongue and handmade Technicolor outfit for all. Plus, just in general: hot Asian tranny fierceness. "I’m thoroughly inspired by the pigeons in the Civic Center," she tells us. "Also, parties full of beautiful people worshipping me." She’ll be hosting the Asian and Pacific Islander stage at this year’s Pride festivities. But first this plus-size supermodel, trainwrecking DJ, oft-blacklisted performer, and dangerous skateboarder will be throwing a sleazoid party called Body Rock on gay-historic Polk Street "for the musically impaired and fans of a man in a dress, which would be me. I’ve walked through the fire and come out blazing!"

BODY ROCK

Thu/26, 10 p.m., free

Vertigo

1160 Polk, SF

(415) 674-1278

www.myspace.com/monistat7


>>CHRIS PEREZ



Which highly influential SF gallery owner brought John Waters, Todd Oldham, the mayor, and hundreds of sweaty kids together (with a couple kegs) under one roof this spring for photographer Ryan McGinley’s West Coast solo debut? Chris Perez of Ratio 3, whose shows also helped artists score Artforum covers and big time awards. Perez pairs an intuitive talent for identifying a popular hit with innovative curatorial decisions. But his space is no mere white box in the gourmet ghetto: "You’re never just walking down Stevenson," explains this escapee from Catholic school and former San Diego Museum of Photographic Arts volunteer. "Unless you’re hooking up or getting cracked out." Or peeping great art. On Friday, Ratio 3 dresses up as ’90s queer-radical gallery Kiki, for "Kiki: The Proof is in the Pudding," a group tribute to late curator-activist Rick Jacobsen.

KIKI: THE PROOF IS IN THE PUDDING

Fri/27, reception 6–8 p.m., free

Ratio 3

1447 Stevenson, SF

(415) 821-3371

www.ratio3.org


>>HUNTER HARGRAVES



If you think constant AIDS activism is exhausting, try doing it in drag. Stanford grad Hunter heads up StopAIDS (www.stopaids.org) community initiatives by day, and is a board member of diversity-seeking And Castro For All (www.andcastroforall.org), through which fellowships in his name are awarded to young queer activists every year. By night and early morning he becomes Felicia Fellatio, a precariously-heeled tranny who’s single-handedly hauling grunge back onto drag stages — a recent flannel-drenched lipsync of Pearl Jam’s "Jeremy" teared up many a jaded eye — and he DJs queer punk parties like Trans Am (www.myspace.com/transamtheclub) and Revolution, the hot monthly tea dance for HIV-positive men at Club Eight (www.positiveforce-sf.com). Felicia also auditioned for America’s Next Top Model (seriously) but was eliminated when her man hands slapped someone prettier. You can catch Hunter and Felicia, although probably only half of each, at the StopAIDS booth at this year’s Pride celebration.


>>ALICIA MCCARTHY



Hipsters sporting $80 faux-penciled rainbow patterns and glossy-mag ads with jagged color intersections are fronting a style artist Alicia McCarthy helped originate — but she does it a hundred times better. Her current show at Jack Hanley takes off in a dozen different directions from her signature shapes and spectrums in a manner that reflects an honestly fractured identity. Coiled thought forms, a wooden chair facing the backside of a scruffy penguin flying toward a wall of mirrors, and a show-within-the-show by friend Stormy Knight that includes sketches by a parrot named The National Anthem and sculpture by Redbone the dog. McCarthy’s latest exhibition also displays more than a few small works subtly placed where a wall meets the floor, which goes to show that she’s still making some art that only people who pay attention will discover.

ALICIA MCCARTHY

Through Sat/28, free

Jack Hanley Gallery

395 Valencia, SF

(415) 522-1623

www.jackhanley.com


>>MON COUSIN BELGE



Half-naked, goo-spitting art rock in a sling never got so deliciously tawdry. When this San Francisco quartet of self-professed "bunch of fags with vision and bacon cheeseburgers" takes the stage and launches into "Tweaker Bitch" or "Pigdog" off their new album Quelle Horreur (World Famous in SF Records), anything involving titilutf8g revulsion can happen and usually does. Fronted by enigmatic singer Emile, a Belgian addicted to plastic surgery — 39 procedures to date — and leather thongs, Mon Cousin Belge (www.moncousinbelge.com) updates queercore for the ambivalent masses with "deep faggotry jams" and knickers-wetting live performances. Bring a towel to their launch party at Thee Parkside bar in Potrero Hill. You’ll definitely need it — the crowd of cute intel-queers they draw is over-the-top steamy.

QUELLE HORREUR LAUNCH PARTY

Sat/28, 10pm, $6

Parkside

1600 17th St., SF

(415) 503-0393

www.theeparkside.com

The Guardian Queer Issue 2008

The Queer Issue

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In this issue:

>>Scandalous Pride events

>>The Hot Pink List 2008: up-and-comers

>>Where to get married

>>Why not to get married

>>Charo spills the cuchi

>>Superhero tranny flushed into the ’70s

>>Visions of cruising past

>>Queercore makes a comeback

>>Once a riot grrrl, always an artist

>>Fresh Meat still breaks transgender ground

>>Lesbian pregnancy from hell

>>A gay pornocopia

>>The Busy World is Hushed

>>Apichatpong offers filmic bliss

Oh, hai, happy Pridez! Time again to lean back languidly and reflect — not just in your makeup mirror lined with curlicue lavender CFLs, but on where we are as a community. As usual, we straddle an odd queer moment. Yes, legalized same-sex marriage, California-style, is all the rage. Even my radical queer eye teared up when happily balled and chained couples streamed out of City Hall June 17. And you can bet I’ll be on the front lines fighting that awful November ballot initiative, defining marriage as exclusively between one tree and one Mormon.

Some queers want to get married (see "Tie the same-sex knot,"), some don’t ("Down with legitimacy,"). Others, like me, are simply hiding from their boyfriends. It’s yet another great diversity among us. The overall feeling at City Hall, though, besides sheer jubilance, was one of relief more than revolution. Four years ago, during the Winter of Love, rebellion — even talk of secession — crackled in the city’s air. But that scary "M" word, marriage, went the way of The L Word long ago into mainstream territory. Wedding rings were the new septum rings; now they’re just the new freedom rings. "What’s the big deal?" is the whole point.

The weird thing is that right as we’re being carried over the threshold of legal normalization, our outlaw history is roaring back in a big way. Eight years ago, a DJ named Bus Station John set out to highlight gay men’s bathhouse and hi-NRG disco heritage by playing old-school records, many of which he’d amassed from people who’d passed on from AIDS. This was a revelation to the new queer generation, raised with effective HIV meds but led to believe that gay musical history started with Madonna. It was a return of the repressed — an inspiring, AIDS-obscured swath of yesteryear suddenly came to light.

Now you can’t go anywhere without seeing mustaches, aviator glasses, and hipster variations of the clone look. The filming of Gus Van Sant’s Harvey Milk biopic Milk this winter costumed the city in pristine White Riot chic. Wonder of wonders, we even have a brand new SoMa leather bar, Chaps II, named after Miracle Mile’s infamous ’80s watering hole, Chaps — joining the great new retro Truck bar, expanded Hole in the Wall Saloon, Eagle Tavern, and Powerhouse. Take that, Internet! Queercore homeboy innovators Pansy Division ("Queercore, many mornings after,") get canonized with a doc at this year’s Frameline Film Fest. Most intel queers I know are gobbling up Terence Kissack’s recent tome, Free Comrades: Anarchism and Homosexuality in the United States, 1895–1917 from Oakland’s AK Press.

But the past isn’t just for gay men. The Fresh Meat festival has been breaking transgender performance ground since the millennium began ("Rare, medium, well-done,"). Nineties riot grrls are making strong artistic marks ("Heart shaped box," page 49), and I can’t step into a dyke bar lately without being immediately corralled into a Journey sing-along by Runaways look-alikes. The turbo-awesome current exhibition at the GLBT Historical Society (www.glbthistory.org), "Dykes on Bikes: 30 Years at the Forefront," reminds us not only that boobs are still illegal, but that rad women of all shapes and colors have led us from Gay Freedom Day to this week’s Pride. And it’s no surprise that the original Daughters of Bilitis, Del Martin and Phyllis Lyon, were the first couple to get legally married here, 53 years after starting the first official, highly persecutable, lesbian organization.

As we move seemingly inexorably toward mainstream acceptance, it’s nice to know that the heroes of our struggle, people who did things differently, are still fresh in our minds. This year the Guardian pays tribute to the LGBT underground past and present, and raises a toast to our deliciously shameless future.

› marke@sfbg.com

Frameline 32: Sex changes

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TAKE ONE In Iranian director Tanaz Eshagian’s Be Like Others, fear hovers over a whole nation, leading to schizophrenic behavior. By concentrating on three different individuals before and after they went through sexual reassignment operations in Iran, Eshagian reveals an incredibly sad and asphyxiating society — one where homosexuality is banned and punishable by death but changing one’s sex is legal.

No matter how progressive the act of changing one’s sex might sound, Be Like Others proves that it has conservative and oppressive connotations in Iran. Most of the people considering surgery in Eshagian’s film do so because they feel that it’s their only alternative to a gay male or lesbian identity that involves disrespect, harassment, and the possibility of a horrible death. Yet instead of finding acceptance post-operation, many are even more alienated.

The reason for this insanity, as explained by one official: being gay or a cross-dresser allegedly disrupts the “social order.” In other words, gender-bending blurs the distinctions between the sexes, making Iranian social role-assignment — largely determined by sex — a confusing task.

Mind-boggling and utterly scary, Be Like Others is a great comment on people’s obsessive need to label and compartmentalize, and a statement about our disgusting fear of anything that lacks clear delineation. At first, Eshagian’s documentary might make you feel lucky to live in a country where measures against homosexuality are not as extreme. But as it sinks in, it will make you question how far removed the situation in Iran really is from that in the United States. (Maria Komodore)

TAKE TWO At first the Iranian laws that make Tanaz Eshagian’s movie necessary seem not just cruel, but absurdly and arbitrarily so. How could homosexuality be illegal and punishable by death, while the government not only sanctions sexual-reassignment surgery but acts as its facilitator?

In Be Like Others, the answer comes from Cleric Kariminiya, a so-called Theological Expert on Transexuality, during an information session for prospective patients and their families. While Islamic law explicitly forbids homosexuality, he explains, there is no such explicit restriction on changing one’s gender.

In other words, the binary sexual politics of Iranian authority are undermined by the existence of queer citizens, whose mannerisms or predilections suggest a continuum. Eshagian’s powerful film follows a few citizens who, too visibly close to the middle of that continuum, are forced to decide between the suffering and danger of their current lot and an abrupt surgical introduction into social legitimacy.

The decision-making process these individuals face is extremely difficult viewing. Those people who successfully transition often have no other option but sex work to survive. Suicide is rampant.

Eshagian’s project is exceptional because it leaves the viewer enlighteningly confused about Iranian attitudes toward gender and law. The most fascinating character in the film is a transgender woman dedicated to the care of patients in transition. She is supportive, devoted to her patients’ well-being, and fully entrenched in the traditional Iranian views of men and women. (Jason Shamai)

BE LIKE OTHERS

Mon/23, 7 p.m., Victoria

Olema Inn

0

› paulr@sfbg.com

If Marin County is a state of mind, would it be catty to describe that state of mind as schizophrenic? Despite a compact geography, Marin shows the world a surprising number of faces; there’s Mount Tam, Muir Woods, Black Sands Beach with its sporty naked people, the writhing population centers in the southeast (my least favorite quarter), and — my most favorite — the rolling, wooded, gently farmed county to the west.

West Marin is an enchanted realm, a genteel Arcadian dream. The city is just 20 miles distant, but one does not feel it. For those of us who’ve had occasion to live in one of the metropolises of the East, whose sprawl can take several hours to escape, this swift vanishing of urbis is an abiding miracle. Humanity’s self-absorbed throbbing subsides, and there is peace across a landscape luminously painted by Thaddeus Welch more than a century ago. The two-lane roads, uncluttered with traffic, wend through tidy little villages and country junctions often punctuated by sharp church steeples, past neatly kept fields, pastures, and orchards. And at the end of one of those roads lies the Olema Inn, an oasis of civilization and civility.

The Olema Inn has been a fine restaurant for nearly a decade, but its deeply atmospheric building is far older, with roots extending back well into the 19th century. When you step onto the Victorian veranda, you have a momentary vision of Mark Twain standing there, gazing out, maybe waiting for a stagecoach or looking for a spittoon — and then you see the "Marin Organic" sign and, for better or worse, you’re right back in the early 21st century.

Inside, the building has been buffed to a soft shine. The lobby, with its inviting bar, has the look of an Edwardian salon — plump, comfy chairs amid lots of rich wood — while the dining rooms beyond are a gracious blend of mullioned, multi-light windows, antique pine floors, fresh white walls, and garden views. While Twain lingers on the porch, twirling his moustache, you have been seated in an Edith Wharton novel, where the linens are always well-starched.

The "Marin Organic" sign tells us that the restaurant is a serious food destination: the kitchen participates in the west county’s responsible-agriculture culture while committing itself to do right by the high-quality ingredients thereby produced. The ethic seems almost indistinguishable to me from that of Chez Panisse, and the results are comparably impressive.

Since western Marin is a locus of oystering — Tomales Bay is the home of Hog Island oyster farm, as well as an unknown number of great white sharks — the Olema Inn’s menu offers this bivalve in a variety of guises. You can get eight sizable oysters on the half-shell for $18; they can be cooked or raw (or some of each), with a wide choice of toppings, including tomato and basil, bacon and fennel, and a classic mignonette made with sauvignon blanc. Excellent and memorable, every one — and I would not describe myself as an oyster-lover.

Soup probably doesn’t get enough credit as a vehicle for chefly expression, but at the Olema Inn, it isn’t for lack of effort or ingenuity. A bowl of wild nettle soup ($10) could easily have been mistaken for green paint ready to be splashed on a military rig, except for the large fried oyster, flecked with breading, in the middle. Only slightly less intense a green was a chilled soup of puréed asparagus ($10), poured around a set of large shelled prawns and dotted with slivers of kumquat.

Sand dabs, a local maritime treasure, are known to be bony, and it might be that their reputation suffers because of this, but they make a fabulous fish and chips ($14). We couldn’t find a single splinter of bone, and the tubular strips of flesh were juicy within their golden crust — a hint that the fish had not been frozen. The chips were limper than what one would consider ideal, but they had been fried in duck fat, which more than made up in flavor what had not been achieved in crispness.

The flavor of duck also pleasantly pervaded a steak hash ($18): cubes of potato and beef, dottings of fresh fava beans, and coarse flaps of onion and fennel root adrift in a ducky broth into which a poached duck egg slowly leaked its yolk. The steak had been billed as the star ingredient, but the dish would have been fine without any meat at all — or maybe just some duck confit? Hash is a well-known recycling center for leftovers, but leftover duck confit often finds its way into salads, not hashes. And sometimes there isn’t any leftover confit at all.

Although bread pudding is another locus for leftovers, Olema Inn’s vanilla version ($9) didn’t seem at all fatigued — more like a fresh morning bun, envelopingly soft and warm. Our server was particularly enthusiastic about the chamomile crème brûlée ($9). It did turn out to be almost obscenely creamy — a true custard — beneath its cap of caramelized sugar, though I strained to detect any hint of chamomile in the flavor. The sour love-bite of lemon, on the other hand, was plainly discernable in the profiteroles ($9); they were filled with lemon-cookie ice cream and were assembled from fresh, house-made pastry, to judge by their exquisite tenderness. Wharton no doubt would have approved. As for Twain: he had vanished into the unseasonable mist, and the veranda was clear when we left. *

OLEMA INN

Lunch: Sat.–Sun., noon–4 p.m. Dinner: daily, 5–9 p.m.

Sir Francis Drake Blvd. at Highway 1, Olema

(415) 663-9559

www.theolemainn.com

AE/DISC/MC/V

Beer and wine

Not noisy

Wheelchair accessible

Another shelter down

0

› amanda@sfbg.com

Inside the front door of the Marian Residence for Women, a small handmade sign by a former resident advises newcomers, "Don’t compare this place to any others."

But I’ve stayed in the city-funded homeless shelters, and after a night at Marian, it’s hard not to rave about the differences. I’m given an actual bed to sleep on, with freshly laundered sheets, blankets, and a pillow. The bathrooms and showers are clean, and I’m offered every toiletry I could possibly need — as well as pajamas. Dinner is a wholesome meal of turkey, potatoes, and steamed greens — not the mystery meat on Wonder bread I received at the city’s MSC South shelter.

And unlike the tension I’ve witnessed at other shelters, the atmosphere inside Marian is close to pacific. After dinner, the 29 other women shower, read, rest on their beds, work on their laptops, or talk quietly while sitting at small tables in the common area. After my mandatory shower, I sit with an employee who explains the rules — be respectful of others, no drinking or drugs, and don’t forget to do my chore, which is assisting with dinner service. As long as I’m home by 7 p.m., I can have my bed as long as I need it.

That is, she clarifies, until the end of August — when they’re closing the shelter. For good.

Marian is a casualty of a plan by St. Anthony Foundation to cut $3 million from the foundation’s operating budget. In addition to closing the $1.2 million Marian facility, which houses 30 women in the emergency shelter and 27 in a transitional program, St. Anthony also will shutter its 315-acre organic dairy farm in Petaluma, currently used as a rehabilitation program for homeless addicts. Its Senior Outreach and Social Services [SOSS] is also losing staff and office space as it consolidates with the Social Work Center.

Five of the foundation’s 11 programs face cuts, the result of a two-year sustainability study that St. Anthony’s executive director, Father John Hardin, said will keep the charity out of a fiscal tailspin.

"We’re not in a financial crisis," he told the Guardian. "The reason we’re doing this is so we won’t be in a financial crisis."

He said the closures reflect the organization’s desire to get back to basics.

But, as one of the 40 soon-to-be-laid-off employees said, "They’ve said they want to refocus on basic services, but I see shelter as a basic service."

St. Anthony receives no city money for the work it does, but the closures are occurring in what’s already a war zone of budget cuts for social services in San Francisco. The loss of any of St. Anthony’s programs affects the city as a whole.

"Are we concerned? Yes," said Dave Knego of Curry Senior Services, which frequently refers seniors the group can’t help to St. Anthony’s SOSS program. "Unfortunately, we already have a waiting list, and the city’s cutting our funding back by 10 percent."

The closure of Marian is yet another sign of the slow erosion of shelter space in San Francisco. Since July 2004, 364 shelter spots have disappeared. By the end of August, Marian’s 57 beds and Ella Hill Hutch’s 100 mats will be gone as well. "You can’t afford to lose 57 beds, especially in a place where women are being treated like human beings," said Western Regional Advocacy Project’s Paul Boden, who’s worked with homeless services in the city since the 1980s. "What I thought was really ironic was there wasn’t any attempt to build a community effort to discuss how to save this facility. These beds are an incredibly important community resource."

Some of the women who live in the transitional program at Marian wanted to rally and save the shelter. "First and foremost was to try to save Marian Residence for Women," said Leticia Hernandez, a two-year resident of the transitional program who still hasn’t lined up a place to go when the shelter closes. "Even if we couldn’t save it, we thought it was still worth a try because any money that would come would go back to them." The women drafted a letter asking for help, which they’d hoped management would distribute to the press and public.

The foundation, Hernandez said, had a "thanks, but no thanks" response.

Hardin told us that St. Anthony’s wasn’t facing a financial crisis, so "we’re not going to get up and cry wolf. We want to go back to some of the basics. We’re turning people away from the clinic," he pointed out.

He agreed that shelter was a basic service, but said, "We can’t do it all."

The foundation wouldn’t detail its intentions for the building once it’s vacated Aug. 31, beyond affirming that it would be rented. "That’s going to be an income generator," said foundation spokesperson Francis Aviani. "We are hoping to get a social service agency to use the space in the way it’s designed for, helping folks."

Multiple St. Anthony employees said they were told the facility would be used for medical respite — beds set aside for people who aren’t in critical condition, but are too ill or fragile to mingle with the general population and have nowhere else to go — and a St. Anthony board member confirmed that was the only plan presented to the board.

Marc Trotz, director of the San Francisco Department of Public Health’s Housing and Urban Health division, which oversees its $2.5 million, 60-bed medical respite program currently housed in two facilities, told us the city is looking for a new respite site. He confirmed that the Marian building is a facility the agency has seriously considered. "We’re not looking to push one program out in favor of another or anything like that." But, he said, "It’s a potential site that would work well."

While St. Anthony is cutting $3 million in programs, foundation staffers have been working for several years on a $22 million capital campaign for a new administrative building at 150 Golden Gate Ave. The building will replace a facility at 121 Golden Gate, where offices, the clinic, an employment center, and a dining room are currently housed. The popular dining room — which serves 2,600 meals a day — will ultimately move back to 121 Golden Gate after the building is razed and rebuilt to meet modern earthquake safety standards. The project is part of another $20 million campaign that includes a partnership with Mercy Housing to build affordable rentals on the upper floors.

St. Anthony staffers say the types of donors who will contribute to a new building are very different from those who will fund ongoing programs.

Meanwhile, food costs in the dining room have increased 18 percent in the last three months, and St. Anthony staffers expect another 25 percent increase during the coming quarter. At the same time, other free food programs in the city have closed, which means St. Anthony is seeing new faces in the dining room.

Aviani confirmed that donations have increased 8 percent to 10 percent, but the group receives very few "unrestricted" funds. Most of the money is earmarked for the dining room. In a way, she said, "that’s the community deciding what they want."

A third of the organization’s $19.7 million budget comes from bequests — a form of donation that has waxed and waned in recent years. According to Aviani, the foundation has yet to receive a single bequest this year.

The group has increased grants and deployed new fundraising methods, but she said that "The amount of grants out there for shelters and women’s programs are few and far between." She acknowledged that shelters are needed, and said St. Anthony has been "pretty outspoken about that."

The foundation has kept a tight lid on talk about the closures. None of the employees contacted by the Guardian would speak on the record — for fear, they said, of losing their severance packages.

Aviani said severance packages — which include pay and personal job coaching — are not on the line. "We asked them not to create a gossip chain, to stay focused on their work, and when people have questions, direct them to me. We didn’t say they couldn’t talk to anyone at all. That wasn’t the message at all."

Whether or not the gag order was intentional, it has had an effect and created suspicion about the foundation’s true intentions.

Even the city deferred to the organization when questioned about the potential plan to rent the Marian building and use it as a medical respite facility. "We’re not going to talk about that," said DPH spokesperson Eileen Shields. "We’re going to let St. Anthony talk about that at this point because it’s St. Anthony’s call."

On Feb. 14, Newsom — who has said shelters don’t solve homelessness — announced he would like to redesign the city’s shelters and called on the community to come up with suggestions. One of his specific suggestions was to create more medical respite centers.

In May, the Local Homeless Coordinating Board, which is chaired by Hardin, released a report outlining a number of detailed suggestions for improving city-funded shelters and services. It specifically stated that shelter beds shouldn’t be sacrificed to make room for respite.

The Mayor’s Office has yet to formally respond to the report, but at the June 2 LHCB meeting, Kayhan said there were a few things he felt confident the mayor would endorse.

"We heard loud and clear: more senior beds," Kayhan said. "And I’ll add to that women’s beds." He said that respite care would be "moving and co-locating with another location. We think that could free up space at one of the shelters." And, he added, that space could be allocated to women or seniors.

Which makes it sound like more beds for women and seniors are in the works — but considering the elimination of Marian and a shelter at Ella Hill Hutch Community Center, the city is still looking at a net loss of places for the homeless to sleep at night.

Board member Laura Guzman, who runs the Mission Neighborhood Resource Center, said she heard Hardin announce the Marian closure at a May 5 meeting. "He said it was a very difficult decision. I believe he said we’re going to try to open some medical respite beds," Guzman said. "All along we’ve said we don’t want to replace shelter with medical respite beds, but that’s exactly what’s happening."

Shuttering Marian is just one more loss in an environment of dwindling resources for women. Buster’s Place, the only 24-hour drop-in center for men and women, closed in March, and was replaced by a smaller facility that only allows men.

Five of the city’s other shelters have sections for women, but one of them is slated to close as well and none can offer a women-only safe space like Marian. A Woman’s Place is the only other all-female facility, and its 15 mats on the floor are always full. "With Marian closing, there’s going to be more of a demand on the total system," said Janet Goy, executive director of Community Awareness and Training Services, which runs A Woman’s Place. "It’s a loss, no question."

Emily Murase of the Commission on the Status of Women said it’s difficult to accurately count homeless women because women tend to take more measures than men to stay off the streets, though they may not necessarily be safely housed. Women are more prone to couch-surf, stay in abusive relationships, or settle for some other kind of compromised situation.

Murase’s group now funds a special women-only program at Glide Memorial Church, whose director, Willa Seldon, said, "We’re certainly seeing an increase in volume of women in the city to our programs. In October, we were seeing 11 in our support groups. That increased to 18 by March. It could definitely be related to Buster’s Place closing."

Hardin acknowledged the need for women’s shelters but said the city ought to take on the burden. "Maybe closing the Marian is a tipping point," he said. "As I said in front of the Board of Supervisors, it’s the government’s responsibility to provide the safety net. We’re the hands beneath the safety net."

Sandy Van Dusen has been living in the transitional program for a year and a half since her husband was murdered. She’s been told that she is about to get a studio apartment. She’s visibly excited about the move, and grateful to the foundation. But, she says, she’s still been crying every day since she heard Marian is closing. "They saved my life," she says, crying a little now. "They’re doing what they told me to never do — throw in the towel."

*

A heart once nourished

0

› gwschulz@sfbg.com

Community court, every second Thursday at 10 a.m. Narcotics Anonymous on Wednesday. Apprenticeships for construction workers, Monday, bright and early.

The ancient letter board just inside the entrance of the Ella Hill Hutch Community Center tells much of the story of this neighborhood institution. Since 1981 it’s been a crucial hub for the Western Addition, a mostly level stretch of terrain west of downtown that rivals the Mission District and Bayview–Hunters Point as the source of the most despair from senseless gun violence.

For decades Ella Hill was a safe haven, a place where kids and seniors felt comfortable, where people could learn and teach and talk and work together, a little oasis in the world of urban hurt.

A placard affixed to one wall of the entryway honors Thurgood Marshall, the nation’s first African American US Supreme Court justice. In a small office nearby, a tutor assists a young girl with the multiplication table. Elsewhere, a list of rules forbids profanity, play-fighting, and put-downs.

There’s also a poster of Ella Hill Hutch, the first black woman elected to San Francisco’s Board of Supervisors, where she served from 1978-81.

But in 2006, a man was murdered during daylight hours in the center’s gymnasium before dozens of witnesses. That slaying was one of at least five brutal incidents that took place in the shadow of Ella Hill between 2006 and 2007; three more murders occurred within blocks. Many remain open cases today.

And now the center is having serious problems — troubles that reflect those of the city’s African American population, which has been plagued by violence and socioeconomic changes that are closing opportunities and forcing longtime residents out the city.

Several census tracts in the neighborhood that at one time contained between 3,000 and 6,000 black residents are down to 1,000 or far less, according to a San Francisco State University study commissioned by the city last year. The report showed that between 1995 and 2000 San Francisco lost more of its black population than 18 other major US cities.

Ironically, the city is now preparing to close the final dark chapter on 50 years of federally subsidized redevelopment in the Western Addition. But the displacement that the bulldozers set off half a century ago continues today, unabated.

That exodus has compounded structural problems at the center just when its remaining clients need it most. The nonprofit late last year underwent an organizational shake up and brief takeover by the Mayor’s Office to save it from imminent financial collapse. The center’s executive director of two years, George Smith III, was fired with little public explanation last year, and a permanent head was named only recently.

As with many aspects of this troubled community, it was unaddressed violence that fed the fire. Simply subsisting in the heart of a violent neighborhood was strain enough for Ella Hill. But suffering an attack from within seemed too much to bear for an institution some call "San Francisco’s Black City Hall."

The 2006 killing took one man’s life, but Ella Hill itself — still facing an uncertain financial future — felt the searing rounds too. Now some wonder if the nonprofit can survive the very violence and poverty it was created to help end in a neighborhood that’s changing forever.

In Ella Hill’s noisy gymnasium at the building’s east end, two teams of middle schoolers practice basketball.

"My job is to be in the best position to box him out for a rebound," their coach says as they crowd around the free throw line.

The kids are radiant and attentive now. But from this same basketball court on April 27, 2006, the Western Addition briefly edged ahead of the rest of the city in extreme bloodshed.

Donte White, 22, was working part-time at the center. As he supervised a basketball game, two unidentified males entered Ella Hill. One brandished a firearm and shot White at least eight times in the face, neck, and chest as several kids looked on in utter horror. Among them was White’s young daughter.

Police arrested 25-year-old Esau Ferdinand for the attack five months after White’s murder. But within two weeks prosecutors decided they could no longer hold him and declined to press charges when a key witness disappeared on the eve of grand jury proceedings.

Even with other witnesses filling the gym, police gathered few additional leads, an all-too-common story in a neighborhood where residents often prefer to avoid both law enforcement and vengeful criminal suspects.

The center installed cameras and an alarm. A buzzer was placed on the front door. But the new security measures cut against Ella Hill’s image as a demilitarized zone, and the center remains shaken by White’s murder. Some parents began barring their children from going there.

"Can you imagine something like that, someone coming into a rec center in the middle of the day with a firearm and shooting and killing a guy?" asks Deven Richardson, who resigned from Ella Hill’s board in 2007 to focus on his real estate business. "That really set us back big time in terms of morale. It really was a dark moment for the center."

Sup. Ross Mirkarimi, whose district includes Ella Hill, says that after he took office in 2004, he learned that the police weren’t stationed at the center during prime hours and had never created a strategy for attaching themselves to the center the way they had at other safe-haven institutions in the city, like schools. He told us he’s had to "really work" to get the nearby Northern Station more integrated into Ella Hill.

"Before the murder of Donte White, there had also been a series of incidences inside Ella Hill Hutch," Mirkarimi said over drinks at a Hayes Valley bar. "Nothing that resulted in anybody getting killed, but certainly enough indicators that really should have been taken more seriously by the mayor."

In June 2006, shortly after White’s shooting, the San Francisco Police Commission and the Board of Supervisors held a tense public meeting at the center. Residents, enraged over the wave of violence that summer in the Western Addition, shouted down public officials, including Chief Heather Fong, who was forced to cut short a presentation on the city’s crime rate.

That same month, the supervisors put a measure on the ballot to allocate $30 million over three years for violence-prevention efforts like ex-offender services and witness relocation. But Mayor Gavin Newsom, following a policy of fortifying law enforcement over community-based alternatives, opposed the measure because it excluded the police department. Prop. A, designed to finance groups like Ella Hill with connections to the neighborhood that the police will never have, lost by less than a single percentage point.

Meanwhile, four homicides in the neighborhood that year joined frequent anarchic shootouts in the Western Addition, including many that never made headlines because no one was killed. The fatalities led to promises by City Hall that the area would be saturated with improved security, including additional security cameras that have mostly proved useless in helping the police solve violent crimes.

On June 3, 2006, 19-year-old Antoine Green was standing on McAllister Street near Ella Hill early in the morning when he was shot to death in the head and back. On Aug. 16, 38-year-old Johnny Jackson’s chest was filled with bullets as he sat in the front seat of a Honda Passport on Turk Street not far behind Ella Hill. A woman next to him in the car suffered a critical gunshot wound to the head.

Two more killings occurred further east at Larch Way, a popular location for murder in the neighborhood.

Burnett "Booski" Raven, a 32-year-old alleged member of the Eddy Rock street gang, was found bleeding at 618 Larch Way early Oct. 7, his body laying halfway in the street and containing at least 10 gunshot wounds. On July 22, police found 23-year-old John Brown, another purported Eddy Rock member, wedged under a Chevy pickup truck, dead from up to seven gunshots.

Brown had reportedly survived two prior shootings, but the Western Addition’s cultural condemnation of "snitching" to police has so infected the neighborhood that he allegedly told police not to bother investigating either of the attacks.

Loïc Wacquant, a sociology professor at the University of California, Berkeley, says neighborhoods like the Western Addition that once contained stable black institutions — schools, churches, and community centers that glued residents together — have been overwhelmed by the rise of a white-collar, service-based economy, the decline of unions, and the withdrawal of meaningful social safety nets.

Cities have responded to the resulting marginalization with more police officers, more courts, and more prisons. But the failure of those institutions to cure rising violence "serves as the justification for [their] continued expansion," Wacquant quoted Michel Foucault, the famous late UC Berkeley sociologist, in the academic journal Thesis Eleven earlier this year.

The roots of the Western Addition’s tragedy go back to the early post-World War II era. In 1949, Congress enacted laws giving cities extraordinary powers to clear out land defined as "blighted." In San Francisco, that meant neighborhoods where low income people of color lived.

The Western Addition was devastated. Huge blocks of houses were bulldozed. Clubs, stores, restaurants — the heart of the black neighborhood — were wiped out. Many residents were forced out of the neighborhood and sometimes the city forever; others lost their property and their livelihoods (see "A half-century of lies," 3/21/2007).

By the 1970s, neighborhood activists were hoping that at the very least the Redevelopment Agency would pay for a recreation facility for kids. But city officials wouldn’t put up the money, recalls the Rev. Arnold Townsend, a longtime political fixture in the city and associate pastor of the Rhema Word Christian Fellowship.

Townsend said activist Mary Rogers — whom he calls "the greatest champion kids ever had in this community" and a famous critic of redevelopment — gave up on City Hall and went to Washington DC, where she sat in at a meeting that happened to include Patricia Harris, Secretary of the Department of Housing and Urban Development under President Jimmy Carter. Rogers, joined by a group of colleagues from San Francisco, bumped into Harris afterward.

"[Harris] shook Mary’s hand like politicians do, and Mary wouldn’t let her hand go until she had a meeting," Townsend said. "They were having a tug-of-war over her hand."

Rogers’ determination paid off, and enough political channels opened up that money for the center became available. Then-Mayor Dianne Feinstein cut the ribbon for the $2.3 million Ella Hill Hutch Community Center four months after the supervisor’s death, complete with outdoor seating for seniors, a gymnasium, tennis courts, and child-care facilities.

A young counselor named Leonard "Lefty" Gordon who worked at the Booker T. Washington Community Service Center, one of the city’s oldest black institutions — it was founded in 1919 on Presidio Avenue, where it remains today — was named executive director of Ella Hill three years later and led the center to wide acclaim for 17 years.

A recreation coordinator at Ella Hill started a reading program for young athletes after discovering that a local high school football star wasn’t aware he’d been named the city’s player of the year: the teenaged boy couldn’t read the newspaper to find out. Other programs for tutoring and job training targeting young and old residents were likewise started under Gordon.

Many of the people we interviewed recalled the "kitchen cabinet" meetings convened by Lefty Gordon at Ella Hill as among their fondest memories. Everyone from the "gangbangers to police" attended Gordon’s meetings, Townsend said, and made them a repository of complaints about what was happening in the neighborhood.

Alphonso Pines, a former Ella Hill board member and organizer for the Unite Here! Local 2 union, eagerly showed up at the meetings for months after attending 1995’s Million Man March in Washington.

"I hate to see brothers die, regardless of whether it’s at Ella Hill," Pines said of Donte White’s 2006 killing. "But that was personal for me, because that was the place where I had sat on the board for years. That was real shocking."

Lefty’s son, Greg Gordon, said that his legendary father — who died of a heart attack in May of 2000 — worked so hard for the center that he allowed his own health to deteriorate.

Most beneficiaries of Ella Hill’s social services now live in the southeast section of the 94115 ZIP code, roughly bordered by McAllister and Geary streets to the south and north, and Divisadero and Laguna streets to the west and east.

The majority of Ella Hill’s approximately $1.4 million annual budget comes from government sources, either through grants or nonprofit contracts.

Newsom, through his community development and housing offices, has given $860,000 over the past three years to Ella Hill to help job-ready applicants obtain construction work and other general employment in the neighborhood. The center launched its JOBZ program in 2006, targeting formerly incarcerated young adults and others with a "hard-to-employ" status.

Caseworkers must convince some participants to leave gangs, deal with outstanding warrants, pay back child support, expunge criminal records, or eliminate new offenses, all of which can exacerbate a desire to give up. Sometimes the center has to buy people alarm clocks.

"None of these other programs that are being funded in this community want to deal with the kinds of kids or people who come to Ella Hill…. [It] is the last stop for everybody," said London Breed, head of the African American Art and Culture Complex on Fulton Street and a Western Addition native. "That’s where people go who have no place else to go, which is why it’s so important."

Most nonprofits working for the city must regularly report their operational costs or show how program funds are being spent on graduation ceremonies and trips to university campuses. The required forms are mind-numbingly bureaucratic and reveal little about what a place like Ella Hill might face on a practical level each day. But last year, former executive director George Smith betrayed a crack in Ella Hill’s veneer.

"Once again violence has impacted the community with three incidents in close proximity to the complex this month alone," he wrote to the San Francisco Department of Children, Youth and Their Families, which supports the center with college preparation grants. "One of the victims was a young man scheduled to graduate from high school in June."

On May 25, 2007, 19-year-old Jamar Lake was leaving a store on Laguna and Eddy streets, northeast of Ella Hill, when a teen suspect opened fire on him. Paramedics were so worried about security in the neighborhood that they fled before attempting resuscitation, according to a report from the San Francisco Medical Examiner. Lake died at General Hospital that day.

Weeks later, a manic 12-hour long feud erupted between several gunmen on McAllister Street. Seven people were wounded during two daytime shootings that took place in the Friendship Village Apartments, across the street from Ella Hill.

Then in July, a suspect randomly and fatally stabbed 54-year-old Kenneth Taylor in the neck as he sat on a park bench near sundown at Turk and Fillmore streets, within easy view of the SFPD’s Northern Station. Police didn’t respond until Taylor stumbled to the sidewalk and collapsed; a witness had to flag down a patrol car.

Following the Lake shooting, the mayor and police department promised, as they had the year before, that foot patrols would be increased in the 193-unit Plaza East Housing Development and other public housing projects in the Western Addition.

But the city’s most visible response has bypassed Ella Hill — which has some street credibility — altogether. Instead, City Attorney Dennis Herrera went to court to get injunctions against street gangs in June 2007.

Herrera’s initial filing came days after the wild shootout on McAllister Street, but the timing was coincidental. The city attorney also had been preparing injunctions against gangs in the Mission and Bayview-Hunter’s Point for months. For the Western Addition, the city attorney noted a "recent rise in violent crimes perpetrated by the defendants," and asked that the members of three gangs be banned from associating with one another inside two "safety zones" marked along the contours of their respective territories, a 14-square-block area that straddles Fillmore Street and rests just north of Ella Hill.

"The conditions within the two safety zones have become particularly intolerable in 2007 as the deadly rivalry between the Uptown alliance and defendant Eddy Rock has intensified," Herrera’s office told the court. "In 2007 alone, this rivalry is the suspected cause of at least three homicides and numerous shootings within the two safety zones."

Some critics viewed barring people from congregating with one another a civil rights violation. And worse, they feared it would merely shove more African Americans and Latinos out of the Western Addition, which would benefit the city’s wealthiest white residents.

"All of this stuff about gang injunctions is a bunch of malarkey," said Franzo King, archbishop of the Saint John Coltrane African Orthodox Church on Fillmore Street. "You don’t really have gangs here…. [In San Francisco] they’re a big club."

Herrera nonetheless convinced a Superior Court judge to issue the injunctions after filing 1,200 pages of evidence arguing that the three "clubs," which include only about 65 people named by the city, are endless public nuisances and force organizations like Ella Hill to battle with them for the affections of Western Addition youth.

Police admit that the injunctions since last year have, in fact, led people to simply leave the neighborhood. Still, they insist the injunctions have reduced trouble in the Western Addition. The Knock Out Posse, for instance, is evaporating, they say.

Paris Moffett, a 30-year-old alleged Eddy Rock leader, told the Guardian in a separate story on the gang injunctions last November that he and others were organizing to quell violence in the neighborhood and would do so in defiance of the gang injunctions (see "Defying the injunction," 11/28/07).

But on the day that story ran, Moffett hampered his new cause when, according to a March 27 federal indictment, police arrested him in Novato for possessing a large quantity of crack and MDMA, as well as a Colt .45 semiautomatic.

After Lefty Gordon died, the center went through a couple of directors in relatively short order. Robert Hector, a second-in-command to Lefty Gordon, helmed the center briefly; he was replaced with George Smith III, who left in 2007.

Meanwhile, problems at Ella Hill grew.

"The seniors just stopped their participation," Anita Grier, a former Ella Hill board member who first ran for the San Francisco City College Board of Trustees in 1998 at Gordon’s encouragement, told us. "Things were never excellent, but they just got much worse once [Gordon] was no longer director."

The center, a standalone nonprofit, had long struggled financially in part because it relied so much on contracts and grants from the city rather than pursuing funds from private donors. Mirkarimi says Ella Hill’s structure is unlike any other community center in the city. Many other centers are directly maintained by the San Francisco Recreation and Park Department.

Contract revenue from one Ella Hill program, such as providing emergency shelter to the homeless, was often diverted to keep another on life support or to simply cover the center’s utility bills.

By early 2007, the center faced a financial catastrophe. Donald Frazier joined Ella Hill’s board as president in January 2007 and embarked on a reform effort to turn the center around. He commissioned what came to be a blistering audit that revealed the nonprofit owed over $200,000 in state and federal payroll taxes. As a result, the center faced $63,000 more in penalties and accrued interest.

Mirkarimi blames community leaders in his district for refusing to acknowledge a crisis at the center and for not turning to City Hall for help when Ella Hill appeared to be slowly rotting from the inside out.

The mayor’s staff, he adds, wanted to believe Ella Hill was working on its own and should’ve continued to do so because, despite its financial reliance on the city, it was technically an independent nonprofit. In reality, Mirkarimi said, "They were afraid to piss off black people, is what it comes down to. They were afraid to tell it like it is — that things weren’t working."

Sending delinquent invoices to the city, failing to institute reasonable accounting standards, and falling far behind on its payroll taxes all threatened the government contracts and grants that kept San Francisco’s Black City Hall afloat. By extension, the audit concluded, that meant Western Addition residents who relied on Ella Hill were "victimized" by the center’s improper use of its limited resources.

Aside from the audit, which Ella Hill instigated itself, there’s no indication in the records of agencies funding the center that any problems were occurring, which implies the city wasn’t paying attention.

"As far as I’m concerned," Mirkarimi said, "we had a renegade institution, and the only reason it wasn’t renegade in an illegal sense was because the lease allowed them to have a parallel governance structure. But it was renegade in the sense that the city neglected to supervise properly."

In November 2007, just after residents hijacked a chaotic board meeting with an extended public comment period, Frazier told the directors in closed session that the Redevelopment Agency was planning to restrict future funding for the center due to its management problems.

One month later, the mayor dispatched an aide, Dwayne Jones, along with redevelopment agency director Fred Blackwell, to a meeting at Ella Hill with an ultimatum. Jones told the assembled that new interim appointees would be taking over the center’s bank books, recreating its bylaws, and electing a new board and executive director. The old board would essentially be dissolved. According to observers at the meeting, Jones told them that if they resisted the plan, funds received by Ella Hill from various city agencies would be jeopardized, as would its low-cost lease of city property.

Two defiant board members viewed the move as a "hostile takeover" of a private nonprofit organization by the mayor and voted against it, but the rest of the board agreed to the restructuring. Mirkarimi says there was simply no alternative.

"Right now it needs to be shrunk to what it can do really well, instead of doing what they had to do in the last five years, an incremental sloppy way of programming," he said.

The interim board in April named a former Ella Hill employee and Park and Rec administrator, Howard Smith — unrelated to George Smith — to be the center’s new executive director. But after all the changes Ella Hill made to fix its leadership problems, there are no assurances the city won’t leave Ella Hill without the money it needs to keep the doors open next year.

It’s noon on a recent Friday and Ella Hill’s new executive director is scrambling to keep things together. An employee wants him to glance at a form. Another man wants to come in and play basketball. Smith has a board meeting minutes from now, but he’s scheduled an interview with the Guardian at the same time.

Smith’s a well-built man dressed in a pressed suit, polished shoes, and a sharply-knotted tie. He’d mostly avoided our calls for weeks. Word spread in the neighborhood that the Guardian was planning some sort of hit piece on Ella Hill.

But it won’t be a newspaper that capsizes the center.

A significant portion of the center’s funding will be threatened over the next year. The redevelopment agency is scheduled to end its 45-year reign in the Western Addition by then, a blessing of sorts since so many people in the neighborhood feel it’s done nothing but upend the lives of black residents. But the end of the agency means that redevelopment funds for Ella Hill’s job placement programs, about $400,000 annually, will disappear.

In addition, about $300,000 more a year will dry up since the San Francisco Human Services Agency hasn’t renewed an emergency homeless shelter contract with the center. Mirkarimi believes the mayor, too, will try to stop providing Ella Hill with funding through his community development office next year.

If Newsom does back away, Mirkarimi warns, there will be "a very loud showdown."

"What I’m worried about is that the Newsom administration is basically cutting and running on this, and I’m not going to allow that to happen, at least not without a fight," he said.

The alternative is for Rec and Park to take over managing Ella Hill’s facilities with DCYF continuing to fund youth programs there while the Redevelopment Agency commits community benefits dollars from a legacy fund to the center — the least it can do after a half-century of transforming the neighborhood, locals be damned.

An interagency council made up of the center’s primary funders could collectively watchdog its performance, Mirkarimi says. Once Ella Hill’s leaders prove that the center has fully returned to its original mission, it can consider expanding to serve other populations in the neighborhood, or even seek a plan to detach further from the city.

The mayor’s spokesperson, Nathan Ballard, did not respond to an e-mail containing detailed questions, and his aide, Dwayne Jones, did not return several phone calls. But Smith said during a later lunch interview at the Fillmore Café that he agrees with Mirkarimi’s idea.

"There are so many programs out there that say they’re doing something on paper, but they’re really not doing it," Smith said. "They’re running ghost programs. So what I’ve been saying at Ella Hill since I got there is, ‘We will do exactly what we said we were going to do.’<0x2009>"

In the meantime, Smith is determined to prove that Ella Hill’s history has only just begun. The mural of Lefty Gordon outside the center received a fresh coat of paint recently, and the color pops. The sidewalk is being repaved and new handrails installed. The walls inside are clear of the aging posters and letter board that hung there a few months ago.

Before heading off to his board meeting, Smith teasingly asks an adolescent boy meandering in the center’s entryway for 75 cents. The boy’s always hitting him up for pocket change.

"I don’t got any," the boy responds.

"You don’t have any," Smith corrects.

Smith suddenly realizes what time it is.

"Hey, why isn’t this guy in school?" he wonders aloud.

At that moment, only the Ella Hill Hutch Community Center was asking the question. *

SF Weekly seeks to delay payment

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The chain that owns SF Weekly, which last year had revenue of at least $159 million and more than $11 million in profit, argued in court June 5 that it’s having trouble raising money for an appeal bond to cover the $15.6 million judgment the Guardian won in its predatory pricing lawsuit.

SF Weekly attorney Rod Kerr asked Judge Marla Miller June 5 to stay the judgment until 10 days after she rules on post-trial motions. That could have delayed the judgment until July 28.

Village Voice Media, which owns the Weekly, needs to post a bond for the full amount of the verdict plus interest — now accruing at more than $4,000 a day — if the chain wants to avoid paying the Guardian during the appeals process.

Kerr argued that turmoil in the financial markets and the need for VVM to get approval from its lenders is making it difficult to secure the bond. "Without the post-trial decisions, they’re not willing to release the collateral," he said in court.

Kerr said he believes there is a likelihood the judgment amount will be substantially lowered during post-trial rulings, something the company has represented to its lenders.

Guardian attorney Ralph Alldredge, speaking to the court by telephone while his co-counsels Richard Hill and Craig Moody were present, reiterated a previous offer to stay enforcement until June 18, which is 30 days after the judgment was entered following the March jury verdict.

But Alldredge said the statements and briefs by the defendants raise serious concerns about whether they’re prepared to cover the full judgment, so the Guardian needs to be able to take steps to ensure that assets are being identified and secured to satisfy the judgment.

"They anticipate post-trial motions will result in a reduction of the verdict, so apparently their lenders have been told that," Alldredge said, adding, "The lenders need to be told the judgment is likely to be the final amount."

Judge Miller agreed with the Guardian position, granting the stay only until June 18, but allowing the defendants to return to court to ask for more time if they can provide evidence showing how it will result in a bond being issued.

"I am concerned there is a risk that the bond may never be issued," Miller said.

A San Francisco jury found that SF Weekly has been engaged in illegal predatory pricing going back to the mid-1990s, selling advertising below the costs needed to support the paper in an effort to drive the Guardian out of business.

Kerr also sought to delay enforcement of an injunction Miller issued that bars further below-cost pricing by SF Weekly, but that portion of the motion was denied.

Both sides are due in court July 8 at 9 a.m. to argue post-trial motions, including one by the defendants to throw out the verdict and order a new trial. (Steven T. Jones)

For more details and key documents, go to sfbg.com/lawsuit

Election as prologue

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› steve@sfbg.com

San Francisco politics shifted June 3 as successful new coalitions altered the electoral landscape heading into the high-stakes fall contests, when seven of the 11 seats on the Board of Supervisors are up for grabs.
Progressives had a good election night even as lefty shot-caller Sup. Chris Daly suffered a pair of bitter defeats. And Mayor Gavin Newsom scored a rare ballot box victory when the southeast development measure Proposition G passed by a wide margin, although voters repudiated Newsom’s meddling with the San Francisco Public Utilities Commission by approving Prop. E.

But the big story wasn’t these two lame duck politicians, who have served as the two poles of local politics for the past few years. It was Mark Leno, who handed Sen. Carole Migden her first electoral defeat in 25 years by bringing together progressives and moderates and waging an engaged, effective ground campaign. In the process, he may have offered a portent of things to come.

The election night speech Leno gave just before midnight — much like his entire campaign — didn’t break along neat ideological lines. There were solidly progressive stands, like battling the religious right’s homophobia, pledging to pursue single-payer health care, and blasting Pacific Gas & Electric Co. for funding sleazy attack pieces against him, reaffirming his commitment to public power.

But he also thanked Newsom and other moderate supporters and heaped praise on his political consulting firm, BMWL, which has run some of downtown’s nastiest campaigns. "It was clean, it was smart, and it was effective," Leno said of his campaign.

The Migden campaign, which had the support of Daly and many prominent local progressives, often looked dirty by comparison, marred by past campaign finance violations that resulted in Migden getting slapped with the biggest fine in state history and by Daly’s unethical misuse of the Guardian logo on a mailer that made it appear as if we had endorsed Migden.

Old alliances seemed to crumble around this election, leaving open questions about how coalitions will form going into an important November election that’s expected to have a crowded ballot and huge turnout.

UNITY AND DIVISION


There are things that unite almost all San Franciscans, like support for public schools. In this election that support came in the form of Prop. A — a measure that will increase teacher salaries through a parcel tax of about $200 per property owner — which garnered almost 70 percent of the vote.

"These numbers show that people believe in public education. They believe in what we’re doing," school superintendent Carlos Garcia told a jubilant election night crowd inside the Great American Music Hall.

Also uniting the city’s Democrats was the news that Barack Obama sewed up the party’s presidential nomination June 3, ending a primary battle with Hillary Clinton that had created a political fissure here and in cities across the country.

"The winds of change are blowing tonight. Let me congratulate Barack Obama on his victory," Leno said on election night, triggering a chant of "Yes we can" from the crowd at the Upper Market bar/restaurant Lime.

Local Clinton supporters were already switching candidates on election night, even before Clinton dropped her campaign and announced her support for Obama four days later.

"As a strong Hillary person, I’m so excited to be working for Obama these next five months," DCCC District 13 member Laura Spanjian, who won reelection by placing fourth out of 12 slots, said on election night. "It’s my number one goal this fall."

Leno also sounded conciliatory themes. In his election night speech, Leno acknowledged the rift he created in the progressive and LGBT communities by challenging Migden: "I know that you upset the applecart when you challenge a sitting senator."

But he vowed to repair that damage, starting by leading the fight against the fall ballot measure that would ban same-sex marriage and overturn the recent California Supreme Court decision that legalized it. He told the crowd, "I invite you to join together to defeat the religious right."

A day later we asked Leno about whether his victory represented a new political center in San Francisco and he professed a desire to avoid the old political divisions: "Let’s focus on our commonalities rather than differences," he said, "because there is real strength in a big-tent coalition."

But this election was more about divisions than unity, splits whose repercussions will ripple into November in unknown ways. Shortly before the election, Daly publicly blasted "Big Labor" after the San Francisco Labor Council cut a deal with Lennar Corporation, agreeing to support Prop. G in exchange for the promise of more affordable housing and community benefits.

On election night, Newsom couldn’t resist gloating over besting Daly, whose affordable housing measure Prop. F lost big. "I couldn’t be more proud that the voters of San Francisco supported a principled proposal over the political proposal of a politician," Newsom told us on election night, adding, "Today was a validation of community investment and involvement over political games."

While Daly and some of his progressive allies have long warned that Leno is too close to Newsom to be trusted, one of the first points in Leno’s speech was the celebrate the passage of Prop. E, which gives the Board of Supervisors more power to reject the mayor’s appointees to the San Francisco Public Utilities Commission. "As an early supporter I was happy to see that," Leno said.

Susan Leal, the former SFPUC director who was ousted by Newsom earlier this year, said she felt some vindication from the vote on Prop. E, but mostly she was happy that people saw through the false campaign portrayals (which demonized the Board of Supervisors and erroneously said the measure gave it control over the SFPUC.)

"This is one of the few PUCs where people are appointed and doing the mayor’s bidding is the only qualification," Leal told us on election night.
Sup. Tom Ammiano, who will be headed to the Assembly next year, agreed: "It shows the beauty contest with the mayor is over and people are willing to hold him accountable."

ANALYZING THE RESULTS


On the day after the election, during a postmortem at the downtown office of the San Francisco Planning and Urban Research Association, political consultants Jim Stearns and David Latterman sized up the results.

Latterman called the Prop. E victory "the one surprise in the race." The No on E campaign sought to demonize the Board of Supervisors, a strategy that clearly didn’t work. Firing Leal, a lesbian, helped spur the city’s two major LGBT groups — the Harvey Milk and Alice B. Toklas Democratic clubs — to endorse the measure, which could have been a factor when combined with the high LGBT turnout.

"This may have ridden the coattails of the Leno-Migden race," Stearns said.

In that race, Stearns and Latterman agreed that Leno ran a good campaign and Migden didn’t, something that was as big a factor in the outcome as anything.
"Migden did too little too late. The numbers speak for themselves. Leno ran a really good race," Latterman said, noting how Leno beat Migden by a large margin in San Francisco and came within a few thousand votes of beating Joe Nation on his home turf of Marin County.

"It was a big deal for Leno to get so close to Nation in Marin," Stearns said.

Leno told us the polling his campaign did late last year and early this year showed he had a strong advantage in San Francisco, "so with that, I invested a lot of time and energy in Marin County."

Stearns attributed the big Prop. G win to its large base of influential supporters: "The coalition-building was what put this over the top." Daly chalked it up to the $4 million that Lennar spent, saying it had bought the election. But Stearns, who was a consultant for the campaign, didn’t agree: "I don’t think money alone ever wins or loses campaigns."

Yet he said the lack of money and an organized No on G/Yes on F campaign did make it difficult to stop the Lennar juggernaut. "You need to have enough money to get your message out," Stearns said, noting that "Nobody knew that the Sierra Club opposed [Prop. G]."

In the one contested judge’s race on the ballot, Gerardo Sandoval finished in a virtual dead heat with incumbent Judge Thomas Mellon. The two will face off again in a November runoff election because a third candidate, Mary Mallen, captured about 13 percent of the vote.

"How angry is Sandoval with Mallen now?" Latterman asked at the SPUR event. "If that 13 percent wasn’t there, Sandoval wins."

Both Latterman and Stearns agreed that this election was Sandoval’s best shot at unseating a sitting judge. "He’s going to face a tougher test in November," Stearns said.

The other big news was the lopsided defeat of Prop. 98, which would have abolished rent control and limits on condo conversions in addition to its main stated aim of restricting the use of eminent domain by local governments.

"It just lost bad," Latterman said of Prop. 98, the second extreme property rights measure to go down in recent years. "It just needs to go away now…. This was a resounding, ‘Just go away now, please.’<0x2009>"

LOOKING FORWARD


Aside from the Leno victory, this election was most significant in setting up future political battles. And progressives won a big advantage for the battles to come by picking up seats on the city’s two Democratic County Central Committees, a successful offensive engineered largely by Daly and Peskin, who were both elected to the eastside DCCC District 13.

"On the DCCC level, we took back the Democratic Party," said Robert Haaland, a progressive who was reelected to the DCCC District 13.

"The fight now is over the chair. The chair decides where the resources go and sets the priorities, so you can really do a lot," Haaland told us.

Many of the fall supervisorial contests feature races between two or three bona fide progressives, so those candidates are going to need to find issues or alliances that will broaden their bases.

In District 9, for example, the candidates include housing activist Eric Quezada (who lost his DCCC race), school board president Mark Sanchez, and Police Commission member David Campos — all solid progressives, all Latino, and all with good bases of support.

Campos finished first in his DCCC District 13 race just ahead of Peskin. Speaking on election night at the GAMH, Campos attributed his strong showing to walking lots of precincts and meeting voters, particularly in the Mission, an effort that will help him in the fall.

"A lot of Latino voters are really eager to be more involved [in politics]," Campos said. "Speaking the language and being an immigrant really connects with them."

Campos thinks public safety will be a big issue on voters’ minds this fall, an issue where he has strength and one that progressives have finally seized. "Until Ross Mirkarimi came along, progressives really weren’t talking about it," Campos said.

So, does Campos’ strong DCCC showing make him the front runner? When I asked that question during the SPUR event, Latterman said he didn’t think so. He noted that Sanchez has always had strong finishes on his school board races, citywide contests that includes the Portola area in District 9 but not in DCCC District 13. In fact, Latterman predicted lots of acrimony and close contests this November.

"If you like the anger of Leno vs. Migden, we’ll have more in the fall," Latterman said of the competitive supervisorial races.

Leno hasn’t been terribly active in local contests since heading to Sacramento, and he told us that his focus this fall will be on state ballot fights and the presidential race. He hasn’t made endorsements in many supervisorial races yet, but his two so far are both of progressives: Ross Mirkarimi in District 5, and David Chiu in District 3. And as he makes more supervisorial endorsements in the coming months, Leno told us, "I will be fighting for progressive voices."

Sarah Phelan contributed to this story.

And so it begins

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› sarah@sfbg.com

Mayor Gavin Newsom chose a telling site for the June 2 release of his budget: the San Francisco Police Department’s Special Tactical Operations Center at Hunters Point Shipyard. And if its relationship to Proposition G, the mayor’s plan to let Lennar Corporation develop the southeast part of the city, wasn’t clear enough, Newsom made it explicit.

"You’ll have the opportunity to support Proposition G and reject Proposition F, the one that is getting in the way," Newsom told department heads and the press as police, who warned budget protesters that it is illegal to campaign on city property, looked on in silence. It is also illegal for the mayor to campaign for ballot measures on city property.

In his speech, Newsom labeled as the "heroes" of this year’s budget the unions that have agreed to unpaid days off, including the Laborer’s Union, the Deputy Sheriff’s Association, Firefighters Local 798, and the Municipal Executives Association. Conversely, he vowed to remember that the police, nurses, and lawyers unions wouldn’t amend the contracts Newsom negotiated last summer.

Sounding more like a gubernatorial candidate intent on winning over Orange County voters than the leader of the most progressive city in the nation, Newsom said, "We are living within our means and being fiscally prudent, without out-of-control borrowing and without tax increases. But we still have a $338 million shortfall."

But there has been widespread criticism of the mayor’s plan as details emerge of its massive cuts to health and human services, while increasing the city’s budget for street repaving, pothole repair, and police academies.

"It’s the least democratic, least transparent budget process in many years, in terms of lack of information from the Mayor’s Office to the city departments and the community-based organizations that are affected," said Coleman Advocates for Children and Youth organizer Chelsea Boilard. "In the past, programs were given a heads-up. This year it continues to be a frantic scramble."

According to Boilard, city departments were still finding out the extent of the cuts even after Newsom made his presentation, including the news that the budget addbacks approved by the Board of Supervisors last year are not being continued in the 2008-09 budget.

"A nightmare," was how Debbi Lerman of the San Francisco Human Services Network described the budget.

"If we listen to mayor’s presentation, everything is rosy, revenue-wise. It’s just a spending problem. But from the community’s perspective, it’s shocking," Lerman said, citing $15.5 million in cuts to the Department of Public Health, $3.5 million in cuts to the Human Services Agency, and a 20 percent cut to domestic violence programs.

"And [the cuts] have been a constantly moving target," Lerman added. "We’re mere weeks away from the implementation of this budget, but no one knows which clients, programs, or services will be lost, though we are sure that there will be a lot of layoffs in our sector. The mayor should not balance his budget on the backs of the poor."

She believes the city needs to look at some non-essential services during a bad budget year and see what can be deferred to the future — and find ways to increase its revenue.

"The mayor is not a stone. He does get it to some degree. But it’s unfortunate that he’s not chosen to put forth revenue measures at this point," Lerman said.

Robert Haaland of Service Employees International Union Local 1021 agrees that the city has a revenue problem. He also believes that it’s not OK to ask the city’s lowest-paid workers to make concessions, again and again: "[SEIU 1021] has repeatedly stepped up to the table, we’d like to see some others do it."

Jonathan Vernick, executive director of Baker’s Place, which is facing the prospect of having to close one floor of its medical detox program, argues that many of the mayor’s proposed cuts are in conflict with Newsom’s stated goal of getting the homeless and inebriated off the street. "Ironically, this budget seems to fail to meet a simple criteria — that the proposed cut actually saves money," Vernick said. "All I can see is cuts that by end of fiscal year will have dismantled a system that’s been working for 35 years."

John Eckstrom of the Haight Ashbury Clinics believes the budget cuts will decimate the model of integrated services. "These are very deep cuts," said Eckstrom, who expects to lay off 40 to 50 of his 170 employees.

"It’s a testament to the willpower of the nonprofits that we are able to stay alive," Eckstrom said. "But what are the mayor’s priorities? There’s his rhetoric that says it’s not a revenue problem, and then there’s the reality."

With the Board of Supervisors set to conduct public budget hearings throughout June, Board President Aaron Peskin sees Newsom’s proposal as a "law and order budget."

"Domestic violence programs have lost $750,000 in funds, substance abuse programs have been taken to the woodshed, and mental health programs are being cut by 25 percent," said Peskin, criticizing the mayor for "introducing and extolling new programs while failing to protect the safety net of human and health services that San Francisco has put together over many years."

"Last time we had a budget like this, Mayor Willie Brown was much more forthright and honest about its disastrous impact on the poor," Peskin added. "This administration has cloaked this disaster in a press blitz. But any way you dress it, it’s a pig."

As chair of the Board’s Budget and Finance Committee, Sup. Jake McGoldrick was equally blunt in his criticisms as he set about deciphering the details of Newsom’s proposal

McGoldrick refuted as "a deception" Newsom’s claim of having cut 1,085 jobs. "The real number is 99.08 positions," McGoldrick said, factoring in preexisting vacancies, Newsom’s three proposed police academy classes, and the 26 staff positions for Newsom’s 311 program, not to mention other new proposed programs and initiatives.

Upset that Newsom has budgeted $500,000 for a Community Justice Court that will divert people to the kinds of programs that Newsom’s budget is undermining, McGoldrick told the Guardian that he "aims to identify at least $30 million to $40 million in deceptions and redirect these funds to top priority human needs and services that are already woefully underfunded."

"The mayor is trying to pump all the problems over to the Board of Supervisors," McGoldrick said. "It’s going to be a labor of love to figure out how to direct money to folks who are hurting now."

Peskin said he expects the supervisors to discuss three new revenue proposals in the next month in order to avoid another slash-and-burn budget next year. These proposals include a property transfer tax, closing a payroll tax loophole on partnerships, and preserving the city’s 911 fee, which is under legal attack.

As of press time, the Mayor’s Office had not returned calls about revenue creation. Maybe Newsom’s handlers were busy figuring out how to deal with a budget protest slated for 6 p.m. June 11 outside the his residence in the Bellaire Tower building, 1101 Green St.

Organized by Jennifer Friedenbach, executive director of the Coalition on Homelessness, the protest aims to draw attention to what Friedenbach calls "Mayor Newsomator’s plans to terminate the poor."

These plans include closing the Ella Hill Hutch Homeless Shelter as well as the Tenderloin Health Homeless Drop-in, and the almost total elimination of the SRO Families United Program. The Board has until July 31 to adopt a revised budget.

Drug deal hurts consumers

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› gwschulz@sfbg.com

City Attorney Dennis Herrera made San Francisco the first government entity in the nation to accuse two major players in the pharmaceutical drug industry of conspiring to illegally manipulate the price of prescription drugs when he filed a lawsuit May 20. Connecticut followed Herrera’s lead days later, and filed an almost identical suit making the same charges.

The cases could have far-reaching implications. If Raymond Hartman, an economist and visiting professor at Boalt Hall School of Law who testified in a related case filed by a group of East Coast labor unions two years ago is correct, then consumers, insurers, and Medicaid administrators nationwide have overpaid for prescription drugs by billions of dollars as a result of the price manipulation scheme (see “Big Pharma’s Shadow,” 12/20/06).

To explain the highly complex litigation, consider how goods are usually priced. Take the 99¢, three-ounce bags of chips that are reliably available at the corner store near your house. Cool Ranch Doritos. Chili Cheese Fritos. Sour Cream and Onion Ruffles. It wouldn’t be a true bodega if there wasn’t a rack of them situated near the front door or register.

For as long as anyone can remember, it seems, they’ve cost just 99¢, regardless of the local cost of living, from Richmond, Va. to San Francisco. That’s because the suggested retail price of 99¢ is printed ubiquitously by the manufacturer on the packaging.

So you’d notice if a sticker suddenly appeared, lazily affixed to your bag of Sun Chips, stating a new price: $1.99. The manufacturer didn’t place it there because behind the sticker you can still see the old printed price. And the counter clerk didn’t place it there, because he knows the true suggested retail price is still just 99¢ and the laws of supply and demand never called for a price increase.

Instead, a local company that buys chips from the manufacturer and distributes them to the bodega in your neighborhood put it there. The bodega owner didn’t complain because now it’s possible for him to earn an extra dollar for each bag. In fact, as a result of the new sticker, he’s more likely to take his business back to that particular distribution company over a competitor since that company is willing to artificially inflate the retail cost of a bag of chips on his behalf simply by putting a new price tag on the bag.

Now imagine that the product isn’t a cheap bag of chips but billions of dollars worth of pain-reducing or life-saving pharmaceuticals. And the distributor isn’t a local guy who drives a delivery truck full of boxes of chips but a multinational corporation, headquartered in San Francisco, that’s ranked 18th on the Fortune 500 list, with $93.6 billion in annual revenue and a CEO, John Hammergren, who received compensation in 2007 worth more than $22 million after presiding over the company’s record profits that year.

Imagine, too, that the distributor is powerful enough to slap new price stickers on cartons of drugs around the country, not just at your corner bodega, so you can’t simply elect to shop elsewhere to protest the new prices. Neither can you just stop consuming needed medicines the way you can snack chips.

Herrera’s federal civil suit probably has escaped media attention due to its esoteric nature (not to mention a potential conflict of interest at the San Francisco Chronicle, but we’ll get to that in a minute). It charges that McKesson Corp., along with a tiny drug data publisher based in San Bruno called First DataBank, conspired in an "elaborate scheme" to unfairly mark up the price on more than 400 name-brand prescription drugs. The conspiracy allegedly resulted in the San Francisco Health Plan being forced to make thousands or even millions of dollars in excess payments to cover the cost of such medications.

The SF Health Plan is not the same as Healthy San Francisco, the city’s historic 2006 bid to grant universal health care to the 82,000 adults here who live without insurance. The SF Health Plan extends mental, medical, and dental health coverage to about 50,000 people, including approximately 28,000 children in the city, and offers in-home support workers to the disabled and elderly. The plan is funded through a combination of federal and state dollars known in California as Medi-Cal and elsewhere as Medicaid.

The programs help low-income residents get health care, but its public subsidies are being endangered by a massive state budget deficit. So making sure the SF Health Plan is paying the appropriate price for prescription drugs, a $200 billion industry in the United States, is more important than ever.

McKesson and First DataBank, the lawsuit alleges, placed new stickers on drug packages so that everyone — from private insurers to Medi-Cal to consumers without insurance who simply walk up to a pharmacy window and cover their drug treatments with cash — paid far more than they should have, based on an industry calculation that’s similar to the suggested retail price printed on our analogy of a bag of chips. Herrera says he took on the suit because San Francisco is not alone in overpaying for pharmaceuticals and he saw a chance to force greater reforms in the system.

"We make our decisions based on the facts and the law, and we do our best to protect consumers, taxpayers, and businesses alike," Herrera told the Guardian. "This impacts a lot of things. It’s about protecting consumers from having high drug costs passed on to them. It’s about protecting taxpayer dollars since this is the San Francisco Health Plan, and it’s something that emanates out of a city program. But it’s also about protecting businesses, because a lot of businesses and health plans are the ones footing the bill for increased drug costs."

First DataBank is not listed as a defendant in Herrera’s suit but is described as "an unnamed co-conspirator." The company is a little-known subsidiary of the private, New York–based media conglomerate Hearst Corp., which owns dozens of major publications including the San Francisco Chronicle, the Seattle Post-Intelligencer, Esquire, and The Oprah Magazine. Spokespersons for McKesson and First DataBank refused to comment for this story.

As far as revenue is concerned, First DataBank is a bit player in the world of pharmaceuticals. Court records in a related 2006 suit describe its annual pretax income as just $19 million, barely enough to cover the McKesson CEO’s compensation last year.

But the company is nonetheless important to people who rely on prescription drugs. It’s one of the few major companies in the United States that maintains a sophisticated electronic database of information on tens of thousands of prescription drugs. Plus, First DataBank possesses a virtual monopoly on the market because the company merged with its only real competitor, Medi-Span, in 1998. Its database includes numbers, for instance, on what a drug manufacturer like Aventis might charge distributor McKesson for the allergy medicine Allegra, a figure known as the "wholesale acquisition cost."

Because it’s almost impossible to track every transaction between McKesson and retail chain pharmacies that McKesson distributes bulk drugs to, like Rite Aid and CVS Caremark McKesson, it’s First DataBank’s job to survey the distributors and come up with an "average wholesale price."

After you obtain a bottle of Allegra with a co-pay to take care of your stuffy nose, your insurance provider, say, Blue Cross or Kaiser Permanente or the SF Health Plan, refers to First DataBank’s massive catalog of drugs — for which they’ve paid a hefty subscription fee — to make sure the price they’re paying for your allergy medicine is the one properly set by the market.

First DataBank claimed for years that it was surveying multiple drug wholesalers like McKesson to come up with its average published prices and that it was increasing the number of surveys it conducted. But there aren’t that many wholesalers to actually survey because so many of them have merged with one another in recent years. Also, two out of the nation’s three top wholesalers apparently declined to participate in the surveys as a matter of policy.

Troy Kirkpatrick, a spokesperson for Cardinal Health, one of McKesson’s few competitors, said his company doesn’t give out proprietary information to anyone, let alone First DataBank.

"We have a long-standing policy of not providing confidential pricing information to external sources," Kirkpatrick said. "So if we get asked to share that type of information, we decline."

By 2001 it appeared that First Databank wasn’t really surveying several wholesalers or even the two major companies that compete directly with McKesson, according to court records. First DataBank allegedly conspired with McKesson to establish an artificial baseline markup on hundreds of drugs that didn’t accurately represent their true suggested retail price

.

But if the bodega, or in this case, the retail pharmacy, is benefiting from the new stickers, then what’s in it for McKesson?

Herrera’s suit contends that if pharmacies like CVS and Rite Aid saw McKesson pressing the scales for them, they’d return to McKesson with their business instead of its two other major American wholesale competitors, Cardinal Health and AmerisourceBergen.

The three companies aggressively compete with one another for business just like they’re supposed to in good ol’ free-market America. But now it appears that McKesson has found a way to game the system and edge ahead of its two rivals. Indeed, McKesson is narrowly beating them in total revenue according to the Fortune 500 list.

Profit margins from drugstore chains were sagging at the time the alleged scheme between McKesson and First DataBank took off, and chain pharmacies had been pressing manufacturers to help them earn higher profit margins. According to the lawsuit, distributor McKesson came to the rescue.

So the final question, then, is whether the drug stores were enriched by all this.

Longs Drugs last year made more than $5 billion in revenue. About 20 percent of that, or $1 billion, came from the government-subsidized health care programs Medicare and Medicaid, according to company records.

In its most recent annual report to the Securities and Exchange Commission, Longs admits that if insurers began using a different benchmark than the prices published by First DataBank, such as a pricing guide that more accurately reflected market prices, there could be a "material adverse effect on our financial performance."

Rise above

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Also in this issue:
>>An interview with outlaw biker Ian Schwartz
>>An interview with SJBMX.com’s Chris McMahon
>>Sit the fuck down: The Sean Parker story

› duncan@sfbg.com

I push off and head down a makeshift plywood runway, compressing as I roll over the edge and into the Technicolor graffiti of the drainage ditch. The transition between the banked wall and the flatbottom has an abrupt kink in it, enough to send you to your face if you’re caught sleeping. I take some weight off the front end and try to maintain my speed as I pump into the opposite corner and carve the far end of the ditch where there’s an over-45-degree wall that runs behind what my friends and I call the "death pit" — a gaping cutaway in the bottom of the culvert, five feet deep, filled with broken glass, and frequently used as a urinal. Since I’m at the apex of my backside carve, up a wall 10 feet above last week’s Miller Time, I’m jolted by the crackle of a loudspeaker:

"You are trespassing. Leave the area at once or you will be arrested."

My concentration shot by the sheriff’s announcement, I jump off my deck and over the chasm at the base of the bank, barely clearing the skater’s version of a Vietnam tiger pit, and land on the rough concrete beyond the edge. My board bullets straight in, though, so I’ve got to lower myself — gingerly — into the mostly dry detritus and rescue it before my friends and I jet out of the spot and into the manicured back nine of Pleasanton’s Castlewood golf course. We get to the car, throw the boards in the trunk — mine has a "Skateboarding Is Not a Crime" sticker on the bottom — and head to the next spot, a ditch called the Rat Trap.

The year is 1987. I’m 16, in high school, and living with my parents in Fremont. The scene plays out over and over in much the same way: a drainage ditch, a nicely painted curb or ledge at a shopping center, the occasional backyard pool, and night sessions at the Tar Banks, a set of embankments around a loading dock with curbs at the top. It’s an underground railroad of repurposed architecture, none of it designed with a skateboard in mind but all of it highly skateable.

Taking the $4.7mil Cunningham skatepark. Video by Jarrod Allen, www.jarrodallen.com

Every weekend my crew hits as many spots as we can, and the constants shape up like this: urethane, aluminum, Canadian hard rock maple, concrete, and asphalt. Maybe blood, maybe beer — we’re teenagers after all — but nearly always: cops.

Skateboarding may not be a crime, but it sure as hell feels like one.

Flash forward 20 years. I’m with a different crew as I pull onto a street in suburban Redwood City, and I’m no longer rollin’ in my mom’s Plymouth Sundance, but my own truck. The other thing that’s changed is the number of wheels per head. There are four heads to eight wheels, and we’re here to ride the Phil Shao Memorial Skatepark. On bikes.

The park does not disappoint. There are a million kids trying tech ollie flip tricks around the perimeter of the park, but the bowl is what I’m about. Big and shapely with almost burlesque hips poured into her concrete, I’m in love as soon as I roll in. There are a few local bikers who have the place dialed, nonchalantly airing a few feet out and throwing the bars before heading back down the tranny. The only two skaters riding the bowl are a tall skinny teenager and his little sister, who looks to be about 10, and they have it on lockdown: lipslides on the spine, grinds, rock and rolls — everything smooth and fast. "Yeah!" I yell as they take their runs, stoked on their skills.

I know the times have changed when I see the little girl come up out of the bowl in the $450,000 public piece of silky-smooth concrete perfection, walk over to her mother, who’s posted up on a ledge, get a cell phone and make a call. Not five minutes later there are seven (I counted) Redwood City police officers converging on the bench where my friends and I are sitting. They randomly collar my buddy Scott — though I was the last one to drop in — and write him a ticket for $100. I have to admit, I’m flabbergasted.

Guess what: skateboarding isn’t a crime anymore — it’s gone mainstream. Successful companies hire lobbyists to promote the sport, and communities spend big bucks building new facilities for skaters. And now some skaters, many of them kids who never had to live in the underground world that I did, are using their legitimacy to push out the new outlaws — people who ride BMX bikes.

It’s crazy — two cultures that share so much, fighting over how many wheels they ride.

"Is that your daughter’s bike?"

The question comes from one of my coworkers, and, believe it or not, it’s not intended to be snarky. I can’t ride in public without someone saying "cute little bike," while giggling to themselves — or laughing and pointing. Seeing a six-foot-tall, 200-pound, bald-headed, tattooed white dude on a "kid’s bike" is like being passed on the sidewalk by a bear on a unicycle. At one point reactions like these would’ve rubbed me the wrong way, but nowadays, I nod and smile. Sometimes, I try to explain what constitutes a "full grown" BMX bike. While it’s got small wheels — 20 inches in diameter — the top tube, from the seat to the stem, measures 21 inches, and the handlebars are considered pro-sized at eight inches high by 28 inches wide.

Bicycle motocross, or BMX, is purported to have started in 1963 when the Schwinn corporation of Chicago unveiled the Stingray, which was basically a downsized version of the company’s balloon-tired cruiser-type bikes. Kids pretended to be grown-ups by aping Roger DeCoster and other moto heroes — launching their bikes off jumps, racing in empty fields and abandoned lots, and cranking wheelies down the sidewalks of Anytown, USA.

"It all began the way most individual sports start," motorcycle customizer Jesse James says in a voiceover at the beginning of the 2005 BMX nativity story/documentary Joe Kid on a Stingray, "kids pretending to be grown-ups, but acting like big kids."

I have been riding since I was seven. After three decades, one truism remains, and I can’t candy-coat it. I’ve got to speak it like a true BMXer: BMX is rad. It is and always has been an entity unto itself, progressing from wheelies, skids, and bombing hills to encompass myriad styles and surfaces, from streets to pools to dirt jumps to ramps to the balletic grace of flatland freestyle.

This summer, big kids on little bikes will be jumping 30-foot gaps at as many miles per hour as BMX pays homage to its racing roots at the 2008 Olympic Games in Beijing. On June 12 in New York’s Central Park, Kevin Robinson will try to break the legendary Mat Hoffman’s record for the highest quarter-pipe air on a bike — 26 feet, 6 inches.

It doesn’t take death-defying world records, the X Games, the Olympics, or the stupefaction of squares with cameras to make BMX legit. That feeling of overcoming fear and doubt by jumping a little farther, a little higher, the rush of nailing a trick, or carving a bowl, hasn’t changed in half a century. The legitimacy lies in that feeling, behind your breastbone, and it doesn’t change as you get older. Your wrists hurt, your ankles hurt, and your back hurts, but the feeling is the same. Kid’s bike? Hell yeah, it’s a kid’s bike.

It’s not as though I was blissfully unaware of a beef between bikers and skaters that day in Redwood City. Ask any BMXer to tell you a story of friction between the two and four-wheeled sets, and it’s not going to take them long to come up with something.

"When I was 12 years old, a skateboarder threw my bike out of the bowl at Ripon skatepark," says Jackson Ratima, now 19, a Daly City rider sponsored by Fit Bikes. "He was, like, 20 years old or something."

Tim "Wolfman" Harvey, 21, another up-and-coming pro, tells a similar story about a visit to the Bay Area from his native Massachusetts, when a local skater hassled him at the Novato skatepark. "I didn’t even know anything about California. It was my first time out bike riding, period. The guy was giving me all kinds of crap, yelling at me."

Ironically, Harvey, as friendly and easygoing a guy as you could hope to meet, almost turned pro for skateboarding before an ankle injury made it nearly impossible to ollie, an essential trick in street skating. He now lives in Petaluma and is a member of the painter’s union in San Francisco, where he’s a familiar face at street spots, but now on a bike. Back then, though, he "thought California was a scary place."

The Bay Area — and SF in particular — may be the worst place for bikers seeking a vibe-free session. "I’ve never experienced hostility like it is out here," Ratima says.

Smoldering after the Redwood City incident, I began to fixate on the "Skateboarding Is Not a Crime" slogan from my youth. Originally a bumper sticker made by Transworld Skateboarding magazine in the mid ’80s, Santa Cruz Skateboards currently makes a deck with that written on it, so the skate community has gotten a lot of mileage out of being oppressed.

"Skateboarding isn’t a crime?" I’d ask myself. You’re damned straight skateboarding isn’t a crime: it’s the law. BMX is a crime. There isn’t a biker alive who rides transition who hasn’t rolled into a taxpayer-funded park and had a knee-high grommet point to the sign and say, "Bikes aren’t allowed."

Not allowed, huh? Son, I skated my first pool when you were doing the backstroke in your papa’s ball bag.

Look: I love skateboarding and always will. Both skaters and bikers are doing the same thing, copping that same feeling rolling over the same terrain. The war makes no sense.

"We have religion and race and class dividing us. I refuse to be divided by what type of wheel size I have," says Jon Paul Bail, a local at Alameda’s Cityview skatepark.

Bail, 40, is the artist and pundit behind politicalgridlock.com. Through the Home Project, a program run through the Alameda Unified School District, Bail helped raise $150,000 to build the park, $8,000 of which came directly from his company’s coffers. He helped design the park, and he helped pour the concrete in the park, which opened in 1999. Mixed sessions of bikers and skaters were going down for six months with minor tensions but no major incidents when then–City Attorney Carol Korade advised City Hall that mixed use was too dangerous, and shut the bikers out.

My call to Corinne Centeno, Redwood City’s Director of Parks, Recreation, and Community Services, got off to a rough start: "I understand [the Phil Shao Skatepark] is not bike-legal, right?"

"Right. It was built as a skatepark," she replied, subtly italicizing the first syllable with her tone of voice.

"It wasn’t designed for bikes," she repeated, before adding, "but their having been prohibited from the start hasn’t necessarily kept people out." In an effort to do just that, the city is building a fence around the park, with bids currently ranging from $23,000 to $60,000.

The semantic argument — "it’s called a ‘skatepark,’ not a ‘bike park’<0x2009>" — is usually reserved for laypeople who don’t know enough about skateboarding or bike riding to see its inherent lack of logic.

Drainage ditches are not called a "skating ditches," nor were they designed for skating. Swimming pools are not called "skating pools." Yet, therein lie the roots of the modern skatepark, along with full pipes, which are based on industrial-size drainage systems also not intended for wheels. Every day skateboarders and bikers transcend these limits through creative repurposing.

Collision, and the fear of collision, is the main thing public officials cite when shutting bikers out of parks. "It’s unnerving," Vancouver pro skater Alex Chalmers wrote in a 2004 Thrasher manifesto, "BMX Jihad: Keep It in the Dirt."

"BMXers cover so much ground so quickly, especially when they’re pedaling frantically to blast a transfer, that it’s particularly hard to gauge these collisions," he wrote.

But the fact is that in any given park BMXers and skaters take different lines, and the best way to acclimate each group to the other is through exposure. If bike riders are banned, it increases the risk of collisions when a few bikers decide to chance the ticket or brave the vibe-out and ride anyway. A lot of bikers hit parks early in the morning because they don’t want to deal with hassles. During the overlap in "shifts," this leads to bewildered skaters who aren’t used to the lines a biker takes, and vice versa.

And the head-on menace is greatly overstated, largely disappearing when a park is integrated, if only unofficially. At Cityview, the police have displayed somewhat less zeal in ticketing bikers during the past few years. "They treat us like gays in the military," says Bail. "Don’t ask, don’t tell." And yet everyone manages to coexist.

At the new $850,000 skatepark in Benicia, which opened in October, integration isn’t a big deal. "From its conception, we designed it to be a skateboard park and also for bikes," says Mike Dotson, assistant director of parks and recreation. Technically, the park has designated bike hours, but since it’s largely unsupervised, there’s a mildly laissez-faire approach to enforcement. "In the very beginning there was a lot of concern about the use of both bikes and skateboards," Dotson says, stating that the park was packed the first few months. "Initially we had one or two calls on it. Since then I can say I haven’t had any calls on it — in relation to bikes and skateboards being in it at the same time or other complaints."

And there are mixed-use parks all over the world, as far away as Thailand and as nearby as Oregon: "You go to Oregon, and you can ride wherever you want," says a stunned Maurice Meyer, 41, lifelong San Francisco resident and founding member of legendary bike and skate trick team the Curb Dogs. Long Beach, Las Vegas, Phoenix, even Alex Chalmers’ hometown of Vancouver — all have parks where bikes and skates legally ride at the same time. What’s up with the Bay?

Lawyers, insurance underwriters, and city hall types may never understand how a park works. "It’s out of ignorance," Bail says. "To them it looks like chaos. To anyone who has skate etiquette — which is everyone — we all take turns."

Besides, let’s face facts: a skatepark is a dangerous place — to different degrees at different times, and for different reasons. "I swear to God, every time I go to the skatepark I see a hundred boards flying all over the place," Ratima says, "and I’ve never seen a bike go flying and land on a guy’s head." It’s not an inflatable jumpy house — it’s fun, but it’s not made out of cotton balls and your mother isn’t here. Usually.

Rose Dennis, press liaison for the San Francisco Recreation and Park Department, seemed baffled that someone would want to ride a bicycle inside the skatepark part of the new Potrero del Sol. Perhaps as a way of distracting me from my damn-fool idea, she kept hyping the park’s "other amenities."

I live three blocks from Golden Gate Park — if I want to play Frisbee, I’m not going to drive across town. I want to ride. When I brought up the possibility of scheduling bike-only sessions in the yet-to-be opened park, she suggested I draft a letter to general manager Yomi Agunbiade, before adding that "the facility wasn’t designed for that type of recreation."

When I (graciously, I thought) let her know that it would be not only possible to ride a bike there, but highly gratifying, she got a little heated: "At the end of the day, the buck stops with us. If one of you guys breaks your skull open and you’re bleeding all over the place, believe me, no one’s going to have any sympathy for Rec and Park if they make really nonjudicious decisions."

In other words, like a lot of city officials, she’s worried about getting sued.

But you know what? There’s actually less chance a BMXer will successfully sue the city. I give you California Government Code Section 831.7, which states the following: "Neither a public entity nor a public employee is liable to any person who participates in a hazardous recreational activity … who knew or reasonably should have known that the hazardous recreational activity created a substantial risk of injury to himself or herself and was voluntarily in the place of risk."

The law lists "bicycle racing or jumping" as being a "hazardous recreational activity." It’s on a fairly extensive list, along with diving boards, horseback riding, and the ever-popular rocketeering, skydiving, and spelunking, which, as I’m sure you’ve heard, are all the rage with the kids these days — much more popular than BMX.

But the words "skateboarding," "skateboarder," and "skateboard" are not listed anywhere in the text of the Hazardous Recreational Activities law, commonly called the HRA law. In fact, the International Association of Skateboard Companies has been lobbying to get the bill amended to specifically include "skateboarding" since 1995, when Assemblymember Bill Morrow (R-San Diego) took up the issue. Morrow’s bill was rejected by the state Senate Judiciary Committee in 1996. In 1997, Morrow and skateboard association lobbyist Jim Fitzpatrick gave up on amending the HRA and instead pushed Assembly Bill 1296, which added Provision 115800 to the state’s Health and Safety Code, which states, in part and in much less forceful language — without using the word "liable," for instance — that owners or operators of local skateparks that are not supervised must require skaters to wear helmets, elbow pads, and knee pads, and that they must post a sign stating said requirement.

It doesn’t say anything about "if one of you guys breaks your skull open and you’re bleeding all over the place" while wearing a helmet, then you can’t hold the operator liable.

When I asked San Francisco Deputy City Attorney Virginia Dario-Elizando how the law might apply to the city’s skateparks, she told me, "This question has never come up. I must tell you, I’ve never even seen the rules for the skateparks — no one’s ever asked me to look at them."

BMXers are willing to compromise if that’s what it takes. In May, San Jose opened the 68,000-square-foot Lake Cunningham skatepark, built by the same design firm (Wormhoudt) as the Benicia park at a price of $4.7 million, and the place has bike hours. Like any park, there are rules. Like some parks, there’s supervision, so the rules are enforced: separate bike sessions; helmet, elbow, and knee pads required at all times; brakes required on bikes; no smoking; no songs with swear words over the park soundsystem; no bikes in the three bowls with pool coping even though they only allow plastic pegs, which are undoubtedly softer on coping than metal skateboard trucks … it’s a long list of restrictions. It’s inconvenient for guys who don’t like pads or don’t run brakes, and there’s some griping, but we’ve got our eyes on the prize: the place is amazing, with a huge full pipe, massive vert bowls, and a decent street course.

I would like skaters to realize a couple of things: skating and BMX aren’t so different from each other, at least in the feeling each gives you, right there, behind your sternum, where your heart beats.

Bikers are going to ride no matter what, just like skaters are going to skate. Legal or not, we’re not going to go away. "I got arrested for riding there when I was 14," Ratima says of the Daly City skatepark. "They took my bike and threw it in the back of the car. I just kept going every day, and finally they just gave up."

"I’ve ridden bikes on vert," Thrasher editor Jake Phelps tells me during a phone conversation. "I can ride a bike in a pool, I can do that. I’m stoked when I ride a bike in a pool. Feels hella fun to me. Catching air on a bike is awesome, no doubt about that."

This, from the longtime editor of the bible of the "fuck BMX" set. It’s either baffling or heartening. I can’t decide which. "I don’t mind people that are just regular," he says. "If they’re skateboard people or they’re bike people too, I’ll respect anybody that respects me."

That’s what it comes down to: respect. I respect the fact that skateboarders did not come into this age of skateparks easily. I faded out when there was nothing, and I came back when they were in small towns across America, and I missed all the politicos and dreary meetings. It’s time for bikers to stop feeling like second-class citizens and demand a seat at the table. In the words of Black Flag, it’s time to rise above.

Tataki

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› paulr@sfbg.com

Earlier this spring, a young colleague wrote to ask if I knew of seafood restaurants in the city that emphasize sustainability. While I could recall plenty of sightings of sustainable seafood items on various menus in recent years, I could only think of two seafood restaurants that answered to his description — places, in other words, where sustainability is central to the restaurant’s consciousness and is a basic element of menu composition. One is the Hayes Street Grill, whose menu card gives detailed information about where and how particular fish have been taken. The other is a small sushi spot named Tataki that opened about three months ago in an old Subway space at the southern foot of Pacific Heights.

Tataki does and doesn’t look like a typical sushi spot. It does have a small bar in a far corner of the snug dining room where you can sit on ergonomically peculiar stools of black plastic and watch the chefs deftly go about their business, and the bamboo tables were handmade by owners Raymond Ho and Kin Lui. But the pumpkin-colored walls are unusual, and the slate floor, while handsome, does contribute to a noise level that can be surprisingly high for such tight quarters. Of course, nowhere is it written that sushi bars and other Japanese restaurants must be quiet and serene; here it is merely written that, so far as this writer is concerned, it’s nice when they are.

Still, as holes-in-the-wall go, Tataki isn’t bad looking. The real interest lies in the menu. To a glance, this document resembles many others around town: there are selections of nigiri, rolls, tataki, soups, salads, and starters from the grill. But, as at HSG, each menu entry includes information on how the fish were obtained. Many are farmed, and while aquaculture raises all kinds of uncomfortable issues about pollution, antibiotics, and food-chain inefficiency, it does offer one inarguable virtue: aquaculture helps protect wild fish populations from collapse.

Since salmon, whether farmed or wild, is problematic now, Tataki uses a close relation, farmed arctic char, instead. The fish, with its delicate rose-peach flesh, makes a handsome nigiri ($4.50); it also turns up in one of the rolls and as carpaccio. Other nigiri might feature hiramasa ($4.50), also known as kingfish (a yellowfin relative, farmed in Australasia), and California striped bass ($4.50), whose flesh is like a disk of translucent ivory someone spilled Grenache on.

No sushi joint in San Francisco would be complete without a clutch of wittily named rolls to call its own, and Tataki is no exception. The best name probably belongs to the Divisaderoli ($6), chunks of avocado bundled with either tuna or kampachi (a Hawaiian member of the jack family) and scattered with glistening orange grains of tobiko. Tastier, if bearing a less-fun-to-pronounce name, is the Mix It Up roll ($11), a blend of spicy tuna and crab meat that achieves an almost sausage-like intensity of flavor and texture.

But the king of Tataki’s rolls is surely the Extinguisher ($13), which offers not only a serious spice kick but a moment of real visual spectacle. If you like saganaki (the flaming cheese of Greece), you’ll love this scene. But first, the roll itself: flaps of kampachi marinated with chiles, packed in rice, topped with chunks of avocado, squirts of what the menu calls "hot sauce" (chipotle mayonnaise?), and heavy sprinklings of habañero tobiko, fire-alarm red rather than the usual orange. The redness of the tobiko should be enough to caution anyone who’s remotely paying attention, but just to make sure, the chef sprinkles the side of the platter with rock salt, sloshes some rum over the crystals, and lights the whole thing on fire with a blowtorch. This might make an interesting DIY project for the patronage, assuming no licensure issues — probably a large assumption.

The flame, which is mostly blue and not at all raging (its more like something you’d see under a chafing dish), burns down quickly, and you might not even notice it expire, since eating the actual roll is a memorable experience of fire and spice. I love spicy food and I responded to the clever combinations here, but at the same time it did seem to me that the subtleties of the fish were all but irrelevant. Nuance can get lost in firestorms.

A nice chaser to the Extinguisher would be the cold spinach ($4), with the greens "boiled … in soy broth," as the menu grimly explains. The dish sounded almost Dickensian in its bleakness, but it turned out to be four compressed-spinach cylinders cut on the bias and arrayed upright on a plate, like a little diorama of some ancient temple. (Minor complaint: the tightly packed leaves were tricky to hack through.) A more easygoing cold dish — the Sancho Panza of such dishes in Japanese restaurants — is the seaweed salad ($4), which Tataki, in a nice twist, presents in a large porcelain ladle.

Despite mounting evidence that fisheries are collapsing from human exploitation throughout the world — the plight of the king salmon is a recent, local, and particularly disturbing example; see also the death of the Grand Banks off Newfoundland — we seem to have a vestigial confidence that the oceans are too vast to suffer real harm at our hands. If we don’t see it happening, then it can’t be quite real. But it is happening and it is real, and if there is going to be any kind of future for sushi and other seafood restaurants, it will be because Tataki, in its eco-prescience, turned out to be the dawn of a new day. *

TATAKI

Dinner: Mon.–Thurs., 5:30–10:30 p.m.; Fri.–Sat., 5:30–11:30 p.m.

Lunch: Mon.–Fri., 11:30 a.m.–2 p.m.

2815 California, SF

(415) 931-1182

www.tatakisushibar.com

Beer, wine, sake

MC/V

Surprisingly noisy

Wheelchair accessible

Hellarity burns

0

› news@sfbg.com

"The angels in the summertime are ashes in the fall. As Eden fell so heaven shall. I will burn them all."

The sign, written in gothic letters on weatherworn plywood with faded red flames, is nailed to the side gate of a two-story duplex off Martin Luther King Jr. Way in north Oakland. Today, the old sign’s words carry a chilling new meaning, greeting visitors to a house whose insides were scorched by an unidentified arsonist.

The charred house has been a cauldron of contention for more than 10 years. It has been the product of two anticapitalist housing experiments, one started by an environmentalist landlord who sought to create an ecotopia, and the other by a group of anarchists who intended to make it their home. In the process, it became a hub for traveling activists and aspiring hobos, and a headquarters for antiestablishment endeavors such as Berkeley Liberation Radio.

"People would hear about it through the grapevine, hop off a freight train, and show up on our doorstep with a backpack, a banjo, and a Woody Guthrie song," says Steve DiCaprio, a tenant who moved into the house in 2001 with his wife after living in a van out front. "We had an open-door policy. Anyone could come in, no questions asked. They just had to abide by certain rules: no hard drugs, no racism, no homophobia, and no violence. We wanted to emphasize equality — it was a reaction to the closed, materialistic, competitive, dog-eat-dog society we live in."

The house originally was part of the green property owner’s attempt to create a network of sustainable, affordable housing. When his project floundered, the residence was slowly taken over by his tenants, a group of people who one-upped his radicalism. Both sides claimed to be avowed anticapitalists, but their strategies were at odds; his was to produce an alternative to the local housing market by creating a nonprofit that would help tenants own their homes as a collective. Theirs was to make space for themselves in a rent-based housing market by seizing property from investors and absentee landlords.

The owner eventually went bankrupt — drowned in the early stages of the current defutf8g housing market — and the property fell into the hands of a small-time real estate investor, despite the tenants’ attempts to buy it themselves. The tenants refused to leave, transforming themselves into squatters, and fought it out with the buyer in court for three years. As the court case bogged down, housing values plummeted, making the landlord’s investment lose value by the day.

On Feb. 28, when one of many hearings was set to take place, the squatters showed up in court but the landlord hadn’t filed the paperwork needed to move the conflict closer to a resolution. The following night, in the early hours of March 1, someone lit three fires in the empty upper apartment, setting the house ablaze as people slept inside.

WELCOME TO HELLARITY


For years the house has been known as "Hellarity," although its original owner never called it that. In fact, he refuses to. To recognize that name would be to legitimize the people who adorned it with the title — a group he sees as thieves, squatters who disrupted a legitimate project he thought would have a small but tangible impact on a profit-driven housing market.

Born on the Sunrise Free School in northeastern Washington State, Sennet Williams — known by most as "Sand" — spent his early years bouncing between Spokane and "environmental and pacifist intentional communities" in the area. A year after moving to Berkeley in 1990, he graduated from UC Berkeley’s Hass School of Business. With a degree in urban land economics, he wanted to do his part to turn the tide of environmental degradation by developing "nonprofit car-free housing" in Berkeley.

Williams didn’t see attending business school or investing in property as contradictions of his ideals. For Williams, they were strategic moves. He thought that anticapitalist projects lacked an important element — money — and wanted to be a benefactor for alternative forms of housing.

One week after graduating, his dreamy aspirations came to a crashing halt when an SUV plowed into his compact car while he was on a ski trip at Lake Tahoe, badly injuring him and causing brain damage. His goals would have been quickly destroyed, but Williams sued the driver and convinced the court that the accident interfered with his budding career, winning a settlement in 1993 that he says was "almost a million dollars."

While his money was tucked away in mutual funds and he was living briefly at a student co-op in Ann Arbor, Mich., in 1994, Williams solidified his ideas into an ambitious project called the "Green Plan" with some of his housemates. The plan was an elaborate scheme to "end homelessness" by creating "an urban nonprofit dedicated to self-governing and radical environmentalism" that would fund "rural sustainable ecovillages in Hawaii and elsewhere."

That summer, Williams bought five houses on credit in what he calls Berkeley’s "’80s drug-war zones" and brought his Ann Arbor friends to California to turn his rundown properties into co-op material. Over the summer, the Green Plan became an official organization and Williams let its members live in his houses without paying rent. Instead, they were expected to pay monthly dues to their organization — roughly the equivalent of fair market rent — to put toward buying rural land or repurchasing the houses from Williams at cost. Those who couldn’t afford to contribute were allowed to stay free in exchange for working on the houses, doing extra work for the Green Plan, or volunteering in its Little Planet café.

"Sennet (Williams) tried to be clear that he wasn’t a landlord," says former Green Plan member Dianna Tibbs, but relations between Williams and the members quickly disintegrated. Three years after its formation, the Green Plan remained unincorporated as a nonprofit. A former member also said it was still too centered on Williams’ ideas. Williams’ relationship with the tenants soured. "Ultimately there was a rebellion among the people against Sennet," Tibbs says. In 1997 the project disbanded, transferring all of the money they had raised — about $50,000 — to the Little Planet café.

The Green Plan fell apart, but Williams was caught up in the fervor of the mid-90s real estate market. In 1997, he bought the house that would later be named Hellarity for $114,000, with the goal of "making it into a demonstration of an eco-house that would be an educational resource for the city." He says he chose that property in part so it "could be a tribute to the Black Panthers’ goals of providing food in the inner-city," as it was on the same block as the home of Black Panthers founder Bobby Seale.

But shortly after Williams bought Hellarity, he says he became "overextended in real estate." By the time he made his first mortgage payments, he says there were "over 60 people" living in his houses. He owned eight in Berkeley, two in Oakland, and was planning to buy farmland in Hawaii. With Williams tied up in too many projects to fix up Hellarity, he moved in some people to "house sit" in exchange for free rent.

Shortly after people moved in, Williams stopped coming around the house. The housesitters gradually brought in their friends, the walls were slowly painted to suit the eccentric tastes of the occupants, and more people started calling the house theirs. Williams said he didn’t invite them, but admits that he never asked them to leave. He had little contact with the occupants as years passed. "He was just a theoretical person that owned the house," DiCaprio says.

Hellarity took on a distinctly anarchist flavor in Williams’ absence. "People with alternative lifestyles and alternative family arrangements could live without having to dedicate their lives to making money, giving them more time to invest in their homes and their communities," says long-term resident Robert "Eggplant" Burnett, Bay Area punk rock legend, publisher of the zine Absolutely Zippo, and editor of Slingshot newspaper. Hellarity hosted the pirate radio station Berkeley Liberation Radio, a do-it-yourself bike shop, and cooked meals for Food Not Bombs.

It seemed like an anarchist paradise, but it wouldn’t last.

FOR SALE


By 2004, mortgage payments were driving Williams deep into debt, and Hellarity became a burden. The house was being pulled away from him from two sides: by anarchists who increasingly challenged the legitimacy of his ownership, and by creditors who placed liens against his properties.

When Hellarity was eventually sold by the court in a bankruptcy sale, the tenants say the man who would buy the house, Pradeep Pal, had never set foot in it. Pal, who refused to be interviewed for this article, lived in an upper-middle class neighborhood in Hercules and owned two businesses, Charlie’s Garage in Berkeley and European Motor Works in Albany. He wasn’t exactly a freewheeling real estate flipper — he was a South Asian immigrant who, according to Guardian research of property records, never owned real estate in the area other than his own home.

But to the tenants, Pal was a capitalist trying to buy them out of their home. In a recorded meeting with tenants, Pal admitted he hadn’t been inside the house before he bought it, and Williams tells us the real estate agent who arranged the sale also never toured the house before Pal bought it. "He obviously had no interest in moving into the place or contributing to the community if he didn’t even look at it," future occupant Jake Sternberg says. "This was someone who just wanted to make a profit."

The tenants made it clear to Pal that they didn’t want him to buy the house and would make life difficult for him. As soon as it became apparent that Williams would lose the house, Crystal Haviland and a few other occupants started searching for someone to help them buy the house. In the summer of 2004, the house was slated to go up on foreclosure auction, but the tenants hadn’t found a sympathetic donor.

The auction was set to occur on the steps of the René C. Davidson Alameda County Courthouse, and the occupants showed up banging drums and bellowing chants to warn off prospective buyers. "We wanted anyone interested in buying the house to know that the people who had been living at the house for 10 years wanted to buy it," says Haviland, who is now raising a child, studying psychology at San Francisco State University, and volunteering as a peer counselor at the Berkeley Free Clinic. "We didn’t want people to buy it and turn it into an expensive gentrified thing." While people gathered, Williams showed up and announced bankruptcy, a legal move that cancelled the auction.

With more time to search for financial support, Haviland started talking with Cooperative Roots, an organization that bought a couple of Williams’ other houses — now known as "Fort Awesome" and "Fort Radical" — in foreclosure auctions. Cooperative Roots is a Berkeley-based nonprofit organized in 2003 by members of the University Students Cooperative Association. They received money from progressive donors — mainly the Parker Street Foundation — to buy houses that they turned into "cooperative, affordable housing," says Cooperative Roots member Zach Norwood. Anyone who lives in their houses is an automatic member of the cooperative and makes monthly mortgage payments to the foundation.

For Hellarity, Cooperative Roots was a godsend. "Other people would walk into that house and say, "This place is disgusting," DiCaprio says. "But they said, ‘Wow, this is a work of art.’<0x2009>" The Parker Street Foundation was willing to put down whatever was needed to buy the house, Norwood says, but the occupants were limited by the monthly payments they could afford. On Nov. 4, 2004, the house went up for bankruptcy sale, and Cooperative Roots was prepared to bid up to $420,000. "It was exciting to be there with a bunch of crazy Hellarity people, putting out bids for hundreds of thousands of dollars," Haviland says.

No one expected them to show up at the sale. Williams says they had previously offered to buy the house from him but he "didn’t think they were serious." By the time they had the money, Williams no longer had control of the sale. At the courthouse, the anarchists were playing by the rules, bidding with money up front. The only other party interested in the house was Pal and his brother-in-law Charanjit Rihal, who were placing bids against the occupants. The two sides bid against each other, driving up the price until the occupants reached their limit. Pal and Rihal took the property for $432,000.

OWNERSHIP VS. CONTROL


"This sale was symptomatic of a housing market gone haywire," says DiCaprio. "People like Pal and Rihal thought they could just throw a bunch of money into real estate and it would always be a good investment. I’m glad the market finally crashed, because that kind of behavior hurts a lot of people. It ended up driving the price of housing to the point that normal people can’t buy anymore — and that’s absurd."

Pal soon discovered he owned the property on paper only. The occupants didn’t recognize the sale or his authority to tell them to leave. Three months after the sale, the occupants were still there, refusing to go. Pal took the case to court in an "action to quiet title," demanding that they be ejected from the property and that the title be freed from any future claims against it. He claimed the people in the house were squatters, living on his property without permission. But before the police could drag out the occupants, they countersued, holding themselves up in court without a lawyer for three years and living in the house the whole time.

One of the first cross-complaints came from Robert Burnett who — with his contempt for the computerized, cell phone-saturated consumer culture — wrote his cross-complaint on the back of a flyer on an ancient typewriter. When the document appeared in court, one side advertised a benefit for a pirate radio station at the anarchist info shop at the Long Haul with an image of tiny people being thrown out of an upside-down Statue of Liberty. On the other side, Burnett claims that he is a co-owner of the house, which he acquired through "adverse possession." Two other defendants made the same claim.

"Adverse possession transfers the ownership of a piece of real estate to people occupying the house without payment," says Oakland attorney Ellis Brown, an expert in property law. "In the state of California, you have to be openly living in a place for five years without the titleholder trying to make you leave to win an adverse possession case."

"Adverse possession originated to prevent Native Americans from taking back land from homesteaders, but squatters turned it around, using it to protect people who take possession of unused property," says Iain Boal, a historian of the commons who teaches in the community studies department at the University of California, Santa Cruz and the author of the forthcoming book, The Long Theft: Episodes in the History of Enclosure. Boal emphasizes the large numbers of squatters in the world, a figure Robert Neuwirth, author of Shadow Cities: A Billion Squatters, a New Urban World (Routledge, 2004), pegs at 1 billion. "It is only here that squatters are seen as bizarre leftovers from the ’60s," Boal says. "We are in a crisis of shelter, and people need to fill their housing needs."

DiCaprio concurs. Along with Burnett, DiCaprio was the main backer of the occupants’ legal case. As we talk in a dark, live-in warehouse, he sips coffee out of a Mason jar and looks over the court case on his laptop. He says he wants to be a lawyer, but he has never been interested in making lots of money — he says he wants to "fight for housing rights." DiCaprio learned squatter law while cycling through family law court, criminal court, and federal court over a Berkeley house he was squatting and trying to win through adverse possession. The city threw him in jail, and he was released just after Pal sued the occupants of Hellarity.

He says Hellarity was different from other situations he’s dealt with as a squatter. "We never thought of ourselves as squatters [at Hellarity] per se until Pal sued us and start using that language in court," he says. "Before he bought the house, no one was challenging our presence on the property. Sennet [Williams] was either actively or passively letting us stay there. By filing a claim to quiet title, Pal made it apparent the title was in question. By calling us squatters instead of tenants, they lost some claim to the property. So we took the ball and ran with it."

Their use of adverse possession was strategic, DiCaprio says, but they didn’t intend to win the house that way. "We were never under any illusion that we would win ownership of the house in court," he says. "We wanted to use the court as a forum to enable us to buy the house. We were just treading water until Pal got tired and agreed to sell." The occupants say they offered him $360,000 for the house, the price it was originally listed for, but he refused to take a loss on his investment.

DiCaprio says the courts generally aren’t sympathetic to squatters’ cases. "Pro pers tend to be poor, so there is a class bias against them," he says, referring to people who represent themselves without a lawyer. DiCaprio says judges have rejected documents for having dirt on them and refused to give fee waivers to people with no income. "The courts do not like squatters. If you mix pro per and adverse possession, you could not have a more hostile environment against us."

For more than two years, Pal and the occupants played a cat-and-mouse game, dragging out the case and trying to complicate it in hopes the other side would just give up. Pal’s lawyer, Richard Harms (who did not return Guardian calls seeking comment), objected to the terms "documents," "property," and "identify" when asked to produce evidence related to his claim. "Instead of trying to prove their case, they were just waiting for us to trip up and not file something before a deadline," says DiCaprio.

The occupants didn’t slip, but as the case wore on, he and Burnett grew tired of upholding their side in court. By fall 2007, the two cut side deals with Pal. Burnett settled for $2,000 and DiCaprio for an undisclosed amount. "I realized I couldn’t save it alone," DiCaprio says. "I told them to sink or swim."

ENDGAME


When Burnett and DiCaprio settled with Pal, the subprime housing crisis was splashing the headlines. Pal’s investment was starting to seem more like a loss, but for the first time since he bought the property, it looked like it would finally be his. By November 2007, the remaining squatters dropped the battle for ownership and began bargaining with him for concessions.

By mid-February, Pal was ready to start renovations, and all but two of the squatters had moved out. They made their final plea and Pal gave his last compromise: two more weeks, then they had to go. "He was sure he was going to get the house, so he agreed to let us stay," says a squatter called Frank, who asked not to be named because of his immigration status.

What Pal may not have understood was that he was not the only party still interested in the house. The house was becoming a point of contention among the larger community of squatters and anarchists in the East Bay. Fissures broke around a central question: was it up to those living there to decide the fate of the notorious squat, or did the larger community of radical activists have a say in the property?

As Pal was getting rid of the last people occupying the house, the squatters’ conflict came to Hellarity’s doorstep. A new group of people came to the North Oakland house, among them a few who had previously stayed at Hellarity, ready to renew the struggle against Pal. Frank, who had been living in the house for seven months, was unhappy about the new arrivals.

"I told them that this kind of action would make problems for me," he says. "I already made an agreement with this guy [Pal] to leave by the end of the month." The new group saw things differently. "We own this place," says Jake Sternberg, the new de facto caretaker of Hellarity, who has since been pushing for the squatters to renew their court case. The discord between the squatters split up the duplex: the two old squatters stayed upstairs while the recent arrivals occupied the lower half.

Two weeks after the new crew moved in, a fire was lit in the upper apartment that burned through the ceiling and the floor. But who did it? Was it a disgruntled squatter who would rather destroy the house than hand it back to Pal? Or was Pal connected to the arson, losing his nerve as a newly energized group of squatters took over and the value of his investment crashed?

If not for the squatters, Pal might have been less affected by the subprime crisis than most property owners. He had no mortgage on the house — he bought it outright — so he wasn’t under threat of foreclosure, unlike tens of thousands of other California homeowners. But Pal faced a different threat. It seems likely he bought the house as an investment, and as the market crashed, he was stuck with a house he could neither renovate nor sell, and was left to watch its value tank as he slogged through court proceedings.

For an investor like Pal, the numbers weren’t looking good. In March, median housing prices had fallen 16.1 percent compared with those of March 2007, according to DataQuick Information Systems, and home sales declined 36.7 percent from the previous year. In April — for the seventh consecutive month — Bay Area home sales were at their lowest level in two decades, DataQuick reported. And according to Business Week, national home prices will plummet an additional 25 percent over the next two to three years.

On Feb. 17, the day after the new group of squatters moved in, Pal made an appearance at the house. In early March, Sternberg showed me a video he recorded during Pal’s visit. On the screen, Pal is sitting on a couch in the downstairs living room of Hellarity. At the door, a well-built man who looks to be in his 30s and calls himself Tony leans against the wall with two younger men who call themselves Salvador and Ryan. Sternberg tells me that Pal came to the house demanding they leave his property. Sternberg called the police, accusing Pal of trespassing. As they waited for the OPD to arrive, which took more than 25 minutes, they discuss their conflict over the house.

At the beginning of the video, Sternberg tells Pal why he and his friends refuse to give up the property: "People came over here from Europe and they said, ‘Hey, we’re going to take this place.’ Now they sell land to each other. And how did they get it? They took it…. And just because somebody pays for something doesn’t mean that they get it. And just because somebody sells something doesn’t mean they have a right to sell that."

A few minutes into Sternberg’s video, Pal told the squatters he was ready to take matters into his own hands. "You just have to deal with me now because what I’m saying is, it’s person to person…. And you know what? If it’s gonna get dirty, it’s gonna get dirty. I don’t care. Because you know what? That’s the way it’s gonna be, because this is what I need. I need to have it. I don’t have any lawyer. I can’t afford a damn lawyer. So it’s gonna be me and you. One to one. Man to man."

Pal eventually left the property after the police arrived, but the two younger men, Salvador and Ryan, spent the night upstairs. "[Pal] had them stay there because they thought the people downstairs would squat the upstairs," Frank says. "He wanted to protect the house." Frank, who says he was concerned that Pal would try to evict him with everyone else, initially didn’t protest the presence of the two young men.

The next day, at Frank’s request, Pal told Salvador and Ryan to leave, and for the two weeks that followed, Pal didn’t return to the house. The new group of squatters expected to see him Feb. 28, the date set for a case hearing called by Pal’s lawyer prior to the re-occupation of the house. If the defendants didn’t show up, a default judgment could have been entered, granting Pal his request to have the squatters removed and ordered to pay $2,000 per month in back rent. The squatters showed up for court, but Pal’s side hadn’t filed the necessary paperwork to hold the hearing.

Once again the house hung in legal limbo and the day after the hearing, the remaining people upstairs moved out as agreed. Frank says Pal called him while he was at work that afternoon to make sure they were gone. For the first time in 11 years, the upper apartment was empty, waiting for either Pal or the other squatters to seize it.

But someone was committed to preventing that from happening. The night after the people upstairs moved out, at around 3:15 a.m., the squatters downstairs awoke to fire creeping through the floorboards above them.

"Both of the doors upstairs were locked," Sternberg says. "We broke through one of the doors and threw buckets of water on the flames."

After the fire department extinguished the blaze, the squatters called the police to have an investigator search the scene. "It appears that unknown suspects entered the house through unknown means, and then set three fires in an attempt to burn the house," the police report states. According to the report, all three fires were set in the upstairs apartment; two burned out before the fire department arrived. Officer Vincent Chen found two used matches in the bathroom, where the wood around the sink had been burned, and a gas can hidden in the bushes on the east side of the house.

When I first met Sternberg, he told me the Oakland Police Department’s arson investigator, Barry Donelan, was helpful. Two and a half months after the fire, however, Sternberg says: "I regret having talked to the police."

Initially, Donelan didn’t know they were squatters — Sternberg had told him they owned the house. "Once he found flyers for a fundraiser to defend the squat, he became angry," says Sternberg. "He said he submitted the case to the district attorney, and didn’t expect anyone would be arrested."

Sternberg says Donelan also threatened to have him arrested for a traffic-related warrant and that he would turn Sternberg’s name over to the Federal Communications Commission, which had an open investigation on the house for hosting Berkeley Liberation Radio. In March, Donelan told us he wouldn’t comment on the case and at press time, he hadn’t return Guardian calls about the status of the investigation.

EPILOGUE


Although the arson may never be solved, the squatters have strong suspicions about who was behind the fire. But they have a hard time deciding who, ultimately, is most culpable for the blaze. "No one involved in Hellarity is innocent, and no one is completely guilty," says DiCaprio. The one point of view everyone seems to share is that Hellarity has long been a tinderbox of contention, in which property owners struggling in a beleaguered housing market faced off against a group of people who reject the market outright for its inaccessibility to low-income people. Eventually, it all literally — burst into flames.

When I visit after the fire, people are sitting outside playing guitar, smoking rolled cigarettes, and singing the timeless hobo ballad, "Big Rock Candy Mountain." The sounds drift over the budding vegetable gardens and into the downstairs living room, where a message written on a big green chalkboard suggests that if the fire was intended to drive people out, it was unsuccessful: "WELCOME BACK TO HELL(ARITY). Because bosses, landlords, and capitalists suck, the house has lots of repairs that need to be done before it becomes fully livable."

Upstairs, Sternberg looks up at a charred, gaping hole in the ceiling. "We have to make lemonade out of lemons," he tells me, explaining that they just got a skylight to fill the cavity. "We’re going to continue fighting just like we’ve been fighting. This guy [Pal] has been in court with us for three years. He’s got no case." *

Assessing the deal

0

› sarah@sfbg.com

Mayor Gavin Newsom stood with San Francisco Labor Council executive director Tim Paulson, flanked by Sup. Sophie Maxwell and representatives from megadeveloper Lennar, the San Francisco Organizing Project, and the Association for Community Organizations for Reform Now (ACORN) May 20 to announce "a historic community benefits agreement."

Lennar had been persuaded to promise more affordable housing and other giveaways in order to win some important new endorsements in their troubled bid to take control of Candlestick and Hunter’s points and cover them with about 10,000 new homes.

"This is a very big deal," Newsom said, plugging the Lennar-financed Prop. G and bashing Sup. Chris Daly for his leadership of the campaign to qualify Prop. F, which would require that half the new units be affordable to households making less than $75,000, a requirement that Lennar casts as a deal breaker.

"Prop. F is a pipe dream that guarantees you only one thing: what you already have," Newsom said. "We have to get the message out what a Trojan horse Prop. F is." Lennar’s top local executive, Kofi Bonner, added that the agreement "enables us to go forward, because now we have new allies."

The Labor Council’s ability to invigorate a campaign makes it an important ally. Yet Lennar’s giveaway of more than it had previously promised and the fact that the agreement comes just two weeks before the June 3 vote seem to indicate that the Prop. G supporters have grown desperate.

Lennar already has spent $3.26 million to promote Prop. G and oppose Prop. F, only to find polls showing Prop. F well ahead despite a campaign that has raised less than $10,000. The weak poll numbers clearly convinced Lennar and its backers in the political power structure that voters would be more likely to support Prop. G if Lennar came up with something that seemed legally binding.

But by supporting a deal that appears to pin down Lennar on levels of housing affordability and community investment, Newsom ironically seems to be validating the concern of Daly and Prop. F’s other backers that Prop. G lacks guarantees on these fronts (see "Promises and reality," 04/23/08).

Not even Newsom could deny that Prop. F’s presence on the political landscape pushed Lennar to seek a community benefits agreement with the Labor Council and ACORN, a group that had been a solid part of Daly’s affordable-housing constituency.

"It probably has," Newsom told the Guardian. "That said, I don’t think Prop. F should suggest the deal is better because of them. Perhaps it’s worse."

Daly dismissed Newsom’s attacks as more attempts to hurt Prop. F’s popularity by trying to attach it to Daly’s personal negatives. Daly also attacked the agreement as overstated in its promises and impossible to enforce.

"I really don’t know if there is any net gain from one deal to the next," Daly said. "And how is it enforceable? We’re not sure anything legally binding is on table now. If there was a development agreement then obviously we would have some surety, as we would if we had a development plan that had cleared the approval process — Lennar’s financial vulnerabilities notwithstanding."

Noting that the city has had "bad luck with big order projects before," Daly recalls how Lennar reneged on building rental units at the Shipyard’s Parcel A, where the developer also failed to properly monitor and control asbestos dust despite promising to do so.

The agreement, which doesn’t include the city or any government agency as a party, is certainly unconventional. But is the deal legally binding? And just who benefits from it?

The CBA purportedly commits Lennar to create 31.86 percent "affordable" housing units in the Bayview, contribute $27 million to provide affordable homes throughout District 10, rebuild the Alice Griffith public housing project, and give down payment and first-time homebuyer assistance on another 3 percent of the homes.

All told, Paulson claims the deal locks in an unprecedented 35 percent affordable housing into Lennar’s mixed-use proposal for the Bayview. The deal also obligates Lennar to invest $8.5 million in workforce development in District 10, hire locally, pay living wages, and allow worker organizing with a card check neutrality policy.

"This legally binding agreement is a way we can insure that our community gets the benefits it needs," said SFOP co-president and longtime Bayview resident Eleanor Williams.

Paulson said May 22 the deal is still being "lawyered up" to ensure its enforceability, and ACORN’s John Eller insists the deal was done with community input. "We have had numerous meetings in which the community was demanding accountability and clear commitments to the workforce and housing, including the possibility of home ownership," Eller told the Guardian.

But Julian Gross, director of the San Francisco–based Community Benefits Law Center, clarifies that the deal only becomes legally binding if Lennar builds a mixed-use project in Bayview/Candlestick Point. "A community benefits agreement gives people a way to work in a coalition," said Gross, who helped negotiate CBAs at Oakland’s Uptown and Oak to Ninth projects, and at Lennar’s development in San Diego’s Ballpark Village in 2005.

Michael Cohen, director of the Mayor’s Office of Economic Workforce and Development, said the city hopes to enter into its own legally binding agreement with Lennar over a mixed-use project by the end of 2009, once environmental reviews on the project are completed.

Given that the project is expected to take 12–15 years to complete, could Lennar change the CBA’s terms after it starts to develop the Bayview? Yes, says Donald Cohen of the San Diego–based Center for Public Policy Initiatives, but only if both sides agree to any changes.

"In a private deal between private parties, those parties can agree to change the terms of the deal at any time," Cohen explained.

That’s significant given the divisions over development within the Labor Council. As Paulson confirmed, the building-trade unions were pushing for outright endorsement of Prop. G and opposition to Prop. F, but he successfully pushed for the negotiations with Lennar, which lasted more than eight weeks and almost broke down several times, Paulson told us.

"I told them, I don’t think that’s where we are coming from because Prop. G doesn’t contain guarantees on affordable housing or jobs," Paulson said of his initial response to Prop. G supporters.

The agreement appears to stretch the definition of "affordable housing," reaching up to those earning 160 percent of area median income, which is essentially market-rate housing for the low-income southeast sector.

Prop. F supporter Alicia Schwartz of People Organized to Win Employment Rights said that what labor’s deal with Lennar means is that only 15.6 percent of the housing will truly be affordable to the folks who currently live in the Bayview. While "3,500 units sounds good," Schwartz observed, "Only 50 percent of them will be for families making 60 percent and less of area median income, while the other 50 percent are for 80 to 160 percent AMI. That means $500,000 condos, which 70 percent of the Bayview can’t afford."

Yet Cohen said it’s understandable that the Labor Council crafted a deal that caters to those with above-average incomes.

"Affordable-housing policies over the last 10 years have tended not to address the needs of many of their members," Cohen said. "Many families make more than $64,000, so they can’t qualify for affordable housing, but don’t make enough to buy. This provides a fantastic and large-scale opportunity to address the problem of the squeezing of the middle class in San Francisco."

Public records obtained from the Mayor’s Office show that prior to this latest deal, Lennar planned to build up to 75 percent market-rate housing at the site, including hundreds of million-dollar townhouses, thousands of high-rise units at $787,483, mid-rise units at $734,400, townhouses at $651,366, and low-rise units at $592,797.

But under the CBA, the top tier of condos that Lennar deems "affordable" cost about the same as the cheapest market rate units it had already planned to build, leaving only 1,566 rental units at rates truly affordable to San Francisco’s low-income workers.

Paulson believes the resulting agreement "ensures that residents, workers, tenants, and future homebuyers have a path to new jobs and housing." He also claims that it is tied to the land, "meaning that it would be transferable to other developers if Lennar pulls out."

Joseph Smooke, executive director of the Bernal Heights Neighborhood Center, said he believes the jobs agreements labor negotiated are good. "It’s the housing stuff where they gave away the store," Smooke said. "Why didn’t they stick to the jobs piece and support Prop. F?"

Pointing to the Board of Supervisors’ passage of policy saying that 64 percent of housing in eastern neighborhoods should be targeted at 80 percent of AMI and below, Smooke added, "There are ways to make 50 percent affordable work. This is free land. It’s not rocket science. But is it city policy to protect a developer’s stated desire for 18 to 22 percent profit?"

Meanwhile, Schwartz hopes SFOP and ACORN are being accountable to their base of low-income workers. "Lennar would like to tell you that if Prop. G doesn’t pass, nothing happens. But in reality, the community’s plan stays, plus now there is a 50 percent affordable-housing requirement," Schwartz said. "That’s a win-win."

"For Newsom and Lennar to say that Prop. F is a poison pill — the irony is not lost on the Bayview," Schwartz added, recalling the city’s failure to hold Lennar accountable for its promises and misdeeds. "We’re looking to change the way business is done in San Francisco." *

Flying the coop?

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› news@sfbg.com

GREEN CITY From inside the trailer-size office at Sunrise Farms, one can hear the incessant squawking of 160,000 chickens housed nearby. The Petaluma-based egg producer generates the vast majority of eggs sold in the Bay Area with its seven properties and 1 million hens, one of two large egg operations in a region that used to have thousands of smaller chicken farms.

On one wall of the office a framed aerial black-and-white photograph shows the same property as it appeared more than 70 years ago. The layout of buildings hasn’t changed much over time, still retaining the long, thin structures aligned side-by-side. But in the photograph, little white specks populate the space between buildings — they’re chickens, and all 10,000 were free to wander. Today the birds are kept indoors and, to save space and increase production, are typically confined in small cages. These "battery" cages are stacked in rows four cages high, allowing each bird 67 square inches of room — about the size of a large shoebox.

Although the egg industry says the cage systems are science-based and humane, animal welfare activists say they are cruel and restrict natural behaviors. In November, voters will decide whether to ban the cages in California, thanks to a six-month signature-gathering effort sponsored by the Humane Society of the United States along with other animal welfare groups. As hundreds of veterinarians, businesses, farmers, and politicians — including Assembly member Mark Leno and state senator Carole Migden — continue to endorse the measure, the California egg industry is rallying farmers from across the country against it. If voters approve the law, California’s egg farmers would be required to move the state’s 19 million caged birds into cage-free facilities by 2015.

Since 2002, Florida, Arizona, Oregon, and Colorado have passed similar laws regarding the confinement of pregnant pigs and veal calves in crates — both included in the California measure — but California would be the first state to pass a law regarding the confinement of egg-laying hens. The pork and veal industries have begun voluntarily phasing out confinement practices nationally, and animal welfare groups hope for a similar response from the egg industry if the measure passes in California.

But some consumer groups and egg producers fear the cost of eggs could increase drastically as a result of the new laws. The industry is historically volatile, with prices rising and falling week to week due to disease outbreaks and fluctuating consumer demand. Recently, however, the industry has seen steady growth. The average American now buys around 260 eggs per year, an increase since the 1990s that has resulted in higher profits for the $3 billion-a-year industry.

Although the financial toll the measure would have on farmers and consumers is unclear, the Humane Society touts a study prepared for an industrywide meeting in 2006 as evidence that the cost to switch over to cage-free farming would be minimal. The report claims that the difference between constructing and operating a cage-free facility compared to a caged one amounts to less than one cent per egg. However, the work-up assumes land prices of $10,000 per acre — a fourth of the average land cost in Sonoma County. But even using the higher estimate, the difference is still only slightly more than a penny per egg.

Arnie Riebli, the managing owner of Sunrise Farms, says he disagrees with those figures and doesn’t understand how they were calculated. Indeed, he thinks the cost of cage-free production is closer to double that of caged production. Even so, he says that while initial costs are higher, he receives a higher profit margin on cage-free eggs because of their specialty pricing.

If required to raise only cage-free birds, Riebli says his business will lose its competitive edge to out-of-state producers. One-third of California’s eggs currently come from outside of the state, which means the delivery routes and trucks from the Midwest are established, which means flow could easily be increased. "Every other state is going to sit out there and ship more eggs in here," he says. "They’re not stopping it. They’re just moving it somewhere else."

Riebli’s says he is concerned with his hens’ welfare as much as ever, and has taken trips across the world to research the latest in hen-raising technology. But he stands by his methods. "I use myself as a judge to see what my animals will like," he says. "I go into the building just as I am. If I’m comfortable without a mask, without any protection, then the birds must be too."

The chickens closest to the office are considered cage-free. The 4,000 birds inside the building are fed an all-organic diet and, although quarters are still tight (slightly over a square foot is allotted for each), the birds can dust bathe, perch on posts, and spread their wings. Sunrise Farms reflects the entire industry, since only about 5 percent of its egg-laying hens are raised without cages. In most other buildings, birds are held in battery cages. Ten birds live in each four-foot metal cage.

The eggs are packed on site and distributed through NuCal Foods, the largest egg supplier in the western United States. NuCal also delivers eggs from Gemperle Enterprises, the company whose facility recently came under fire after animal rights activists released undercover footage of severe animal abuse at its farm. Although the farm now claims the video was staged, it showed heinous acts of cruelty, including stomping and throwing hens. More important, it showed the conditions of the hens living in battery cages. Many had excessive feather loss, abnormal growths, and infections.

Riebli says he wants to distance his farm from the cruel treatment shown in the video. Still, he admits that all laying hens are susceptible to cancers, infections, and feather loss, although not usually as severe as what was shown in the video. "There’s a disconnect to where people’s food comes from," Riebli says. "They think it comes from the back of the grocery store, but unfortunately it doesn’t. It has to come from somewhere."

The Riebli family has been in the Petaluma egg business for more than 100 years, and since 1960 his company has grown by joining with other egg producers. The farm survived the Depression, the bird-flu scare, many salmonella outbreaks, and even break-in attempts from animal rights activists. Now that iron bars guard the office windows, Riebli is no longer as worried about criminal attempts against his farm. His main concern these days is that the law, although aimed at protecting chickens, could put him out of business.

"Animals are not human," he says, furrowing his brow and raising his voice slightly. "They don’t have intellect. Chickens probably have brains the size of a pea."

Sara Shields, who holds a doctorate in animal behavior from the University of California, Davis, is among the most vocal American scientists to oppose the use of battery cages. She notes that in Europe, where battery cages were banned in 1999, she’d be considered moderate. She recently released an extensive study comparing the welfare of hens in battery cages to those in cage-free systems. "I would like to see us raise the bar for the treatment of animals," she says. "There’s a limit to how high that bar can be set in cages. I don’t think cages have the potential to be humane."

But most American agricultural scientists disagree and say both systems can be operated humanely, though they grant that poorly-run versions of either type can be disastrous. To prevent mismanagement, United Egg Producers, a lobbying group that represents 85 percent of the country’s egg farms, decided to develop standards for caged production in 1999. They sought out UC Davis poultry scientist Joy Mench to lead a team of scientists in creating these welfare guidelines.

By analyzing the disease, injury, mortality, and productivity rates of birds kept in different systems and spaces, the group developed criteria that the industry subsequently adopted. Among these standards is the 67-square-inch minimum space requirement for each hen. These measures mostly focus on disease and mortality control as well as egg-laying productivity, but have less concern for behavioral welfare.

Although caged birds in modern systems sometimes have lower disease rates than cage-free birds, Shields says the potential for humane treatment in cage-free systems is much higher. Most scientists agree that hens in battery cages cannot engage in many of their natural behaviors, including wing-flapping, nest-building, perching, dust-bathing, scratching, and preening. And although disease control in cage-free systems is more difficult, Shields says, cage-free flocks can be maintained healthfully and successfully.

But Riebli has had problems with one of his younger cage-free flocks at Sunrise Farms. They became startled and piled on top of each other earlier this month, he says, suffocating 20 percent of the birds.

But Shields says this is highly unusual, and points toward newer, aviary-style cage-free systems as a solution for producers who encounter the problem. These methods divide the birds into smaller flocks within the same building, and rely on multiple levels to allow birds to perch and nest. Another potential issue, she says, is the lack of a perfectly-bred hen for cage-free production. After years of breeding hens to produce well in battery cages, breeders only recently have begun breeding for traits that benefit cage-free production. "The bird needs to be suited to the environment, and the environment also needs to be more suited to the birds," she says.

An aviary system costs more to set up than an empty cage-free building, but Shields dismisses these costs. "If we keep racing to the bottom in the name of cheap food, the eventual cost is going to be put on the animals," Shields says. "At some point we have to balance economic costs with moral and ethical considerations."

Over the past two-and-a-half years, a group of 15 politicians, scientists, farmers, and ranchers banded together to do just that. The Pew Commission on Industrial Farm Animal Production released a report last month detailing many troubling issues with the country’s farm animal production. The group specifies that the California ballot measure is a great place to start.

More than 100 cows graze Bill Niman’s 1,000-acre Marin County ranch, but only a couple have ever successfully navigated down the cliffs from the pastures to the beaches. Niman’s home is less than a mile inland, and on clear days he can see across the bay to San Francisco and even Daly City. He founded Niman Ranch on this property in the early 1970s and quickly caused a stir by deciding not to feed antibiotics and hormones to his cows. At first his fellow ranchers didn’t take him seriously, but now nearly all beef producers feed their cattle hormone-free food. More than 30 years later, Niman is determined to use the credibility he has earned to help all farm animals gain better treatment.

Last year, at 63, he gave up his seat on Niman Ranch’s board of directors, effectively ending his involvement with the company he once ran. Now he volunteers with the Pew Commission on Industrial Farm Animal Production. "One of my missions in life is to change the way animals are treated and how food is produced in this country," he says.

As part of the commission’s research, Niman visited one of the nation’s largest caged production houses in Colorado. Despite the state-of-the-art automated system, Niman was not impressed. "It’s pretty hard to put a rosy picture of 1 million chickens living five birds to a cage with no room to move around or stretch their wings," he says. "If I ran the place, I’d have trouble sleeping at night."

Niman believes the public wants to see reform in the food production industry. He says that this measure, and any laws that improve animal welfare, will only expedite what would eventually come naturally due to consumer demand. "I’m not one to advocate more and more legisutf8g, but I also know what’s going on out there," he says. "Change is so critical — and coming — that the sooner that change can begin, and the more orderly and methodical that change can be, the better off everyone will be."

Niman is part of a food movement centered around the Bay Area that includes author and University of California, Berkeley professor Michael Pollan, who also has expressed support for the measure. "The treatment [of hens] is important for reasons for morality, ethics, and sustainability," Pollan tells the Guardian, adding another ulterior motive for changing how hens are kept: "Eggs from hens that live outdoors on grass are a excellent product, even more nutritious and tasty." *

Dancers without borders

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› a&eletters@sfbg.com

What do you need to create a first-rate hot product that is of value to others besides yourself? A great idea, a support structure, and money are good places to start. But what if you had no support structure and no money? If you believe in your idea, you’d plow ahead anyway — just like Andrew Wood, executive director of the San Francisco International Arts Festival.

In 2002, Wood began to think about something he felt this city full of artists and tourists needed: an arts festival that would bring the two together. The event would also focus local attention on a large, vibrant arts community that thrives in the shadow of the three big ones — the San Francisco Ballet, the San Francisco Symphony, and the San Francisco Opera.

"Lots of artists here are bursting with ideas," Wood explained during a recent interview. "We need an entity that supports them because they need more opportunities to show their work."

That a similarly ambitious undertaking called Festival 2000 went belly-up in 1990 didn’t deter the string bean–thin Brit, who talks faster than a cattle auctioneer. But Wood wasn’t about to let the fate of another festival stop him. Soon he was everywhere, talking to anyone who was willing to listen — and even to some who weren’t.

Mostly he encountered closed doors. The city had no extra cash. Foundations were already overcommitted. Wood — onetime director of ODC Theater — had no track record when it came to producing a such a large-scale event. Artists were suspicious that already-scarce funds would be siphoned off for a project that might have no room for their work. And another thing: did Wood know how to balance a budget?

He remained undeterred, largely because he had seen something happening in the Bay Area that others had noted as well, even if they hadn’t yet connected the dots. The community was supportive of young artists who were willing to put up with just about anything to get their work out — but once they got to the level where they needed decent rehearsal spaces, performers they could pay, and offices beyond their bedroom floors, the going got tough. Traditionally, local artists at this stage either called it quits or moved away. No longer.

HAVE ART, WILL TRAVEL


In scouring the local arts scene, Wood noticed what he calls the advent of "journeymen" artists. He named them after the century-old tradition of skilled professionals who traveled long distances and practiced their craft wherever they were hired. Propelled by a desire for adventure and professional improvement, they also managed to support themselves, often handsomely, whether they were roofers, storytellers, or healers.

"Dancers like Janice Garrett, Kim Epifano, Scott Wells, Jess Curtis, Shinichi Iova-Koga, and Stephen Pelton work part-time in Berlin, or London, or Tokyo, or Mexico City. They create work where they are supported and bring it back," Wood explained. In addition, these artists return home with news from abroad about who is doing what, and where.

Despite his admiration for the vitality of the Bay Area arts scene, Wood recognized that "not a lot of artists come through here [on their own]. This place is insular in many ways." As one working artist told him, "You don’t need to see Merce Cunningham for the umpteenth time. You want to see something that resonates within you."

There is a huge pool of artists all over the world whose work has simply not yet hit the radar screens of local presenters. When the San Francisco International Arts Festival launched in September 2003, Wood presented the astounding Quasar Dance Company from Brazil; Indian British dancer Akram Khan (now a megastar); and Compagnie Salia nï Seydou, the first in a succession of contemporary African dance companies that have been seen here since. In 2005 (there was no 2004 festival), the festival showcased extraordinary performances from the AKHE Group (Russia); Fabrik Companie (Germany); Manasku no Kai (Japan); and — one of the wildest of them all — the Moe!kestra, from Manteca.

A focus of SFIAF has become fostering international collaborations that make local artists into journeymen citizens of the world. "We need to support artists here but they also need to realize that there are opportunities somewhere else," Wood said.

This process of cross-fertilization started in 2006 and continued in 2007, when the festival highlighted art from Latin America and the African diaspora. Since the city has yet to commit to any direct funding — Wood called local arts leadership "miserable and petty" — he has become a wizard at patching his budget together, creating cosponsorships, acting as an umbrella organization, and linking artists with individual funding sources. He also has become adept at handling the Department of Homeland Security’s onerous (and expensive) visa process for performers. "They all have visas!" he exclaimed.

A monthlong visual arts exhibit loaned SFIAF 2008 its name: "What Goes Around … The Truth in Knowing/Now." This year’s fest kicks off Wednesday, May 21, and runs until June 8, when it will be capped with a free Yerba Buena Gardens concert by the Omar Sosa Afreecanos Quartet, with local Latin percussionist John Santos.

DANCE PLUS


The festival also includes operatic and theater pieces, as well as choreographers whose work might not be seen locally if not for SFIAF. For example, SFIAF enabled Idris Ackamoor, co-artistic director of Cultural Odyssey, to bring Brazilian dancer-choreographer Cristina Moura to San Francisco. "I was struck by her innovative movements," said Ackamoor, who encountered Moura while scouting for the National Performance Network’s Performing Americas Project, which he co-curated. "She moves like no one else, with a pedestrian and a highly physical vocabulary. She also has a unique way about storytelling." Moura’s solo like an idiot (2007) also resonated with him, as did the title. "Isn’t that the way we all sometimes feel?" he said, speaking of the work, which holds its California premiere at SFIAF.

Wood caught Shlomit Fundaminsky’s emblematic SkidMarks at the 2006 Dublin Fringe Festival and this year SFIAF is copresenting it with SF’s Israel Center. Speaking from Tel Aviv, Fundaminsky describes the work, a duet for herself and Gyula Csakvari, as inspired by "the home life of a man and a woman who live so close to each other — really as one person — that they lost their ability to communicate. They are creating this box for themselves and are unable to break out of it."

The Kate Foley Dance Ensemble may be familiar to Bay Area audiences because of Foley’s 10-year local performance history. In 1998 she moved to Croatia, where she is in residence at a newly constructed arts center. When Wood sent out a call for SFIAF participant proposals, John Daly of the Croatian American Cultural Center suggested her. Yet the Oakland-born Foley’s homecoming has not been without pain. "I have been so ashamed of what I have had to put my dancers through for the visa process," she said on the phone from Rijeka, Croatia. Her US premiere, Angels of Suderac, is a dance theater work using modern dance and what she calls "reconceived" folkloric material. The piece is based on her research into shamanistic practices that connect fairies and herbal medicine women.

By contrast, new to the Bay Area is the young AscenDance Project, which formed in 2006. German-born director Isabel von Rittberg joined Dancers’ Group when she moved to San Francisco, where she heard about SFIAF. The world premiere of Levitate, which combines rock climbing with dance, will be shown as part of "Jewels in the Square," a festival-spanning series of free performances in Union Square. *

SAN FRANCISCO INTERNATIONAL ARTS FESTIVAL

May 21–June 8, various venues, most shows $20

For complete schedule, visit www.sfaif.org

Ongoing threat

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› amanda@sfbg.com

The debate over city plans to build and own two combustion turbine power plants, a project Mayor Gavin Newsom has made a last minute effort to alter, shows that public power — and Pacific Gas & Electric Co.’s fear of it — is still a significant issue at City Hall.

Newsom, a past advocate of the project, pulled the plug on its progress May 13. The proposal for the natural gas–fired power plants to handle peak energy demand (called "peakers") was up for approval at the Board of Supervisors until Newsom requested a one-week continuance.

Christine DeBerry, the mayor’s liaison to the board, told supervisors the mayor would use the time to aggressively pursue better options than the peakers, even though it’s an item that spent eight years on the planning block and was approved by the Newsom-appointed San Francisco Public Utilities Commission.

"What can be aggressively pursued in the next week that hasn’t been aggressively pursued in the last few years?" asked Sup. Chris Daly, one of the four supervisors publicly opposed to the plan, questioning DeBerry on why the mayor and his SFPUC hadn’t put forth the best energy project.

"The mayor engaged in a full exploration of the options over the last several years," DeBerry said, but wants to ensure the city is considering all options.

"Are you anticipating there’s going to be a new technological breakthrough in the next several days?" Daly asked before casting the lone vote against granting the continuance. As of the Guardian‘s press time, the plan’s hearing was scheduled for May 20, but sources said June 3 would be more likely. Newsom Press Secretary Nathan Ballard would not confirm whether another continuance would be requested or discuss what alternatives the mayor’s office is pursuing.

But it appears that the new technological breakthrough being pursued by the mayor’s office is actually a retrofit of an older, existing power plant in Potrero Hill, owned by Mirant Corp.

Sam Lauter, representing Mirant on the issue, said the company has been answering questions about a retrofit from diesel to natural gas for its three turbines. Mirant already agreed to close the older natural gas units at its Potrero plant once the $15 million contract, which requires the plant to maintain the reliability of the power grid, is pulled by California Independent System Operator (Cal-ISO). Lauter also said Mirant’s redevelopment of the site for commercial use would still happen if the board decides a retrofit of Mirant is a better deal than building city-owned power plants.

As of the Guardian‘s deadline, no sources could provide any solid numbers on what a retrofit would cost and if pollution would be more, less, or equal to what the city anticipates from the peakers. But, Lauter told us, "The cost is considerably less than the cost of the peakers."

The contract with Cal-ISO could mean that the costs of retrofitting the diesels would be passed on to ratepayers. As for the pollution, Lauter said it’s not an easy answer and depends on how often the units have to run: "It’s not exactly correct to say they’d be less polluting, and it’s not exactly correct to say they’d be more polluting."

Barbara Hale, SFPUC’s assistant general manager of power, agreed there are still many uncertainties about retrofitting Mirant, including permits for the plant, restraints on how much it could operate, exactly how much it would pollute, and if it would even meet Cal-ISO’s demand for 150 megawatts of in-city generation. "I’m told by engineers that when generators go through a retrofit, often their megawatt capacity goes down," Hale told us. Each Mirant diesel unit currently puts out 52 megawatts.

As for other options Newsom requested from the agency, Hale said they’re exploring how to get more demand response and efficiency from the existing grid.

That suggestion comes from Pacific Gas and Electric Co., which actively opposes the city’s peaker plan and sent representatives to meet with Newsom’s staff May 5 (while Newsom was in Israel with Lauter, who said the two did not discuss Mirant or the peakers while overseas), shortly before he sought the delay.

PG&E spokesperson Darlene Chiu confirmed the contents of the proposal as presented to the mayor’s staff, which includes ways to eke more from the grid as well as a new transmission line between two substations.

Tony Winnicker, spokesperson from the PUC, said of PG&E’s plan: "We absolutely support each of these projects, think they’re long overdue improvements to the city’s transmission reliability, and hope they are committing the necessary funding to begin and complete them."

He added that there is little in the plan that differs from a past PG&E proposal that Cal-ISO rejected — except the new transmission line. But, he said, its target completion date of 2012-13 was "very ambitious, given that they haven’t even started the permitting."

PG&E’s Chiu, a former spokesperson for Mayor Newsom, didn’t respond to a question about the time frame for such a project, nor did she comment on whether PG&E considers the city’s ownership of the peakers a threat to its jurisdiction.

She didn’t have to. While City Hall scrambled to come up with an alternative that hasn’t been vetted during the last eight years of community meetings, city studies, and negotiations, PG&E was telling its shareholders that the threat of public power is alive and well.

At the May 14 annual meeting of PG&E investors, held at the San Ramon Conference Center, CEO Peter Darbee assured the assembled, "I, too, am concerned about municipalization and community choice aggregation."

He was responding to a criticism from an employee and member of Engineers and Scientists of California Local 20, who said PG&E shouldn’t be contracting outside the company because it created an experienced proxy workforce ripe for employment by another entity, like a municipality, that would be a threat to PG&E’s jurisdiction.

In responding, Darbee recalled the recent efforts in Yolo County, where the county attempted to defect from PG&E and join the Sacramento Municipal Utility District. "Peter, it’s half-time, your team is down, you better get directly involved with this," he said of the potential loss of 70,000 customers. The company mustered 1,000 employees to volunteer their time, walking from house to house and knocking on doors, prior to the November 2006 vote. "I was one of them," he said. "That vote went overwhelmingly in favor of PG&E."

Beyond knocking on doors, PG&E dropped $11 million on the campaign, outspending the competition 10 to 1.

But Darbee said it was a real victory in a state like California. "There’s always been in the water a desire for public power," he said, adding that 30 percent to 40 percent of the population approves of municipally-owned utilities.

Customer service, Darbee went on to say, is the best defense against threats to PG&E. And for the past two years, PG&E’s corporate strategy has been focused on that. To that end, its ranking in an annual JD Power customer satisfaction survey rose from 51 to 43 last year for the residential sector, and from 46 to a lofty second place for business customers.

But the JD Power survey also ranks municipal utilities, and 2007 results show PG&E was outpaced by three municipalities — the Salt River Project, the Los Angeles Department of Water and Power, and the Sacramento Municipal Utility District, which also took the highest ranking in the nation. *

Disclosure: Amanda Witherell owns 14 shares of PG&E Co. common stock.

We do

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› steve@sfbg.com

Less than two hours after the California Supreme Court announced its 4–3 decision legalizing same-sex marriage, San Francisco City Hall filled with smiling couples and local politicians of various ideological stripes to celebrate the city’s central role in achieving the most significant civil rights advance in a generation.

The case began four years ago in San Francisco when Mayor Gavin Newsom decided to have the city issue marriage licenses to gay and lesbian couples. City Attorney Dennis Herrera and his legal team built the voluminous legal case that won an improbable victory in a court dominated 6 to 1 by Republican appointees.

"In light of the fundamental nature of the substantive rights embodied in the right to marry — and the central importance to an individual’s opportunity to live a happy, meaningful, and satisfying life as a full member of society — the California Constitution properly must be interpreted to guarantee this basic civil right to all individuals and couples, without regard to their sexual orientation," Chief Justice Ronald George wrote in the majority opinion.

Newsom cut short a trip to Chicago to return home and make calls to the national media and join Herrera’s press conference, where hundreds of couples who got married in San Francisco City Hall were assembled on the City Hall staircase as a backdrop to the jubilant parade of speakers that took the podium.

"What a wonderful, wonderful day," a beaming Herrera told the assembled crowd, adding, "California has taken a tremendous leap forward."

Some speakers (as well as the next day’s coverage in the San Francisco Chronicle) emphasized the potential of the issue to embolden conservatives and the possibility that a November ballot measure could nullify the decision by, as a prepared statement by Rep. Nancy Pelosi put it, "writing discrimination into the state constitution."

But for most San Franciscans, it was a day to celebrate a significant victory. Herrera praised "the courageousness of the California Supreme Court." He also commended Deputy City Attorney Terry Stewart, who argued the case, legal partners such as the National Center for Lesbian Rights, the eight other California cities that supported San Francisco’s position with amicus briefs — and Newsom, who clearly soaked up the adulation and gave a fiery speech that could easily become a campaign commercial in his expected run for governor.

"I can’t express enough how proud I am to be a San Franciscan," Newsom said, later saying of the decision, "It’s about human dignity. It’s about human rights. It’s about time."

Newsom also emphasized that "this day is about real people and their lives."

Among those people, standing on the stairs of City Hall, was Emily Drennen, a current candidate for the Democratic County Central Committee and the District 11 seat on the Board of Supervisors, who was the 326th couple to get married in San Francisco, taking her vows with partner Linda Susan Ulrich.

"When it got nullified, something was taken away from us. It really felt like that," Drennen told the Guardian, adding that she was thrilled and relieved by the ruling. "I was just holding my breath this whole time, expecting the worst but hoping for the best."

Herrera spokesperson Matt Dorsey, who is gay, was similarly tense before the ruling, knowing how much work had gone into it but worried the court might not overcome its ideological predisposition to oppose gay marriage.

"For everyone who worked on this, it was the case of their lives," Dorsey told us. "Politically and legally, there was so much work that this office did that I’m so proud of, and I hope people understand that." *

Judge hits SF Weekly with injunction

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› tredmond@sfbg.com

SF Weekly and its parent chain Village Voice Media are legally barred from selling ads below cost for the purpose of harming the Guardian, Superior Court Judge Marla Miller ruled May 19.

Miller issued an injunction in the Guardian’s lawsuit against the Weekly forbidding the paper and its “officers, managers, agents, affiliates, parents [and] subsidiaries” from engaging in further predatory pricing. Unless the injunction is overturned by a higher court, it will be in effect for 10 years. Miller retains jurisdiction over the case.

Miller also issued a final ruling on damages, entering a $15.9 million judgment for the Guardian. That includes more than $300,000 interest going back to the date of the March 5 verdict.

The Guardian will also get attorneys fees and costs, although that amount is not yet established.

The Guardian sued the Weekly and Phoenix-based VVM, its 16-paper-chain parent, for predatory pricing. After a five-week trial, a San Francisco jury found that the Weekly and VVM intentionally sold ads below cost in an effort to drive the locally-owned competitor out of business.

The jury awarded the Guardian $6.39 million in damages. The law provides for treble damages after a jury verdict, but a recent court ruling interpreted that to mean that only a portion of the damages could be tripled. The ruling was not a big surprise: Miller had indicated at a May 9 hearing that she was prepared to issue an injunction and raise the damages to $15.6 million.

During the hearing, lawyers for the Weekly tried to argue that an injunction would violate their clients’ right to free speech. Forrest Hainline III of the Boston-based firm Goodwin Proctor, who was hired to handle the Weekly‘s appeal, insisted that the only way the Weekly could abide by an injunction would be to cut editorial costs – depriving the paper of its First Amendment rights.

That was a remarkable argument – in essence, the Weekly‘s lawyer was saying that the people could not possibly make a profit on its current product. But as Guardian lawyer Ralph Alldredge pointed out, there’s nothing unconstitutional about mandating that a newspaper obey basic business regulations.

The injunction states that the Weekly cannot sell display advertising space “at a price below the fully allocated cost of that space for the purpose of injuring plaintiff Bay Guardian Co, Inc., unless SF Weekly LP can establish by a preponderance of the evidence that an offer or sales alleged to fall within this injunction falls within an affirmative defense to the below cost sales prohibitions of the Unfair Practices Act.”

Miller’s ruling now sends the case to the next phase. Hainline indicated at the May 9 hearing that he will now ask Miller to reduce the damages or overturn the entire verdict. If she declines, the Weekly can take the case to the Court of Appeal, a move that could delay any final outcome for as long as two years.

However, the Weekly and VVM will now have to post an appeal bond of as much as $24 million to guarantee payment of the judgment and interest. The award will accrue interest at 10 percent – that’s about $4,300 a day – during the course of any appeal.

Most important, however, the court has issued an enforceable injunction mandating that the big chain do what the Guardian has been asking for all along: play fair.

The Weekly has been losing money every year since New Times – which changed its named to Village Voice Media after buying that company two years ago – purchased the newspaper in 1995. The chain has pumped some $25 million into San Francisco to keep the local operation afloat. That allowed the Weekly to cut the price of its ads so low that the Guardian had to struggle to cut its own costs to match the below-market rates.

At this point, the injunction should force the Weekly to compete on a level playing field – meaning that both papers will have a chance to survive in the market, offering readers and advertisers a choice. That’s what the First Amendment’s marketplace of ideas is all about.

Mike Lacey, VVM’s executive editor, and Jim Larkin, the company’s CEO, failed to return calls and e-mail seeking comment.

The Guardian‘s lawyers are Alldredge, Richard Hill, and E. Craig Moody.

For all the details and background on the case, go to www.sfbg.com/lawsuit.