Willie Brown

The mayor loves PG&E

9

I almost couldn’t believe it — the same week that the feds came down and essentially called Pacific Gas and Electric Co. a crew of incompetent crooks, Mayor Ed Lee goes to a PG&E PR event and talks about what a great company it is. He actually said PG&E was “a great company that gets it.”


What?


PG&E kills people, blows up houses, tries to block consumer choice, screws the city out of millions of dollars — and then uses some of its vast cash flow, which comes out of all of our pockets, to improve its image in the community by giving some money to a nonprofit that helps kids learn to read and play baseball. Nice that the company can cough up $250,000 — which is about .005% of the $50 million the company spent to block public power efforts. Thanks, guys. Sweet of you.


Listen: This sort of stunt is cheap PR for the utility. I’m happy that RBI got some money, but that doesn’t excuse what the city’s greatest corporate criminal has done — and it shouldn’t buy the mayor’s praise.


City Attorney (and mayoral candidate) Dennis Herrera was outraged. He issued a statement this morning saying


“Ed Lee’s lavish praise for PG&E as ‘a great corporation’ on the eve of the one-year anniversary of the San Bruno tragedy, just days after federal regulators blamed the utility for a ‘litany of failures’ that claimed eight lives, is unconscionable,” said Herrera.  “It shows insensitivity to victims’ families, and poor judgment for allowing his office to be used as a corporate PR tool.  No less troubling, it ignores the serious work my office and others have done to protect San Franciscans from PG&E’s negligence, to prevent further explosions like those in San Bruno last year and in Cupertino on Wednesday.  The interim Mayor should reassess his laudatory view of PG&E, and apologize to San Bruno victims’ families.”


Kind of obvious, no? Well, not according to the mayor, whose campaign spokesman, Tony Winnicker, had this to say:


This is just another political cheap shot from the City Attorney. Ed Lee was one of the first people to hold PG&E accountable for the condition of its infrastructure in SF and witnessed first hand the devastation and suffering caused by PG&E’s negligence in San Bruno within days of the blast. Holding PG&E accountable for the loss and suffering they’ve caused doesn’t mean you shouldn’t recognize when they also do something good for our public schools and low-income kids. We wish more local companies would get it and support our public schools and low-income kids, and THAT is what Mayor Lee was talking about.


And if there’s anyone who should apologize in this instance, it is Dennis Herrera for shamelessly using the victims of the San Bruno blast and the students of Bessie Carmichael as fodder for his political attacks on Mayor Lee.


Actually, I think that the fact that the company is a corporate criminal should, indeed, be a factor in recognizing it for trying to buy goodwill in the community. But as for Herrera, when I told him about Winnicker’s statement, he went a bit further:


“The mayor should understand the importance and impact his words have and what the appropriate context might be for his complements for a corporate citizen’s contributions.”


Spoken like a lawyer, but you get the point: This was really stupid, inappropriate and embarassing.


You wonder how PG&E got Lee to this event — although you don’t have to wonder too much. Lee’s pal Willie Brown is on a PG&E retainer at about $200,000 a year.


John Avalos has also weighed in on this, releasing a statement that makes all the points:


Ed Lee called PG&E a “great corporation” yesterday–a great corporation who spent $50 million last year trying to pass a ballot measure that would ensure their monopoly in places like San Francisco instead of repairing and inspecting pipes like the one that caused this terrible destruction.  Now this “great” corporation want its customers to foot the bills for its negligence and bad practices?  Ed Lee says that this corporation “gets it.”  PG&E seem to “get” that a symbolic donation to a charity at the height of their unpopularity might help their rate-payers forget the catastrophic results of their negligence and bad practices.


The residents of that neighborhood in San Bruno will not forget. The families of those who lost their lives that day will not forget. And anyone who fought to defeat Proposition 16, in an effort to maintain a city’s right to produce their own power won’t forget the blatant cynicism of this corporation.


I’m deeply disappointed, and I would like Mayor Lee to tell San Franciscans what makes this corporation “great” and what it is besides insider politics and business as usual that PG&E “gets.”


So far, the rest of the candidates have been a bit shy about going directly after the mayor. It’s about time they started.

In case anyone was wondering about Willie Brown

18

Yes, he’s supporting and holding a fundraiser for Ed Lee. Yes, he will have influence over the direction of the Lee administration. Yes, some of his clients will get special access. Yes, some of his friends and allies will wind up with jobs and commission posts. And here’s what he has to say about all of this:


“My record with you and with San Francisco as well as the state of California for over 40 years should not be a burden to anybody running for public office,” the invitation for the Tuesday event says. “To put these critics in their place once and for all I need your help.”


His record shouldn’t be a burden? Actually, it should.

Editor’s Notes

6

tredmond@sfbg.com

I have friends — progressives, activists, good people — who support Ed Lee for mayor. They tell me that Lee is accessible, that he listens to labor and grassroots community groups, that he’s going to be good on a lot of issues and that, compared to the mayors we’ve had in the past 30 years or so, he won’t be all that bad.

I respect that. I understand. But I try to remind them, and anyone else who’s listening, that the years when Willie Brown ran this town were really, really bad.

At the height of the Brown era, during the dot-com boom, hundreds of evictions were filed every single month. Thousands and thousands of low-income and working-class tenants were displaced, tossed out of San Francisco forever. Blue-collar jobs were destroyed as high-tech offices took over industrial space. Every single developer who waved money at the mayor got a permit, no matter how ridiculous, dangerous or crazy the project was.

In 1999, Paulina Borsook wrote a famous piece for Salon called “How the Internet ruined San Francisco.” But the Internet was just technology; what damaged this city so badly was a mayor who didn’t care what happened to the most vulnerable populations. At one point, Brown even said that poor people shouldn’t live in this city. We called his policies “the economic cleansing of San Francisco.”

He controlled local politics — brutally. If you didn’t kiss the mayor’s ring, you were crushed. He announced one day that the supervisors (then elected citywide) were nothing but “mistresses who have to be serviced” — and since most of them were utterly subservient to Brown, they didn’t even complain. Only one person on the board — Tom Ammiano — regularly defied the mayor; occasionally, Leland Yee and Sue Bierman joined him. But that was it.

The corruption was rampant. People who paid to play got in the door; nobody else came close. You did a favor for Brown and you got a commission appointment or a high-paid job, even if you weren’t remotely qualified.

The ones who suffered most were the poorest residents, particularly tenants, particularly on the east side of town. Brown didn’t seem to care that his appointments, deals and policies were causing terrible pain on the ground; it was as if politics was just a fun game, as if he were some sort of royal potentate, partying in the executive suites and ignoring what was happening on the streets.

There are people who believe that Ed Lee can be independent of Brown, and I hope they’re right. But Lee and Brown are close, and Brown helped put him in office — and the thought of even a small part of that rotten era of sleaze coming back makes me very, very nervous.

The real Leland Yee

53

tredmond@sfbg.com

It’s early January 2011, and the Four Seas restaurant at Grant and Clay is packed. Everyone who is anyone in Chinatown is there — and for good reason. In a few days, the Board of Supervisors is expected to appoint the city’s first Asian mayor.

The rally is billed as a statement of support for Ed Lee, the mild-mannered bureaucrat and reluctant mayoral hopeful. But that’s not the entire — or even, perhaps, the central — agenda.

Rose Pak, who describes herself as a consultant to the Chinese Chamber of Commerce but who is more widely known as a Chinatown powerbroker, is the host of the event. She stands in front of the room, takes the microphone, and, in Cantonese, delivers a remarkable political speech.

According to people in the audience, she says, in essence, that the community has come out to celebrate and support Ed Lee — but that’s just the start. She also urges them not just to promote their candidate — but to do everything possible to prevent Leland Yee from becoming mayor.

She continues on for several minutes, lambasting Yee, the state Senator who lived in Chinatown as a child, accusing him of about every possible political sin — and turning the Lee rally into an anti-Yee crusade. And nobody in the crowd seems terribly surprised.

Across Chinatown, from the liberal nonprofits to the conservative Chamber of Commerce, there’s a palpable fear and distrust of the man who for years has been among San Francisco’s most prominent Asian politicians — and who, had Lee not changed his mind and decided to run for a full term this fall, was the odds-on favorite to become the city’s first elected Chinese mayor.

The reasons for that fear are complex and say a lot about the changing politics of Asian San Francisco, the power structure of a city where an old political machine is making a bold bid to recover its lucrative clout — and about the career of Yee himself.

Senator Leland Yee is a political puzzle. He’s a Chinese immigrant who has built a political base almost entirely outside of the traditional Chinatown community. He’s a politician who once represented a deeply conservative district, opposed tenant protections, voted against transgender health benefits and sided with Pacific Gas and Electric Co. on key environmental issues — and now has the support of some of the most progressive organizations in the city. He’s taken large sums of campaign money from some of the worst polluters in California, but gets high marks from the Sierra Club.

His roots are as a fiscal conservative — yet he’s been the only Democrat in Sacramento to reject budget compromises on the grounds that they required too many spending cuts.

He’s grown, changed, and developed his positions over time. Or he’s become an expert at political pandering, telling every group exactly what it wants to hear. He’s the best chance progressives have of keeping the corrupt old political machine out of City Hall — or he’s a chameleon who will be a nightmare for progressive San Francisco.

Or maybe he’s a little bit of all of that.

 

Leland Yin Yee was born in Taishan, a city in China’s Guangdong province on the South China Sea. The year was 1948; Mao Zedong’s Communist Party of China had taken control of much of the countryside and was moving rapidly to take the major cities. The nationalist army of General Chiang Kai-Shek was falling apart, and Yee’s father, who owned a store, decided it was time for the family to leave.

The Yees made it to Hong Kong, and since Mee G. Yee had previously lived in the United States and served in the U.S. Army during World War II, he was ultimately able to move the family to San Francisco. In 1951, the three-year-old Leland Yee arrived in Chinatown.

For four years, Yee lived with his sister and mother in a one-room apartment with a shared bathroom while his father worked as a sailor in the merchant marine. It was, Yee recalled in a recent interview, a tight, closed, and largely self-sufficient community.

“The movie theater, the shoe store, the barber shop, food — everything you needed you could get in Chinatown,” Yee said. “You never had to leave.”

Of course, after a while, Yee and his mom started to venture out, down Stockton Street to Market, where they’d shop at the Emporium, the venerable department store. “It was like walking into a different country,” he said. “If you didn’t know English, they didn’t have time for you.”

Yee, like a lot of young Chinese immigrants of his era, put much of his time into his studies — in the San Francisco public schools and in a local Chinese school. “My mom spoke a village dialect, and we had to learn Cantonese,” he said. “Every little kid had to go to Chinese school. We hated it.”

When Yee was eight, his parents managed to buy a four-unit building on Dolores Street, and the family moved to the Mission, where he would spend not only the rest of his childhood but much of his early adult life. He graduated from Mission High School, enrolled in City College, studied psychology and after two years won admission to UC Berkeley.

Berkeley in 1968 was a very different world from Chinatown and even the relatively controlled environment he’d experienced at home in the Mission. “You didn’t protest in school. You’d have been sent home, and your mother would kill you,” he said.

At Berekely, all hell was breaking loose, with the antiwar protests, the People’s Park demonstrations, the campaign to create a Third World College (which led to the first Ethnic Studies Department), and a general attitude of mistrust for authority. “I developed a sense of activism,” Yee said. “I realized I could speak out.”

That spirit quickly vanished when Yee lost faith in some of his fellow activists. “People would work with us, then get into positions of power and use that against you,” he recalled. “A lot of my friends said ‘forget it.’ I left the scene.”

Yee once again devoted his energy to school, earning a masters at San Francisco State University and a Ph.D in child psychology from the University of Hawaii. Along the way, he met his wife, Maxine.

With his new degree, the Yees moved back to San Francisco — and back in with his parents at the Dolores property, where he, Maxine and a family that would grow to four kids would live for more than a decade.

 

Yee worked as a child psychologist for the San Francisco Department of Public Health, starting the city’s first high school mental-health clinic. He went on to become a child psychologist at the Oakland Unified School District, then joined a nonprofit mental health program in San Jose.

In 1986, Yee decided to get active in politics for the first time since college, and ran for the San Francisco School Board. He lost — and that would be the only election he would ever lose. In 1988, he won a seat, and established himself as an advocate for students of color, fighting school closures in minority neighborhoods. He also tried to get the district to modify its harsh disciplinary rules, arguing against mandatory expulsions.

On fiscal issues, though, Yee was a conservative. For his first term, despite the brutal cutbacks of the recession of the late 1980s and early 1990s, he insisted that the district make do with the money it had. His solution to the red ink: Cut waste. Only in 1992, when he was up for re-election, did he acknowledge that the district needed more cash; at that point, he supported a statewide initiative to tax the rich to bring money to the schools.

The sense of fiscal conservatism — of holding the line on taxes, but mandating open and fair contracting procedures and tight financial controls — was a hallmark of much of his political career. When the Guardian endorsed him for re-election to the board in 1992, we wrote that “there’s real value in his continuing vigilance against administrative fat and favoritism in contracts.”

Over the next four years, Yee worked with then-Superintendent Waldemar “Bill” Rojas, a deeply polarizing figure who pushed his own personal theory of “reconstitution” — firing all the staff at low-performing schools — and later was enmeshed in a scandal that led to prison time for a contractor he’d hired. Yee told me he was the only board member to vote against hiring Rojas, but people who were watching the board closely back then say he didn’t always stand up to the superintendent.

He also became what some say was a bit too close with Tim Tronson, a consultant hired by the district as a $1,000-a-day facilities consultant. Tronson wound up getting indicted on 22 counts of grand theft, embezzlement, and conspiracy in a scheme to steal $850,000 from the schools, and was sentenced to four years in state prison.

In 1998, when some school board members wanted to build housing for teachers on property that the district owned in the Sunset, Yee led the opposition — with Tronson’s help. At one meeting at Sunset Elementary School, Yee went so far as to say, according to people present, that “Tim Tronson is my man, and I rely on him for advice.”

Yee acknowledged that he worked closely with Tronson to defeat that housing project. “He was the facilities manager,” Yee explained, “and I said that I trusted his judgment.”

 

Yee has either a great sense of political timing or exceptional luck. He ran for the Board of Supervisors in 1996, facing one of the weakest fields in modern San Francisco history. He was the only Chinese candidate and one of just two Asians (the other, appointed incumbent Michael Yaki, barely squeaked to re-election). In an at at-large election with the top five winning seats, Yee came in third, with 103,000 votes.

He was never a progressive supervisor. In 2000, the Guardian ranked the good votes of what we referred to as Willie Brown’s Board, and Yee scored only 43 percent. He was against campaign finance reform. He supported the brutal gentrification and community displacement represented by the Bryant Square development. He voted to kill a public-power feasibility study and opposed the Municipal Utility District initiative. He opposed a moratorium on uncontrolled live-work development.

In 2002, Yee was one of only three supervisors to oppose Proposition D, a crucial public-power measure that would have broken up PG&E’s monopoly in the city. He stood with PG&E (and then-Sups. Tony Hall and Gavin Newsom) in opposition to the measure, then signed a pro-PG&E ballot argument packed with PG&E lies.

When I asked him about that stand, Yee at first didn’t recall opposing Prop. D, but then said he “stood with labor” on the issue. In fact, the progressive unions didn’t oppose Prop. D at all; the opposition was led by PG&E’s house union, IBEW Local 1245.

Yee was particularly bad on tenant issues. He not only voted to deny city funding for the Eviction Defense Collaborative, which helped low-income tenants fight evictions; he actually tried to get the city to put up money for a free legal fund to help landlords evict their tenants. He opposed a ballot measure limiting condo conversions. He opposed a measure to limit the ability of landlords to pass improvement costs on to their tenants.

In 2001, Yee voted to uphold a Willie Brown veto of legislation to limit tenancies in common, a backdoor way to get around the city’s condo conversion ordinance. Only Hall and Newsom, then the most conservative supervisors on the board, joined Yee. At one point, he started asking whether the city should consider repealing rent control.

He opposed an affordable housing bond in 2002, joining the big landlord groups in arguing that it would raise property taxes. Every tenant group in town supported the measure, Proposition B; every landlord group opposed it.

I asked Yee about his tenant record, and he told me that he now supports rent control. But he said that he was always on the side of homeowners and small landlords, and that property ownership was central to Chinese culture. “I was responding to the Chinese community and the West Side,” he said.

He wasn’t much of an environmentalist, either — at least not in today’s terms. He was one of the only city officials to support a “Critical Car” rally in 1999, aimed at promoting the rights of vehicle drivers (and by implication, criticizing Critical Mass and the bicycle movement).

His record on LGBT issues was mixed. While he supported a counseling program for queer youth when he was on the school board, he also supported JROTC, angering queer leaders who didn’t want a program in the public schools run by, and used as a recruiting tool for, the military, which at that point open discriminated against gay and lesbian people.

 

 

Yee was also one of only two supervisors who voted in 2001 against extending city health benefits to transgender employees.

That was a dramatic moment in local politics. Nine votes were needed to pass the measure, and while eight of the supervisors were in favor, Yee and Hall balked. At one point, Board President Tom Ammiano had to direct the Sheriff’s Office to go roust Sup. Gerardo Sandoval, who was ducking the issue in his office, to provide the crucial ninth vote.

Yee didn’t just vote against the bill. According to one reliable source who was there at the time, Yee spoke to a community meeting out on Ulloa Street in the Sunset and berated his colleagues, quipping that the city should have better things to do than “spend taxpayer money on sex-change operations.”

It was a bit shocking to trans people — Yee had, over the years, befriended some of the most marginalized members of what was already a marginalized community. “There was one person at the rail crying, saying ‘Leland, how could you do this to us,'” Ammiano recalled.

The LGBT community was furious with Yee. “I didn’t speak to him for at least a year,” Gabriel Haaland, one of the city’s most prominent transgender activists, told me.

Yee now says the vote was a mistake — but at the time, he told me, he was under immense pressure. When he voted for the queer youth program, he said, “the elders of the Chinese community ripped me apart. They called my mother’s friends back in the village [where he was born] and said her son was embarrassing the Chinese community.”

That must have been difficult — and he said that “if I had known the pain I had caused, I wouldn’t have voted that way.” But it was hard to miss that pain his vote caused.

On the other hand, people learn from their experiences, attitudes evolve, we all grow up and get smarter, and the way Yee describes it, that’s what happened to him.

In 2006, when he was running for state Senate, Yee met with a group of trans leaders and formally — many now say sincerely — apologized. It was an important gesture that made a lot of his critics feel better about him.

“He didn’t have to do that,” Haaland said. “People change, and he paid for his crime, and that’s genuine enough for me.”

As a former school board member, Yee kept an interest in the schools — but not always a healthy one. At one point, he actually proposed splitting SFUSD into two districts, one on the (poorer) east side of town and one on the (richer) west. “We strongly opposed that,” recalled Margaret Brodkin, who at the time ran Coleman Advocates for Children and Youth. “Eventually he dropped the idea.”

For all the problems, in his time on the Board of Supervisors, Yee developed a reputation for independence from the Brown Machine, which utterly dominated much of city politics in the late 1990s. His weak 43 percent rating on the Guardian scorecard was actually third-best among the supervisors, after Ammiano and the late Sue Bierman.

In 1998, he was one of the leaders in a battle to prevent the owners of Sutro Tower from defying the city’s zoning administrator and placing hundreds of new antennas on Sutro Tower. He, Bierman, and Ammiano were the only supervisors opposing Brown’s crackdown on homeless people in Union Square.

When he ran in the first district elections, in 2000, against two opponents who had Brown’s support and big downtown money, the Guardian endorsed him, noting that while he “can’t be counted on to support worthy legislation … He’s one of only two board members who regularly buck the mayor on the big issues.”

(He never liked district elections, and used to take any opportunity to denounce the system, at times forcing Ammiano to use his position as president to tell Yee to quit dissing the electoral process and get to the point of his speech.)

 

In 2002, the westside state Assembly district seat opened up, and both Yee and his former school board colleague Dan Kelly ran in the Democratic primary. Yee won, and went on to win the general election with only token opposition.

His legislative record in the Assembly wasn’t terribly distinguished. Yee never chaired a policy committee — although he did win a leadership post as speaker pro tem. And he cast some surprisingly bad votes.

In 2003, for example, then-Assemblymember Mark Leno introduced a bill that would have exempted single-room occupancy hotels from the Ellis Act, which allows landlords to evict tenants for no reason. Yee refused to vote for the bill. Leno was furious — he was one vote short of a majority and Yee’s position would have doomed the bill. At the last minute, a conservative Republican who had grown up in an SRO hotel voted in favor.

When he ran for re-election in 2004, we noted: “What’s Leland Yee doing up in Sacramento? We can’t figure it out — and neither, as far as we can tell, can his colleagues or constituents. He’s introduced almost no significant bills — compared, for example, to Assemblymember Mark Leno’s record, Yee’s is an embarrassment. The only high-profile thing he’s done in the past several years is introduce a bill to urge state and local governments to allow feng shui principles in building codes.”

In 2006, Yee decided to move up to the state Senate, and he won handily, beating a weak opponent (San Mateo County Supervisor and former San Francisco cop Mike Nevin) by almost 2-1. His productivity increased significantly in the upper chamber — and in some ways, he moved to the left. He’s begun to support taxes — particularly, an oil severance tax — and when I’ve questioned him, he somewhat grudgingly admits that Prop. 13 deserves review.

He’s done some awful stuff, like trying to sell off the Cow Palace land to private developers. But he has consistently been one of the best voices in the Legislature on open government, and that’s brought him some national attention.

Yee has been a harsh critic of spending practices and secrecy at the University of California, and when UC Stanislaus refused in 2010 to release the documents that would show how much the school was paying Sarah Palin to speak at a fundraiser, Leland flew into action. He not only blasted the university and introduced legislation to force university foundations to abide by sunshine laws; he worked with two Stanislaus students who had found the contract in a dumpster and made headlines all over the country.

He’s fought for student free speech rights and this year pushed a bill mandating that corporations that get tax breaks for job creation prove that they’ve actually created jobs — or pay the tax money back. He’s also won immense plaudits from youth advocates and criminal justice reformers for his bill that would end life-without-parole sentences for offenders under 18.

Along the way, he compiled a 100 percent voting record from the major labor unions, including the California Nurses Association and SEIU, and with the Sierra Club. All three organizations have endorsed him for mayor.

Yee told me that he thinks he’s become more progressive over the years. “My philosophy has shifted,” he said.

Yet when you talk to his colleagues in Sacramento, including Democrats, they aren’t always happy with him. Yee has a tendency to be a bit of a loner — he’s never chaired a policy committee and in some of the most bitter budget fights, he’s refused to go along with the Democratic majority. Yee insists that he’s taken principled stands, declining to vote for budget bills that include deep service cuts. But the reality in Sacramento is that budget bills have until this year required a two-thirds vote, meaning two or three Republicans have had to accept the deal — and losing a Democratic vote has its cost.

“You have to give up all sorts of things, make terrible compromises, to get even two Republicans,” one legislative insider told me. “When a Democrat goes south, you have to find another Republican, and give up even more.”

In other words: It’s easy to take a principled stand, and make a lot of liberal constituencies happy, when you aren’t really trying to make the state budget work.

 

I met Rose Pak on a July afternoon at the Chinatown Hilton. She brought along her own loose tea, in a paper package; the waitress, who clearly knew the drill, took it back to the kitchen to brew. Pak and I have not been on the greatest of terms; she’s called the Guardian all kinds of names, and I’ve had my share of critical things to say about her. But on this day, she was polite and even at times charming.

After we got the niceties out of the way (she told me I was unfair to her, and I told her I didn’t like the way she and Willie Brown played politics), we started talking about Yee. And Pak (unlike some people I interviewed for this story) was happy to speak on the record.

She told me Yee had “no moral character.” She told me she couldn’t trust him. She told me a lot of stories and made a lot of allegations that we both knew neither she nor I could ever prove.

Then we got to talking about the politics of Chinatown and Asians in San Francisco, and a lot of the animosity toward Yee became more clear.

For decades, Chinatown and the institutions and people who live and work there have been the political center of the Chinese community. Nonprofits like the Chinatown Community Development Center have trained several generations of community organizers and leaders. The Chinese Chamber of Commerce, the Six Companies, and other business groups have represented the interests of Chinese merchants. And while the various players don’t always get along, there’s a sense of shared political culture.

“In Chinatown,” Gordon Chin, CCDC’s director, likes to say, “it’s all about personal connections.”

There’s a lively infrastructure of community-service programs, some of which get city money. There’s also a sense that any mayor or supervisor who wants to work with the Chinese community needs to at least touch base with the Chinatown establishment.

Yee doesn’t do that. “He doesn’t give a shit about them,” David Looman, a political consultant who has worked with many Chinese candidates over the years, told me.

Yee’s Asian political base is outside of Chinatown; he told me he sees himself representing more of the Chinese population of the Sunset and Richmond and the growing Asian community in Visitacion Valley and Bayview.

Pak is connected closely to Brown, who Yee often clashed with. For Pak, Brown, and their allies, strong connections to City Hall mean lucrative lobbying deals and public attention to the needs of Chinatown businesses. Then there’s the nonprofit sector.

CCDC and other nonprofits do important, sometimes crucial work, building and maintaining affordable housing, taking care of seniors, fighting for workers rights, and protecting the community safety net. Yee, Pak said, “has never shown any interest in our local nonprofits. We all work together here, and he doesn’t seem to care what we do.” Yee told me he has no desire to see funding cut for any critical social services in any part of town. But he has also made no secret of the fact that he questions the current model of delivering city services through a large network of nonprofits, some of which get millions of taxpayer dollars. And the way Pak sees it, all of that — the nonprofits, the business benefits, the contracts — are all at risk. “If Leland Yee is elected mayor,” she told me, “we are all dead.”

I ran into an old San Francisco political figure the other day, a man who has been around since the 1970s, inside and outside of City Hall, who remains an astute observer of the players and the power relationships in the local scene. At the time we talked, he wasn’t supporting any of the mayoral candidates, but he had a thought for me. “This town,” he said, “is being taken over by a syndicate. Willie Brown is the CEO, and Rose Pak is the COO, and it’s all about money and influence.”

That’s not a pleasant thought — I’ve lived through the era of political machine dominance in this town, and it was awful. In the days when Brown ran San Francisco, politics was a tightly controlled operation; only a small number of people managed to get elected to office without the support of the machine. Developers made land-use policy; gentrification and displacement were rampant; corruption at City Hall turned a lot of San Franciscans off, not only to the political process but to the whole notion that government could be a positive force in society.

A few years ago, I thought those days were over — and to a certain extent, district elections will always make machine politics more difficult. But when I see signs of the syndicate popping up — and I see a candidate like Ed Lee, who’s close friends with Brown, leading the Mayor’s Race — it makes me nervous. And for all his obvious flaws, at least Leland Yee isn’t part of that particular operation. If there’s a better reason to vote for him, I don’t know what it is.

YEE HOME PURCHASE RAISES SUSPICIONS

Rose Pak has a question about Leland Yee. “How,” she asked me, “did the guy manage to buy a million-dollar house on a $30,000 City Hall salary?”

Pak isn’t the only one asking — numerous media reports over the years have examined how Yee raised a family of four and bought a house in the Sunset on very little visible income. And while I’m not usually that interested in the personal finances of political candidates, I decided that it was worth a look.

Here’s what I found: Public records show that in July 1999, Yee and his wife, Maxine, purchased a house on 24th Avenue for $875,000 (it’s now assessed at slightly more than $1 million). At the time, Yee was a San Francisco supervisor, earning a little more than $30,000 a year. (The salary of the supervisors was raised dramatically shortly after Yee left the board and went to the state Assembly.) His wife wasn’t working. And his economic interest statements for that period show no other outside earnings. So the disposable, after-tax income of the entire Yee family couldn’t have been much more than $25,000.

That, by any normal standard, shouldn’t have been enough to float a mortgage that, records show, totaled $516,000. In fact, the interest payments alone on that mortgage alone would total $3,600 a month — more than Yee’s gross income.

Documents in the Assessor’s Office show another paper trail, too. In 1989, Jung H. Lee, Yee’s mother, transferred the deed on a four-unit Dolores St. building where the family had been living to Maxine and Leland Yee — for no money. And a few months before the Yees bought the Sunset house, they took out a $320,000 home-equity loan on that property. That was the down payment on the Sunset property.

Still: At that point, the Yees would have been paying off two mortgages, with a total nut of about $5,000 a month — and supporting four kids, in San Francisco. In 2002, Yee’s economic interest statement’s show some modest income from teaching at Lincoln University — but nowhere near enough to pay that level of expenses.

What happened? Yee explains it this way: “For more than 10 years, we were living rent-free in my parents’ property,” he told me I an interview. “We were a close Chinese family, and my parents provided the food and helped pay for the children’s clothing. So we had almost no expenses and we lived very frugally.”

During that period, Yee was working for the San Francisco Department of Public Health, the Oakland Unified School District, and a San Jose nonprofit, earning, he said, between $50,000 and $90,000 a year. If he saved almost all of that money, he would have had more than a half-million dollars in the bank when he bought the Sunset house.

There’s nothing on any of his economic disclosure forms showing any ownership of stocks or other reportable financial interests during that period, so he wasn’t investing the money. In fact, he says, it was, and is, all in simple savings accounts. A bit unusual for that large a sum of money.

How did he get a mortgage? “Back then,” he said, “banks were willing to lend a lot more freely than they do today.”

Starting in 2003, Yee was in the state Assembly, making a higher salary — but still not much in excess of $100,000 a year. After taxes, he was probably taking home about $75,000 — and $60,000 was going to the two mortgages.

How did he do it? “We have been supplementing our income with our savings,” he said. “We don’t take vacations, we are very careful with our money.” And they clearly aren’t desperate for cash — Yee’s daughter occupies two of the four units in the Dolores St. building they own, but the other two units are vacant.

It’s possible. It’s plausible. But I don’t blame people for wondering how he managed to pull it off. (Tim Redmond, with research assistance by Oona Robertson) 

 

 

 

BIG CORPORATIONS HAVE BACKED YEE

Yee became a prodigious fundraiser in Sacramento — and a lot of the money came from big corporations that had business in the Legislature. And while he has perfect scores from the Sierra Club and the big labor unions, he’s taken tens of thousands of dollars from some of the biggest corporations, agribusiness interests, and polluters in the state. And at times, he’s voted their way.

Since 1993, for example, campaign finance records show Yee has taken more than $20,000 from Chevron, ExxonMobil, Valero, Conoco Phillips, and BP. He’s received another $22,450 from the chemical industry (and industry employees). Most of it came from Clorox, Dow Chemical, and Dupont.

And while the Sierra Club may not have considered it a priority, Sen. Mark Leno has worked hard to pass a bill limiting chemical fire retardants in furniture. In 2008, Yee voted against Leno’s AB 706.

That year he also refused to support a bill that would prohibit the use of the chemical diacetyl in workplaces. The industries that opposed AB 514 (including Bayer, Abbott Laboratories, Pfizer, and Johnson & Johnson) have given Yee a total of more than $60,000.

In 2003, Yee voted against a crucial tenant bill, one that would have prevented the owners of single room occupancy hotels from using the Ellis Act to evict tenants. He received a campaign check for $2,500 from the San Francisco Apartment Association the next day. Landlords in general have given Yee close to $40,000.

Then there’s agribusiness. Yee gets a lot of money from the farming industry, despite the fact that there obviously aren’t many farms in his district. Why, for example, would the California Poultry Association, the California Cattlemen’s Association, and the California Farm Bureau give him money? The Poultry Association’s Bill Mattos told us that Yee “has taken a keen interest in California’s poultry industry.”

Yee also took immense flak from the San Francisco Chronicle and other papers over a 2003 vote against a bill to limit emissions from farm vehicles. In an editorial, the paper wrote that he was “doing dirty work for the lobbyists.” In the end, under immense public pressure, he switched positions and voted for the bill. I asked Yee about all that money from all those bad operators, and he told me — as most politicians will — that campaign cash has never influenced any of his votes.

So why do all these groups give him money? “It’s about whether you will sit down and listen,” Yee said. “I will talk to all sides and at least consider the arguments as a thoughtful human being. Then I vote my conscience.” (Tim Redmond, with research by Oona Robertson) 

Central Subway gravy train shows how City Hall works

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Despite its skyrocketing cost, inefficient design, and a growing chorus of criticism – ranging from a Wall Street Journal editorial today to an op-ed in the SF Chronicle last week – the Central Subway project continues to move forward for one simple reason: rich and powerful people want it to happen, whether it makes sense or not, because it benefits them directly.

“The subway is a case study in government incompetence and wasted taxpayer money,” the Wall Street Journal wrote in a “Review & Outlook” piece today (full text below), but it was only partially correct. The Central Subway is actually a case study in how things get done at City Hall, and how connected contractors and their political patrons make off with that taxpayer money.

“San Francisco is embarking on a Big Dig of the West, and unless our local leadership applies the brakes soon, the damage to our transit systems will be all but guaranteed. I urge local and national leaders to recognize what is obvious and stop this train to nowhere,” former San Francisco Transportation Agency Chair Jake McGoldrick wrote in his Aug. 18 op-ed.

But that isn’t likely to happen, given the political dynamics that have taken root at City Hall this year. Remember, this project was the result of a mutually beneficial deal that then-Mayor Willie Brown cut with Chinatown power broker Rose Pak back in 2003 (when the project was estimated at $648 million, before it ballooned to its current price tag of $1.6 billion).

This was the same duo that engineered the appointment of Ed Lee as interim mayor earlier this year and then pushed him to break his word and run to retain control of Room 200, as well as pressuring David Chiu into being the swing vote to give Lee that job and secretly backing Jane Kim’s run for the Board of Supervisors. All are big supporters of the Central Subway project, despite all the experts calling it an wasteful boondoggle that will be the most expensive 1.7-mile piece of track ever built in this country.

But the opinion of fiscal and transportation policy experts matters little in a town that is once again being governed by shameless power brokers. Hell, Brown even uses his weekly column in the Chronicle to confirm his weekly breakfast date (every Monday at the St. Regis Hotel) with his “friend” and client Jack Baylis, a top executive at AECOM, the main contractor for the Central Subway, as well as the America’s Cup, Transbay Terminal, the rebuild of the city’s sewer system, and all the other most lucrative city contracts.

In turn, AECOM kicks down contracts and payouts to a network of political supporters that will ensure that the project gets built, such as Chinatown Community Development Center, which signed an $810,000 contract in December to support the Central Subway in unspecified ways right before CCDC and its director Gordon Chin provided crucial support for getting Lee into the Mayor’s Office, where he can ensure the Central Subway project remains on track.

Yes, it’s just that crass and obvious. And it isn’t even about politics. Hell, Baylis is a Republican from Los Angeles, despite his meddling in San Francisco’s political affairs by sponsoring the Alliance for Jobs and Sustainable Growth and other groups that will be doing independent expenditures on behalf of Lee this fall, trying to tell us that “it’s all about civility.”

No, it’s about money and it’s about power, straight up. The Central Subway is really more of a gravy train than a sensible transit project, but that’s just how business is being done at City Hall these days.

One of the people who has long criticized the project – noting how Chinatown would be served far better with surface transit options, at a fraction of the cost – is Tom Radulovich, executive director of Livable City and an elected BART board member. He was heartened to see so many more voices – from the editorials to a recent Civil Grand Jury report to internal audits in the San Francisco Municipal Transportation Agency, which will lose money operating the new system – echoing his concerns.

“There are more people who seem to be sharing my thoughts,” Radulovich said. “It would be good to have a civic debate on this.”

But he’s not confident that will happen, despite the fresh wave of concerns. “There’s a lot of stuff that looks like planning that has gone into justifying this,” he said. “When the political culture of City Hall and the planning culture come together, this is what you get.”

 

Full text of WSJ article:

Off the San Francisco Rails

Tony Bennett may have left his heart in San Francisco, but the politicians who contrived the city’s Chinatown subway project must have left their brains somewhere else. The subway is a case study in government incompetence and wasted taxpayer money.

P.S. The Obama Administration is all for it.

Former Mayor Willie Brown sold a half-cent sales tax hike to voters in 2003 to pay for the 1.7-mile line on the pretext that the subway would ease congestion on Chinatown’s crowded buses, but he was more interested in obtaining the political support of Chinatown’s power brokers. In 2003, the city estimated the line would cost $647 million, but the latest prediction is $1.6 billion, or nearly $100 million for each tenth of a mile.

Transportation experts say the subway’s design is seriously flawed and that improving the existing bus and light-rail service would make more sense. The subway misses connections with 25 of the 30 light-rail and bus lines that it crosses, and there’s no direct connection to the 104-mile Bay Area Rapid Transit line or to the ferry.

Commuters will have to travel eight stories underground to catch the train and walk nearly a quarter of a mile to connect to the Market Street light-rail lines—after riding the subway for only a half mile. Tom Rubin, the former treasurer-controller of Southern California Rapid Transit District, calculates that taking the bus would be five to 10 minutes faster along every segment.

The city’s metro system, which is already running $150 million operating deficits, isn’t likely to have the money to keep the subway running in any case. Last month the San Francisco Civil Grand Jury, a watchdog group, warned that the subway’s costs “could stretch the existing maintenance environment [of the metro system] to the breaking point” and will defer the purchase of a new communications system.

Alas, San Francisco will likely drag national taxpayer money into the bay too. The city has applied for a multiyear $942 million “full funding grant agreement” from the Federal Transit Administration (FTA) to cover 60% of its capital costs. In 1964 Congress created a back-door earmark program called “New Starts” to subsidize local transportation projects. The FTA rates and recommends projects for grants, and Congress usually rubber-stamps its recommendations.

In January 2010, Transportation Secretary Ray LaHood modified the grant criteria by adding environmental and communal benefits and minimizing cost-effectiveness. The change effectively means that any project can get federal funding as long as its sponsors claim they’re moving cars off the road.

“Measuring only cost and how fast a project can move the most people the greatest distance simply misses the boat,” Mr. LaHood wrote in January 2010 on his Fast Lane blog. “Look, everywhere I go, people tell me they want better transportation in their communities. They want the opportunity to leave their cars behind . . . And to enjoy clean, green neighborhoods. The old way of doing things just doesn’t value what people want.” We’re told Mr. LaHood is smarter than he sounds.

The FTA has given the Chinatown subway one of its highest project ratings, which virtually assures a full funding grant agreement. Once the city receives such an agreement, the feds are obligated to provide whatever funds they promise. The FTA won’t approve the agreements until the fall, so there’s still hope that someone wises up and nixes the project. Oh, and if Congress is looking for discretionary programs to cut, New Starts would be a good start.

Polls suggest anti-Lee mudslinging is coming

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One of the advantages of ranked-choice voting is that candidates have a disincentive for nasty attacks — after all, you want second-place votes from the other candidates, so you don’t want to piss off their supporters.


But when you have a dominant front-runner, as we appear to have in the San Francisco mayor’s race, all bets are apparently off.


I get this from the reports I’m hearing on recent polls. Sue Hestor, the land-use lawyer, tells me she got two calls from pollsters in the past few days — one apparently from the Michela Alioto-Pier campaign, the other most likely commissioned by Dennis Herrera. Both included plenty of questions about Ed Lee. Hestor’s impression: Both campaigns are digging in to the Ed Lee negative stuff to develop their attack lines. They asked about Mohammed Nuru, about Willie Brown and Rose Pak, and about Lee’s promise not to run. The Alioto-Pier poll also had some negative stuff on Herrera and on Jeff Adachi.


Alioto-Pier’s pollster asked a lot of questions about the schools — should the superintendent be elected? Should the board members be elected by district? Should school selection be based on neighborhoods? And there were questions about Alioto-Pier’s support for increased condo conversion. Oddly, there was a public-power question that made it sound as if Alioto-Pier would be the only candidate opposing public power.


The Herrera poll was more subtle, with a lot of questions about how the voters view him.


But the key element is that both candidates are apparently poll-testing how attacks on Lee would play and what might work. And I’m sure many of the others are doing the same thing. So we may be heading for a gang-up, where candidates from the back of the pack converge on the leader. That could get ugly, fast.  

Inside the V.I.P. cocktail party with Willie Brown

The Alliance for Jobs and Sustainable Growth hosted a V.I.P. reception just before a mayoral candidate forum held at UCSF Aug. 16, and former Mayor Willie Brown appeared to be the guest of honor. Although the theme of the event was technically “honoring San Francisco’s mayors” — former Mayor Frank Jordan was there, someone indicated that former Mayor Art Agnos was in the room, former Mayor Gavin Newsom was invited but didn’t show, and Mayor Ed Lee was of course in attendence — Brown seemed to be given more prominent recognition than any of the others.

The moment he strolled in, Sup. Mark Farrell, who was doing introductions for the the affair, scrambled onstage to announce Brown’s presence and deliver a warm welcome, and everyone applauded. Within minutes, the former mayor was seen chatting with a crowd that included Mayor Lee and several others. Soon after, Brown and former Mayor Frank Jordan were summoned to the stage to say a few words.

Once in the limelight, Brown cracked a few jokes. He said he felt for the 36 mayoral candidates, who are forced to campaign in an era when the Internet threatens to reveal videos and photos of them at any time to thousands of online viewers. “I’m glad they didn’t have that kind of communication system when I was running,” he said. “I can’t imagine the photographs you’d have of me floating around doing things I shouldn’t have been doing.”

As for his own time in Room 200, “I enjoyed every single solitary minute of it, and if I really thought I had great skills, I would be number 37,” he said, drawing more applause.

Then again, common wisdom says it isn’t necessary for Brown to bother campaigning in order to gain access to Room 200 these days. Later that same evening, during his own turn in the spotlight at the mayoral debate, Mayor Lee came under fire from Board President David Chiu, who revealed that Lee had privately confided to him about a week before he announced his candidacy that he was having a difficult time saying no to Brown and influential Chinatown business consultant Rose Pak when it came to launching a campaign for a full term.

Chiu’s pointed question for the mayor was what had changed in his mind since that conversation, but Lee referenced neither Brown nor Pak in his answer. Instead, he said he’d changed his mind after witnessing his success in changing the tone of government and getting things done in City Hall.

Back at the V.I.P. reception, Brown and Jordan were invited onstage again, this time to receive awards presented by the Alliance for Jobs and Sustainable Growth. But first Steve Falk, president and CEO of the San Francisco Chamber of Commerce, reminded the crowd that there was still time to buy a drink before the debate got underway. He said, “Debates are much more interesting after three drinks.”

Before Falk presented Brown with a commemorative plaque, he said, “It’s tough to put in a few sentences the life and times of Willie Brown,” and proceeded to note that, with his term in the California Assembly and time serving as mayor of San Francisco behind him, Brown “has now followed his friend Herb Caen into an honest line of work as a columnist for the San Francisco Chronicle.”

Being a newspaper columnist doesn’t mean Brown is always kind to members of the local media. While mixing through the crowd minutes after receiving his award, he fired some harsh words at a well-known City Hall reporter who had recently published some unflattering articles about the “Run, Ed, Run” effort to encourage Lee to seek a full term.

In recent months, Brown’s columns have provided the public at large with a rare glimpse into Mayor Lee’s dining experiences in San Francisco. In February, Brown wrote in one of his columns that he went out to North Beach Restaurant at sat at the window table with Lee, Brown’s “friend” Sonya Molodetskaya, and Jack Baylis, who serves as the US Group Executive of Strategic Development for AECOM, one of the city’s largest contractors and a sponsor of the Alliance for Jobs and Sustainable Growth Event. (Baylis was on the invite list for the V.I.P reception, too.)

Apparently, AECOM had something to celebrate that same day — according to an Aug. 16 press release, an AECOM joint venture was just awarded a $150 million contract for program management services for the San Francisco Public Utilities Commission’s wastewater improvement program.

The V.I.P. reception had representation from many key players in the downtown business community, with sponsorship from AT&T, AECOM, Pacific Gas & Electric Co., Wells Fargo, Motorola, California Pacific Medical Center, the San Francsico Chamber of Commerce, the Building Owners and Managers Association, the San Francisco Police Officer’s Association, Shorenstein Properties, and others. Several labor unions, including the United Association of Plumbers & Pipefitters Union Local 38, United Brotherhood of Carpenters and Joiners of America Local Union No. 22, and United Food and Commercial Workers Union Local 5 were also listed as sponsors. Guests included district supervisors, developers, lobbyists, business owners, mayoral candidates, media spokespeople, executives from the health care industry, and other political insiders.

Clearly, there were many people in the room who wanted to get on Brown’s good side.

So much for civility

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rebeccab@sfbg.com

The San Francisco mayor’s race went from a lackluster affair to a dynamic match as the Aug. 12 filing deadline drew near and two prominent city officials who had previously said they wouldn’t run tossed their hats into the ring.

Mayor Ed Lee’s Aug. 8 announcement that he’d seek a full term prompted several of his opponents to use their time onstage at candidate forums to decry his reversal and question his ties to the moneyed, influential backers who openly urged him to run. Several days later, Public Defender Jeff Adachi’s last-minute decision to run for mayor signaled more tension yet to come in the debates.

At this point, eight current city officials are running campaigns for higher office, and the dialogue is beginning to take on a tone that is distinctly more biting than civil. Adachi, who had not yet debated onstage with his opponents by press time, told reporters he was running because he wanted “to make sure there’s a voice in there that’s talking about the fiscal realities of the city.”

Adachi authored a pension reform ballot measure that rivals the package crafted by Lee, labor unions, and business interests (see “Awaiting consensus,” May 31, 2011). At an Aug. 11 candidate forum hosted by the Alice B. Toklas Democratic Club, the San Francisco Young Democrats, and the City Democratic Club, all of the top-tier candidates who were present indicated that they would support Lee’s pension reform measure and not Adachi’s.

“The reforms that I have championed are reforms that are absolutely needed, along with action,” Adachi told reporters moments after making his candidacy official. He added that after watching the mayoral debates, “I became convinced that either the candidates don’t get it, or they don’t want to get it.”

Those fighting words will likely spur heated exchanges in the months to come, but until Adachi’s entrance into the race, it was Lee who took the most lumps from opponents. Even Board President David Chiu, a mayoral candidate whose campaign platform is centered on the idea that he’s helped restore civility to local government, had some harsh words for Lee during an Aug. 11 mayoral debate.

“I do regret my decision to take Ed Lee at his word when he said he would not run,” Chiu said in response to a question about whether he regretted any of his votes. He also said his first interaction with Lee after the mayor had announced his candidacy was “a little like meeting an ex-girlfriend after a breakup.”

Lee, whose pitch on the campaign trail features a remarkably similar narrative about transcending political squabbling in City Hall, became the target of boos, hisses, and noisemaker blasts when a boisterous crowd packed the Castro Theater for an Aug. 8 candidate forum. He received one of the most forceful rebukes from Sen. Leland Yee, an opponent whom Lee supporters are especially focused on defeating.

“Had the mayor said that he would in fact run, he may not have gotten the votes for interim mayor,” Yee said. “Will you resign from your post,” he asked, challenging Lee, “in order to then run for mayor?” Days later, Yee had developed a new mantra about throwing power brokers out of City Hall instead of “wining and dining with them.”

Yet Lee said his decision to enter the race wasn’t because of the push from his backers, but because of how well things have gone during his brief tenure in Room 200. “Things have changed at City Hall, particularly in the last seven months,” he told reporters Aug. 8. “And because of that change, I changed my mind.”

In yet another twist, former Mayor Art Agnos — whom progressives had looked to as a potential appointee to the vacant mayor’s seat back in December, before Lee was voted in to replace former mayor and Lieutenant Governor Gavin Newsom — delivered a surprise endorsement of City Attorney Dennis Herrera shortly after Lee declared. The decision was particularly significant since Agnos first hired Lee to serve in city government, and has a long history of working with him.

“[Herrera] is an independent person who will empower neighborhoods … and won’t be beholden to power brokers,” Agnos said. He also told the Guardian he wasn’t surprised that Lee had opted to run, given the role former Mayor Willie Brown and influential business consultant Rose Pak had played in orchestrating Lee’s appointment.

“Anybody who is an astute political observer saw the signs from the very beginning,” Agnos said. In response to a comment about his unique vantage point as a would-be caretaker mayor, he said, “I would’ve kept my word and not run for reelection.”

Intense focus on Lee’s flip-flop, and on the Progress for All-backed “Run, Ed, Run” effort that was the subject of an Ethics Commission discussion that same week, stemmed at least in part from the threat the incumbent mayor represents to other candidates. A CBS 5-SurveyUSA poll suggested he became an instant front-runner.

Yet questions about “Run, Ed, Run” — some raised by observers unaffiliated with any campaigns — also served to spotlight the candidate’s longstanding ties with backers closely connected to powerful business interests that stand to lose big if their links to city government aren’t preserved.

Retired Judge Quentin Kopp issued an open letter to District Attorney George Gascón Aug. 1 urging him to convene a criminal grand jury to investigate whether illegal and corrupt influencing had occurred when Pak — a close friend of Lee’s and a key driver behind the “Run, Ed, Run” effort — reportedly recruited executives of Recology to gather signatures urging Lee to run.

Recology, which handles the city’s waste, was recently awarded a $112 million city contract, and Lee’s scoring of the company and recommendation to raise rates in his previous capacity as city administrator benefited the company. Brown received substantial campaign donations from Recology in previous bids for mayor. Kopp is the coauthor of a ballot initiative asking San Francisco voters if the company’s monopoly on city garbage contracts should be put out to bid.

“A criminal grand jury is vital in order to put people under oath and interrogate them,” Kopp said. “They would put Willie Brown under oath, put Pak under oath, put [Recology President Mike Sangiacomo] under oath, put [Recology spokesperson Sam Singer] under oath … That’s the course of action that should be pursued by this.”

Although Kopp told the Guardian that he hadn’t yet received a response from Gascón, DA candidates Sharmin Bock, Bill Fazio, and David Onek nevertheless seized the opportunity to publicly and jointly call for Gascón to recuse himself from any investigation into Progress for All. Gascón has a conflict of interest, they argued, since he reportedly sought Pak’s advice when deciding whether to accept Newsom’s offer to switch from his previous post as police chief to his current job as top prosecutor.

The Ethics Commission determined unanimously Aug. 8 that the activities of Progress for All, the committee that was formed to encourage Lee to run, had not run afoul of election laws despite director John St. Croix’s opinion that it had filed improperly as a general purpose committee when it ought to have been a candidate committee, which would have placed caps on contribution limits.

“The Ethics Commission has spoken, and they’ve supported our position,” Progress for All consultant Enrique Pearce of Left Coast Communications told the Guardian.

St. Croix did not return Guardian calls seeking comment, but an Ethics Commission press release included a caveat: “Should facts surface that coordination occurred between Mayor Lee and [Progress for All], such allegations will be investigated under the Commission’s enforcement regulations.”

At a Lee support rally organized by his official campaign team on Aug. 11, volunteers who arrived with “Run, Ed, Run” materials produced by Progress for All were told they could not display those signs and T-shirts; the same people were on a first-name basis with one of Lee’s campaign team members.

Pressed on the question of whether there was any coordination between agents of Progress for All and Lee, Pearce said the Ethics Commission discussion had focused on whether Lee had been a candidate. “Whether or not he’s a candidate has nothing to do with whether or not he has dinner with Rose [Pak],” Pearce noted. He insisted that there had not been coordination, and that the efforts to encourage Lee to run and to support Lee as a candidate were totally separate.

Sup. John Avalos, who is running for mayor on a progressive platform, recalled at an Aug. 8 candidate forum how things unfolded when Lee’s name first came up as an appointee for interim mayor.

Avalos reminded people that he had called for postponing the vote back in December because he hadn’t even had a chance to sit down and meet with Lee, who was in Hong Kong at the time. With behind-the-scenes deals orchestrating his appointment, Avalos said, “We saw City Hall turning into one big back room.”

You can’t trust Ethics

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By Larry Bush

OPINION Proposition F, a measure on the November ballot, is supposed to clean up some provisions of the law that requires political consultants to register and make disclosures about their clients and their work. It was approved by all 11 supervisors.

But Prop. F has some serious problems. For starters, it grants authority to the Ethics Commission to make any other changes it wants in the law.

As the Voter Handbook says:

“A yes vote means: You also want to allow the City to change any of the campaign consultant ordinance’s requirements without further voter approval.”

Why should you oppose that? Because the Ethics Commission can’t be trusted.

The reason San Francisco has a law forcing political consultants to register and make disclosures is because the voters demanded one. City Hall fought against it every step of the way.

Former Supervisor Tom Ammiano introduced the measure in 1996, and it won board approval. Then-Mayor Willie Brown vetoed it. Ammiano rewrote the measure 1997 to meet Mayor Brown’s objections. Brown vetoed it again. And the supervisors who had voted for the law refused to vote for it again and overturn the veto.

So Ammiano and several other supervisors put the measure on the ballot. The political consultants raised a war chest to defeat it and spent more than $100,000 in direct mail, billboards and other voter contacts.

It passed with 61 percent of the vote.

What kind of clean up does Ethics plan now on the political consultant law? You can bet it won’t come down on the side of greater disclosure.

In 2009, two years ago, the Ethics Commission decided to write a clean up of the city lobbyist law. Just like they want to do with the political consultant law now.

And what happened with that law?

It changed one little aspect that didn’t get any real attention. It changed what is defined as a lobbyist — a person or entity who seeks to influence administrative or legislative decisions.

And what is the result?

Now the San Francisco Chamber of Commerce no longer has to file and disclose its lobbying. Neither does Lennar. Neither does the America’s Cup or Larry Ellison.

All those groups had to file under the old rules.

The bottom line is that a sleeping watchdog that can’t be trusted wants the right to change the laws governing political consultants — without any further oversight or public vote.

The former Ethics Commissioners who also are opposing this measure are Paul Melbostad, who served on the commission when the political consultants act was passed; Bob Dockendorff; Joe Julian; Bob Planthold; and Eileen Hansen, who just completed her term and was the only commissioner who voted against the pay-to-play rewrite.

I urge you to join them in opposing this measure.

Larry Bush is the publisher of Citireport.com, a City Hall watchdog.

Lee appointment of Nuru darkens the ethical cloud over Room 200

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City Attorney Dennis Herrera deserves credit for being the one mayoral candidate willing to bring a full-throated denunciation of the sleazy and corrupt politics now flowing from Mayor Ed Lee, who yesterday appointed discredited political fixer Mohammed Nuru to head the Department of Public Works, compounding a series of ethically questionable actions by Lee and his supporters.

While it was inexplicably buried by editors at the bottom of Section C, the Chronicle’s City Insider today had a pair of good stories on Lee’s mounting political problems. The first was about how the U.S. Attorney’s Office has reportedly launched a probe of Progress for All and its “Run, Ed, Run” campaign, for which Lee ally Rose Pak illegally sought support from executives at Recology, the garbage company that had just been awarded a huge city contract, largely because then-City Administrator Lee had given the company far higher ratings than the other two supposedly impartial bid judges.

The second story was about Herrera slamming Lee’s choice of Nuru. On his campaign website, Herrera reminded voters about the scandals that have surrounded Nuru – like Lee, someone who has always taken his cues from former Mayor Willie Brown – who illegally diverted city funds and workers into campaigning for Brown in 1999 and Gavin Newsom in 2003. Brown now writes for the Chronicle and is even allowed to comment on the mayor’s race.

The scandal – first broken by the Chronicle in 2004, furthered by reporting in the Guardian, and then investigated by Herrera’s office – involved Nuru steering city funds to his nonprofit San Francisco League of Urban Gardeners and then requiring its employees to illegally do campaign work during work hours. Nuru then went to work for Lee at the DPW while continuing to illegally use SLUG’s funds and employees for political purposes.

Herrera said the appointment smacks of “cronyism, politics, and poor judgment.” Previously, Herrera had the best line about Lee as he jumped into race, telling a mayoral forum: “To my mind, Ed Lee’s biggest problem isn’t that he’s a dishonest man – it’s that he’s not his own man,” Herrera said. “The fact is, if Ed Lee is elected mayor, powerful people will continue to insist on things.”

Topping that list of the powerful people who have clearly been pulling Lee’s strings throughout his career are Pak and Brown, both of whom are consultants who regularly get paid by corporations that do big business with the city and need support from the Mayor’s Office. And their actions are often blatant and shameless, just like Nuru’s history, and even exposure of the misdeeds doesn’t correct the problem.

For example, as I reported last week, Brown’s administration helped Pak buy a Rincon Hill condo for half-price through a city affordable housing program in 2002, even though her disclosure forms showed she had $73,414 in her checking account, some of which probably included the $12,000 consulting fee she reported on her tax return from Emerald Fund – the politically connected developer of the project, employees of which are barred from buying such below-market rate units – and $10,000 from Chiang CM Construction, which helped fund Progress for All.

Most of this information was prominently reported in 2003 by the Examiner, but nothing was ever done. Pak got to keep her taxpayer-subsidized condo. Same thing with Nuru, who remained at DPW even after the City Attorney’s Office and Controller’s Office concluded his actions were corrupt. And Lee was appointed interim mayor even after being tied to several corrupt Brown scams, including overriding city workers to give contracts to fraudulent companies at Brown’s behest.

And now, Lee has placed Nuru in charge of a city department with a $129 million city budget and 1,200 employees, despite Nuru’s proven history of directing his subordinates to illegally campaign for his mayoral benefactors. You couldn’t even make this stuff up, and even Examiner columnist Melissa Griffin flatly calls the move “stupid.”

But I think it’s more than just stupid. And the appointment of Nuru is more than just a setback from DPW that good government activists had been fearing for a long-dysfunctional department that had gotten much better in recent years. It looks like flat-out corruption of the sort that ought to knock Lee out of the frontrunner position and hopefully land him in front of a grand jury at some point.

Adachi jumps in and the slugfest begins

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With the Examiner reporting that Public Defender Jeff Adachi this morning unexpectedly pulled papers to run for mayor, the wide-open race – now with 11 top-tier candidates who are either office-holders or strong fundraisers – just got a bit more interesting and will probably get a lot more nasty.

While Mayor Ed Lee has the advantage of incumbency and support from powerful players like former Mayor Willie Brown and Chinatown fixer Rose Pak, he also has the biggest target on his back and decades of patronage politics dirt to be dug up on him, a process that has already begun and will get far worse in the coming months.

Previously, Leland Yee and his history as a political weather vane had been the biggest target for op-shop research and popular derision, but Adachi might now displace him as the second-biggest target of political ire after his back-to-back campaigns of pushing pension reform proposals that didn’t have buy-in from labor.

The only certain thing about this year’s mayor’s race, which has so far been marked by downright boring levels of civility, is that it is likely to turn into slugfest, ranked-choice voting be damned. Sure, Lee’s camp will labor mightily to sell its unofficial “it’s all about civility” motto, but perhaps they should have thought about that before naming Gavin Newsom’s prickly and belittling former press secretary, Tony Winnicker, as its spokesperson.

So buckle up, everyone, with today’s deadline for filing to run passing by, it’s game on!

Obama, Lee, Avalos, and the arc of history

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People need to hear compelling stories, particularly from those who aspire to lead them, a point that author and psychologist Drew Westen nailed in his incisive think-piece in Sunday’s New York Times, “What Happened to Obama?” His conclusions also apply in San Francisco, where progressives have lost control of the narrative to the tax-cutting centrists, who are telling stories that serve mainly to enfeeble the people and prop up powerful interests.

“The stories our leaders tell us matter, probably almost as much as the stories our parents tell us as children, because they orient us to what is, what could be, and what should be; to the worldviews they hold and to the values they hold sacred. Our brains evolved to ‘expect’ stories with a particular structure, with protagonists and villains, a hill to be climbed or a battle to be fought,” Westen writes.

Contrast that with the guiding narrative in San Francisco politics right now, put forth by Mayor Ed Lee, his supporters, and the crew of mostly bland centrists who aspire to replace him, all of whom cast conflict itself as the villain. Much like Obama, they all style themselves as the administrators-in-chief, conflict-averse protagonists content to compromise away what little wealth and power the average citizen still possesses. Not only does that narrative guarantee that Lee will be elected, but it’s a false and short-sighted narrative that does a profound disservice to this city.

The one candidate in the mayor’s race who understands that class matters, that conflict is a necessary part of politics, and that we’re all getting screwed over by the rich and powerful is John Avalos. But despite some flashes of progressive populism on the stump, he hasn’t really been consistently and boldly telling San Francisco the story of itself that it really needs to hear right now, which is the same story that Obama should be telling the American people.

“I know you’re scared and angry. Many of you have lost your jobs, your homes, your hope. This was a disaster, but it was not a natural disaster. It was made by Wall Street gamblers who speculated with your lives and futures. It was made by conservative extremists who told us that if we just eliminated regulations and rewarded greed and recklessness, it would all work out. But it didn’t work out,” begins the story that Westen said Obama should have told during his inaugural address.

And that’s the story that Avalos should be telling right now, combating the myths that have been put out there by Lee, David Chiu, Bevan Dufty, Dennis Herrera, and the other centrists in the race, that if we just give Twitter, Zynga, Oracle, Sutter Health, Willie Brown’s clients, and every other corporation and developer who promises to create jobs everything they want, then we’ll all be okay.

But on some level, we all know that just isn’t true, and it hasn’t been true for a long time. Only a fool would trust them to take care of us at this point. The greed and self-interest of rich individuals and corporations – which has gone unchecked for far too long, at least partly because of the political corruption they’ve sponsored – is reaching epidemic proportions. It is the villain that needs to be fought, it is the hill that needs to be climbed.

“When faced with the greatest economic crisis, the greatest levels of economic inequality, and the greatest levels of corporate influence on politics since the Depression, Barack Obama stared into the eyes of history and chose to avert his gaze. Instead of indicting the people whose recklessness wrecked the economy, he put them in charge of it. He never explained that decision to the public — a failure in storytelling as extraordinary as the failure in judgment behind it. Had the president chosen to bend the arc of history, he would have told the public the story of the destruction wrought by the dismantling of the New Deal regulations that had protected them for more than half a century. He would have offered them a counternarrative of how to fix the problem other than the politics of appeasement, one that emphasized creating economic demand and consumer confidence by putting consumers back to work. He would have had to stare down those who had wrecked the economy, and he would have had to tolerate their hatred if not welcome it. But the arc of his temperament just didn’t bend that far,” Westen wrote.

He was riffing off Obama’s penchant for quoting the MLK line, “The arc of the moral universe is long, but it bends toward justice,” which he returned to again with his devastating conclusion: “But the arc of history does not bend toward justice through capitulation cast as compromise. It does not bend when 400 people control more of the wealth than 150 million of their fellow Americans. It does not bend when the average middle-class family has seen its income stagnate over the last 30 years while the richest 1 percent has seen its income rise astronomically. It does not bend when we cut the fixed incomes of our parents and grandparents so hedge fund managers can keep their 15 percent tax rates. It does not bend when only one side in negotiations between workers and their bosses is allowed representation. And it does not bend when, as political scientists have shown, it is not public opinion but the opinions of the wealthy that predict the votes of the Senate. The arc of history can bend only so far before it breaks.”

That is the moment we find ourselves in, both as a country and as a city. And it is a story that we’re still waiting for a future leader to tell us with enough power and passion that we all begin to believe it.

View from the middle

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OPINION Editor’s Note: Between the well-funded, politically connected campaign pushing Ed Lee to run for mayor and the high-profile critics who say he should keep his word and step down, it’s hard to tell how the average city resident feels. So to reflect that perspective, we’re reprinting a letter that was sent to Lee on July 29.

Dear Mayor Lee,

My name is Peter Nasatir; I’m a middle-aged, middle class San Franciscan who works in middle management. I’m not an activist and I have no political ax to grind. In fact, I rarely write letters like this, but felt compelled to do so because I’ve been reading how you are considering a run for mayor this November. For your own integrity, and the good of the city, I urge you not to run.

One of the reasons you have been able to achieve the successes you’ve enjoyed this year is because San Franciscans know your time is finite, thus giving you the ability to avoid the kind of hard slog other mayors have found themselves in. You have been able to stay above the fray and receive near-universal support precisely because you’ve been able to do the amazing job you’re doing without having an eye on the upcoming election.

If you run, you’ll look like another cynical politician, who promises one thing and does another. Plus, with your experience, think how much political capital you’ll have when you return to your old position. And if you decide to run in 2015, you’ll already have on-the-job training no other candidate would have and have proven yourself to be a real leader for taking the high road.

I know Willie Brown and Rose Pak, who are considered influential community leaders, have been at the forefront of your bid to run. However, they also carry a lot of damaging baggage. Just look at the front page of today’s (July 29th) Chronicle. With their names attached to your run for mayor, your image in the eyes of many San Francisco voters is already tainted before you even have a chance to file your papers.

As much as I respect you and the incredible job you are doing, I can say without hesitation that if your name is on the ranked-choice ballot this November, I will not vote for you in any of the three positions.

On behalf of many like-minded San Francisco voters, I urge you to do the right thing and not run for mayor this November.

Thanks you for your consideration of this matter.  

Sincerely, 

Peter Nasatir

Shady financial dealings mar the “Run, Ed, Run” campaign

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Not only do the groups behind the campaign urging Mayor Ed Lee to run for mayor get lucrative city contracts, sometimes with Lee’s help, but at least one of the companies has also made direct payouts to Chinatown power broker Rose Pak, who arranged to place Lee in the Mayor’s Office and has been coordinating the campaign to keep him there.

This latest revelation, from documents uncovered by the Guardian, comes as other local media outlets have been exposing the financial self-interest that Pak, former Mayor Willie Brown, and their allies have in urging Lee to break his word and run for a full mayoral term, including a devastating front page article in today’s Chronicle.

Reporter John Cote writes that Progress for All, the group behind the “Run, Ed, Run” campaign, “has been bankrolled almost entirely by a small group of politically connected individuals, some of whom have received millions of dollars in city contracts in recent years.” Among them is Robert Chiang, owner of Chiang CM Construction, which has received millions of dollars in city contracts despite lawsuits and rulings by regulators alleging that the company violated a variety of wage laws.

Chiang CM has also paid Pak personally at least $10,000, according to her tax return form that she filed with the city back in 2002 when she bought a Rincon Hill condominium for half-price through a city affordable housing program. The tax form listed that payment under “miscellaneous income,” along with $12,000 from Emerald Fund, the politically connected developer of the project, “an apparent violation of regulations governing the distribution of the discount housing,” according to an Examiner article at the time (“Affordable-housing flap,” 2/24/03). But the Brown Administration, which approved Pak’s purchase of the condo, refused to take any action against Pak, a close ally of both Brown and Lee.

We reached Pak on her cell phone to discuss her financial ties to Chiang CM and what they paid her for, and after we explained our findings three times, she said, “I don’t remember,” and hung up the phone. When we called the company for comment, we were told “nobody is available to speak on that right now.”

More recently, the Examiner has reported on the millions of dollars in city contracts that Lee has helped steer to other key Progress for All leaders, including the Chinatown Community Development Center, whose executive director, Gordon Chin, also leads Progress for All. In addition to its city contracts, documents obtained by the Guardian also show that on Dec. 10, 2010, CCDC entered into a contract with Central Subway Partners – which is building the Central Subway project long pushed by Pak and Lee, but criticized as an overly expensive boondoggle by many transit activists – to be paid up to $810,000 for unspecified services that “will be issued on an Annual Task Order basis.” Chin hasn’t yet returned a Guardian call for comment.

The Chronicle also broke the story about Pak urging Recology – which just last month was awarded a lucrative city contract (with Lee’s support) giving it a monopoly over all aspects of waste management in the city – to improperly have its employees work for the “Run, Ed, Run” campaign. And the Bay Citizen has also exposed the financial self-interest of Progress for All backers, which Judge Quentin Kopp and local Democratic Party chair Aaron Peskin have separately called for prosecutors and regulators to investigate.

“Unlike all other candidates who must abide by the strict $500 contribution limit and source restriction (no corporate, union or City contractor money), Progress for All has been able to raise unlimited amounts from any source, making it easy to amass large sums of money for its efforts,” Peskin wrote in a July 28 letter to Ethics Commission director John St. Croix, requesting an investigation. The Ethics Commission is scheduled to discuss Progress for All at its Aug. 8 meeting.

Despite her considerable power and influence – including arranging regular trips to China for public officials, including Lee and Board President David Chiu – Pak’s 1999 tax return indicated she had an adjusted gross income of just $31,084. On her application, Pak reported a $60,000 income in 2002 as a “self employed consultant,” yet a whopping $73,414 in her checking account.

Although Maggie LaRue, the inclusionary program manager, wrote Pak a letter on June 17, 2002 challenging the “inadequate documentation” of her income in the application, the Mayor’s Office ultimately approved her purchase of a swanky two-bedroom apartment at 400 Beale Street for just $300,000, although it was valued at $580,000.

Although Pak seems to have fairly steady income from the vague consulting work that she does, a request for information from the Office of the Treasurer and Tax Collector indicates that she doesn’t have a business license and hasn’t paid any local taxes, even though city laws require a license from any “entity engaging or about to engage in business for seven or more days a year in San Francisco.”

Lee’s office has consistently denied knowledge of or connections to the Progress for All campaign, although the Chronicle has reported that Lee does plan to get into the mayor’s race, probably next week. The deadline to file for a run is Aug. 12.

is Rec-Park really broke?

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By David Looman

OPINION The senior staffers at the Recreation and Park Department routinely cry that the department is poor and going broke. Is it possible they are lying?

Conspicuously lacking in discussions of Rec-Park funding is any kind of hard data about how well or poorly San Francisco Rec-Park is really funded. Whether it’s the mainstream media, the alternative press, or our elected representatives on the Board of Supervisors, nobody seems to know how our park system compares with other park systems in California or the U.S.

And nobody seems to want to check up on Rec-Park’s sad-sweet story.

This lack of real information is particularly surprising, since the data is readily available. Every year, the Trust for Public Land, a well-respected, San Francisco-based park advocacy organization, conducts a meticulous and comprehensive survey of how well recreation and park systems across the country are being funded. The survey is always available on the Web, at www.tpl.org.

Surprise!

In the TPL’s 2000 book, Inside City Parks, by Peter Harnik, San Francisco was among the three best-funded systems, measured either per acre or per resident. In every annual survey after that, San Francisco continued to rank in the top three, until 2006. In 2006, the TPL found San Francisco to be the best-funded park system in America.

That’s right, the best-funded department in the entire U.S.!

This year’s survey, based on the 2008 figures, has changed its methodology a bit, and expenditures are no longer calculated per acre. With the new methodology, San Francisco has slipped a bit. The city is now only the fourth-best funded park system in the country for cities with populations larger than 500,000, and the sixth best for cities over 250,000.

For operating expenditures (total budget minus capital spending) San Francisco is the fourth best funded among all cities. We don’t have as many capital expenditures as, say, Seattle, whose newer park system is still growing.

The question of where that money goes is another matter. I think I can offer a few suggestions about what happens.

Problem number one is the long and glorious history of absolutely incompetent management, particularly in the last 15 years, under the administrations of mayors Willie Brown and Gavin Newsom. Second is that longstanding Rec-Park Department practice of ignoring and rejecting any public input, including factual input, from people who actually use and know the parks. This has led to a number of costly mistakes.

The department has more ethically dubious faults too—the wages spent organizing so-called “public support” for some of its unpopular projects; more wages spent having employees testify about what a great job the department is doing, etc.

The department presently is trying to privatize everything within reach. Its poor-mouth rational for doing so is false. It’s time we all faced the fact that Rec-Park isn’t giving us the whole truth.

David Looman is a longtime San Francisco political consultant and parks user.

Mayor’s race a tight pack, but Gascón lags in DA’s contest

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Despite the hype and spin from various mayoral campaigns and newspapers, the big story in yesterday’s release of semi-annual campaign finance reports is that there isn’t much of a story: It’s pretty much what everyone has been expecting, a tight field of qualified mayoral candidates with comparable financial resources.

It was also no surprise that Progress for All, the deceptive committee behind the effort to draft Mayor Ed Lee into breaking his word and running to keep his job, was funded mostly by a narrow group of business interests connected to longtime power brokers Rose Pak and Willie Brown, mostly with $5,000 contributions, or 10 times the contribution limit for legitimate mayoral campaigns.

The real story in yesterday’s numbers was in the district attorney’s race where the conventional wisdom that incumbent George Gascón is the clear frontrunner (“wisdom” that we’ve always questioned given his lack of local roots) was cast into doubt by his lackluster fundraising, big spending for small results, and the fact that each of his two major challengers have twice as much money in the bank.

Alameda County prosecutor Sharmin Bock led the fundraising race this year with $240,337, about $6,000 more than Gascón. And after spending $156,916 in just six months, Gascón has just $77,570 in the bank. David Onek, who has been getting progressive support and retail campaigning up a storm, raised $126,386 this year, but his early start and frugal spending leaves him with $153,474 in the bank.

In the mayor’s race, while both the Chronicle and Examiner led with David Chiu’s impressive fundraising this year, leading the pack with almost $400,000, all that really did was put him into financial contention with the top-tier candidates who have been raising money since last year: Leland Yee, Dennis Herrera, Bevan Dufty, Joanna Rees, and Michela Alioto-Pier.

As of last month, their campaigns’ cash-on-hand was Herrera at $586,294, Dufty at $493,372, Yee at $444,820, Ress at $441,168, Alioto-Pier at $406,574, and Chiu at $396,754. On the next tier down, Phil Ting appears dead in the water, raising just $67,526 and having more debt than money in the bank, although his campaign consultant Eric Jaye said public funds are just starting to come in and the campaign is on track to meet its $300,000 fundraising goal.

Two other major candidates were also well behind the pack, but both are running with an outsiders’ appeal that should keep them in the running throughout the race. Tony Hall, a conservative with a strong independent appeal, raised $102,612, has $173,368, and will likely continue nipping at the heels of the mainstream pack.

And then there’s progressive favorite John Avalos, who has been running a visible, enthusiastic campaign with lots of volunteer support, although he raised just $86,882 this period and has about $100,000 in the bank (contrary the erroneous report in today’s Chronicle that he only had $500, apparently because the reporter looked at his supervisorial campaign report instead of his mayoral – whoops).

But Avalos supporter Chris Daly said the campaign has recently raised another $32,000 and is due to soon receive about $120,000 in matching funds, bringing them up to around $250,000. “That’s what [then-mayoral candidate Tom] Ammiano had in his entirety in ’99,” Daly said, noting that progressive mayoral favorites always get outspent and usually by margins greater than what Avalos now faces. “Our people don’t have as much money or city contracts.”

By contrast, Chiu has been raking in the dough this year, with lots of $500 contributions mostly from lawyers, bankers, developers, people with Chinese surnames, and employees of Google and other tech firms, with almost half of the contributions from out of town.

“We raised almost a hundred grand more than the closest competitor,” said Chiu campaign manager Nicole Derse. “We’re in a super strong position.”

In addition to the big money sources that usually gravitate to strong moderate candidates, Chiu also had some notable financial support from some progressive constituencies, including bicyclist activists (such as Gary Fisher, Dan Nguyen-Tan, Jason Henderson, architect David Baker, and MTA member Cheryl Brinkman), progressive activists Susan King and Amy Laitenen (Matt Gonzalez’s former board aide), and medical marijuana advocate Kevin Reed from Green Cross.

Jim Stearns, who is running the Yee and Bock campaigns, said the funding picture is about what he and others predicted would be the case given public financing (and its $1.475 million spending cap) and the large field of qualified candidates. “That’s the interesting thing about this race, it’s like the World Series of Poker with everyone getting the same stake,” he said. “This is unlike every other mayor’s race where there have been huge disparities in funding.”

Many political analysts privately fear that this dynamic, with nobody really pulling away from the pack of candidates, could encourage Lee to get into the race. But Stearns notes that Lee, despite the power of incumbency, will have a hard time catching up in fundraising and a huge target on his back because of breaking his word, the sleazy “Run Ed Run” campaign tactics, and just the fact that he would become the instant frontrunner.

“In the ranked choice voting scenario, if there’s someone who looks like he’s going to come in first, you don’t lose anything by attacking him because his second place votes aren’t going anywhere,” said Stearns, who said the current mayor’s race appears to be a game of inches. “It’s an infantry game rather than an air game, where the gains are slow and people are proceeding carefully.”

 

 

Ethics Commission to discuss Progress for All

San Francisco Chronicle reporter John Cote’s scoop highlighting how Recology executives were working behind the scenes under pressure from Chinatown power broker Rose Pak to encourage Mayor Ed Lee to seek a full term is just the latest development for a committee that’s raised eyebrows already, and it may be just the beginning.

Five mayoral candidates — board President David Chiu, City Attorney Dennis Herrera, state Sen. Leland Yee, former Supervisor Michela Alioto-Pier, and businesswoman Joanna Rees — have teamed up to encourage the San Francisco Ethics Commission to investigate whether Progress for All has run afoul of local election laws, rallying behind an effort spearheaded by Democratic County Central Committee Chair Aaron Peskin in a July 28 letter to commissioners.

At the heart of the issue is whether Lee or any of his representatives have been coordinating with agents of Progress for All. If they are, Progress for All would have to be considered Lee’s own, candidate-controlled committee, Peskin asserts in the letter.

“Given the close relationship between Ms. Pak, the Mayor, and Progress for All, it is very possible that the committee has ‘consulted’ or ‘coordinated’ with the Mayor, and therefore its expenditures should be deemed to be made ‘at his behest,'” Peskin’s letter to the Ethics Commission argues. A City Hall insider told the Guardian that Pak — a primary driver behind the Run, Ed, Run campaign — is regularly observed going to and from the mayor’s office.

“If Progress for All or any of these other committees has been acting on Mayor Lee’s behalf, those committees may have violated the $500 contribution limit and prohibitions against accepting corporate, union or city contractor money, restrictions that apply to all candidate committees,” the letter states.

Financial disclosure filings for committees fundraising for the Nov. 8 election are due Monday.

Aside from the question of whether there is coordination between Lee, who has not yet announced that he will run for mayor, and Progress for All, concerns have been raised about city contractors aiding in the efforts of the campaign. Under the city’s Campaign Finance Reform Ordinance, contractors doing business with the city are not allowed to make political contributions.

(Given the revelations that Recology executives’ signature gathering efforts were done in violation of company policy, it’s no wonder Recology executives become bashful when approached by reporters who ask tough questions.)

Meanwhile, Recology might not be the only city contractor that Pak has encouraged to support Run, Ed, Run. A column that former Mayor Willie Brown published recently in the San Francisco Chronicle suggests that this isn’t the first conversation of this kind.

“One thing you can say about Chinatown powerhouse Rose Pak, she is not shy,” Brown’s column begins. “Holding court at the party for the opening of the new airport terminal, Rose was seated at the table with interim Mayor Ed Lee and his wife, Anita, and a host of other local officials. ‘I want every one of you to call his office and tell him he should run for mayor,’ Rose told the table. ‘And do it right away so that there’s no misunderstanding.’ Then she turned to the architect David Gensler. ‘Didn’t you do this terminal?’ she asked. ‘Yes,’ he said. ‘Didn’t you remodel this terminal before?’ ‘Yes,’ he said. ‘Then your firm should raise a million dollars for his election campaign.'”

While Brown may not be a visible player in the Run, Ed, Run campaign, he’s certainly been at the table with a key driver behind it and Lee himself — and he’s using his platform in the Chronicle to get the word out about Lee’s potential mayoral campaign.

“The specific revelations of unethical and possibly illegal activity are very troubling and need to be fully investigated by the Ethics Commission as soon as possible,” Chiu told the Guardian.

Political consultant Jim Stearns, whose firm is managing Sen. Yee’s mayoral campaign, joined the chorus in calling for an investigation. “If you think about the fact that these guys still, according to press reports, are eating together once a week, and there’s not supposed to be any coordination … You have this committee that is essentially operating in complete disregard of the campaign law,” he said. “It’s sort of like there’s a crime being committed, and where’s the police?”

The San Francisco Ethics Commission will hold a policy discussion about how to treat Progress for All at its Aug. 8 meeting, Ethics director John St. Croix told the Guardian.

“We’ve told the committee that we believe they’re a primarily form committee, which is an independent expenditure committee on behalf of a candidate for office or a ballot measure,” St. Croix explained. “They’re claiming that there’s no candidate, so they can’t be that committee, even though they’re acting pretty much exactly like one would.”

As things stand, Progress for All has filed as a general purpose committee, he added. “A general purpose committee is what you would think of as a [political action committee]. They usually represent an organization or elected group of individuals, they tend to exist for a long period of time, and they contribute to multiple campaigns, whereas a primarily formed committee is created to support or oppose a single candidate or a single ballot measure in a single election,” he explained. Another key distinction: “Independent expenditure committees don’t have contribution limits the way that candidate committees do. Candidate committees have a $500-per-contributor contribution limit.”

Peskin, meanwhile, hinted that there may be more to come. “There’s a lot of it,” he said, “and I think there are many people who have stories to tell.”

Will Esbernd support Lee?

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As the tom toms grew louder at the Chronicle and in the Willie Brown/Rose Pak community for Interim Mayor Ed Lee to run for the full term as mayor, I emailed two impertinent questions to my district supervisor Sean Elsbernd:


1. Would you have nominated Ed Lee for interim mayor had you known he would consider running for the job?


2. Will you endorse him if he does decide to run for mayor?


As a longtime West Portal resident, I’ve always gotten annoyed at how Elsbernd (and other supervisors) love to play the neighborhood game back in their district — but when the chips are down on a power structure issue, they go down to City Hall and vote with Willie Brown and the downtown gang. Which is what happened in January on the critical vote for mayor when the Willie Brown/Rose Pak forces worked a quiet play to knock out the progressive candidates (Sheriff Mike Hennessey and former Mayor Art Agnos) and put in City Administrator  Ed Lee, a Willie Brown ally.


Elsbernd was happy to nominate Lee and told us at the time that he had done so because he wanted an interim mayor who would not run in November.


In his email answer to me, Elsbernd wrote, “I believe the benefits of that strategy have proven correct (e.g. the overall budget process and its unanimous approval, and the unanimous approval of the consensus and comprehensive pension/health care charter amendment.“


So what about today when Lee seems more and more poised to run?


Elsburn noted that he has not endorsed anyone, but that “I have been most attracted to the candidacies of City Attorney Dennis Herrera and former Supervisors Alioto-Pier and Bevan Dufty.” He said that these three have the “right combination of qualifications, experience, intelligence, skills and integrity to serve as mayor.”


So what’s his out? “Should Mayor Lee run for election, I would only consider endorsing his effort under one circumstance—if, and only if, I was convinced that without his candidacy, Sen. Leland Yee would be elected. That is, if I see that no one else can beat Sen, Yee other than Mayor Lee, then I would support a Mayor Lee campaign. At this point, I’m not convinced of that—I still think any one of the three I mentioned above could beat Sen. Yee.”


Well, that’s Elsbernd back in his district doing his neighborhood routine at the Village Grill, a favorite Elsbernd breakfast place. Elsbernd has still left himself a way to do what he said he was dead set against doing: going along with Willie Brown and  Rose Pak and  helping Lee become the fulltime mayor. Bring back Quentin Kopp and John Barbagelata. B3


 

The Fillmore’s clip, cut, and snip: Reggie Pettus of New Chicago Barbershop No. 3 speaks

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35 years ago, if you were to step through the doors of New Chicago Barbershop No. 3 you’d probably find Reginald “Reggie” Pettus standing behind his classic barber’s chair. Today, Pettus can still be found in the shop on Fillmore Street, an area that has seen seismic changes in its community. Pettus and the shop are a part of the Fillmore’s African American past, but he wants people to know that the shop is part of the present, too.

Born in Mobile, Alabama, the now seventy-one year old Pettus came to the Fillmore District in 1958, when he enrolled at City College of San Francisco. “Half of my family was in Mobile, Alabama, the other half was in San Francisco, so when I graduated from high school I wanted to come out here to go to school, so that’s what I did,” said Pettus in a Guardian interview one summer afternoon at his shop.

Known for its doo-wop beginnings and its present day rhythmic hot spots, the Fillmore District is the place to be when it comes to absorbing San Francisco’s jazz culture. Home to the historic Fillmore theater, and popular jazz club Yoshi’s San Francisco, the Fillmore District brings in people of all ages and colors to enjoy its good times. But if you’re looking to get a handle on some parts of Fillmore history, you won’t find it in the clubs. 

1551 Fillmore: The place to be for a beard trim, haircut, and some neighborhood history

Pettus has been working in The New Chicago Barbershop No. 3, a business originally opened on Ellis Street by his uncle James “Mack” McMillan in 1968, for thirty five years. Another branch (Chicago Barbershop No. 2), is located on Divisadero Street.

Pettus said that he’s been a professional barber for thirty seven years, but has been cutting hair since he was a young adult, including the time when he served in the Air Force from 1960 to 1964. “I’ve always been [a barber]. When I was in high school I cut hair, when I was in the service I cut hair. So when I got out of the service and came to California, my uncle, he had a barbershop so I went to school and became a barber, a legal barber that is.”

This year marks the forty-forth year of business for the barbershop, a success that Pettus credits to the staff’s welcoming customer service. “We open on time; we treat all the customers the same way, whether they’re Willie Brown or somebody that has come off the street. The way we treat people. That’s why we’re still here.”

Nevertheless, the barbershop has faced tougher times as the years have progressed. Pettus described the current business flow to be “fair”. “It’s holding on, put it that way.” He was adamant about the reasons for the ongoing decrease in clientele for the shop. He said that during the mid ‘70s, redevelopment came in and tore down most of the buildings around the Fillmore (the neighborhood had been slated for redevelopment since 1948 by the San Francisco Redevelopment Agency and by 1956, 60 blocks were included in this designated blighted area). As a result, most of the middle-class African American population had moved out of the Fillmore by the ’70s, resulting in a drop in business for the barbershop. “When they moved down, our business moved down,” said Pettus.

After the redevelopment, Pettus said that the makeup of the neighborhood had shifted. “Way back in the day it used to be mostly Afro Americans, Italians, and Asians. Now, after they tore all the buildings, then brought everything back, you got quite a few Koreans and Caucasians in comparison to Afro Americans.” 

“We’re the only Afro Americans on this block,” Pettus said. He takes pride in the fact that the shop has stuck around, but at the same time Pettus knows that it’s evidence of the lack of representation of African American businesses in the Fillmore District.

When asked what he’d change if he could tackle one aspect of the Fillmore’s future, Pettus responded “I would put more emphasis on having more Afro American people come back into the area, and let them know that we are still here too.”

Through the hardships that the New Chicago Barbershop No. 3 has faced, it has always been able to fall back on what it does best — cut hair. One of Pettus’s fonder memories was when Willie Brown came to the shop during his time as mayor. Over the years the shop has served as barbers to local stars, visiting celebrities – and the everyday residents of the Fillmore.

As many of the shop’s neighbors come and go, the New Chicago Barbershop No. 3 carries on as the Fillmore District’s spot for a cut, clip, or snip. But its owner is humble about its importance in the neighborhood. When asked about what separates the barbershop from other businesses on Fillmore Street, Pettus jokingly answered, “We’ve been here the longest.” 

Now retired, Pettus, who continues to live in the Fillmore,  and still makes frequent stops to the shop on 1551 Fillmore Street. 

Said Pettus, “I still do the same thing; I still deal with mostly the same people, and I enjoy it, I enjoy it.”

 

New Chicago Barbershop No. 3

1551 Fillmore, SF

(415) 563-9793

www.newchicagobarbershop.net

 

Mayor Lee’s budget deal

0

The way the daily newspapers are presenting it, the budget that Mayor Ed Lee and the Board of Supervisors Budget and Finance Committee negotiated represents a new era of civility and cooperation at City Hall. The committee, after marathon negotiations, approved the $6.8 billion deal unanimously. Both sides called it a good process and a good result.

And indeed, by any standard, the way Lee worked with community groups was a huge breakthrough. After 16 years of essentially being cut out of the process under mayors Willie Brown and Gavin Newsom, the stakeholders — the people who provide the essential city services — were actually at the table. And the final blueprint isn’t as bad as it could be.

But it’s still a budget that does nothing to restore the roughly $1 billion of General Fund cuts over the past five years, that seeks no new taxes from big business or the wealthy, and that includes spending on a new Police Academy class that even the mayor doesn’t think the city needs.

And from the start, the mayor and his staff were absolutely determined to privatize security at the city’s two big public hospitals — even when it makes no political or fiscal sense.

The privatization plan was the centerpiece of what became a 13-hour shuttle diplomacy session, as staffers and supervisors sought to reach a deal they could all accept. The Mayor’s Office — particularly Steve Kawa, the chief of staff — put immense pressure on the committee members to accept a plan to replace deputy sheriffs with private security guards at San Francisco General and Laguna Honda hospitals. In the grand scheme of things, the $3 million in projected savings wasn’t a huge deal — but the politics was unnecessarily bloody. It’s as if Lee and Kawa were determined to privatize something, whatever the cost.

In the end, Sup. Jane Kim deserves considerable credit for holding firm and refusing to accept the proposal — and since Sup. David Chiu went along with her, they joined Sup. Ross Mirkarimi as a three-vote majority on the five-member panel and shot it down.

Police Chief Greg Suhr pushed for funding for a new police academy class to train 35 officers at a cost of $3.5 million (that’s $100,000 a cop). “I don’t think the department has looked hard enough at how we deploy the existing officers,” Sup. John Avalos told us.

And some key issues are still up in the air — for example, whether the mayor will adequately fund public financing of the November campaigns. With at least eight serious candidates running for mayor (not counting Lee), and most of them looking for the public financing that will help level the playing field, the city’s going to have to come up with at least several million dollars. That’s critical to the fairness of the election.

The bottom line remains: This city has been deeply damaged by years of cuts. And the next budget needs to start with a plan to repair that.

Editor’s Notes

tredmond@sfbg.com

I had, as they say, a spirited and frank discussion last week with Enrique Pearce, the political consultant working on the Run Ed Run campaign. I chided Pearce, whose firm is called Left Coast Communications, for leading an effort that, at the very least, involves some touchy legal and ethical issues. (After all, the group is raising money for a campaign for a candidate who hasn’t filed as a candidate. There are reasons why federal, state, and local laws mandate that people who are running for office declare that they want the office before they start raising money.)

Pearce insisted he was doing nothing illegal. (Okay, if he says so.) He also argued that his firm is the most progressive consulting operation in the city. (Whatever.) But the real focus of our discussion — and the reason it’s worth talking about — was the question of whether corruption really matters.

I think sleaze — and the appearance of sleaze — is a defining progressive issue. If Pearce agrees, he’s got some ‘splainin’ to do.

Let’s back up here. When Willie Brown was speaker of the state Assembly, he passed some good legislation, and allowed some very bad legislation to become law. But his greatest legacy is term limits — and the terrible public perception of what was once one of the best state legislatures in the nation.

Brown was the epitome of corruption, a guy who actively flouted the notion of honest, open government. Among other things, he had a private law practice on the side — and clients would pay him big money because of his influence on state legislation. Of course, we never knew who the clients were; he wouldn’t release the list.

When he was mayor, his sleazy ways continued — and left even progressive San Franciscans believing that you can’t trust City Hall with your money. Which means, of course, that it’s harder to convince anyone to pay more taxes.

There’s no question that Brown and Chinatown powerbroker Rose Pak (don’t get me started) were key players in putting Mayor Ed Lee in office, and that they’re playing a big role in this new effort. Which means, as far as I’m concerned, that it’s utterly untrustworthy — and that progressives should be miles and miles away.

I’m not arguing that Ed Lee is a bad mayor (he’s way better than the last guy). He might even turn into a good mayor if he runs for a full term. Pearce thinks he’d be better for progressives than state Sen. Leland Yee. We can argue that later.

But as long as his campaign is directly linked to people whose standard practices undermine the heart of the progressive agenda (which depends on a belief that government can be trusted to take on social problems), then you can count me out.

Editorial: Mayor Lee’s budget deal

1

The way the daily newspapers are presenting it, the budget that Mayor Ed Lee and the Board of Supervisors Budget and Finance Committee negotiated represents a new era of civility and cooperation at City Hall. The committee, after marathon negotiations, approved the $6.8 billion deal unanimously. Both sides called it a good process and a good result.

And indeed, by any standard, the way Lee worked with community groups was a huge breakthrough. After 16 years of essentially being cut out of the process under mayors Willie Brown and Gavin Newsom, the stakeholders — the people who provide the essential city services — were actually at the table. And the final blueprint isn’t as bad as it could be.

But it’s still a budget that does nothing to restore the roughly $1 billion of General Fund cuts over the past five years, that seeks no new taxes from big business or the wealthy, and that includes spending on a new Police Academy class that even the mayor doesn’t think the city needs.

And from the start, the mayor and his staff were absolutely determined to privatize security at the city’s two big public hospitals — even when it makes no political or fiscal sense.

The privatization plan was the centerpiece of what became a 13-hour shuttle diplomacy session, as staffers and supervisors sought to reach a deal they could all accept. The Mayor’s Office — particularly Steve Kawa, the chief of staff — put immense pressure on the committee members to accept a plan to replace deputy sheriffs with private security guards at San Francisco General and Laguna Honda hospitals. In the grand scheme of things, the $3 million in projected savings wasn’t a huge deal — but the politics was unnecessarily bloody. It’s as if Lee and Kawa were determined to privatize something, whatever the cost.

In the end, Sup. Jane Kim deserves considerable credit for holding firm and refusing to accept the proposal — and since Sup. David Chiu went along with her, they joined Sup. Ross Mirkarimi as a three-vote majority on the five-member panel and shot it down.

Police Chief Greg Suhr pushed for funding for a new police academy class to train 35 officers at a cost of $3.5 million (that’s $100,000 a cop). “I don’t think the department has looked hard enough at how we deploy the existing officers,” Sup. John Avalos told us.

And some key issues are still up in the air — for example, whether the mayor will adequately fund public financing of the November campaigns. With at least eight serious candidates running for mayor (not counting Lee), and most of them looking for the public financing that will help level the playing field, the city’s going to have to come up with at least several million dollars. That’s critical to the fairness of the election.

The bottom line remains: This city has been deeply damaged by years of cuts. And the next budget needs to start with a plan to repair that.