Amanda Witherell

PG&E’s Tag on the Golden Gate

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golden gate.jpg
photo courtesy of wmchu on flickr

I’ve ridden my bike across the Golden Gate Bridge hundreds of times, and often stopped to watch the sunset or to look down at the awesome power of the tide ripping by, but yesterday, for the first time, I walked all the way across. I noticed something I’d never seen before.

On the south tower, tucked among all the brass plaques noting the officials and feting the feat of construction that is the bridge, there was a monument to Pacific Gas & Electric, thanking them for donating all the lighting for the bridge.

I was standing with my friend, who’s an electrician, and who wryly noted that it’s PG&E that really won in that deal — the free lighting fixtures just translates to another guaranteed customer.

But what I was thinking was, gee, there was all this dust-up and opposition to any corporate sponsorship of the bridge to raise a portion of the $60 million for future repairs. Despite assurances from authorities that the bridge wouldn’t be renamed or adorned with company banners, it seems that nobody was interested in having the name of a corporation anywhere near the bridge or its immediate environs.

And here we have a corporation that has a long, litigious relationship with San Francisco, that costs taxpayers and ratepayers millions of dollars, and that regularly tries to purchase our goodwill through massive greenwashing campaigns and big dollar donations — and their name is bronzed right onto the bridge.

Nice. Classy.

A polluter could cash in

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› amanda@sfbg.com

Mayor Gavin Newsom wants to give Mirant Corp. a $2 million credit to shut down its Potrero Hill power plan and is offering to devote two full-time staffers to helping the company move forward a new development for the site, documents show.

An Oct. 30 agreement between the Mayor’s Office and the Atlanta energy company, obtained under the Sunshine Ordinance, lays out a generous city program to encourage the shutdown — even though city officials say the pollution-spewing plant will almost certainly be closed anyway.

Negotiations are moving forward on the city’s plan to construct a new fossil fuel–burning power plant with two "peakers" between the Dogpatch and Bayview neighborhoods — a project that supporters say will make the Mirant plant economically unviable and lead to its closure.

The 145-megawatt single-cycle natural gas–burning power plant, part of San Francisco’s Electric Reliability Project, is necessary to meet a need for in-city energy reliability, according to the California Independent System Operator, a state agency that controls the power grid.

But the city’s Public Utilities Commission argues that the peakers will obviate the need to keep the Mirant plant running — and Cal-ISO has agreed to pull the company’s lucrative contract for providing power and transfer it to San Francisco once the new city-owned turbines are in place.

Critics are worried that the southeast part of the city could wind up with the worst of all worlds — that Mirant would keep its plant open and the peakers would operate too, increasing the level of airborne pollution in a neighborhood that has suffered environmental injustice for decades.

Now it appears the city has secured a solid guarantee that Mirant will shutter its Potrero plant — at a price.

"Mirant is committing to shut down once the plant is no longer needed for reliability," Jesse Blout, chief of staff of the Mayor’s Office of Workforce and Economic Development, told us. "It’s not economic to run that plant once our plant’s in place."

The city is now seeking a legally binding agreement to secure that closure — and offering a sweet deal to get it.

According to a copy of the current term sheet that’s being negotiated between San Francisco and Mirant, in exchange for the company agreeing to close the plant once it’s no longer needed for reliability, the city "will agree to immediately designate a senior staff member from each of the Mayor’s Office of Economic and Workforce Development and the Planning Department" and "agree to review and process on a priority basis a completed application for a proposed site plan."

Additionally, the term sheet reads, "In light of the public benefits associated with expediting closure of the Potrero Power Plant, the city will agree that … Mirant will receive a credit of up to $2,000,000 — without interest — against certain city fees and costs, as described below, that would otherwise be payable in connection with review and approval of the site plan and any development project."

Felicia Browder, director of media relations for Mirant, confirmed that closure of the plant is imminent, once the state contract is terminated. However, she would not discuss details of the future use of the 27-acre site, as the deal is not finalized, something that’s supposed to happen this week.

Blout told us a deed restriction prohibits residential use of the land, and he predicted some kind of light industry for the area. The property, located at the bay’s edge between 22nd and 23rd streets, is also home to some of the toxic spoils of industry, which Pacific Gas and Electric Co., the original owner of the site, agreed to clean up to nonresidential standards when it sold its holdings to Mirant.

PUC members expressed satisfaction with the pending shutdown and voted unanimous approval of an Oct. 31 resolution authorizing the commission’s general manager, Susan Leal, to move forward with the plan. The resolution also includes clauses banning the sale of energy for profit from the three combustion turbines at the in-city facility and exploring whether two instead of three CTs could meet reliability needs.

The financing and control of the peaker project is also changing. Initially, the city negotiated a public-private partnership with JPower, a Japanese energy company with an Illinois subsidiary, to finance the $230 million project for two plants — the 145 MW in-city facility and another 48 MW plant located at San Francisco International Airport. Under the original deal, JPower would own and operate both plants for a period of some years before turning them over to the city. Now, however, the city is committing to financing the project and owning it outright, and the contract with JPower will be for operation and maintenance. "It makes more policy sense," Blout said, adding that after 12 to 14 years, "we will own the units free and clear." He said the city plans to issue tax-exempt bonds but at this point was uncomfortable stating how much they would be for.

Though JPower will be staffing the plant for the city, it will not be making a profit. "In the contract it will stipulate they can only run when Cal-ISO calls for them for reliability," the PUC’s Tony Winnicker said.

However, the 48 MW plant located at the airport will still be owned and operated by JPower for a 30-year period, and that plant is licensed to operate for 4,900 hours a year. "JPower will be able to operate that unit up to its limit," Winnicker said. "That’s part of what makes the deal profitable for JPower."

A mixed bag of environmentalists, social justice advocates, and Bayview and Potrero residents who are neighbors of the new and old plants still opposes the city building any new fossil fuel power plants. The Brightline Defense Project is currently representing the A. Philip Randolph Institute, Californians for Renewable Energy, and two citizens in litigation seeking to halt the building of the new plant.

Eric Brooks of Our City, a local public interest group, expressed skepticism of the plan to swap one power plant for another. "We would send the worst possible message to the world by building a fossil fuel power plant in our city limits at the very beginning of what must be a renewable-energy century," he told us. He’s also urging the city to let lapse Mirant’s water and air permits, which are set to expire in 2008 and 2010, respectively.

Other opposition to the city’s power plants has come from PG&E, through the Close It! Coalition, a group the utility company founded and financially supports. "These new plants will further our reliance on fossil fuels and contribute to global warming," the group states on its Web site. However, PG&E has a 20-year contract with a similar peaker plant under construction in Fresno and is building three new fossil fuel plants of its own in Antioch, Eureka, and Colusa. PG&E, of course, also wants to keep any hint of public power out of San Francisco.

Nuke tracker…just what I needed!

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From the good folks over at the Union of Concerned Scientists, this is the coolest tool ever for tracking the oops I did it again spills at our nation’s nuclear power plants. Plus, there are deets on all the plants-to-be, now that — wipe the sweat off your brows, people — nuclear power is going to save us from global warming!

Step it Up!

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Tomorrow! Go to Dolores Park at noon and for the National Day of Climate Change. Woo hoo!

March or ride in the parade of bikes and electric cars and other great, green stuff that’s going down to UN Plaza. Carole Migden, Aaron Peskin, Chris Daly and Ross Mirkarimi are going to be there, as well as mayoral candidates Quintin Mecke, Josh Wolf and Chicken John Rinaldi.

According to the press release, “UN plaza will be transformed into a carnival-like atmosphere complete with a Recycle That! art show filled with recycled and reclaimed art, the Sustainable Living Roadshow’s Conscious Carnival, a carbon-eating generator from the Chlorophyll Collective and smoothies made on a solar powered van. Participants will call for real political leadership on global warming, and will ask San Francisco’s political leaders to pledge to the following:

Put a moratorium on new coal and nuclear plants
Cut carbon emissions 80% by 2050
Create 5 million new green jobs conserving 20% of our energy by 2015
Get back on track to meet San Francisco’s Climate Action Plan

This is a national event, started by super-eco-friendly-guy Bill McKibben, but San Francisco’s event tomorrow is extra-special because we’re pushing an anti-nuke future, despite the kinder, gentler image that nuclear power plants have been getting lately.

Here’s a fun/gross fact: every year vehicles in San Francisco emit more than 16,000 tons of nitrous oxide (nastiness that makes ozone). The Mirant peaker power plants that everyone’s in a tizzy to shut down emit 92 tons.

Hmmm. The take-away = quit driving. Vote yes on Prop A!

We’re peaking

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Oh, how I wish that the SF Public Utilities Commission meetings brought me to such a brink…

Not so much. But as far as the peaker power plants are concerned there were some interesting developments today. Mayor Gavin Newsom is definitely playing the white knight in this scenario, and he’s now brokering a deal in which the city fronts all the money to build the power plant, skirting the public-private partnership deal that’s been floated to date. According to Jesse Blout, from the Mayor’s Office of Economic and Workforce Development, the city will now be issuing debt to finance the peaker plants and own them outright, rather than have the private company, JPower, act like they own them for 13 years and then hand them over to the city.

In this new deal JPower still operates and manages the three combustion turbines that will be sited in the city. (The airport CT will still be built, owned, and operated by JPower for 30 years before it’s turned over to the city, in order for them to make some $$$) The diff is that the city will own the Potrero plants straight-up, bypassing any sketchy loss of control or assets through the convolutions of a public-private partnership.

The PUC unanimously passed a really wordy resolution on all of this, and also asked Blout to check in with them every couple weeks to make sure all is on track. Blout, meanwhile, promised us a signing ceremony on an agreement that Mirant will shutter as soon as their contract is pulled and given to the city’s power plant instead.

Campaign sewer overflows

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› amanda@sfbg.com

The flow of election cash is often a filthy river that you wouldn’t want to drink from, and a recent local lawsuit, coupled with a new bit of state legislation, has muddied the waters even more.

On Sept. 20, US District Court Judge Jeffery S. White granted a preliminary injunction preventing the city from enforcing key sections of its Campaign Finance Reform Ordinance.

Two local groups with a sordid history of influencing elections with large chunks of cash — the Building Owners and Managers Association and the Committee on Jobs — argued in court that campaign contribution limits violate the First Amendment by financially curbing the ability to communicate a message (see "Pressing the Scales," 8/22/07). The contribution limits of independent-expenditure committees stumping for candidates were set by the voter-passed Proposition O in 2000 after the 1999 reelection of Mayor Willie Brown, in which deep-pocketed business interests backed the mayor in exchange for preferential treatment by city hall.

Prop. O capped contributions to IEs at $500, and people and corporations are allowed to give no more than $3,000 total (e.g., $500 each to six committees).

Those caps are no longer enforceable.

Similar injunctions have been granted in San Jose and Oakland, also destroying local contribution caps in those cities. San Jose appealed to the 9th Circuit Court of Appeals and is waiting for a ruling. Ann O’Leary, a lawyer in City Attorney Dennis Herrera’s office, told us San Francisco is waiting to see what happens in San Jose before making the next move, though an appeal is planned regardless of that outcome. In the past the Supreme Court has ruled that the appearance of corruption in elections is sufficient grounds for restricting campaign contributions, and San Francisco’s history provides ample examples from which to draw to support that decision.

"We don’t know if it will get back to court before November 2008," O’Leary said of the case, "but it’s certainly something to watch in that election."

Meanwhile, over in Sacramento, legislators on cruise control recently passed a bill that may make it impossible for San Francisco to write its election laws anyway. Gov. Arnold Schwarzenegger just signed Assembly Bill 1430, and according to the legislative digest, the new law "prohibits local governments from adopting campaign finance ordinances that restrict communications between an organization and its members unless state law similarly restricts such communications, or by regulation by the Fair Political Practices Commission."

Proponents say the new law will resolve conflicting interpretations of campaign finance regulations, but opponents say it preserves wide-open loopholes in the Political Reform Act that local jurisdictions have tried to close. For example, a person may be prohibited by the city from giving more than $500 to support a certain candidate. That person can, however, give as much as $30,200 to the Democratic Party, which can then "communicate" a message of support for that candidate to its members.

A recent and egregious example: in San Diego the county Republican Party spent almost $1 million on local races in 2006.

The bill was authored by Carlsbad Republican Martin Garrick and flew through the State Assembly unopposed. Assemblymember Mark Leno told us it came to the Elections Committee, on which he sits, with no vocal opposition, so he gave it an aye. One of his aides, however, became concerned and started making calls. Eventually, Common Cause and the League of Women Voters rallied against it, but it only hit a speed bump in the State Senate. There was still too much support from the Democrats to kill it. Leno said, "It’s an uncommon situation to have the left and right supporting something that in fact runs counter to local election laws."

Only nine senators opposed the bill, including Carole Migden and Leland Yee. "She thought it was an end around campaign finance laws," Migden aide Eric Potashner told us.

San Francisco’s Ethics Commission also took a look at the bill and gave it a 5–0 thumbs-down, resolving to send a letter to both the mayor and the Board of Supervisors urging them to speak against it. Neither did. "The Mayor supports AB1430," his press secretary, Nathan Ballard, told us by e-mail. "He has some concerns about the local control issue, but ultimately those concerns are overridden by his belief that groups like labor unions and the Democratic Party should be allowed to communicate directly with their members."

The governor’s signature now makes it more difficult to pass future measures like Prop O.

Neither the injunction nor the new law seems to be affecting the Nov. 6 election — the FPPC won’t be ruling on AB 1430 until January, though the commission is holding a hearing for interested people to speak in Sacramento on Nov. 2.

Though BOMA and the Committee on Jobs stated in their filing for the injunction that the law harms their ability to raise and spend money for candidates in this November’s election, nothing on record with the Ethics Commission shows they’ve been putting up a lot of money for Newsom, Kamala Harris, or Michael Hennessey. But there’s always next year.

Mayor moving on peaker deal

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The Board of Supervisors had a little shake-up today in the middle of a conversation on the city’s deal to build a new peaker power plant.

One of the biggest selling points from proponents of the $230 million natural gas fired power plant has been that it will receive the “Reliability Must Run” contract from CA-ISO, the state energy agency that dishes out those kinds of things. Right now the Mirant Potrero plant has that RMR, and city officials and activists have been trying for several years to get that plant to close down because it spews more filth into the air than a newer one would. Without an RMR, which essentially pays the power plant owner to NOT run unless needed during peak energy hours, it becomes financially dicey to keep the lights on, but Mirant has never definitively said they’d pull the plug if the city built its own power plant. Some folks, including us, have expressed concern that we could end up with two power plants.

Supervisor Tom Ammiano was intending to slap a couple of amendments onto the resolution the board heard today regarding the peaker plant, one of which would have urged the PUC to get an iron-clad guarantee from Mirant that they’d shut down. In the middle of the supes grilling the PUC on the peaker contract, Sup. Aaron Peskin interjected with the late-breaking news that Mayor Gavin Newsom was at that very moment negotiating with Mirant for a signed agreement that the plant would shutter for good if their RMR is removed.

Some of the supes seemed a little surprised by the news, if not miffed. (Gav’s got a bit of a thing for trumping.) Rumors outside the chamber were that the Mayor’s office has been working on this for awhile, and part of the negotiation may have to do with some city assistance with cleaning-up of the old power plant site and maybe a little fast-tracking of the permitting process for Mirant to put it to some other, more lucrative use. (Condos, anyone? Anyone around here need another $2 million condo?)

No one from the Mayor’s office got up to speak about it (nor the Mayor himself, though it was his day to shine in front of the supervisors. More on that after Prop E passes.) They haven’t issued a press release yet, and I swung by the press office but no one there knew anything about it. Supes Mirkarimi, Daly, and Alioto-Pier voted still voted against the resolution.

UPDATE:

Sup. Ross Mirkarimi tells us we got it wrong — he introduced the resolution amendments, not Tom Ammiano. Sorry about that — we missed the beginning of the hearing, and got the amendments through a fax from Ammiano’s office. The hearing isn’t up on SFGTV yet, so we’ll take Mirkarimi’s word that the amendments are part of the resolution.

They urge the SFPUC to do two things:
1. secure the closure of Mirant as a condition before operating the peakers. (Mayor’s on that one.)

2. “…stipulate a controlled operating regimen that reduces the usage of the CT’s as renewable in-city generation capacity comes on-line consequent to implementation of City’s renewable energy plan under Community Choice Aggregation and other renewable power sources.” (So, essentially, curb the peakers as we put up the solar panels.)

Also, here are some PDFs which prove the point commenter Eric Brooks makes below that the peakers will spit out about the same amount of pollution as Mirant does now:

Testimony of Bay Area Air Quality Management District’s engineer Barry Young at 10/23 SFPUC hearing

Images that quantify the testimony

PG&E dropping the dime

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Last bus to Oakland! The cell phone photographer who sent us this shot said the driver of the rented vans had been hired by PG&E to bus people to City Hall from the East Bay to speak against the peaker power plants

Who got a robo-call last night about the city’s plan for new power plants? Was there something about three new fossil fuel power plants “right in the middle of the city” on your answering machine when you got home?

There was on ours:

“These new plants will further reliance of fossil fuels, add to global warming, and cost up to $500 million. And they aren’t even needed because there’s a green alternative. If you would like to join our efforts to stop the SFPUC, please press 1 or if you’d like more information please press 2. This call was paid for by the Close It Coalition with the proud sponsorship of PG&E. Find out more on closeitcoalition.org.”

PG&E…you’re so tricky. Your press office never has time to return our calls for comment but you’re dialing up half the city as part of your bogus campaign for clean energy.

The SFPUC will be discussing the peakers tomorrow — Wednesday Oct. 31 — at 2:30 in Room 400 at City Hall. Maybe PG&E will bus in some more people to speak against the peakers like they did for the last PUC hearing on Oct. 23.

Our source for that tidbit said he asked the driver of the rented Enterprise vans who had hired him and the response was PG&E and the A. Philip Randolph Institute. We asked APRI’s executive director Guillermo Rodriguez if they bought the vans. He denied it, and said he has complete control over APRI’s two credit cards and neither had been employed for such a task.

Up until two years ago, Rodriguez was Senior Director of Public Affairs for….Holy shit! PG&E. Last year, APRI received $85,000 in grants from PG&E. I wonder what they’re doing with all that money?

Good-bye Peakers, Hello Wi-Fi!

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This is brilliant. A tech company in Mississippi has bred wi-fi technology with electricity meters, and Burbank, CA, which has a power grid owned by the city is using the technology to cut down usage during peak times.

Why can’t San Francisco put $60 million toward this instead of bringing another fossil fuel power plant into the world?

As Naomi Graychase reports in this article, “An example of the immediate effect of this sort of load control,” says Fletcher, “ would be to send a signal to a grocery store that would turn down lights and turn down the A/C, so we can regulate power when there’s a shortage of power in the grid.”

Hmm…big power plant that runs on gas we have to buy from PG&E and puffs nasty smoke to an already smoky neighborhood…or…better switches and control of the power we use? This is a no-brainer: fossil fuels are so 20th century. WiFi is so 21. The kids love it. We could hip out the city’s Community Choice Aggregation plan with some of these, especially if we can get the Mayor to cut some sketchy back room deal to make them free!

Door-to-door “education”

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Correction:

In “Door-to-Door Education” [10/24/07], we reported on a group called the San Francisco Homeless Services Coalition. Our story stated that 25 percent of the group’s income goes to overhead and in-kind donations. In fact, Daniel Rotman, the group’s director, says 10 percent of the income goes to overhead, 54 percent to “public education” (which includes door-to-door canvassing and fundraising), 13.5 percent to financial donations to local shelters, and 22.5 percent to in-kind donations. Our article also stated that the San Francisco Police Department was considering revoking the group’s charitable-solicitations permit and that department staff recommended the permit be revoked. In fact, the permit was extended for another six months while a decision on revocation is pending. The literature that the group was handing out early in its operation included the SFHSC name, address, and phone number.

› amanda@sfbg.com

While San Francisco’s problem of homelessness rages in the local streets and broadsheets, a Los Angeles–based organization that raises money for homeless people has set up a new shop in town. Situated in the high-traffic area of Seventh and Market streets, where the down-and-out regularly nap, panhandle, and hawk their wares, the San Francisco Homeless Services Coalition seems perfectly placed to lend a hand.

But a recent afternoon visit to its headquarters found the gate pulled shut, the door locked, and a person inside working at a computer while half a dozen homeless people loitered outside. Nothing, save a small piece of paper reading "SFHSC" posted in the window, indicated this was a place to give money or assist homeless individuals.

During another impromptu visit the gate was open and the room full of people — potential canvassers receiving instructions on going door-to-door to ask for $150 donations, which is how the group’s fellow organization, the Los Angeles Homeless Services Coalition, has raised more than $2 million in two years, according to its Web site.

When we asked for more information about the group, we were told it doesn’t print brochures or any kind of literature, in order to save money. A handmade business card with the phone number and Web site was given with an aside that we were "lucky to be getting that."

Concerns about the SFHSC have reached the San Francisco Police Department, which is investigating whether the door-to-door canvassers are carrying the proper identification and if that form of fundraising violates the group’s city-issued charitable-solicitations permit. The permit forbids soliciting within 10 feet of doors. A certificate of registration issued to the SFHSC on April 11 clearly states, "This does not authorize your organization to go door to door for solicitation. Public property only for charitable solicitation."

But the group has been knocking on doors in San Francisco for the past six months, telling people that "the best way to make a difference is by making a $150 tax-deductible donation," according to the script it gives its canvassers. It’s raised at least $100,000 so far in the name of helping the homeless, but its work has managed to alienate some of the local leaders it intended to support.

"There isn’t a relationship any longer," Erica Kisch, executive director of Compass Community Services, told us when asked about the three-month arrangement between the two groups during which the SFHSC agreed to donate 15 percent of its take to Compass. "We knew nothing about them. We met with the director. They said they were raising money for homeless services," Kisch said. "It was an opportunity, and it seemed aboveboard at the time."

Canvassers solicited with flyers clearly showing Compass’s name, federal tax-exempt identification number, and statistics but lacking the same details about the SFHSC. That caused concerned citizens to call Kisch. "We were getting inquiries from the community about what they were doing, their tactics. They were kind of aggressive, going up to people’s doors asking for a lot of money…. It wasn’t really clear to the people they were soliciting that money was going to direct services," she said.

In fact, most of it wasn’t. The SFHSC says only 15 percent of the money it raises makes it to the shelters and service centers. Most of the money raised goes to raising more money door-to-door — either to canvassers or their support staff — an effort the group calls "education." Kisch did some more research and ultimately decided "it wasn’t worth it to us to be attached to a controversial organization like that." Compass ended up receiving a total of $11,250 from the SFHSC.

Daniel Rotman, founder and executive director of both the SF and the LAHSC, said of the breakup, "Maybe they didn’t realize we’d be reaching so many people. I think we were just too new for them."

Rotman, a 27-year-old LA resident and UC Berkeley graduate with a degree in political science, used to work for the Democratic National Committee but decided politics wasn’t for him. He transferred the grassroots machinery of fundraising for politics to the particular issue of homelessness, he told us, "because I care. I’ve always been taken by the issue."

He confirmed to us that the SFHSC does not interface with needy folks — it just gathers money in their name. Homeless people who stop by the office are referred to other locations in the neighborhood and escorted out. Rotman said 15 percent of the net money raised is given to local groups, 60 percent goes to education, and 25 percent is for overhead, as well as a plan to buy delivery trucks for ferrying donated goods from homes to shelters.

"Our main goal is educating the community," Rotman said. "We don’t just raise money and give it to other groups. It costs money to set up speaking engagements and pay for field managers." But he admitted the SFHSC hadn’t done or set up any speaking gigs yet. The 10 to 11 canvassers employed at the SFHSC are paid minimum wage and earn a 30 percent bonus if they exceed a weekly office average. "They get that for going out into the community and informing people about the issue and about us. At the end we ask them to make a donation," Rotman said.

So the point of the canvassing is to educate, not raise money, but those who have received the pitch are dubious.

"It was not educational at all," one Bernal Heights resident said of her interaction with an SFHSC canvasser. "My husband works in that field, and I was surprised I’d never heard of them." She asked for a business card so she could do more research, but the canvasser had no printed materials. "Just a clipboard with names and addresses and a very vague petition." No envelope, no card, no pamphlet. "Basically, he was just asking for donations. I didn’t know what to think."

Besides the soliciting foot soldiers and an office at 1135 Market that’s so discreet it’s easy to miss, the group’s only public face is its Web site, www.sfhsc.org — a copy of the LAHSC site. "Who is homeless in San Francisco?" the Web site asks, but its answers don’t inspire a lot of confidence — they were clearly imported from our southerly neighbor. "50% of homeless adults are African American, compared to 9% of LA’s total population."

Paul Boden, executive director of the Western Regional Advocacy Project and former head of the Coalition on Homelessness, said he found out about the SFHSC from people who thought its canvassers were from COH. Boden, who’s been working on homeless issues since 1983, said none of his peers in LA had heard of the group, further raising his suspicions. "This group has to have one legitimate provider," Boden said. "One pimp group as the basis for all this funding — it’s a scam that’s as old as poverty."

Boden and Seth Katzman, director of Conard House, filed complaints with the SFPD that the SFHSC was vioutf8g the terms of its charitable-solicitations permit. An SFPD permitting officer confirmed the department had received concerned calls and a revocation hearing was held Aug. 15. Capt. Tom O’Neill said a backlog of work has kept him from releasing the final decision, but his staff has recommended the permit be revoked.

"Find out more before a gift is made," Bennett Weiner, chief operating officer of the Better Business Bureau’s Wise Giving Alliance, told us. He said legitimate nonprofits should make their annual report and other financial details publicly available and posted on a Web site.

And at the very least, they should have some flyers. "Not to have any literature available does raise potential concerns in donors’ minds," Weiner said. "It is something we encourage people to ask for."

Rotman told us the lack of literature was a fluke and the SFHSC always sends its canvassers out with four packets of envelopes to give to citizens. They’re required to knock on 75 doors, so it’s easy to imagine they might run out of envelopes.

The BBB also recommends that any such group be overseen by a board that meets three times a year, composed of at least five members, who should not make more than 10 percent of the organization’s total take. Rotman told us his board has three members — the IRS’s minimum legal requirement — and that he makes $36,000 a year. He could not provide annual reports or financial statements, explaining that the SFHSC is new and has had to rely on partnerships with fiscal sponsors.

Lisa Watson, executive director of the Downtown Women’s Center, said her group’s 17-member board of directors decided to terminate its relationship with the SFHSC after receiving $30,000. "Our board decided they didn’t think the canvassing was the way they wanted to go, because a certain percentage went to canvassing. Only a certain percentage went to us."

The LA Youth Network is the LAHSC’s current beneficiary, and director of administration Katherine McMahon expressed satisfaction with the relationship. "We work with homeless teens, and they’ve been an awesome advocate for us." The group has received more than $600,000 during the past two years.

Both Watson and McMahon said one of the benefits of the relationship with the LAHSC had been access to a new pool of donors, something that can be as important to many groups as money. "It’s more than raising money. Its building brand identity," Rotman said. In this case the "brand" is the problem of homelessness. "We have found more than anything that people in the community, based on our canvassing and talking to people one-on-one, there’s a general aggression from citizens and residents in the Bay Area towards the homeless." He wants to "talk to people on a one-on-one basis and say, ‘Hey look, it’s not necessarily what you think.’<0x2009>"

He said they’re raising empathy and support for public policy measures and "try to build up a little support for homeless services themselves." The SFHSC now partners with a different group every month, which will receive 15 percent of the net of its canvassing fruits.

"That specific setup, going door to door … this isn’t the way nonprofits in San Francisco raise money," Kisch said. "They’re pressing people to give $150 off the street. I would never give anyone that kind of money without more background on them. We were getting 15 percent after expenses. Where’s the rest of it going?"

41st Anniversary Special: The perils of privatization

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Click here for Amanda Witherell’s exclusive interview with Columbia professor Elliott Sclar

› amanda@sfbg.com

Over the past few weeks almost every major news outlet in the country has reported on Blackwater, a private company the US government hired to do work in Iraq that was once the exclusive province of soldiers.

The deal hasn’t gone so well: on Sept. 16, Blackwater guards opened fire and, according to the Iraqi government, shot 25 civilians. The incident set off an international furor and has brought into focus the breadth of the company’s work for the US government. It’s prompted an investigation by the House Committee on Oversight and Government Reform, which showed that since 2001, Blackwater’s federal contracts have increased 80,000 percent. It’s revealed the massive pay inequalities between private security guards and US soldiers — the cost of one private guard could pay the salaries of six soldiers.

And it’s raised a question that’s critical to understanding how government increasingly works in the United States: should a private company be doing the work of the military?

Privatization of public services is all the rage in this country now, at all levels of government, from Washington DC to San Francisco. Supporters say the private sector can often work better and more efficiently than the old, bureaucratic, much-maligned government.

But Blackwater is a great example of the perils of privatization. And there are many more.

STARVE THE BEAST


Over the past few decades governments at all levels in this country have been in a near-perpetual state of deficit. Taxes are way down from their historic post–World War II levels, and except for a brief period during the tech boom, there is rarely enough money for even basic social services.

"It’s been a strategy since the ’70s to, as Grover Norquist calls it, ‘starve the beast,’<0x2009>" Robert Haaland, an organizer with Service Employees International Union Local 1021, told us.

And because politicians, even Democrats, are terrified of tax hikes, they’ve been looking for more efficient ways to use the money they have. The magic bullet goes by many names — privatization, public-private partnerships, competitive outsourcing, creative financing solutions — but the basic idea is to allow the power of competition, set free in an unregulated market, to provide the public with the best services at the lowest cost.

"To do or to buy is the question that all governments face," says Ken Jacobs, director of UC Berkeley’s Labor Center.

We’ve been buying. Since 2000, outsourcing of federal dollars has increased 100 percent, to $422 billion in taxpayer funds in 2006, according to a September study by the Washington DC US Public Interest Research Group. The US government is now the private sector’s largest customer.

San Francisco may be known as one of the most progressive cities in the country, but this town has also been wooed by public-private partnerships with promises of improvements to the golf courses, construction of a new power plant, and funding for the many civic needs we have.

PRIVATIZE MUNI?


Cheerleaders for privatization look at someone like Nathaniel Ford, executive director of San Francisco’s Metropolitan Transit Authority, and see everything that’s wrong with the public sector. Ford’s salary is nearly $300,000, plenty high enough to attract a talented leader. But the Muni system he runs keeps the average San Franciscan waiting on the corner in the morning, delivers that person to work at an unpredictable hour, and lurches them homeward every night aboard a standing-room-only bus. Nobody thinks Muni is performing well.

That makes the case for privatization seem almost appealing.

"The public has been schooled to think that government is the problem, not the solution," Elliott Sclar, professor of economics at Columbia University, told us. In his 2000 book on privatization, You Don’t Always Get What You Pay For: The Economics of Privatization (Cornell University), he writes, "American folk wisdom holds that, by and large, public service is uncaring, unbending, bureaucratic, and expensive, whereas competitively supplied private services such as FedEx are efficient and responsive."

Competition, the privatizers say, drives innovation. Less red tape means more efficiency. A lack of unions and collective bargaining agreements translates to lower labor costs. Large-scale multinational operations can reduce redundancy and streamline their processes — all of which adds up to a lean-running machine.

But this country has a lot of experience with privatization, and the record isn’t good.

One hundred years ago private companies did a lot of what we now call government work. "Contracting out was the way American cities carried out their governmental business ever since they grew beyond their small village beginnings," writes Moshe Adler, a Columbia professor of economics, in his 1999 paper The Origins of Governmental Production: Cleaning the Streets of New York by Contract During the 19th Century. At one time private companies provided firefighting, trash collection, and water supplies, to name just a few essential services.

But according to Adler, "By the end of the 19th century contracting out was a mature system that was already as good as it could possibly be. And it was precisely then that governmental production came to America. The realization that every possible improvement to contracting out had been tried led city after city to declare its failure."

For example, the 1906 earthquake and subsequent fires in San Francisco were what prodded the city to municipalize water service after the company charged with the task, Spring Valley Water, failed to deliver while the fires raged.

In Philadelphia as well as San Francisco, the business of firefighting was once very lucrative — for both the firefighting companies and the arsonists who were paid to set fires for the former to fight. And corruption was rampant. "Large amounts of public contracting out historically created lots of opportunities for fraud and nepotism," Jacobs said.

So public agencies stepped in to provide basic services as cheaply and uniformly as possible. Towns and cities took on the tasks of security with police and firefighting, education with schools and libraries, and sanitation with trash collection and wastewater treatment. Nationally, the federal government improved roads and transit, enacted Social Security benefits, and established a National Park System, among many other things.

And then, about 30 years ago, the pendulum started to swing the other way. Driven by University of Chicago economist Milton Friedman, enacted in a massive policy shift by Ronald Reagan, proliferated by Grover Norquist and the neocon agenda, and fully appreciated by corporations and private companies, privatization came back.

In Reagan’s first term, he cut taxes 25 percent overall; the rich got a 40 percent cut. Domestic spending fell by half a trillion dollars in the 1980s, although any savings were countered by a rise in the defense budget.

Harvard economist Lawrence Summers, quoted in Looking Back on the Reagan Presidency (Johns Hopkins University), put it this way: "The Reagan budgets will influence the government for the rest of this century. Just as the Great Society left an imprint of Federal commitment to help the indigent and equality of opportunity, the Reagan budget deficits will leave an imprint of non-involvement."

Such a massive realignment of money coupled with tax breaks too politically painful to reinstate led to a boom in the outsourcing of public services. Private companies began doing more municipal work, while nonprofit organizations tried to fill the gaps in funding for social services, welfare, housing, health care, and the environment.

The George W. Bush era has seen even more overt outsourcing. These days no-bid contracts are preferred, and at times government services are completely turned over to the private sector in "direct conversions," and the public agency that once did the job is not allowed to compete to keep it. The Washington Post recently reported that no-bid government contracts have tripled in the past six years.

This doesn’t really sound like the competitive free market espoused by the theory of privatization.

FLUNKING THE TEST


To field-test the primacy of privatization, the Reagan administration sponsored a transportation experiment in the early ’80s: Miami’s Metro-Dade Transit Agency got to compete against Greyhound. The two providers were each given five comparable transit routes to manage over three years, and 80 new buses were bought with a $7.5 million grant from the federal government.

After 18 months 30 of the Greyhound buses were so badly damaged that they had to be permanently pulled from service. Passenger complaints on the Greyhound line were up 100 percent, and ridership was down 31 percent over the course of a year.

Why? There was no incentive in Greyhound’s contract to maintain the equipment or retain riders. The company’s only goal was to deliver the cheapest service possible.

The Miami transit contract could have contained clauses calling for regular inspections or guaranteed ridership, but that would have significantly increased the cost of the work — perhaps to the point where it would have been competitive with what the city provided.

That’s an important lesson in privatization politics: when you add the cost of adequately protecting the public’s interest and monitoring contract compliance, the private sector doesn’t look so efficient.

Which is why many say privatization only succeeds as a theory — and why, for all the problems with Muni, no private company is likely to be able to do a better job.

"Market fundamentalists present an idealized, simpleminded notion of competitive markets in which buyers and sellers have equal knowledge," Sclar told us. "Anyone can be a buyer, anyone can be a seller, everyone can evaluate the quality of the good. In this never-never land, that’s often the way the case is made for privatization by this particular group of economists."

In the real world a number of issues arise when a service goes private. "Accountability gets to be a really big problem," Ellen Dannin, professor of law at Penn State University, said in an interview. "There are predictions about how much money will get saved through privatization, but no one ever goes back to check."

The September study by the US Public Interest Research Group profiled several companies that do government work, including Bank of America, LexisNexis, ChoicePoint, KBR (formerly Kellogg, Brown, and Root), General Electric, and Raytheon, and found instances of illegal behavior in all cases. There were often massive errors in the companies’ work.

Bank of America and LexisNexis had security breaches compromising the data of at least 1.5 million customers they were handling for the government. ChoicePoint allowed identity-theft scams amounting to more than $1 million in fraud. KBR overcharged the government millions of dollars for work in Iraq and Kuwait. GE made defective helicopter blades for the US military. Raytheon failed to fully test the systems of new aircraft. These companies are all still employed by the government.

When companies take over services that aren’t typically part of a competitive market, all sorts of unexpected problems occur. Jacobs points to the rash of contracting for busing services in cash-strapped school districts. Not only did costs eventually rise in many places, but when schools tried to go back to providing their own service, the skilled drivers who knew the routes, knew the kids, and were able to do much more than drive a bus were gone.

Sclar and Dannin agree that any service that lacks competition should be public. Sclar presented the example of electricity. "It’s a natural monopoly," he said. "Essentially it’s either going to be a well-regulated industry or it’s got to be done publicly."

Corporations exist to make money. And although graft, mismanagement, and scandal have always been present in City Halls around the country, in the end the legislative, judicial, and executive branches were not designed to generate profits. That alone means contracting out is financially dubious.

Hiring mercenaries is a classic example. "It costs the US government a lot more to hire contract employees as security guards in Iraq than to use American troops," Walter Pincus wrote in an Oct. 1 article in the Washington Post. "It comes down to the simple business equation of every transaction requiring a profit."

As Pincus details one of the many contracts between the security firm and the US, "Blackwater was a subcontractor to Regency, which was a subcontractor to another company, ESS, which was a subcontractor to Halliburton’s KBR subsidiary, the prime contractor for the Pentagon — and each company along the way was in the business to make a profit."

Blackwater charged Regency between $815 and $1,075 per day per security operative. Regency turned around and charged ESS a slightly higher average of $1,100. After that, the costs dissolve into the enormous bill that KBR regularly hands the federal government.

When the US Army is paying the bill the costs are far lower. An unmarried sergeant earns less than $100 a day. If you’re married, it’s less than $200. If you’re Gen. David H. Petraeus, it’s about $500 — less than Blackwater’s lowest-paid workers.

Very little about the Blackwater contracts would be known by anyone outside the company if it weren’t for the federal investigation, since private businesses are not subject to the same public-records laws as the federal government. They don’t have to open their books or publicize the details of their bids and contracts, and they often fiercely lobby against any regulations requiring this, which leaves the door wide open for corruption — which is what brought sunshine laws to government in the first place.

Sclar said that when it’s a good call to contract out, corporations, private companies, and nonprofits should be required to abide by public-records laws in addition to adhering to a five-year wait for employees departing the public sector for the private. "I think transparency should always be the goal," he said. "As much information as possible." If a company doesn’t want to make its records public, he told us, "[it shouldn’t] go after public work."

THE AIDS LESSON


Privatization comes in many forms and emerges for what often seem like good reasons.

In the early 1980s gay men in San Francisco were starting to get sick and die in large numbers — and the federal government didn’t care. There was no government agency addressing the AIDS crisis and almost no government funding. So the community came together and created a network of nonprofits that funded services, education, and research.

"The AIDS Foundation was founded in response to the epidemic at a time when there wasn’t a response from the federal government," Jeff Sheehy of the AIDS Research Center at UC San Francisco told us.

At first, activists all over the country praised the San Francisco model of AIDS services. Over time the nonprofits began to get government grants and contracts. But by the 1990s some realized that the nonprofit network was utterly lacking in public accountability. The same activists who had helped create the network had to struggle to get the organizations to hold public meetings, make records public, and answer community concerns.

That, Sheehy said, shouldn’t have come as a surprise.

"There isn’t that same degree of accountability that you would have" with the public sector, he told us. "SF General is not going to turn you away at the emergency room, but nonprofit hospitals are less and less interested in running ERs."

Sheehy said he’s seen cases where difficult clients have been banned from accessing help from nonprofits. Unlike at public institutions, "the burden is not on the agency to provide the service. It is with the client to get along with the agency," he said.

Sheehy outlines other issues: nonprofits run lean and are more apt to make cuts and resist unionization, which means workers are often paid less, there can be higher turnover, and upper management is often tasked with fundraising and grant writing and distanced from the fundamental work of the group. There’s no access to records or board meetings. "If service takes a sudden downward shift, what can you do?" Sheehy asks. "You can’t go to board meetings. You can’t access records. What’s your redress?"

And that perpetuates the problem of government not stepping up to the plate. More than half of the social services in San Francisco are run by nonprofits, a trend that isn’t abating.

"When the services are shifted from the public sector to the nonprofit sector," Sheehy said, "that capacity is lost forever from government."

THE LOTTERY TICKET


When Dannin teaches her students about privatization, she uses the analogy of personal finance. "If I find my income does not meet my expenses, I can cut my expenses, but there are certain things I have to have," she said. To meet those needs a person can get a second job. In the case of the government, it can raise taxes.

But "that is not an option governments see anymore," she told us. "So the third option is to buy a lottery ticket — and that’s what privatization is."

When a publicly owned road is leased for 99 years to a private company, the politician who cut the deal gets a huge chunk of cash up front to balance the local budget or meet another need. When the new owner of the road puts in a tollbooth to recoup costs, that’s the tax the politician, who may be long gone, refused to impose. What option does the voting driver have now?

Public goods, from which everyone presumably benefits, are frequently and easily falling out of the hands of government and into the hands of profit-driven companies. In New Orleans, charter schools have replaced all but four public schools. In about 15 municipalities public libraries are now managed by the privately owned Library Systems and Services. (In Jackson County, Ore., it’s being done for half the cost, but with half the staff and open half the hours.) At least 21 states are considering public-private partnerships to finance massive improvements to aging roads and bridges. User fees have increased in the national parks as rangers have been laid off and some of the work of park interpretation is picked up by private companies, as is the case with Alcatraz Island.

Dannin also asks her students to consider who really owns a job. The easy answer is the employer. "But there is another claimant of ownership of that job," she says. "That is the public. Employers depend on roads for their employees to drive to work, a public education system to train their workers. They depend on housing, police, the court system, the system of laws. That is a huge amount of infrastructure we tend not to think about.

"We live within an ecosystem. We’re having a hard time seeing that ecosystem, that infrastructure that we’re all in. That’s what your taxes pay for."

Tom’s of Colgate-Palmolive?

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In some ways, I feel totally cheated by this. I had no idea Tom’s of Maine sold the farm to Colgate. I’ve been brushing my teeth with their toothpaste for years, I’ve been to their headquarters in Kennebunkport (which is a bonanza of free/cheap products), and I frickin’ love their gingermint flavor. Love it.

Tom and Kate say they still have their values, and it’s all about broadening their market (Wal-Mart) and bringing those values to more consumers, and they still donate ten percent of their profit, but you gotta wonder what those values are really all about. Especially since they chose not to disclose on their packaging that they’re now owned by a global giant. Tom said, “I don’t see why our customer would be interested in seeing a Colgate reference. Branding is really about values, and the Tom’s of Maine values are intact. We are living those values, and that is what we need to reinforce among our consumers by investing in the Tom’s of Maine logo, not confusing them with another logo.”

Kate said, “It clarifies that we are still in Maine. It’s important, a sense of place.”

What? Maybe your summer house on Monhegan Island is still in Maine, and your factory is still in Maine, but this feels like finding out the man you love kills people for a living. World domination of the toothpaste market — what kind of value is that?

Did anyone else see “Dr. Bronner’s Magic Soapbox” last week at the Red Vic? That company is still family-owned, they give away 70 percent of their net, profit share with their workers, and Ralph Bronner was still whipping out his wallet and passing out $100 bills on camera and presses hugs and bottles of soap on anyone he runs into. Guess I’m back to brushing with the peppermint Bronner’s.

Homeless = without a home

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This morning on Forum Michael Krasny hosted Jennifer Friedenbach from the Coalition on Homelessness and CW Nevius, columnist for the San Francisco Chronicle, discussing the homeless sweeps in SoMa and the vitriol stirred up by the Chron’s coverage of life on the streets by pointing at the shit, the needles, the trash, the insanity.

Near the end of the piece, Nevius says that using the cops to ticket homeless people who do these things is one solution and a way to hold them accountable. He said he doesn’t know how to solve the overall issue of homelessness. In the background, you can hear Friedenbach simply say, “Housing.”

Which is the whole frustrating disconnect on this issue. “Homeless” does not automatically translate into “criminal,” or “insane,” or “druggie,” or “lover of shitting on the street.” Nobody wants to see people sleeping in the streets, using drugs, defecating, or publicly displaying their individual psychotic problems. So give them a place to live. Don’t buy cops, buy housing. Let people do what they need to do behind closed doors.

One caller mentioned new housing developments at 5th and Mission and how none of the buyers of the million dollar condos are going to want to see the streets outside their doors in such a condition. Again, another major disconnect — developers want attractive neighborhoods, but when it comes to building affordable housing that might make those neighborhoods more attractive by housing the homeless, they run away screaming that it can’t be done.

The price of the sweeps

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› amanda@sfbg.com

The number of homeless individuals slapped with quality-of-life citations and the cost to the city of processing those citations reached new highs in the past 14 months, according to a study released by Religious Witness with Homeless People. San Francisco taxpayers have paid more than $2 million for more than 15,000 citations issued to people for crimes committed because they have no place to live.

"The quality-of-life citation … begins an extremely expensive process," said Michael Bien, a lawyer on the steering committee of Religious Witness, an interfaith activist group started in 1993 by Sister Bernie Galvin.

The study, released at an Oct. 4 press conference, was based on documents provided by various city departments. The authors collated the costs from the initial ticket issued by a cop through the entire court process, including the new price of prosecution by the District Attorney’s Office (see "The Crime of Being Homeless," 10/3/07).

The results are an update of a similar survey conducted last year (see "Homeless Disconnect," 9/5/06). Collectively, the two studies found that a total of 46,684 citations have been issued to homeless people, at a cost of more than $7.8 million, since Mayor Gavin Newsom took office.

But the mayor might not want you to know that. While Religious Witness was unveiling the study at a press conference in the South Light Court of City Hall, the mayor was hosting a simultaneous event about his heavily promoted Care Not Cash program, which provides homeless people with services and housing instead of the money they once received through the County Adult Assistance Program.

"What really bothers me," Sup. Ross Mirkarimi told the crowd gathered to hear Religious Witness, "is that we learn at the last minute that Mayor Newsom decides to have a press conference at the exact same time. To me, that couldn’t be more base and exhibitive of bad form … to try and upstage a press conference like this." He said the mayor’s administration should be working with organizations like Religious Witness, not competing against them.

NEWSOM WON’T MEET


Galvin expressed dismay that the mayor chose not to attend, on top of scheduling a competing press conference on the issue of homelessness. "We’ve never had a press conference where we didn’t have full press coverage," Galvin said.

"We’ve been trying to meet with Mayor Newsom since the day he took office," Bien said. "He hasn’t even given us the dignity of a response."

Newsom’s press secretary, Nathan Ballard, said he knew nothing about the event until he returned from his boss’s fete at the Pierre Hotel, a single-room-occupancy hotel on Jones Street that houses some Care Not Cash recipients. He denied any intention to detract attention from Religious Witness’s study. "I chose to do this a couple of weeks ago. There’s no deep, dark conspiracy," Ballard said. The day was chosen to announce that Care Not Cash had "reached a significant milestone of housing over 2,000 formerly homeless individuals," according to a press release.

Actually, the Care Not Cash program exceeded the 2,000 mark in August, according to statistics posted on the mayor’s Web site.

This is not the first time the mayor has scheduled a competing press conference. In June, on the same day the Board of Supervisors passed the city’s Community Choice Aggregation plan for more city-owned renewable energy, the mayor announced a new partnership with Pacific Gas and Electric Co., to study tidal power (see "Turning the Tides," 6/27/07).

Religious Witness chose Oct. 4 to release the study results because it’s the Feast of St. Francis, a day celebrating the city’s patron saint, "a man known to have enormous compassion," Father Louie Vitale explained. "Does the mayor have compassion fatigue?" he wondered aloud.

The decisions about where a city spends money speak volumes about its values. "Every budget is a moral document," said John Fitzgerald, who enumerated many other uses to which the $2 million could have gone, from placing 1,028 people in three-month residential drug treatment to five new drop-in mental health clinics, 157 new caseworkers, or 10,230 preventable evictions.

THE NEW MATRIX


Sup. Chris Daly, who attended but did not sponsor the Religious Witness press conference, said, "Not only is the use of police to target homeless people uncompassionate and inhumane, but it’s also ineffective." He recalled the first Religious Witness press conference, which denounced then-mayor Frank Jordan’s Matrix program, which teamed police officers with social workers to remove homeless people from Union Square and later Golden Gate Park. That program was deemed a failure because it criminalized homeless people and alienated them from helpful services by teaming outreach workers with law enforcement.

"We’re repeating a policy that we know is a failure," Daly said. "It’s a complete lack of compassion."

Recently Daly made public a memo he obtained from the mayor’s office through a public records request. The document outlined a new "downtown outreach plan," similar in sound and structure to Jordan’s Matrix. In a Sept. 28 Weekly Report to Newsom’s chief of staff, Phil Ginsburg, deputy chief of staff Julian Potter wrote, "The pilot program includes three separate teams of officers and social service staff that work a 15-block area" in two separate shifts patrolling the SoMa district. "In each of the three teams an officer will work in tandem with two social service representatives. Any person committing a crime (littering, encampment, trespassing, urinating, defecating, dumping, blocking sidewalk, intoxication, etc.) will be asked to cease the behavior and enter into services. If the individual resists services the officer will issue a citation."

Though it’s reminiscent of the approach that Jordan advocated, both the Operation Outreach team, made of police officers who typically interface with homeless people, and the Homeless Outreach Team, operated by the Department of Human Services, have denied they would accept the approach as Potter penned it.

"I have to be very emphatic," said Dr. Rajesh Parekh, director of HOT. "We are not going to be teamed up with police officers." Though police officers often refer HOT to specific people, he said recent news reports are inaccurate and "in the interest of our clients we’ve never done shoulder-to-shoulder work."

Lt. David Lazar, who heads the San Francisco Police Department’s Operation Outreach, agreed that his officers won’t walk in lockstep with the doctors and social workers who are offering services. But the line can get a little fuzzy: "We’re there at the same time, but we’re not necessarily together," he said. "We’re separate in our approach."

"Basically what the memo is proposing is illegally arresting people," Jenny Friedenbach, executive director of the Coalition on Homelessness, told us.

Under state law, people can’t be taken into custody for infractions like urination and littering. But camping illegally can be considered a misdemeanor, and a citation could eventually lead to an arrest and a jury trial. Prosecuting and imprisoning people is far more expensive than providing shelter.

While some see the coupling of enforcement with services as a way to encourage more people to get help, others contend it’s not a simple equation.

"I think some people are not always able to say yes the first time we do outreach with them," Parekh said. "I’m hoping that as time goes on we’ll be able to persuade them. It’s an ongoing process. It’s not a one-time thing." He said more than half of the help offered is accepted in some form, but it can take as many as 20 attempts to win over what amounts to a small number of people who require persuasion.

Representatives from the Coalition on Homelessness on Oct. 4 witnessed the first of the SoMa sweeps, or "displacements," as they’re more kindly called, and confirmed that the cops and service providers had some distance between them.

"That’s what they did during the first month of Matrix," Daly said to the Guardian. "That will change over time."

In the meantime, the supervisor has reintroduced a $5 million allocation for supportive housing for homeless people that was passed by the board last spring but defunded by Newsom.

Should I resign? The $20K Question

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For all the grief Kimo Crossman gets for making public records requests of city officials, you gotta love some of the stuff he comes up with.

After Mayor Gavin Newsom called for voluntary resignations from all department heads and appointed commissioners with little apparent foresight, Crossman made a records request of the City Attorney’s office for the accumulated amount of billable hours that office spent providing advice to their city clients on the legality of resigning.

The total: 112.75, according to a response emailed to Crossman from the city attorney’s deputy press secretary Alexis Thompson. That number is a “comprehensive summary of the number of hours this Office has spent from September 10, 2007 through the present date on its work and advice concerning ‘the Newsom mass resignation request,'” Thompson wrote.

Matt Dorsey, press secretary for city attorney Dennis Herrera confirmed to us that $200 is a good estimate of a billable hour of city attorney time. (Some bill higher, some lower, and there’s a range to the quantity and quality of advice given.)

That’s a total of $22,550 spent advising a swath of city officials, when Newsom could have just pointed a finger at the 10 or so he wants out.

The crime of being homeless

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› amanda@sfbg.com

Sleeping in the park, urinating in public, blocking the sidewalk, trespassing, drinking in public — these and about 10 other infractions are commonly and collectively known as "quality of life" crimes because they affect the condition of the common spaces we all share in San Francisco.

For a homeless individual, they’re also called "status" crimes, committed in the commons because there is no private place to sleep, go to the bathroom, or crack a beer. For years the District Attorney’s Office hasn’t bothered to allocate time or resources to prosecute these petty crimes, and advocates for the rights of homeless people have contended that to do so results in unfair persecution of those who have no place to call home.

Elisa Della-Piana is an attorney with the Lawyer’s Committee for Civil Rights and has spent much of the past three years in traffic court arguing against fines for homeless people who have received quality-of-life citations. As of this summer, Della-Piana said things have changed down at the Hall of Justice.

Now every time she stands up to represent a homeless person in traffic court, someone from the DA’s Office gets up too, fighting for the other side. Though there’s no way to tell from the traffic court calendar if the defendant is homeless, Della-Piana and Christina Brown, another attorney who represents through the Lawyer’s Committee, have witnessed prosecutors ignore quality-of-life citations that didn’t appear to have been collected by homeless people.

"When the person is homeless and the DA stands up and prosecutes, that’s selective prosecution. They’ve done that in the past with other populations in San Francisco," Jenny Friedenbach of the Coalition on Homelessness said, citing historic crackdowns on queers and Asians.

Deputy district attorney Paul Henderson denied the DA’s Office is selectively prosecuting only quality-of-life citations received by homeless individuals. "We’re prosecuting all of them," he told the Guardian, confirming this is a new task for the office. "In the past the DA’s Office wasn’t staffed to have people in the courtroom. I think we’re there every day now." He said more staff has been hired, and a team he heads is now devoted to the issue.

When asked why this was a new priority for the DA’s Office, Henderson said, "We felt that people weren’t getting the help they needed. The public’s interest wasn’t being served. [These issues] were not getting addressed in the traffic court without the DA being there. Neighborhoods and communities have been complaining about the lack of responsiveness, and so we’re trying to address that."

Henderson called the day in court an open door for a homeless person to walk through and access services. "We want to handle them responsibly to make sure there’s some accountability for breaking the law, but try to do it in a way that’s an intervention."

But advocates for homeless rights say that’s not what happens.

"They’ll tell you we’re there to offer services to homeless individuals," Della-Piana said. "Which is a piece of paper. In fact, what they have is the same list of services the police pass out. They’re not actually doing anything to connect people to the services. They’re just offering the list. They could offer those services in the street. There’s no reason to go through the court system."

This list of homeless resources is updated every six months by the San Francisco Police Department’s Operation Outreach and is offered on the street, according to Lt. David Lazar, leader of the 20-officer branch of the SFPD that interfaces directly with the homeless population.

"The accountability is a problem, and the process they go through is not working," Lazar said. "There’s a large population we’re seeing that doesn’t want services." He listed three reasons: inadequacies in the shelter system, a desire to be left alone, and a mental health or substance abuse problem that impairs judgment. "If we could house absolutely everyone, what would they do during the daytime?" he asked. "You need intensive case management, job support, substance abuse support."

But homeless-rights advocates say the stability of housing is the first step toward improving the quality of life for the homeless. Della-Piana said, "Ninety-five percent of my clients come to me and say, ‘I’m getting social services.’ They point to something on the list and say, ‘I’m doing this.’ They’re doing everything they’re supposed to be doing, but they don’t have housing yet. That’s why people are still sleeping in the park."

Henderson said critics of the new tack "aren’t recognizing that laws are being broken. People’s qualities of life are being dragged down by these violations. If it’s your street, your door, and there’s feces on it every day, that affects your quality of life."

Ticketing the homeless is not a new thing. Two homeless-rights groups — Religious Witness with Homeless People and the Coalition on Homelessness — have a standing Freedom of Information Act request with San Francisco Superior Court that provides a monthly tally of the infractions likely committed primarily by homeless people. According to their data, for the past 15 years the SFPD has averaged about 13,000 quality-of-life citations per year. Last year Religious Witness released a study showing that more than 31,000 citations had been issued during Mayor Gavin Newsom’s administration.

"For the police, the sheriff, and the court cost, we estimated it cost almost $6 million for those 31,000 citations," said Sister Bernie Galvin, executive director of Religious Witness. Galvin said a new study, to be released at City Hall on Oct. 4, shows that citations and costs have skyrocketed in the past 14 months. "Now we’re putting in the dramatic new expense of the DA," she said, adding, "Everyone wants to prosecute a greater number. It’s like it makes it justifiable to issue these 31,000 tickets if we can prosecute them. Actually, it makes it crueler and more expensive."

Media reports have characterized the tickets as empty pieces of paper, issued and then metaphorically shredded when a homeless individual fails to pay the $50 to $500 fine. In a recent San Francisco Chronicle story, Heather Knight reported that "all quality of life citations are getting dismissed." Yet when they don’t — and violators either don’t show up in court or can’t pay the fine — infractions become misdemeanors or an arrest warrant is issued, both of which become problems for people trying to access services.

"It backfires," said Christina Brown, an associate at O’Melveny and Myers who volunteers time in traffic court representing homeless people through the Lawyer’s Committee. "When people are served with warrants, they’re precluded from services." Even if the person cuts a deal with the DA to access services in lieu of paying a fine, they still have to return to court to prove they’ve done that. If they can’t get the paperwork or can’t make it to the court in time, it becomes a misdemeanor.

"The criminal justice system is actually making it harder if they want to find somewhere else to sleep," said Della-Piana, who related an anecdote of a client who had a few open-container infractions. The client was afraid to go to court when she couldn’t pay the fines, so a warrant was issued. She’d spent the past seven years on the Department of Housing and Urban Development’s waiting list for public housing and got kicked off because of the misdemeanor.

Public Defender Jeff Adachi expressed concern that a dragnet is being created for arresting homeless people committing status crimes they have no control over. "We have to be very careful we’re not trying to legislate services through the criminal justice system. We do too much of that already," he said. "This approach assumes that if a person is in trouble, they’re more likely to accept the services. I haven’t seen that is true."

Henderson doesn’t necessarily agree that the criminal justice system shouldn’t play a role in assisting homeless people: "I want this citation to serve as a wake-up call for you." He thinks people need to be held accountable and would like to see the city adopt the plan for a Community Justice Center, modeled after New York City’s, a vision that his boss, District Attorney Kamala Harris, and Newsom also share.

"We believe San Francisco has a unique infrastructure and need for the Community Justice Center. That’s why we are proposing to pilot this initiative in the Tenderloin and South of Market area, where more than a third of the city’s quality of life offenses occur," Harris and Newsom wrote in a May 13 editorial in the Chronicle. "The center promises to give relief to the neighborhoods most affected by quality of life crimes."

During an Oct. 1 endorsement interview with the Guardian, Newsom said he hoped to open the new center by December. Lazar, who sits on the committee that’s still hammering out the details for how exactly the center would work, agreed with Henderson that it’s the next step in more direct connection with services: "We’re trying to put the criminal justice system and the social justice system together."

Della-Piana said this still ignores the black marks that misdemeanors leave, which become good reasons for some service providers to save their limited resources for people with clean records. "The two ideologies don’t mesh," Della-Piana said. "My homeless clients want housing. There currently is not enough of it to go around. Arresting them instead of citing them for sleeping and other basic life activities will not change the availability of the most needed services."

Sooooo NOT Green

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courtesy of www.letsgreenwashthiscity.org

I’ve mentioned here and elsewhere the PG&E “Let’s green this city” broadsides that have been dousing San Francisco’s public spaces with a sickly lime green unfit for a Gap t-shirt. We’ve also provided proof of how bogus they are, which today’s Chronicle business page finally noticed.

To further substantiate that PG&E’s commitment is more greenwashing than green, check out their opposition to Senate Bill 411, which would have advanced the Renewable Portfolio Standard for investor-owned utilities in California from 20 percent to 33 percent by 2020.

Southern California Edison supports the bill. So why not PG&E, which says it’s seeking to become the “greenest utility in America?”

“Then why do they have all these advertisings?” Jim Metropulos, the Sierra Club’s legislative representative in Sacramento, asked us, citing their front page ads in the Chronicle. This Sunday, strolling around my Mission neighborhood, I also noticed them on the front page of El Mensajero, which must be part of PG&E’s new Latin flair.

Why don’t they put all that advertising money toward purchasing green power instead?

On the bright side

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› amanda@sfbg.com

The most masterful crafters of fiction depend on the deliberate omission of details. Ernest Hemingway, in a 1958 interview with the Paris Review, called it the iceberg of a story, an eighth of which pierces the surface, known and visible, while an untold reality remains submerged beneath the narrative. This art of absentia served Hemingway well, layering his stories with nuance and mystery. The icebergs in Bjørn Lomborg’s Cool It: The Skeptical Environmentalist’s Guide to Global Warming serve their author’s purposes too, but they’re likely to melt under the glare of critical scrutiny.

Lomborg, a Danish statistician and adjunct professor at the Copenhagen Business School, examines the problem of climate change through the lens of expense, and according to his calculations, the public benefits of cutting carbon dioxide emissions aren’t worth the cost. If we really want to improve future conditions, he contends, we should pay more attention to social problems like hunger and disease, causes that have been relegated to the status of ugly stepchildren by the new hype around saving the climate. Early in the book he concludes that, calculated in purely economic terms, the Kyoto Protocol is a "bad deal." Every dollar spent cutting carbon emissions translates to 34 cents of "good" — a term he neglects to define.

Whatever his definition, it demands investigation. Lomborg is, after all, "the skeptical environmentalist," as he first made plain in 2001’s The Skeptical Environmentalist: Measuring the Real State of the World, which was roundly debunked by scientists and Lomborg’s avowed fellow environmentalists. The Union of Concerned Scientists got concerned with his optimism about the state of the natural world and convened a panel of leading experts, including biologist Edward O. Wilson, water expert Peter Gleick, and climate modeler Jerry Mahlman to delve into the details of his data. They determined that his conclusions were drawn from an artful manipulation of facts disguised by a narrative deftly criticizing other artful manipulators of facts.

In Cool It, Lomborg attempts to defame the doomsday scenarios presented by respected environmentalists and thinkers such as Al Gore, Bill McKibben, and James Hansen by focusing on their offal: the potential positive impacts of global warming. He points out that more people die from cold-related deaths than heat-related deaths and wonders why no one’s talking about the fact that fewer people may freeze to death in 2050.

Lomborg never denies that climate change is occurring, but he proffers interesting statistics to show that things aren’t as bad as has been reported, and he blames the media for distorting facts by employing easy iconography — hurricanes, Mount Kilimanjaro, polar bears, Antarctica. And it’s true: the media often go for the easy image — such as Time‘s cover photo of a polar bear bereft on a chunk of ice, which played a role in bringing the term "global warming" into the common vernacular. Lomborg, by the way, made that same magazine’s "100 most influential people" list in 2004.

This influential person writes with cool-headed assurance that global warming will not adversely affect polar bears any more than hunting them does, that some populations of them are actually increasing, and that evolution will equip the fittest for the future. He writes, "Yes, it is likely that disappearing ice will make it harder for polar bears to continue their traditional foraging patterns and that they will increasingly take up a lifestyle similar to that of brown bears, from which they evolved." His back-of-the-book footnote to that statement reads: "The Arctic Climate Impact Assessment finds it likely that disappearing ice will make polar bears take up a ‘terrestrial summer lifestyle similar to that of brown bears, from which they evolved.’ "

And the hawks begin to circle. In a recent interview with Lomborg, Salon.com’s Kevin Berger said, "But you edited the quote. The whole thing goes like this: ‘It is difficult to envisage the survival of polar bears as a species given a zero summer sea-ice scenario. Their only option would be a terrestrial summer lifestyle similar to that of brown bears, from which they evolved. In such a case, competition, risk of hybridization with brown bears and grizzly bears, and increased interactions with people would then number among the threats to polar bears.’ " Lomborg defends himself by saying he talked to a different expert.

While it would be easy to discredit the remainder of the book based on this exposé, there is some worth in Lomborg’s reminder that we’ve been asleep at the wheel on far too many social problems, such as clean water, hygiene, disease prevention, and hunger. He isn’t wrong when he says that solving them would better equip populations for dealing with climate change. But further tugging at the roots of his footnotes is almost unnecessary because Cool It is virtually devoid of fully explored ideas.

For example, at a 2004 meeting the Copenhagen Consensus Center, a consortium of economists headed by Lomborg that think tanks on global challenges, drew up a global priority list of issues we should be addressing rather than shuttling cash toward cutting CO2 emissions. Ranking third is increased trade liberalization — code language for more NAFTA-type agreements, which have proved detrimental to developing countries. And what exactly is meant by number five, "development of new agricultural technologies"? Genetically modified organisms? Newer, stronger, somehow nontoxic pesticides? It’s hard to believe an environmentalist might promote pesticide use, but in his chapter on eradicating malaria Lomborg writes, "Concerns from Western governments, nongovernmental organizations, and local populations make it hard to utilize DDT, which is still the most cost-effective insecticide against mosquitoes and, properly used, has negligible environmental impact."

Such a statement underscores Lomborg’s priorities when it comes to health — both human and environmental. His definition of cost gives primacy to cold, hard cash at the "negligible" expense of humans and their environments. Likewise, when the discussion turns to ratifying Kyoto, which he claims — without much explanation — would cost the US economy $160 billion a year, the price tag refers solely to the cost of disrupting business as usual.

"If we try to stabilize emissions, it turns out that for the first 170 years the costs are greater than the benefits," Lomborg writes. But for the past 200 years we’ve been doing business on the cheap — and that shouldn’t be our baseline cost of existence. What’s the true cost of a species? Do we really know until it’s gone? What about the other negative environmental impacts of business as usual? Or the positive impacts of, say, more public transit to reduce car trips to reduce emissions? Plus, a decrease in the burning of coal, oil, and natural gas means more than just a decrease in carbon emissions. It means less mining, less drilling, less invasion into remote or protected areas questing for new ores. It means fewer oil spills, less mountaintop removal, less ground, water, and air pollution for the communities that have the misfortune of being sited in the backyards of industry.

In the book’s conclusion, Lomborg pushes for a $25 billion investment in research and design for alternative technologies. Seven times cheaper than adopting the Kyoto Protocol or establishing a rigorous carbon tax to encourage less CO2 emission, R&D investments are, in Lomborg’s economic rubric, a better deal.

Of course, there are already operational solar panels, wind turbines, geothermal units, vehicle-to-grid electric cars, and biodiesel recipes that could be more aggressively produced and adopted. But in Lomborg’s eyes they’re too expensive, bound to be replaced by superior technology, and thus a waste of money, to invest in now — he brushes aside economists who contend that prices will drop as demand increases. And beyond offering no ideas on diminishing the use of fossil fuel, he in fact encourages burning more in the communities that aren’t yet — though the sole upside to fossil fuels is economic cost, and the only cap on price is the perception of abundance.

He also fails to acknowledge that we can’t have both. We can’t have an increase in alternative technologies and an unabated use of fossil fuels. To actually deploy alternative technologies in the market — the hoped-for end result of all that R&D — would require the fossil fuels to step aside. This would, in turn, cut CO2 emissions. One must necessarily replace the other. There isn’t room for both. It’s like trying to put ice in a glass that’s already brimming with cold water.

One could argue that any adoption of alternative technologies would cover increased use, but that ignores what numerous researchers have pointed out: we should be universally deploying simple, effective, already established energy-efficiency measures. For the past 30 years California has done this, and despite projections and escautf8g energy use nationwide, the state’s needs have only increased in lockstep with the population — about 1 percent a year. Lomborg doesn’t aggressively push for energy efficiency, despite its cost-savings popularity with the same economically driven corporations, governments, and individuals likely to elevate Cool It to biblical status.

Lomborg criticizes as too extreme and costly proposals by Tony Blair and Gore to slash CO2 emissions by 50 or 80 percent respectively. Similarly he writes, "Restricting transportation will make the economy less efficient. Cutting back on hot showers, plane trips, and car use will leave you less well-off. It will also reduce the number of people being saved from cold, it will increase the number of water stressed [people], and it will allow fewer to get rich enough to avoid malaria, starvation, and poverty."

Is it too bold to ask people to foreswear some of the excesses they’ve enjoyed, to put to bed some creature comforts, to fundamentally change the way they perceive living in the 21st century if they hope for a 22nd century for their children? Lomborg doesn’t ask these questions, so Cool It becomes more of a distraction than a contribution at a time when environmentalists should be busy promoting solutions, not debunking the carefully crafted fables of Lomborg’s dollar-driven theses. *

COOL IT: THE SKEPTICAL ENVIRONMENTALIST’S GUIDE TO GLOBAL WARMING

By Bjørn Lomborg

Alfred A. Knopf

272 pages

$21

STRIKE!

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The October issue of Harper’s Magazine has an editorial by Garret Keizer (printed in the hole left by Lewis Lapham) titled “Specific Suggestion” and calling for a general strike on this election day, November 6, 2007.

“Of all the various depredations of the Bush regime none has been so thorough as its plundering of hope.” Keizer writes in the opening of the piece.

Stop whatever you’re doing and go read the rest of it. His remedy for the general despair, rather than twiddling thumbs until November 2008, is: Don’t go to work and don’t buy anything. If you’re frustrated with the war, annoyed that calls for impeachment have gone nowhere, and generally depressed by the Bush administration then let it be known by refusing to engage the cogs that keep the machinery of our “democracy” operating.

“Any strike, whether it happens in a factory, a nation, or a marriage, amounts to a reaffirmation of consent,” writes Keizer. “The strikers remind their overlords—and, equally important, themselves—that the seemingly perpetual machinery of daily life has an off switch as well as an on.”

It’s a beautiful idea, brilliant in its simplicity, and a potentially inspirational reminder that we, as a people, are responsible for our democracy. Of course, I’ve come across no mentions of this so far in the mainstream media so it’s going to require some real grassroots swelling to take off. Some lefty bloggers like DailyKos diarist conchita have picked it up. You should too: Tell your friends! Let’s shut it off!

Get your “No more nukes” on

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photo courtesy of wolf.like.me on flickr

That’s right, break out the picket signs — your favorite apocalypse is on the reprise. Irvine Rep. Assemblyman Chuck DeVore has introduced legislation to repeal the 31-year ban on new nuclear power plants and launched a ballot initiative. On Sept. 12, the state’s Republican party unanimously voted to support the bill for more nuclear power, which is being touted as safe, clean, reliable, and affordable — all adjectives the industry has yet to merit.

It’s also being called “emissions-free,” a handy moniker for a power source in our globally-warmed future. It’s being promoted by pro-clearcutting, pro-GMO “environmentalists” that happen to pull paychecks from the nuclear industry.

Pro-nukes fans are now gathering the 433,000 signatures needed to put the bill on California’s June 2008 ballot.

A 1976 California state law banned new nuclear plants until a permanent storage facility for the radioactive waste was established. Meanwhile, said permanent facility – Nevada’s Yucca Mt. — suffered another setback on Sept. 4 when a federal judge ruled the state could suspend water permits for drilling at the site – further delaying a project that is already seven years overdue.

Spent-fuel nuclear waste is currently stored on the sites of nuclear power plants – which has raised concerns about safety from terrorist attacks. CA Attorney General Jerry Brown recently filed a petition with the Nuclear Regulatory Commission, arguing that its waste confidence ruling is inadequate – meaning, we don’t have much faith in your determination that the pools of water where used up nuclear fuel rods bob like swimming pool toys are safe.

Project Censored: The Byrne ultimatum

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amanda@sfbg.com

Sometimes the story behind a story is just as juicy as the story itself. One of Project Censored’s picks for the 2008 list – “Senator Feinstein’s Iraq Conflict” started out as a project funded by the Nation Institute, and was supposed to splash the cover of the Nation magazine prior to the November 2006 election. Instead, it took some interesting peregrinations – involving some charges of partisan political influence — before it was finally printed in the North Bay Bohemian on January 24, 2007.

Petaluma-based freelance journalist Peter Byrne was originally paid $4,500 by the Nation Institute to research connections between lucrative defense contracts granted to Perini and URS companies, in which Richard C. Blum held stock, and the Senate Appropriations Military Construction subcommittee (MILCON) that funds the contracts– and which includes Blum’s wife, Sen. Dianne Feinstein, as a ranking member.

Blum’s companies were involved with more than $1.5 billion in defense contracts between 2001 and 2005. Michael R. Klein, Blum’s business partner and Feinstein’s legal advisor, had been informing the senator about specific federal projects in which Perini had an interest, specifically to avoid conflict of interest issues, but Byrne reported Feinstein was not told about potential URS contracts. So, in the case of Perini, Feinstein would be informed and recuse herself from pertinent decisions, but with URS, she’d remain in the dark, and because the detailed project proposals don’t include the names of the companies bidding, the senator wouldn’t know it was URS.

“In theory, Feinstein would not know the identity of any of the companies that stood to contractually benefit from her approval of specific items in the military budget – until Klein told her,” Byrne wrote.

According to Klein, a Senate Select Committee on Ethics ruled, in a confidential decision, that this was all above board.

But Byrne contends, “That these confidential rulings are contradictory is obvious and calls for explanation.”

Furthermore, Byrne’s research concluded that the senator could potentially look at the lists from Klein, compare them to the nameless funding requests and contracts coming before MILCON, and draw substantial conclusions on her own about where the money would end up.

“Klein declined to produce copies of the Perini project lists that he transmitted to Feinstein. And neither he nor Feinstein would furnish copies of the ethics committee rulings, nor examples of the senator recusing herself from acting on legislation that affected Perini or URS. But the Congressional Record shows that as chairperson and ranking member of MILCON, Feinstein was often involved in supervising the legislative details of military construction projects that directly affected Blum’s defense-contracting firms,” Byrne wrote.

A month after Byrne turned the story in to Bob Moser, who was the Nation‘s editor on the story, the piece was killed. In an email to Byrne, Moser wrote, “The main reason is that with Blum’s sale of

Perini and URS stock last year, this became an issue of what Feinstein did rather than an ongoing conflict. Because of that, and also because Feinstein is not facing a strong challenge for re-election, the feeling here, finally, was that the story would not likely have the kind of impact we want from investigative stories.”

Later in the email, Moser writes the story lacks a “smoking gun,” apparently because Byrne lays the case for a perceived conflict of interest and relies on the testimony of non-partisan ethics and government experts for support.

Still, Byrne told us, “I was shocked. The story was really solid, completely fact-checkable, and even though it was complex I think I boiled it down pretty well.”

The Nation‘s publicity director, Ben Wyskida, told us it’s rare for the magazine not to publish a story in which the Institute has invested significant time and money, but in this case the editors decided to pass. “Ultimately they just didn’t feel like he delivered the story that we’d hoped.”

“At the same time, we do think it’s an important story,” he added.

Undaunted, Byrne took it to Salon.com, which initially agreed to buy it, but then killed it as well. When asked why, news editor Mark Schone told us, “We don’t discuss those kinds of editorial decisions. We have a long history of publishing investigative pieces.”

Byrne thinks it was political. “In my opinion it’s because both the Nation and Salon have an editorial allegiance to the Democratic Party.” It was, he said, too sensitive a time to publish a story critical of a Democrat when the party was positioning to take control of the legislative branch.

The Nation vehemently denied the decision to kill had anything to do with that. “It’s absolutely false that we had any political biases that caused us not to run the piece. It was the reporting and the timeliness,” said Wyskida.

Salon would not comment on Byrne’s political theory.

When pushed for specifics on what the story lacked, Wyskida said, “Generally, we felt like it was possible there were pieces of the story we could not verify or stand behind.”

Byrne went on to pitch the story to Slate, the New Republic, Harper’s, the Los Angeles Times, and – thinking that conservative publications might bite – American Spectator and Weekly Standard. “Most of the editors praised the reporting, but turned down the story,” Byrne writes in an update for Project Censored’s publication. “So I sold the tale to the North Bay Bohemian, which, along with its sister papers in San Jose and Santa Cruz, ran it on the cover – complete with follow-ups. After it appeared, the editors and I received a series of invective-filled emails from war-contractor Klein (who is also an attorney) but, since he could show no errors of fact in the story, he did not get the retraction he apparently wanted.”

Klein, a key figure in the series of stories, is chairman and founding donor of the Washington, DC-based Sunlight Foundation, an organization that promotes more government transparency and grants investigative work undertaken with those goals. The Blum Family Foundation has also given seed money to Sunlight.

The foundation’s Web Site has posted a rebuttal to Byrne’s story, written by senior fellow and veteran investigative journalist, Bill Allison. It includes a spirited exchange between Byrne and Allison on some of the finer points of Byrne’s reporting, and links to the original Congressional hearings that Byrne cites for some of his evidence of Feinstein’s questionable ethics.

Shortly before Byrne’s story was printed in the North Bay Bohemian, Feinstein quit MILCON. Byrne reported this resignation in a March 21, 2007 story, in which he speculates thinks it was because of his questioning her ethics.

Feinstein’s office denies any connection. Press officer Scott Gerber said that at the start of a new Congressional session, “She took the opportunity to become chair of the Interior Appropriations Subcommittee. It’s a better subcommittee for California.” Her office also attempts to blow holes in Byrne’s story with a detailed rebuttal similar to Allison’s – not issued as a press release but provided upon request (and available here in pdf form.)

Despite the rebuttals, which contend that facts have been distorted, Byrne says no evidence exists that merit any retractions.

“Stories get killed all the time for various reasons but what I found interesting is that they paid me almost $5,000,” said Byrne, who expressed admiration for both the Nation and Salon. “The editor worked really hard with me but it was leading up to the elections. I’m not actually accusing them of anything nefarious. They basically told me they weren’t going to print it for political reasons.”

Peter Phillips, director of Project Censored, which rated the Byrne story as #23 out of the top 25 stories the mainstream media missed last year, said it played a part in prompting him to conduct a survey of 10 popular “left”-leaning publications. The survey looked at whether or not liberal news outlets touched stories that weren’t reported by the mainstream media and the results were included as a chapter in Project Censored 2008.

EDITORS NOTE: The above story reports that the piece on Dianne Feinstein’s conflicts of interest was slated to
run on the cover of The Nation. Ben Wyskida of the Nation contacted us after publication say that “we just don’t make promises like that; our covers never get decided until all the edits are in.”

Censored!

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>>Project Censored’s 15 missed-story runners up

>>Big local stories that never made mainstream headlines

>>The story behind a censored story that was killed by The Nation

amanda@sfbg.com

There are a handful of freedoms that have almost always been a part of American democracy. Even when they didn’t exactly apply to everyone or weren’t always protected by the people in charge, a few simple but significant rights have been patently clear in the Constitution: You can’t be nabbed by the cops and tossed behind bars without a reason. If you are imprisoned, you can’t be incarcerated indefinitely; you have the right to a speedy trial with a judge and jury. When that court date rolls around, you’ll be able to see the evidence against you.

The president can’t suspend elections, spy without warrants, or dispatch federal troops to trump local cops or quell protests. Nor can the commander in chief commence a witch hunt, deem individuals "enemy combatants," or shunt them into special tribunals outside the purview of our 218-year-old judicial system.

Until now. This year’s Project Censored presents a chilling portrait of a newly empowered executive branch signing away civil liberties for the sake of an endless and amorphous war on terror. And for the most part, the major news media weren’t paying attention.

"This year it seemed like civil rights just rose to the top," said Peter Phillips, the director of Project Censored, the annual media survey conducted by Sonoma State University researchers and students who spend the year patrolling obscure publications, national and international Web sites, and mainstream news outlets to compile the 25 most significant stories that were inadequately reported or essentially ignored.

While the project usually turns up a range of underreported issues, this year’s stories all fall somewhat neatly into two categories — the increase of privatization and the decrease of human rights. Some of the stories qualify as both.

"I think they indicate a very real concern about where our democracy is heading," writer and veteran judge Michael Parenti said.

For 31 years Project Censored has been compiling a list of the major stories that the nation’s news media have ignored, misreported, or poorly covered.

The Oxford American Dictionary defines censorship as "the practice of officially examining books, movies, etc., and suppressing unacceptable parts," which Phillips said is also a fine description of what happens under a dictatorship. When it comes to democracy, the black marker is a bit more nuanced. "We need to broaden our understanding of censorship," he said. After 11 years at the helm of Project Censored, Phillips thinks the most bowdlerizing force is the fourth estate itself: "The corporate media is complicit. There’s no excuse for the major media giants to be missing major news stories like this."

As the stories cited in this year’s Project Censored selections point out, the federal government continues to provide major news networks with stock footage, which is dutifully broadcast as news. The George W. Bush administration has spent more federal money than any other presidency on public relations. Without a doubt, Parenti said, the government invests in shaping our beliefs. "Every day they’re checking out what we think," he said. "The erosion of civil liberties is not happening in one fell swoop but in increments. Very consciously, this administration has been heading toward a general autocracy."

Carl Jensen, who founded Project Censored in 1976 after witnessing the landslide reelection of Richard Nixon in 1972 in spite of mounting evidence of the Watergate scandal, agreed that this year’s censored stories amount to an accumulated threat to democracy. "I’m waiting for one of our great liberal writers to put together the big picture of what’s going on here," he said.

1. GOOD-BYE, HABEAS CORPUS


The Military Commissions Act, passed in September 2006 as a last gasp of the Republican-controlled Congress and signed into law by Bush that Oct. 17, made significant changes to the nation’s judicial system.

The law allows the president to designate any person an "alien unlawful enemy combatant," shunting that individual into an alternative court system in which the writ of habeas corpus no longer applies, the right to a speedy trial is gone, and justice is meted out by a military tribunal that can admit evidence obtained through coercion and presented without the accused in the courtroom, all under the guise of preserving national security.

Habeas corpus, a constitutional right cribbed from the Magna Carta, protects against arbitrary imprisonment. Alexander Hamilton, writing in the Federalist Papers, called it the greatest defense against "the favorite and most formidable instruments of tyranny."

The Military Commissions Act has been seen mostly as a method for dealing with Guantánamo Bay detainees, and most journalists have reported that it doesn’t have any impact on Americans. On Oct. 19, 2006, editors at the New York Times wrote, in quite definitive language, "this law does not apply to American citizens."

Investigative journalist Robert Parry disagrees. The right of habeas corpus no longer exists for any of us, he wrote in the online journal Consortium. Deep down in the lower sections of the act, the language shifts from the very specific "alien unlawful enemy combatant" to the vague "any person subject to this chapter."

"Why does it contain language referring to ‘any person’ and then adding in an adjacent context a reference to people acting ‘in breach of allegiance or duty to the United States’?" Parry wrote. "Who has ‘an allegiance or duty to the United States’ if not an American citizen?"

Reached by phone, Parry told the Guardian that "this loose phraseology could be interpreted very narrowly or very broadly." He said he’s consulted with lawyers who are experienced in drafting federal security legislation, and they agreed that the "any person" terminology is troubling. "It could be fixed very simply, but the Bush administration put through this very vaguely worded law, and now there are a lot of differences of opinion on how it could be interpreted," Parry said.

Though US Sens. Patrick Leahy (D-Vt.) and Arlen Specter (R-Pa.) moved quickly to remedy the situation with the Habeas Corpus Restoration Act, that legislation has yet to pass Congress, which some suspect is because too many Democrats don’t want to seem soft on terrorism. Until tested by time, exactly how much the language of the Military Commissions Act may be manipulated will remain to be seen.

Sources: "Repeal the Military Commissions Act and Restore the Most American Human Right," Thom Hartmann, Common Dreams Web site, www.commondreams.org/views07/0212-24.htm, Feb. 12, 2007; "Still No Habeas Rights for You," Robert Parry, Consortium (online journal of investigative reporting), consortiumnews.com/2007/020307.html, Feb. 3, 2007; "Who Is ‘Any Person’ in Tribunal Law?" Robert Parry, Consortium, consortiumnews.com/2006/101906.html, Oct. 19, 2006

2. MARTIAL LAW: COMING TO A TOWN NEAR YOU


The Military Commissions Act was part of a one-two punch to civil liberties. While the first blow to habeas corpus received some attention, there was almost no media coverage of a private Oval Office ceremony held the same day the military act was signed at which Bush signed the John Warner Defense Authorization Act, a $532 billion catchall bill for defense spending.

Tucked away in the deeper recesses of that act, section 1076 allows the president to declare a public emergency and dispatch federal troops to take over National Guard units and local police if he determines them unfit for maintaining order. This is essentially a revival of the Insurrection Act, which was repealed by Congress in 1878, when it passed the Posse Comitatus Act in response to Northern troops overstaying their welcome in the reconstructed South. That act wiped out a potentially tyrannical amount of power by reinforcing the idea that the federal government should patrol the nation’s borders and let the states take care of their own territories.

The Warner act defines a public emergency as a "natural disaster, epidemic, or other serious public health emergency, terrorist attack or incident, or other condition in any state or possession of the United States" and extends its provisions to any place where "the president determines that domestic violence has occurred to such an extent that the constituted authorities of the state or possession are incapable of maintaining public order." On top of that, federal troops can be dispatched to "suppress, in a state, any insurrection, domestic violence, unlawful combination, or conspiracy."

So everything from a West Nile virus outbreak to a political protest could fall into the president’s personal definition of mayhem. That’s right — put your picket signs away.

The Warner act passed with 90 percent of the votes in the House and cleared the Senate unanimously. Months after its passage, Leahy was the only elected official to have publicly expressed concern about section 1076, warning his peers Sept. 19, 2006, that "we certainly do not need to make it easier for presidents to declare martial law. Invoking the Insurrection Act and using the military for law enforcement activities goes against some of the central tenets of our democracy. One can easily envision governors and mayors in charge of an emergency having to constantly look over their shoulders while someone who has never visited their communities gives the orders." In February, Leahy introduced Senate Bill 513 to repeal section 1076. It’s currently in the Armed Services Committee.

Sources: "Two Acts of Tyranny on the Same Day!" Daneen G. Peterson, Stop the North America Union Web site, www.stopthenorthamericanunion.com/articles/Fear.html, Jan. 20, 2007; "Bush Moves toward Martial Law," Frank Morales, Uruknet.info (Web site that publishes "information from occupied Iraq"), www.uruknet.info/?p=27769, Oct. 26, 2006

3. AFRICOM


President Jimmy Carter was the first to draw a clear line between America’s foreign policy and its concurrent "vital interest" in oil. During his 1980 State of the Union address, he said, "An attempt by any outside force to gain control of the Persian Gulf region will be regarded as an assault on the vital interests of the United States of America, and such an assault will be repelled by any means necessary, including military force."

Under what became the Carter Doctrine, an outpost of the Pentagon, called the United States Central Command, or CENTCOM, was established to ensure the uninterrupted flow of that slick "vital interest."

The United States is now constructing a similar permanent base in Africa, an area traditionally patrolled by more remote commands in Europe and the Pacific. No details have been released about exactly what AFRICOM’s operations and responsibilities will be or where troops will be located, though government spokespeople have vaguely stated that the mission is to establish order and keep peace for volatile governments — that just happen to be in oil-rich areas.

Though the official objective may be peace, some say the real desire is crude. "A new cold war is under way in Africa, and AFRICOM will be at the dark heart of it," Bryan Hunt wrote on the Moon of Alabama blog, which covers politics, economics, and philosophy. Most US oil imports come from African countries — in particular, Nigeria. According to the 2007 Congressional Budget Justification for Foreign Operations, "disruption of supply from Nigeria would represent a major blow to US oil-security strategy."

Though details of the AFRICOM strategy remain secret, Hunt has surveyed past governmental statements and reports by other independent journalists to draw parallels between AFRICOM and CENTCOM, making the case that the United States sees Africa as another "vital interest."

Source: "Understanding AFRICOM," parts 1–3, b real, Moon of Alabama, www.moonofalabama.org/2007/02/understanding_a_1.html, Feb. 21, 2007

4. SECRET TRADE AGREEMENTS


As disappointing as the World Trade Organization has been, it has provided something of an open forum in which smaller countries can work together to demand concessions from larger, developed nations when brokering multilateral agreements.

At least in theory. The 2006 negotiations crumbled when the United States, the European Union, and Australia refused to heed India’s and Brazil’s demands for fair farm tariffs.

In the wake of that disaster, bilateral agreements have become the tactic of choice. These one-on-one negotiations, designed by the US and the EU, are cut like backroom deals, with the larger country bullying the smaller into agreements that couldn’t be reached through the WTO.

Bush administration officials, always quick with a charming moniker, are calling these free-trade agreements "competitive liberalization," and the EU considers them essential to negotiating future multilateral agreements.

But critics see them as fast tracks to increased foreign control of local resources in poor communities. "The overall effect of these changes in the rules is to progressively undermine economic governance, transferring power from governments to largely unaccountable multinational firms, robbing developing countries of the tools they need to develop their economies and gain a favorable foothold in global markets," states a report by Oxfam International, the antipoverty activist group.

Sources: "Free Trade Enslaving Poor Countries" Sanjay Suri, Inter Press Service (global news service), ipsnews.org/news.asp?idnews=37008, March 20, 2007; "Signing Away the Future" Emily Jones, Oxfam Web site, www.oxfam.org/en/policy/briefingpapers/bp101_regional_trade_agreements_0703, March 2007

5. SHANGHAIED SLAVES CONSTRUCT US EMBASSY IN IRAQ


Part of the permanent infrastructure the United States is erecting in Iraq includes the world’s largest embassy, built on Green Zone acreage equal to that of Vatican City. The $592 million job was awarded in 2005 to First Kuwaiti Trading and Contracting. Though much of the project’s management is staffed by Americans, most of the workers are from small or developing countries like the Philippines, India, and Pakistan and, according to David Phinney of CorpWatch — a Bay Area organization that investigates and exposes corporate environmental crimes, fraud, corruption, and violations of human rights — are recruited under false pretenses. At the airport, their boarding passes read Dubai. Their passports are stamped Dubai. But when they get off the plane, they’re in Baghdad.

Once on site, they’re often beaten and paid as little as $10 to $30 a day, CorpWatch concludes. Injured workers are dosed with heavy-duty painkillers and sent back on the job. Lodging is crowded, and food is substandard. One ex-foreman, who’s worked on five other US embassies around the world, said, "I’ve never seen a project more fucked up. Every US labor law was broken."

These workers have often been banned by their home countries from working in Baghdad because of unsafe conditions and flagging support for the war, but once they’re on Iraqi soil, protections are few. First, Kuwaiti managers take their passports, which is a violation of US labor laws. "If you don’t have a passport or an embassy to go to, what do you do to get out of a bad situation?" asked Rory Mayberry, a former medic for one of First Kuwaiti’s subcontractors, who blew the whistle on the squalid living conditions, medical malpractice, and general abuse he witnessed at the site.

The Pentagon has been investigating the slavelike conditions but has not released the names of any vioutf8g contractors or announced penalties. In the meantime, billions of dollars in contracts continue to be awarded to First Kuwaiti and other companies at which little accountability exists. As Phinney reported, "No journalist has ever been allowed access to the sprawling 104-acre site."

Source: "A U.S. Fortress Rises in Baghdad: Asian Workers Trafficked to Build World’s Largest Embassy," David Phinney, CorpWatch Web site, www.corpwatch.org/article.php?id=14173, Oct. 17, 2006

6. FALCON’S TALONS


Operation FALCON, or Federal and Local Cops Organized Nationally, is, in many ways, the manifestation of martial law forewarned by Frank Morales (see story 2). In an unprecedented partnership, more than 960 federal, state, and local police agencies teamed up in 2005 and 2006 to conduct the largest dragnet raids in US history. Armed with fistfuls of arrest warrants, they ran three separate raids around the country that netted 30,110 criminal arrests.

The Justice Department claimed the agents were targeting the "worst of the worst" criminals, and Attorney General Alberto Gonzales said, "Operation FALCON is an excellent example of President Bush’s direction and the Justice Department’s dedication to deal both with the terrorist threat and traditional violent crime."

However, as writer Mike Whitney points out on Uruknet.info, none of the suspects has been charged with anything related to terrorism. Additionally, while 30,110 individuals were arrested, only 586 firearms were found. That doesn’t sound very violent either.

Though the US Marshals Service has been quick to tally the offenses, Whitney says the numbers just don’t add up. For example, FALCON in 2006 captured 462 violent sex-crime suspects, 1,094 registered sex offenders, and 9,037 fugitives.

What about the other 7,481 people? "Who are they, and have they been charged with a crime?" Whitney asked.

The Marshals Service remains silent about these arrests. Whitney suggests those detainees may have been illegal immigrants and may be bound for border prisons currently being constructed by Halliburton (see last year’s Project Censored).

As an added bonus of complicity, the Justice Department supplied local news outlets with stock footage of the raids, which some TV stations ran accompanied by stories sourced from the Department of Justice’s news releases without any critical coverage of who exactly was swept up in the dragnets and where they are now.

Sources: "Operation Falcon and the Looming Police State," Mike Whitney, Uruknet.info, uruknet.info/?p=m30971&s1=h1, Feb. 26, 2007; "Operation Falcon," SourceWatch (project of the Center for Media and Democracy), www.sourcewatch.org/index.php?title=Operation_FALCON, Nov. 18, 2006

7. BLACKWATER


The outsourcing of war has served two purposes for the Bush administration, which has given powerful corporations and private companies lucrative contracts supplying goods and services to American military operations overseas and quietly achieved an escalation of troops beyond what the public has been told or understands. Without actually deploying more military forces, the federal government instead contracts with private security firms like Blackwater to provide heavily armed details for US diplomats in Iraq, Afghanistan, and other countries where the nation is currently engaged in conflicts.

Blackwater is one of the more successful and well connected of the private companies profiting from the business of war. Started in 1996 by an ex–Navy Seal named Erik Prince, the North Carolina company employs 20,000 hired guns, training them on the world’s largest private military base.

"It’s become nothing short of the Praetorian Guard for the Bush administration’s so-called global war on terror," author Jeremy Scahill said on the Jan. 26 broadcast of the TV and radio news program Democracy Now! Scahill’s Blackwater: The Rise of the World’s Most Powerful Mercenary Army was published this year by Nation Books.

Source: "Our Mercenaries in Iraq," Jeremy Scahill, Democracy Now!, www.democracynow.org/article.pl?sid=07/01/26/1559232, Jan. 26, 2007

8. KIA: THE NEOLIBERAL INVASION OF INDIA


A March 2006 pact under which the United States agreed to supply nuclear fuel to India for the production of electric power also included a less-publicized corollary — the Knowledge Initiative on Agriculture. While it’s purportedly a deal to assist Indian farmers and liberalize trade (see story 4), critics say the initiative is destroying India’s local agrarian economy by encouraging the use of genetically modified seeds, which in turn is creating a new market for pesticides and driving up the overall cost of producing crops.

The deal provides a captive customer base for genetically modified seed maker Monsanto and a market for cheap goods to supply Wal-Mart, whose plans for 500 stores in the country could wipe out the livelihoods of 14 million small vendors.

Monsanto’s hybrid Bt cotton has already edged out local strains, and India is currently suffering an infestation of mealy bugs, which have proven immune to the pesticides the chemical companies have made available. Additionally, the sowing of crops has shifted from the traditional to the trade friendly. Farmers accustomed to cultivating mustard, a sacred local crop, are now producing soy, a plant foreign to India.

Though many farmers are seeing the folly of these deals, it’s often too late. Suicide has become a popular final act of opposition to what’s occurring in their country.

Vandana Shiva, who for 10 years has been studying the effects of bad trade deals on India, has published a report titled Seeds of Suicide, which recounts the deaths of more than 28,000 farmers who killed themselves in despair over the debts brought on them by binding agreements ultimately favoring corporations.

Hope comes in the form of a growing cadre of farmers hip to the flawed deals. They’ve organized into local sanghams, 72 of which now exist as small community networks that save and share seeds, skills, and assistance during the good times of harvest and the hard times of crop failure.

Sources: "Vandana Shiva on Farmer Suicides, the U.S.-India Nuclear Deal, Wal-Mart in India," Democracy Now!, www.democracynow.org/article.pl?sid=06/12/13/1451229, Dec. 13, 2006; "Genetically Modified Seeds: Women in India take on Monsanto," Arun Shrivastava, Global Research (Web site of Montreal’s Center for Global Research), www.globalresearch.ca/index.php?context=viewArticle&code=ARU20061009&articleId=3427, Oct. 9, 2006

9. THE PRIVATIZATION OF AMERICA’S INFRASTRUCTURE


In 1956, President Dwight D. Eisenhower ushered through legislation for the greatest public works project in human history — the interstate highway system, 41,000 miles of roads funded almost entirely by the federal government.

Fifty years later many of those roads are in need of repair or replacement, but the federal government has not exactly risen to the challenge. Instead, more than 20 states have set up financial deals leasing the roads to private companies in exchange for repairs. These public-private partnerships are being lauded by politicians as the only credible financial solution to providing the public with improved services.

But opponents of all political stripes are criticizing the deals as theft of public property. They point out that the bulk of benefits is actually going to the private side of the equation — in many cases, to foreign companies with considerable experience building private roads in developing countries. In the United States these companies are entering into long-term leases of infrastructure like roads and bridges, for a low amount. They work out tax breaks to finance the repairs, raise tolls to cover the costs, and start realizing profits for their shareholders in as little as 10 years.

As Daniel Schulman and James Ridgeway reported in Mother Jones, "the Federal Highway Administration estimates that it will cost $50 billion a year above current levels of federal, state, and local highway funding to rehab existing bridges and roads over the next 16 years. Where to get that money, without raising taxes? Privatization promises a quick fix — and a way to outsource difficult decisions, like raising tolls, to entities that don’t have to worry about getting reelected."

The Indiana Toll Road, the Chicago Skyway, Virginia’s Pocahontas Parkway, and many other stretches of the nation’s public pavement have succumbed to these private deals.

Cheerleaders for privatization are deeply embedded in the Bush administration (see story 7), where they’ve been secretly fostering plans for a North American Free Trade Agreement superhighway, a 10-lane route set to run through the heart of the country and connect the Mexican and Canadian borders. It’s specifically designed to plug into the Mexican port of Lázaro Cárdenas, taking advantage of cheap labor by avoiding the International Longshore and Warehouse Union, whose members are traditionally tasked with unloading cargo, and the International Brotherhood of Teamsters, whose members transport that cargo that around the country.

Sources: "The Highwaymen" Daniel Schulman with James Ridgeway, Mother Jones, www.motherjones.com/news/feature/2007/01/highwaymen.html, Feb. 2007; "Bush Administration Quietly Plans NAFTA Super Highway," Jerome R. Corsi, Human Events, www.humanevents.com/article.php?id=15497, June 12, 2006

10. VULTURE FUNDS: DEVOURING THE DESPERATE


Named for a bird that picks offal from a carcass, this financial scheme couldn’t be more aptly described. Well-endowed companies swoop in and purchase the debt owed by a third world country, then turn around and sue the country for the full amount — plus interest. In most courts, they win. Recently, Donegal International spent $3 million for $40 million worth of debt Zambia owed Romania, then sued for $55 million. In February an English court ruled that Zambia had to pay $15 million.

Often these countries are on the brink of having their debt relieved by the lenders in exchange for putting the owed money toward necessary goods and services for their citizens. But the vultures effectively initiate another round of deprivation for the impoverished countries by demanding full payment, and a loophole makes it legal.

Investigative reporter Greg Palast broke the story for the BBC’s Newsnight, saying that "the vultures have already sucked up about $1 billion in aid meant for the poorest nations, according to the World Bank in Washington."

With the exception of the BBC and Democracy Now!, no major news source has touched the story, though it’s incensed several members of Britain’s Parliament as well as the new prime minister, Gordon Brown. US Reps. John Conyers (D-Mich.) and Donald Payne (D-N.J.) lobbied Bush to take action as well, but political will may be elsewhere. Debt Advisory International, an investment consulting firm that’s been involved in several vulture funds that have generated millions in profits, is run by Paul Singer — the largest fundraiser for the Republican Party in the state of New York. He’s donated $1.7 million to Bush’s campaigns.

Source: "Vulture Fund Threat to Third World," Newsnight, www.gregpalast.com/vulture-fund-threat-to-third-world, Feb. 14, 2007

>>More: The story of U.S. Senator Diane Feinstein’s conflict of interest

Dispatch direct from the playa

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Man Down

By Steven T. Jones, aka Scribe

We were partying in deep playa, watching the lunar
eclipse, when we saw the man burn. I didn’t believe it
at first, thinking that it had to be the Burning Man
folks fucking with us, maybe with some bright lights
to simulate a fake burn. But it was enough for my
Garage Mahal campmates and I to take the party mobile
and cruise our art car back in toward the man, joining
a wave of art cars with the same idea. I still thought
it was a prank or piece of theater until …

Poems Under the Half Dome!

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Brad Immanuel bandshell.jpg

Yahoo! Free poems! Outside! Under a half dome of car hoods! Local hero Diamond Dave Whitaker is hosting a poetry open-mic this evening at the Panhandle Bandshell. It starts at 5 pm and should go until about 8. If you’ve never seen Whitaker or any of his associates perform poems, you really should. It’s iconic.