Guardian Editorial Archives — Page 3 of 4 — San Francisco Bay Guardian Archive 1966

So what are Newsom’s budget plans?

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January 27, 2009

EDITORIAL In Washington, Rep. Nancy Pelosi — who has never been known as a radical leftist — is proposing that Congress repeal the Bush tax cuts, now, two years before they expire. That would bring $226 billion into the federal till, enough to fund a good part of the stimulus package.

In Sacramento, Democrats are moving toward a special election this spring to allow the voters to approve a tax increase — a move that would prevent disastrous service cuts in this horrible economic climate. Even the Republicans in the state Legislature — about as intransigent a group of people as you’re going to find in public service in America — are actually discussing the possibility that they might accept a tax increase as part of a budget deal.

Political writer David Sirota, blogging on Open Left, argues that a tectonic shift is taking place, that budget fights are "tilting the terms of debate away from Reaganism and toward progressive policy goals."

But not in San Francisco, where Mayor Gavin Newsom refuses to support any sort of new revenue measures this spring. In fact, while the supervisors, labor, and others are working to try to figure out a solution to the budget crisis, Newsom has been out of town, campaigning for governor or galavanting off to Paris and Davos.

We can’t quite figure out what the mayor plans to do about a budget deficit that could reach $500 million. So far we know he thinks the city can get some money by privatizing cab medallions (a dumb idea). We also hear he’s talking about vastly increasing the number of condo conversion permits (an even worse idea that will lead to massive evictions and the end of rent control). Beyond that, he hasn’t offered anything.

We recognize the problems with a spring special election. Passing a tax measure would require a two-thirds majority, a tough threshold under the best of circumstances. The state may call its own special election in May, preempting the city’s chances. The deadlines are tight, and city officials would need to move very quickly to come up with a workable plan in time.

But there are also serious problems with abandoning the idea, or even waiting until November. We’re talking cataclysmic budget cuts here — maybe as many as 1,500 layoffs, massive cutbacks in public health, parks and recreation centers closed, fire stations shut down, police cut back, Muni backsliding into dysfunction, programs for the homeless and needy vanishing as more and more desperate people fill the streets … it won’t be pretty.

We’ve consistently argued that a June special election to raise new tax money is a reasonable option, and the supervisors need to keep it on the table. That means voting on several technical issues Jan. 27 and then moving at full speed to draft the ballot proposals. If circumstances change, the city can always back off and cancel the election.

But the mayor needs to come back to town and start getting engaged with this problem. Before he simply dismisses the June election, he needs to tell us his plan. What alternatives is he offering? What is he proposing to cut? What jobs, what services, will be eliminated?

The same goes for downtown, small business leaders, and the supervisors who oppose tax increases. Tell us — now, in public — what you propose to do about this once-in-a-lifetime crisis. The progressives are at least putting forward plans, imperfect as they may be. Anyone who refuses to support those plans should be required to offer something else.

Don’t privatize cab permits

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January 20, 2009

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EDITORIAL In tough times, political leaders with no backbone for making hard decisions tend to look for easy, short-term fixes. And Mayor Gavin Newsom’s proposal to auction off taxicab permits to the highest bidder is just that — a quick fix with serious long-term problems. In fact, it amounts to the privatization of a lucrative public asset.

A bit of background: since 1978, when then-Sup. Quentin Kopp authored a measure called Proposition K, San Francisco has issued some 1,500 taxi permits, known as medallions, to working cab drivers. Under Prop. K, the medallions can’t be owned by corporations, and they can’t be bought and sold as speculative commodities. They’re owned by the city, and only people who actually drive cabs for a living can use them.

There’s a logic to that. The permits are valuable — a medallion holder not only has the right to drive a cab, he or she can lease that permit to other drivers for additional shifts. Since a taxi can be on the road 24 hours a day, the lease income is substantial, roughly $30,000 a year. But only active drivers get that benefit; nobody can hold a permit, sit at home (or work another job), and just collect that cash.

The process isn’t perfect. The waiting list for a medallion takes more than 10 years. Some medallion holders cling to their permits long after they should have retired (and thus keep driving when they should no longer be on the road). There’s no process for compensating a permit holder who becomes disabled.

But those are issues that can be addressed. The basic fact is that San Francisco has taken the position that the public benefit — a license to drive a cab for hire — should be given only to those who are using it. Prop. K prevents consolidation of ownership in the industry, prevents speculators from turning medallions into a new form of securities (which worked out so well with mortgages), and gives people who have spent 10 years or more driving a cab a chance to reap the full benefits of their work.

Newsom, however, sees those permits as a gold mine. If the city auctioned them off, they might bring $100,000 apiece. Under Newsom’s plan, much of that money would go to the city, although some would go to current medallion holders.

The plan is full of problems.

For one, it could completely change the cab business in San Francisco, shifting control of the industry away from drivers and giving it to big businesses and investors. Very few working drivers (who are lucky to clear $30,000 a year) could afford to buy permits, particularly at auction. So the first people in the market would be the cab companies, which for years have wanted the right to own and control the medallions. Private investors — wealthy individuals and institutions — would see the permits as an asset likely to appreciate, and would buy up medallions, then seek to raise the lease fees for drivers. The only way drivers could buy permits would be to seek the equivalent of mortgage loans — but the banks that handle that sort of loans typically require 20 percent down, putting many drivers out of the running. Unless, that is, some shadowy characters come along with cash loans — or unless the cab companies handle that payment, thereby getting further control).

Unless medallion ownership is limited to drivers, the entire process will get corrupted. People will drive for a minimal period of time, bid on medallions, then go into another line of work — and keep the medallion. Newsom’s office says he’s going to do that, but there are no details on the plan yet.

Cab drivers in the city talk about the need for security and retirement income. After years of driving with a medallion, they want the right to sell it for a chunk of cash. But under the current system, drivers are — and most of them like being — independent contractors.

Freelance writers, consultants, small business owners, and many others who are self-employed are responsible for their own retirement planning. Why should cab drivers get a special deal from the city?

Privatizing the permits is just a bad idea. Newsom promised last year — in writing — that he wouldn’t seek to change Prop. K. It’s infuriating to see him so quickly break that promise.

The supervisors should reject this proposal.

The challenges for President Chiu

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January 13, 2009

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EDITORIAL The ascension of Sup. David Chiu to the presidency of the Board of Supervisors gives a relative political newcomer considerable power. It also puts Chiu in position to carry on the legacy of Aaron Peskin and lead the opposition to Mayor Gavin Newsom’s pro-downtown, pro-Pacific Gas and Electric Co. agenda. Chiu, obviously, lacks the experience Peskin brought to the job, so he needs to move carefully at first. But he also needs to show that he’s more than a compromise candidate and that he has the ability to lead the board and promote the progressive agenda.

Let’s remember: Chiu was elected president entirely by the six progressive supervisors. The way the vote went down, five people, including Newsom’s closest allies, stuck together as a solid bloc and repeatedly voted for Sup. Sophie Maxwell. Maxwell had come down to the Guardian office a few days earlier to tell us that she was a solid progressive, but we saw the future of the board playing out when the votes were counted. Maxwell and Sup. Sean Elsbernd, who both have voiced concerns about the prospect of an inexperienced person taking the top job, could have broken with their bloc and voted for Sup. Ross Mirkarimi — that would have put him over the top. But through seven votes, as the progressives moved around trying to find a candidates all six could support, the Newsom Five stuck together. (Of course, if it hadn’t been for Sup. Chris Daly’s ill-conceived antics, Mirkarimi would have been able to get six votes, and we would have had an experienced leader in place).

Although Chiu talks (as he should) about bringing everyone together, he needs to keep in mind from day one that he is now the most visible member of a six-person board majority that can control the agenda and the set the tone for the city — if none of the six starts to drift toward the squishy center.

It’s going to be a rough, brutal year. The mayor has already made clear through his comments that he doesn’t even want to look at new revenue measures; he intends to solve the city’s half-billion-dollar budget crisis with cuts — deep, bloody cuts — alone. Chiu will have to stand up to him, publicly and privately, and make clear that a cuts-only budget isn’t going to fly in San Francisco.

And while Chiu will need some time to develop a leadership style and become familiar with the often-complex workings of the board, he should do a few things right away to show that he’s prepared to take on the difficult tasks ahead:

Support Peskin’s proposal for a special election in June. The proposal to allow the voters to consider raising taxes instead of just cutting is going to need a lot of help and support. The mayor opposes it, and some of his allies may oppose it too. But it’s absolutely crucial that San Francisco refuse to follow the lead of Gov. Arnold Schwarzenegger. It’s crucial that the progressives, while acknowledging that cuts will have to happen, also insist on looking at fair revenue ideas. Chiu needs to take the point on this.

In fact, now that the mayor and his allies on the board have made this a central battleground — and in effect have made this a litmus test for Chiu’s new presidency — it’s even more important that every one of the six progressive supervisors stands up to this challenge.

We’re not sure which of the dozen-odd tax proposals floating around is the right one. But it would be the worst kind of foolishness to take the whole idea off the table.

Put good people on the key committees. The Budget Committee at this point looks good, with Mirkarimi, Sup. John Avalos, and Elsbernd. When that panel expands to five members (and it should, soon) Chiu should make sure that either David Campos or Eric Mar joins the committee, keeping a progressive majority. The Land Use committee will be crucial as the Eastern Neighborhoods plan is implemented; Chiu needs to appoint a progressive chair and majority.

Save LAFCO. The Local Agency Formation Commission is the only board committee that has public power and energy policy as its primary agenda. Budget-cutters (spurred by PG&E, which more than any other company is responsible for the budget crisis) have made LAFCO a target; Chiu needs to make it clear immediately that LAFCO will remain in place, with strong appointments and a chair committed to making community choice aggregation work and pursuing public power as the largest potential new revenue source for the city.

Chiu has promised to work with the mayor, which is fine. But first he needs to show the progressives who elected him that he’s also ready to do battle.

Another BART police tragedy

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January 7, 2009

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EDITORIAL The video isn’t the highest quality — it was taken on a cell phone — but it’s pretty simple to figure out what’s happening. A young man named Oscar Grant is lying on the ground on a BART train platform, surrounded by BART cops. His hands are behind him, and the police have him completely under control.

Grant was one of a group of young men who had been removed from the train and arrested after reports of a fight early in the morning on New Year’s Day. The other suspects are handcuffed; Grant is not, but in early footage, he has his hands in the air and appears to be cooperating. Witnesses on the scene say that’s what they saw — a young man doing what the police told him to do.

Then suddenly — shockingly — one of the officers reaches back and pulls his gun. He points the weapon at Grant, and fires, point-blank, from perhaps two feet away. The bullet entered Grant’s back, ricocheted off the concrete, and hit him again, in the chest.

It’s mind-boggling. It appears to violate so many standards of police conduct we don’t even know where to begin. Oakland lawyer John Burris, who is representing the Grant family, puts the first question pretty succinctly: "Why did he take his gun out?"

Let’s go a few steps further. Why did the BART officer, who has been identified only as a two-year veteran of the force, feel he needed to use lethal force on a suspect who was unarmed, was (at worst) guilty of fighting on a train, and was on the ground with two other cops on top of him? Why did the officer fire his gun at close range, with the prospect not only of hitting his colleagues but also of injuring bystanders? Why didn’t any of the other cops tell him to put the gun away? Why is the young father of a four-year old daughter dead?

We’ll add a few more: Why is BART still in full-on public relations-cover-up mode, acting as if the evidence is still unclear? Why is the name of the officer still a secret?

And why — why, as we’ve asked a dozen times over the past 15 years, do the BART police operate with absolutely no civilian oversight?

The structure of the BART police force is a recipe for disaster. BART’s general manager, (who is not an elected official and has no expertise in law enforcement) hires the BART police chief, who then runs a force with some 200 armed officers. There is no police commission, no police review board, not even a committee of the elected BART board designated to handle complaints against and issues with the BART police.

The BART board holds no regular hearings on police activity or conduct. There is no public forum where the chief is held to account. There is no procedure for complaints against BART officers to be heard and adjudicated by anyone except the BART police.

There is, in other words, no civilian oversight or accountability. This is unacceptable.

The killing of Oscar Grant isn’t an isolated case. Back in 1992, a BART cop pulled a shotgun and killed an unarmed man named Jerrold Hall. Hall wasn’t threatening the officer or anyone else. He was walking away. The shotgun pellets hit him in the back of the head. The officer, Fred Crabtree, was never subject to any discipline, and BART tried to cover up the whole thing (see "Lethal force," 12/9/92). In 2001, a BART cop shot an unarmed naked man who was seriously mentally ill (see "Gun crazy," 10/17/01).

The BART Board simply can’t let this continue. The board must immediately create a process for civilian oversight of the BART police, including a civilian monitor to handle complaints. The BART board must establish a permanent police oversight committee that meets regularly to hear public comments and monitor police practices. Every city that BART passes through, starting with San Francisco, should pass a resolution demanding accountability for the BART cops, and the state Legislature (which granted the BART police peace officer status in 1976) should pass a measure mandating that the BART police have civilian oversight proceedings.

We’re sick of this. How many more people have to die before BART gets its act together?

The next board president

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December 30, 2008

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EDITORIAL We’ve had our fights with Aaron Peskin. He’s been on the wrong side of some key votes and issues, and he’s had a penchant for political games. But on balance, he’s been a good Board of Supervisors president. He made sure that progressives controlled the Budget Committee; he kept legislation on track; he helped put together the votes for good bills (and made sure that bad ones died) — and perhaps most important, he established himself as the leader of the loyal opposition, the person who took the front role in fighting the worst ideas of Mayor Gavin Newsom.

That’s a crucial role at a time when the mayor’s office is foundering, when the chief executive is thinking more about his political future than the city’s present problems, and when the center of policy leadership in San Francisco has shifted from the mayor to the board. It’s a job that requires experience and political acumen. And since the progressives fought mightily to keep a majority on the board, the top job simply must go to one of the six solid progressives who will be sworn into office Jan. 8.

Our clear choice is Sup. Ross Mirkarimi. He’s compiled an excellent record in his first term, crafting environmental legislation (like the ban on plastic bags), leading the community choice aggregation (CCA) effort, and pushing effective, progressive approaches to crime. He has a long, distinguished record as an activist and organizer, running campaigns for sunshine and public power and for Terence Hallinan for district attorney and Matt Gonzalez for mayor. He devoted most of his first term to district and a few citywide issues and hasn’t done as much as some other supervisors to build his own political constituency on the board, so as president, he’d have to make an effort to help his colleagues promote their own legislation. He’s made no secret of his interest in running for mayor in three years, and he would have to make sure that his ambitions didn’t overwhelm his ability to keep good working relations with potential opponents on the board.

But he’s shown in his dealings with the police, the community, and the mayor’s office around crime in the Western Addition that he can be a forceful advocate and work toward effective consensus at the same time. And he’s well situated to lead the progressive coalition in developing its own agenda.

Mirkarimi would appoint good committees, make sure that the Local Agency Formation Commission (the center of public power efforts and the only agency focusing on the city’s alarming lack of an energy policy) remains in place (with strong leadership), and have no trouble standing up to the mayor. The progressives on the board should support him.

However, that’s not as simple a prospect as it ought to be. Sup. Chris Daly, who claims he is still angry at Mirkarimi for one vote on one bill several years ago, has told us he wants to see someone else elected board president. That’s foolish, and Daly ought to back off and support the most experienced progressive for the job. Splitting the left like this, and damaging a potential mayoral candidate, would do no good for the progressive movement. And those who argue that Mirkarimi, as a Green Party member, would be less effective are making matters worse — there’s no reason for the Greens and progressive Democrats to be fighting each other. But several of the newly elected supervisors — particularly John Avalos, a former Daly aide — have thrown their hats into the ring. That’s led several supervisors to suggest that a compromise candidate from the more moderate bloc ought to be seriously considered — possibly Sophie Maxwell or Bevan Dufty.

We understand Mirkarimi’s frustration with Daly’s ploy and his disdain for the prospect of putting a Daly ally in the top board position. And we agree with both Mirkarimi and Sup. Sean Elsbernd, who have argued that, with the nearly cataclysmic budget crisis and all the other issues facing the board, it would be risky to put a newcomer in the presidency.

But in the end, the board president ought to be someone we can count on to appoint progressives to key committees and fight the mayor’s regressive policies. And with all due respect to Maxwell and Dufty, we don’t see either of them in that role. So if the balloting drags on and it’s clear Mirkarimi can’t get six votes, he ought to be a statesman, put the progressive agenda first, and vote for another progressive.

A flawed energy bill

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December 23, 2008

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EDITORIAL Two months after Pacific Gas and Electric Co. spent $10 million to defeat a clean energy measure on the San Francisco ballot, Sup. Sophie Maxwell has stepped into the battle, introducing a mild ordinance that lifts some of the language from the Clean Energy Act but would accomplish very little. We’re glad to see Maxwell stepping up her efforts to close the dirty Mirant Power Plant in Potrero Hill, but her legislation needs some significant amendments.

Maxwell’s ordinance, cosponsored by Sup. Aaron Peskin (who is one meeting away from being termed out), would make it city policy to "take all feasible steps" to close the Potrero plant. That’s a laudable goal. It also borrows the aggressive environmental goals from the Clean Energy Act, stating that the city needs to meet all its energy needs by 2040 with renewable power. But unlike the Clean Energy Act, Maxwell’s mandate ignores PG&E, which supplies the vast majority of the electricity in San Francisco and which can’t even meet the state’s weak alternative energy standards. Her requirement would apply only to the city’s own power supplies, which come mostly from the Hetch Hetchy hydroelectric project and thus already meet the 2040 standards. So the part of the bill that deals with climate change and greenhouse gas emissions is utterly useless.

The measure calls on the San Francisco Public Utilities Commission to study the ways the city can meet its energy goals without the Potrero plant — again, a fine idea. But it ducks the central question: who’s going to control the local electric grid, and thus the city’s energy future? Will PG&E continue to call the shots (in which case San Francisco will never meet credible green-power goals)? Or will the city take control of the distribution system, which would allow lower electric rates and far higher environmental standards?

As Amanda Witherell reports on page 17, Maxwell’s aide, Jon Lau, said the ordinance is "sort of agnostic toward public power." That’s a mistake — leaving public power out of the equation amounts to a capitulation to PG&E and a guarantee that nothing substantial will change in the city’s energy portfolio.

Maxwell wants to close the Potrero plant as quickly as possible, and so do we. The best way to do that is to block the plant’s water permit when it comes up next year (see "Water board can close Mirant," 11/25/08), and Maxwell and City Attorney Dennis Herrera are moving on that front. But the California Independent System Operator (Cal-ISO), which controls the state’s grid, has in the past argued that the city needs a certain amount of generating capacity within its borders, and could force the Potrero plant to keep running.

Maxwell originally supported a plan to replace the in-city generation capacity by installing city-owned combustion turbines that would run only during periods of peak demand. But that plan failed after both environmentalists and PG&E opposed it. Now she’s pressing an alternative that would use new transmission cables, one owned by PG&E, to eliminate the need for power plants in the city.

That might work — but it would still leave the city in PG&E’s clutches, and while it would eliminate a source of pollution in southeast San Francisco, the city would still be using dirty power from PG&E’s nuclear and fossil-fuel plants elsewhere.

The best long-term solution is to build city-owned renewable generation to replace Mirant. The city’s community choice aggregation plan is moving in that direction. But ultimately, San Francisco will only reach aggressive clean energy goals if it controls its own fate.

Maxwell’s ordinance should be amended to clearly mandate a study that examines the feasibility of a public power system in San Francisco. If that’s not in the final version, the bill should be voted down.

Beyond the bloody cuts

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December 17, 2008

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EDITORIAL There’s actually a bright side to the brutally depressing budget struggles in San Francisco and Sacramento. This could be the year Californians finally start to recognize that they can’t have a functioning state, with the services everyone wants, without paying taxes. It could be the end of the Republican lie that the budget problem is only on the spending side, the end of the famous no-new-taxes pledge — and the end to the requirement that two-thirds of the Legislature pass any budget, an archaic rule that is crippling California.

And with a little leadership from the new supervisors at City Hall, this could be the year San Francisco takes a serious look at how local government is financed.

This is no time for modest, cautious proposals. The budget situation is alarming. California is looking at $40 billion in cuts over the next 18 months — more than a third of the entire state budget. San Francisco is looking at $500 million in red ink — roughly half the discretionary spending from the general fund. Filling those holes with cuts alone would be devastating.

This isn’t your average budget battle, where everyone fights to save a few hundred thousand dollars here and a million there for a crucial program. This is, by all accounts, something of an order that the state and local government haven’t seen since the 1930s.

So small-time, piecemeal fixes aren’t going to work. Here’s what the state and the city need to be talking about.

AT THE STATE LEGISLATURE

The first thing that has to go is the two-thirds rule. It’s become almost a farce — a handful of Republicans, who have sworn never to raise taxes under any circumstances, are holding the world’s sixth-largest economy and a state of more than 37 million people hostage to their failed ideology. Enough talk: the Democrats need to mount a massive signature drive for a special election this summer to repeal that requirement.

There are many fair ways to raise taxes to bring in enough revenue to stave off devastating cuts. Raising the income tax levels on the highest wage earners makes the most sense. Gas prices are way down; raising the state gas tax by a few cents a gallon won’t bring prices even close to last summer’s level. We’re nervous about taxing services (medical care, for example, is a "service"), but a carefully crafted tax that exempts essentials ought to be on the table. California is the only oil-producing state that doesn’t tax oil at the wellhead; that’s a no-brainer. So is restoring the vehicle license fee; Gov. Schwarzenegger’s decision to eliminate that fee has cost the state $40 billion over the past five years.

AT CITY HALL

Step one: the mayor has to recognize that there’s no way to solve a half-billion dollar shortfall with cuts alone. Step two: the mayor needs to back off from the layoffs and cuts for a few weeks until the supervisors and the community stakeholders have a chance to meet, talk, and look at all the options. Step three: some far-reaching changes have to be on the agenda, right now.

We like the idea of a city income tax. Technically, under state law, all the city can do is tax income earned within local borders, meaning that commuters would pay (good) and San Franciscans who work out of town would escape payment (bad). But overall, the concept is better than anything else out there. A local income tax that exempts, say, the first $50,000 (assuring that lower-income people pay nothing) with progressive rates skewed toward charging very high wage-earners the most could bring in significant revenue in the fairest way possible.

We’d like to see a progressive business tax — raise the rates on the biggest companies. We could live with a short-term hike in the local sales tax; frankly, we could live with most short-term revenue increases. The supervisors need to look at what new taxes make the most sense and prepare for a special election in the spring to put a revenue package before the voters. And everyone — including the mayor — needs to campaign hard for it.

The city also needs to look at the rainy-day fund, money set aside for bad economic times. Only a small amount of the close to $100 million now in that fund is available in any one year, but that rule might have to be changed.

This crisis is an opportunity — a chance to examine how the city’s current revenue sources are unfair, unstable, and unwieldy. Why are business taxes flat (big corporations and small businesses pay the same rate)? Why does San Francisco rely so much on property and transfer taxes, which shift radically with economic ups and downs? And of course, a public power system would generate enough money to cover a huge part of the deficit. The supervisors need to find an immediate revenue-based solution, but should also start creating a serious task force to overhaul the entire revenue side of the budget. Today.

Making the Transbay Terminal work

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December 10, 2008

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EDITORIAL The Transbay Terminal project is way too important to get bogged down in a pointless political fight. But that’s what’s going on — and it’s the responsibility of the terminal project director, Maria Ayerdi-Kaplan, to put an end to it.

Ten years from now, the terminal is supposed to be a centerpiece in the city’s transportation infrastructure. Buses from around the Bay Area will pick up and unload passengers upstairs, while Caltrain and the new high-speed trains from Los Angeles stop below ground. Shops, restaurants, and other services should make it a grand San Francisco landmark, like the great urban train stations of years past.

As Steven T. Jones reports in this issue, the project is breaking ground this week. But there’s currently not nearly enough funding secured for the rail component.

It’s going to be expensive to bring trains into the new terminal. The Caltrain line now ends at Fourth and King streets; extending it a mile or so (and boring the necessary tunnels) will cost more than $2 billion. The full build-out, including the platforms, will run close to $3 billion. As of today, the terminal authority has only shaky commitments for about $600 million of that.

The project plans mandate a multiuse terminal for trains and buses. And Ayerdi-Kaplan promised us, repeatedly, that there’s no way the project will end up getting built without the facilities for rail in the basement.

But Quentin Kopp, a retired judge who heads the state’s high-speed rail agency, has nothing but harsh words for Ayerdi-Kaplan and her operation. He insists that she hasn’t been working with him and that none of the $10 billion in bond money approved in November for the project will go to extend the tracks beyond the existing Caltrain terminal at Fourth and King. In fact, Kopp is making noises about keeping the end of the line exactly where it is today.

That would be a mistake — building an adequate terminal for high-speed rail at its present location would cost at least $750 million, money that would be better spent funding the downtown extension. But Kopp has some legitimate gripes. Ayerdi-Kaplan, who is supposed to be building the station that will serve as the northern anchor for high-speed rail, has met with Kopp only once. She’s going ahead with the project before she has any guarantees that even the framework for the underground station will be funded. And frankly, it’s not going to work for the head of the Transbay Terminal project to remain at odds with the head of the high-speed rail authority.

Ayerdi-Kaplan has managed to secure money for the first part of this project, which is an accomplishment (even if the city is going to have to accept a giant, hideous skyscraper as part of the deal). But building the Transbay Terminal with no rail connection would be a disastrous waste of money — and waiting and hoping for more money later isn’t a very good financing plan.

At this point, the project is also as much a political challenge as a fiscal and management problem. Ayerdi-Kaplan needs to demonstrate, and quickly, that she can mend fences with Kopp and get the two agencies working together — or the Transbay Joint Powers Authority, which oversees Ayerdi-Kaplan’s work, needs to step in.

Stop PG&E’s corporate welfare

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December 3, 2008

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EDITORIAL Just in time for the holiday season — and the colder weather — Pacific Gas and Electric Co. wants to shift millions of dollars in fees off big industrial customers and force residential consumers to pay more for natural gas.

The move would set a terrible precedent, and San Francisco officials should join the consumer groups that are calling on the California Public Utilities Commission to reject the plan.

At issue is California Alternative Rates for Energy (CARE), a state-mandated program that helps low-income consumers pay for basic gas service — enough to heat their homes and cook their food. CARE costs PG&E nothing; the entire subsidy system is paid for by modest surcharges on every utility bill in the state. But now the biggest gas users — giant corporations like Exxon Mobil and Chevron — want to stop paying the surcharge, and PG&E, along with San Diego Gas and Electric and Southern California Edison, is taking up their cause. The three giant utilities have asked the CPUC to reduce their subsidy contribution by $90 million. Residential customers would pick up the slack. Why? Jeff Smith, a PG&E spokesman, told Los Angeles Times columnist David Lazarus that "We’ve got to try to help make it more attractive for businesses to do business in California."

But Chevron and Exxon Mobil aren’t suffering from a hostile business climate in this state. Both have reported record profits in the past year. The CEO of Exxon Mobil, Rex Tillerson, was paid $16.7 million; Chevron’s CEO, David O’Reilly, made $15.74 million. The fee shift wouldn’t help small businesses much; it’s based on how much energy a customer uses, so the big energy-intensive industries pay the most.

The best way to boost the business climate in this recession era is to promote consumer spending — which means putting more money in the pockets of residents. Raising the gas bills of people who are already hurting will have the opposite effect.

"It’s an absolute outrage that the biggest companies would be given a discount on the backs of ratepayers," Mindy Spatt, media advocacy director at The Utility Reform Network (TURN), told us. "Everyone’s so worried about making the climate good for businesses, but what about the climate for people?"

A CPUC administrative law judge ruled against the utilities in November, but the case will go to the full commission, possibly as soon as Dec. 18. (Details are online at the Bruce Blog at sfbg.com.)

San Francisco has an interest in the outcome, since the city’s economy will take another hit if PG&E gets away with this. And, of course, it’s ironic that the utility would take this step just after it spent $10 million to defeat a local public-power measure (which would have lowered electric rates and helped both small and large businesses, as well as consumers).

The supervisors ought to pass a resolution opposing the plan and City Attorney Dennis Herrera should file a formal statement of opposition on behalf of the city.

In another front on another battleground, state assemblymember Tom Ammiano and state senator Mark Leno are introducing a joint resolution that would put the Legislature on record as supporting the legal challenge to the same-sex marriage ban, Proposition 8, and as raising concerns that the measure violates the equal protection and separation of powers safeguarded in the state constitution (see "Tyranny of the majority," 11/26/08).

Leno told us that the intent isn’t to put pressure on the California Supreme Court, which will begin considering the case in January, but to make clear the Legislature’s intent that substantial changes to the constitution such as this should go through the more cumbersome revision process.

Joining Leno and Ammiano in sponsoring the bill are Assembly Speaker Karen Bass and Assemblymember John Perez, and state senate president Darrell Steinberg and state senator Christine Kehoe. Leno said he expects others to sign on as well. It’s a solid idea, and the Legislature should approve it.

Fueling change

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November 25, 2008

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EDITORIAL As a lame duck Board of Supervisors winds down, and the economic crisis and bloody budget cuts absorb most of the political focus at City Hall, there’s a major environmental issue creeping toward a January deadline — and city officials need to present a united front.

At issue is the Mirant power plant in Potrero Hill, an aging fossil fuel dinosaur that has been belching pollution into the southeastern part of the city for years. It’s been hard to shut down — the California Independent System Operator (Cal-ISO), the regulatory agency that controls the electric grid, wants some sort of generating facility inside the city lines. Sup. Aaron Peskin, backed originally by Mayor Gavin Newsom, sought to replace the Mirant plant with city-owned combustion turbines — so-called peakers — that would run only when needed. But Pacific Gas and Electric Co., fearing city ownership of power production, fought that proposal, and some environmentalists, arguing that the city should build no new fossil fuel plants at all, also opposed the plan.

On May 5, seven PG&E lobbyists descended on the Mayor’s Office and gave Newsom his marching orders: drop the peakers proposal or we’ll spend whatever is necessary to kill it. Newsom suddenly decided he didn’t like the peakers after all, and started pushing a PG&E-backed alternative: the Mirant plant, which runs on diesel and natural gas, could be converted to run entirely on natural gas, thereby reducing emissions.

The emissions numbers are pretty complicated. If the city ran the natural-gas-fired peakers for only a limited amount of time, they would emit less pollution than the Mirant plant. Obviously neither option is pollution-free; neither is sustainable; and neither is perfect.

Still, the worst of all possible alternatives would be allowing Mirant to continue to operate a private plant. At least the peakers would be city-owned and city-run. The city would have some control over how often they were fired up and could shut them down when more renewable technology becomes available. The Mirant plant — even after a retrofit — would continue burning fossil fuels; the private company would continue to profit; and the city would have no control at all.

Besides, it’s not clear that the plant even can be retrofitted for natural gas. The project that Newsom, PG&E, and Mirant are proposing has never been done before. Mirant may not be able to get the financing; the technology may not exist.

Which means that it’s entirely possible nothing will change. If all goes the way PG&E wants, the city will abandons the peakers, the dirty Mirant plant will continue to run without a retrofit, and the people of southeast San Francisco will continue to suffer.

But there’s a problem facing Mirant, and it could potentially change the whole picture. The plant sucks 200 million gallons of water out of the bay every day for cooling — and its Regional Water Quality Control Board permit expires at the end of this year. The board has said it’s not inclined to renew the permit, since the plant can’t meet modern water-quality standards. So as of January, Mirant could be forced to shut the plant anyway — unless the company, and Cal-ISO, find a way to force the water board to back down.

That’s where the city comes in. The mayor, the supervisors, and City Attorney Dennis Herrera should publicly inform both the water board and Cal- ISO that San Francisco does not want the permit renewed for the current Mirant plant. Even if Newsom thinks the facility can be upgraded, it’s hard to argue that the existing plant is anything but a disaster. And unless and until there’s a credible, peer-reviewed retrofit plan, Newsom has no business siding with Mirant and PG&E.

The water board could force the issue. If the Mirant plant has to close, the city either needs to come back with a peaker plan that environmentalists can accept or find a way to meet Cal-ISO’s mandates without new fossil fuel generation. That sounds like an excellent outcome to us. *

Clean energy

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November 25, 2008

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

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

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

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

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

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

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

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

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

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

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

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

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

Fighting Newsom’s mid-year cuts

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November 18, 2008

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EDITORIAL If Mayor Gavin Newsom moves forward aggressively with mid-year cuts to the city budget, a lame duck Board of Supervisors with four veterans — including the board president and chair of the Budget Committee — on their way out the door could be voting on harsh reductions in city spending on health care, parks, and other services. That’s not the best way to make policy; we’d rather the cuts go to the new board, which will be dealing with next year’s budget anyway. But if the mayor is pushing reductions now, the current board needs to act aggressively and quickly to be sure that the mayor’s wrongheaded priorities don’t carry the day.

We recognize that the city has money problems. Like every other taxpayer-financed entity in America, San Francisco is getting hit hard by the recession. When retail sales drop, so do local sales taxes. When real estate values plummet, so do property taxes receipts. And while some prominent economists are urging President-elect Barack Obama to pour federal money into cities this spring, nobody can count on that happening.

City Controller Ben Rosenfield is projecting that the city will be around $100 million short of cash by the end of the fiscal year. And since California cities (unlike the federal government) can’t run a deficit, that money has to come from somewhere. (Fortunately, the red ink won’t be as bad as it might have been — with little help from the mayor, Sup. Aaron Peskin got two new revenue measures passed in November that will bring some $50 million more into city coffers).

Newsom’s chief target at this point is the Department of Public Health, which is facing more than $256 million in cuts. That’s on top of all the cuts the department has had to absorb over the past two years — and it will cut deeply into the city’s ability to maintain its landmark Healthy San Francisco program. The Recreation and Park Department, libraries, and Muni will face cutbacks too, and there’s almost certainly a Muni fare hike (essentially a tax on the poor) on the horizon.

But there’s no talk of reducing or eliminating any of the mayor’s pet programs — like the 311 call center, which is a fine service but perhaps not as important as medical staff at SF General — or cutting significantly into his own office spending.

And, as always, the mayor has failed to look at any additional sources of revenue (with the possible exception of new parking meters in Golden Gate Park and at Marina Green). It’s particularly frustrating that Newsom and his hired gun, Eric Jaye, pushed so hard to help Pacific Gas and Electric Co. defeat the Clean Energy Act when public power would be the source of hundreds of millions in annual revenue. (PG&E killed 10 other ballot measures that would have brought cheap Hetch Hetchy public power to San Francisco, the largest source of potential new revenue for the city, and the private monopoly yanks more than $650 million a year out of the city in high rates, according to a Guardian study.)

The supervisors don’t have to wait for the mayor to propose cuts and then react. They can begin to move now. They can begin to identify their own set of cuts and revenue enhancements — and can begin establishing an alternative set of priorities. Is it better to cut 311 and the mayor’s special global warming deputy than to cut nurses at General? Is it better to close some redundant fire stations than cut hours at libraries? Should parking meters and garage fees go up downtown before city parks get meters? Back in 1973, in his first run for supervisor, Harvey Milk proposed eliminating the police vice squad (see "I remember Harvey"). That’s an idea whose time may have come again.

The point is that the mayor, who is weak and more focused on running for governor than on running the city, shouldn’t be driving the fiscal agenda alone. The supervisors need to either agree that they won’t act on cuts until the new board takes office or offer some alternative plans today.

Clean energy: the next moves

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November 11, 2008