David Sjostedt

Milagritos Lopez, or ‘Millie’ as she’s more commonly known, commutes every day from the city of Richmond to sell jewelry by the 24th St. BART Station. After immigrating from Peru to Los Angeles in 1993, Lopez moved to the Bay Area over a decade ago. She started her jewelry business in 2015 and says she has always done everything on the up-and-up, paying state business taxes every three months along with an annual $260 permitting fee to the San Francisco Police Department.&nbsp;

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Milagritos Lopez, or ‘Millie’ as she’s more commonly known, commutes every day from the city of Richmond to sell jewelry by the 24th St. BART Station. After immigrating from Peru to Los Angeles in 1993, Lopez moved to the Bay Area over a decade ago. She started her jewelry business in 2015 and says she has always done everything on the up-and-up, paying state business taxes every three months along with an annual $260 permitting fee to the San Francisco Police Department.&nbsp;

But Millie said that the SFPD permit has been a waste of money because officers are unwilling to enforce the rules that come with it. Unpermitted vendors sell similar products within two blocks of her space, she says, in clear violation of<a href="https://www.sanfranciscopolice.org/sites/default/files/FileCenter/Documents/14183-peddler.pdf"> peddler permit regulations.</a>

But Millie said that the SFPD permit has been a waste of money because officers are unwilling to enforce the rules that come with it. Unpermitted vendors sell similar products within two blocks of her space, she says, in clear violation of<a href="https://www.sanfranciscopolice.org/sites/default/files/FileCenter/Documents/14183-peddler.pdf"> peddler permit regulations.</a>

Now, Mission vendors fear that <a href="https://sfstandard.com/mayor-announces-crackdown-on-tenderloin-crime-in-fiery-press-conference/">recent legislation</a> focused on prohibiting unpermitted street peddling in the Tenderloin will drive even more unlicensed sellers to the Mission.&nbsp;

Now, Mission vendors fear that <a href="https://sfstandard.com/mayor-announces-crackdown-on-tenderloin-crime-in-fiery-press-conference/">recent legislation</a> focused on prohibiting unpermitted street peddling in the Tenderloin will drive even more unlicensed sellers to the Mission.&nbsp;

Milagritos Lopez, who has been selling jewelry since 2015, assists a customer at her vendor site on the corner of Mission and 24th streets in San Francisco on Dec. 21, 2021. | James Wyatt

<figure class="wp-block-image size-large"><img height="1663" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2021/12/StreetVendor_JamesWyatt_SFS_10-2500x1663.jpg" alt="" class="wp-image-20558"/><figcaption>Milagritos Lopez, who has been selling jewelry since 2015, assists a customer at her vendor site on the corner of Mission and 24th streets in San Francisco on Dec. 21, 2021. | James Wyatt</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2021/12/StreetVendor_JamesWyatt_SFS_10-2500x1663.jpg" alt="" class="wp-image-20558"/><figcaption>Milagritos Lopez, who has been selling jewelry since 2015, assists a customer at her vendor site on the corner of Mission and 24th streets in San Francisco on Dec. 21, 2021. | James Wyatt</figcaption></figure>

“They’re going to close up UN Plaza and [vendors] are going to move right down the street and put their wares on Mission Street,” said Santiago Lerma, a legislative aide for Supervisor Hillary Ronen, who represents the Mission. “We have to do something, I’m getting small business owners crying because there are people selling the same products out in front of their window for 50% cheaper.”&nbsp;

“They’re going to close up UN Plaza and [vendors] are going to move right down the street and put their wares on Mission Street,” said Santiago Lerma, a legislative aide for Supervisor Hillary Ronen, who represents the Mission. “We have to do something, I’m getting small business owners crying because there are people selling the same products out in front of their window for 50% cheaper.”&nbsp;

In August, Supervisor Aaron Peskin introduced legislation requiring tighter enforcement of rules, including tax collection and health and safety regulations, for vendors along the city’s waterfront. The new proposal, authored by Supervisor Ahsha Safai and introduced by Mayor London Breed last week, expands on the August legislation to adopt city-wide regulations for street vendors and shift permitting responsibilities from the police to the Department of Public Works.

In August, Supervisor Aaron Peskin introduced legislation requiring tighter enforcement of rules, including tax collection and health and safety regulations, for vendors along the city’s waterfront. The new proposal, authored by Supervisor Ahsha Safai and introduced by Mayor London Breed last week, expands on the August legislation to adopt city-wide regulations for street vendors and shift permitting responsibilities from the police to the Department of Public Works.

The new legislation would introduce “exclusion zones” that will primarily focus on prohibiting the sale of goods at UN Plaza. It also enables the director of DPW to expand limits on street vending for reasons related to public health, safety, and welfare in accordance with a state law that decriminalized street vending in 2018.&nbsp;

The new legislation would introduce “exclusion zones” that will primarily focus on prohibiting the sale of goods at UN Plaza. It also enables the director of DPW to expand limits on street vending for reasons related to public health, safety, and welfare in accordance with a state law that decriminalized street vending in 2018.&nbsp;

In November, following <a href="https://sfstandard.com/merchants-remain-uneasy-but-shoppers-unfazed-following-union-square-thefts/">mass thefts</a> at luxury stores in Union Square, SFPD set up physical barriers in UN Plaza where people used to sell goods–partly in response to concerns that stolen items were immediately being sold on nearby streets. But the barriers only resulted in peddlers moving across the street or to the end of the block.&nbsp;

In November, following <a href="https://sfstandard.com/merchants-remain-uneasy-but-shoppers-unfazed-following-union-square-thefts/">mass thefts</a> at luxury stores in Union Square, SFPD set up physical barriers in UN Plaza where people used to sell goods–partly in response to concerns that stolen items were immediately being sold on nearby streets. But the barriers only resulted in peddlers moving across the street or to the end of the block.&nbsp;

Like many cities, San Francisco has long struggled to organize street vendors. In 2019, Ronen’s office worked with community members to help organize a legal flea market in the Mission, sanctioning a section of the nearby Julian Street for vendors to sell their goods. The plan came as a response to an overwhelming number of unpermitted peddlers who were showing up next to a licensed flea market known as La Pulgita.&nbsp;

Like many cities, San Francisco has long struggled to organize street vendors. In 2019, Ronen’s office worked with community members to help organize a legal flea market in the Mission, sanctioning a section of the nearby Julian Street for vendors to sell their goods. The plan came as a response to an overwhelming number of unpermitted peddlers who were showing up next to a licensed flea market known as La Pulgita.&nbsp;

But Lerma said that despite his staff’s efforts, the market became unmanageable.&nbsp;

But Lerma said that despite his staff’s efforts, the market became unmanageable.&nbsp;

“More vendors came out and started to flood into the streets,” Lerma said. “It just grew and grew. It was so staff–intensive and eventually became untenable.”&nbsp;

“More vendors came out and started to flood into the streets,” Lerma said. “It just grew and grew. It was so staff–intensive and eventually became untenable.”&nbsp;

Gaby Ramos, a director for the La Pulgita weekend flea market, said that unpermitted vendors on the sidewalks create accessibility issues for her customers–and she suspects the market’s $25 fee and strict no-drug policy are dissuading unpermitted vendors from signing up.

Gaby Ramos, a director for the La Pulgita weekend flea market, said that unpermitted vendors on the sidewalks create accessibility issues for her customers–and she suspects the market’s $25 fee and strict no-drug policy are dissuading unpermitted vendors from signing up.

“The people on the streets are welcome to come to our flea market,” Ramos said. “A lot of people that sell in the streets just don&#8217;t want to pay and they just don&#8217;t want to follow the rules.”

“The people on the streets are welcome to come to our flea market,” Ramos said. “A lot of people that sell in the streets just don't want to pay and they just don't want to follow the rules.”

“The people on the streets are welcome to come to our flea market,” Ramos said. “A lot of people that sell in the streets just don&#8217;t want to pay and they just don&#8217;t want to follow the rules.”

Miguel Guerrero, who lives in Daly City, displays watches for sale that he has restored on Mission Street in San Francisco on Dec. 4, 2021. | James Wyatt

<figure class="wp-block-image size-large"><img height="1663" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2021/12/StreetVendor_JamesWyatt_SFS_3-1-2500x1663.jpg" alt="" class="wp-image-20570"/><figcaption>Miguel Guerrero displays watches for sale that he has restored on Mission Street in San Francisco on Dec. 4, 2021. | James Wyatt</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2021/12/StreetVendor_JamesWyatt_SFS_3-1-2500x1663.jpg" alt="" class="wp-image-20570"/><figcaption>Miguel Guerrero displays watches for sale that he has restored on Mission Street in San Francisco on Dec. 4, 2021. | James Wyatt</figcaption></figure>

Lerma said that Ronen’s office will be actively working with Breed and Safai to help refine the permitting process with the interest of well-intentioned vendors in mind.&nbsp;

Lerma said that Ronen’s office will be actively working with Breed and Safai to help refine the permitting process with the interest of well-intentioned vendors in mind.&nbsp;

“A lot of [street vendors] are monolingual, they’re immigrants that don&#8217;t really have a lot of knowledge of how to navigate city government,” Lerma said. “We&#8217;re not criminalizing folks that are legitimately just trying to make a living. But that part is going to be problematic given the nature of what people are selling … There’s a lot of stuff people don&#8217;t necessarily have a receipt for.”

“A lot of [street vendors] are monolingual, they’re immigrants that don't really have a lot of knowledge of how to navigate city government,” Lerma said. “We're not criminalizing folks that are legitimately just trying to make a living. But that part is going to be problematic given the nature of what people are selling … There’s a lot of stuff people don't necessarily have a receipt for.”

“A lot of [street vendors] are monolingual, they’re immigrants that don&#8217;t really have a lot of knowledge of how to navigate city government,” Lerma said. “We&#8217;re not criminalizing folks that are legitimately just trying to make a living. But that part is going to be problematic given the nature of what people are selling … There’s a lot of stuff people don&#8217;t necessarily have a receipt for.”

Miguel Guerrero, an unpermitted watch seller on Mission Street, said that if the city was to boot him from his spot on 14th street he would ultimately find somewhere else to sell his goods. Guerrero said he buys watches from swap meets or pawn shops and refurbishes them, and he hopes to one day open his own brick and mortar store.&nbsp;

Miguel Guerrero, an unpermitted watch seller on Mission Street, said that if the city was to boot him from his spot on 14th street he would ultimately find somewhere else to sell his goods. Guerrero said he buys watches from swap meets or pawn shops and refurbishes them, and he hopes to one day open his own brick and mortar store.&nbsp;

Guerrero began selling watches on the weekends over two years ago to supplement his income as a full-time truck driver. He said his watches make him about $130 a day, but any additional overhead —&nbsp;such as permitting fees and taxes — would make it difficult to make ends meet.&nbsp;

Guerrero began selling watches on the weekends over two years ago to supplement his income as a full-time truck driver. He said his watches make him about $130 a day, but any additional overhead —&nbsp;such as permitting fees and taxes — would make it difficult to make ends meet.&nbsp;

“The cost of living in San Francisco is hard,” Guerrero said. “I&#8217;m just glad I&#8217;m able to make it, but I need a little extra and that&#8217;s why I do this on the side.”&nbsp;

“The cost of living in San Francisco is hard,” Guerrero said. “I'm just glad I'm able to make it, but I need a little extra and that's why I do this on the side.”&nbsp;

“The cost of living in San Francisco is hard,” Guerrero said. “I&#8217;m just glad I&#8217;m able to make it, but I need a little extra and that&#8217;s why I do this on the side.”&nbsp;

Breed’s Tenderloin crackdown has Mission Street vendors fretting about an influx

Michael Barba

San Francisco’s top environmental official has been swept up in an anti-corruption investigation for soliciting a $25,000 donation from Recology at the same time her department was finalizing plans to award the trash-hauling giant a lucrative contract.

San Francisco’s top environmental official has been swept up in an anti-corruption investigation for soliciting a $25,000 donation from Recology at the same time her department was finalizing plans to award the trash-hauling giant a lucrative contract.

Debbie Raphael, director of the <a href="https://sfenvironment.org/">Department of the Environment</a>, asked Recology for the donation in early 2015 to sponsor a series of climate change awareness events featuring the late Mayor Ed Lee, according to documents obtained through a public records request. Raphael solicited the donation as her department was preparing to award Recology a contract to haul the city’s waste to its landfill in Solano County.

Debbie Raphael, director of the <a href="https://sfenvironment.org/">Department of the Environment</a>, asked Recology for the donation in early 2015 to sponsor a series of climate change awareness events featuring the late Mayor Ed Lee, according to documents obtained through a public records request. Raphael solicited the donation as her department was preparing to award Recology a contract to haul the city’s waste to its landfill in Solano County.

While nearly seven years have passed since the donation was made, the payment is now facing scrutiny in the wake of a corruption scandal that has exposed the prevalence of “pay-to-play” politics at City Hall. The scandal, which first became public in early 2020 when federal authorities charged former Public Works head Mohammed Nuru for accepting bribes, has unfolded into a dozen criminal cases and a cascade of resignations by high-ranking officials who mixed business with pleasure.

While nearly seven years have passed since the donation was made, the payment is now facing scrutiny in the wake of a corruption scandal that has exposed the prevalence of “pay-to-play” politics at City Hall. The scandal, which first became public in early 2020 when federal authorities charged former Public Works head Mohammed Nuru for accepting bribes, has unfolded into a dozen criminal cases and a cascade of resignations by high-ranking officials who mixed business with pleasure.

Raphael solicited the donation from Paul Giusti, the same former Recology executive who pleaded guilty to conspiring to bribe Nuru. Giusti admitted to arranging a steady stream of donations from the firm that Nuru used to throw staff parties and events.

Raphael solicited the donation from Paul Giusti, the same former Recology executive who pleaded guilty to conspiring to bribe Nuru. Giusti admitted to arranging a steady stream of donations from the firm that Nuru used to throw staff parties and events.

Charles Sheehan, the Department of the Environment’s spokesperson, said in an email that Recology’s donation did not influence Raphael’s role in awarding the landfill contract. While negotiations over the contract were ongoing at the time of the donation, Sheehan said, the “bulk of the terms” were settled before Raphael became director and that she was “never directly part of any active negotiations with Recology.”

Charles Sheehan, the Department of the Environment’s spokesperson, said in an email that Recology’s donation did not influence Raphael’s role in awarding the landfill contract. While negotiations over the contract were ongoing at the time of the donation, Sheehan said, the “bulk of the terms” were settled before Raphael became director and that she was “never directly part of any active negotiations with Recology.”

Raphael has previously acknowledged she inappropriately accepted small personal gifts and meals from Recology, which she later refunded.

Raphael has previously acknowledged she inappropriately accepted small personal gifts and meals from Recology, which she later refunded.

The $25,000 payment is now being reviewed as part of a broader investigation by the City Attorney’s Office and Controller’s Office into the relationship between the environmental department and Recology. In February, <a href="https://sfstandard.com/city-hall/city-attorney-subpoenas-bank-records-trash-recology-sf-environmental-agency/">City Attorney David Chiu subpoenaed records from the nonprofit</a> that facilitated the donation, Community Initiatives, for evidence of potential ethics violations.

The $25,000 payment is now being reviewed as part of a broader investigation by the City Attorney’s Office and Controller’s Office into the relationship between the environmental department and Recology. In February, <a href="https://sfstandard.com/city-hall/city-attorney-subpoenas-bank-records-trash-recology-sf-environmental-agency/">City Attorney David Chiu subpoenaed records from the nonprofit</a> that facilitated the donation, Community Initiatives, for evidence of potential ethics violations.

“The issues around contributions made by Recology on behalf of the Department of the Environment, including a $25,000 contribution, are known to us and will be a subject of the review,” Controller Ben Rosenfield said in a statement to The Standard.

“The issues around contributions made by Recology on behalf of the Department of the Environment, including a $25,000 contribution, are known to us and will be a subject of the review,” Controller Ben Rosenfield said in a statement to The Standard.

The Department of the Environment and Recology are inextricably linked. In addition to working closely with Recology to reduce waste, the department is largely funded by the rates San Franciscans pay the firm for trash collection. The department also plays a role in the process for setting Recology’s rates.

The Department of the Environment and Recology are inextricably linked. In addition to working closely with Recology to reduce waste, the department is largely funded by the rates San Franciscans pay the firm for trash collection. The department also plays a role in the process for setting Recology’s rates.

Raphael, who previously served as the director of the state’s Department of Toxic Substances Control, has led the Department of the Environment since her appointment by Mayor Lee in May 2014.

Raphael, who previously served as the director of the state’s Department of Toxic Substances Control, has led the Department of the Environment since her appointment by Mayor Lee in May 2014.

<h2 class="wp-block-heading" id="h-awkward-timing">Awkward Timing</h2>

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<h2 id="h-awkward-timing">Awkward Timing</h2>

In March 2015, the Department of the Environment was closing out a decade of deliberations on where San Francisco should dump its garbage when Raphael solicited the $25,000 donation from Recology.&nbsp; Raphael wanted Recology to help pay for a bus tour on Earth Day and a climate reception that summer, which coincided with Mayor Lee welcoming the U.S. Conference of Mayors to San Francisco.

In March 2015, the Department of the Environment was closing out a decade of deliberations on where San Francisco should dump its garbage when Raphael solicited the $25,000 donation from Recology.&nbsp; Raphael wanted Recology to help pay for a bus tour on Earth Day and a climate reception that summer, which coincided with Mayor Lee welcoming the U.S. Conference of Mayors to San Francisco.

A day after Raphael emailed Giusti asking him if Recology would consider sponsoring the events, Giusti replied that he was “trying to sell Recology to take one of the higher sponsorships as a business development opportunity during the Mayor’s [Conference].”

A day after Raphael emailed Giusti asking him if Recology would consider sponsoring the events, Giusti replied that he was “trying to sell Recology to take one of the higher sponsorships as a business development opportunity during the Mayor’s [Conference].”

Recology chose to contribute the maximum $25,000 donation for the events, becoming a featured “Emerald Green” sponsor. The sponsorship ensured that Giusti and other Recology employees had seats on a Muni bus branded with the company’s logo in celebration of Earth Day. Other people who were reserved seats on the bus included a who’s who of the corruption scandal: Nuru; former San Francisco Public Utilities Commission chief Harlan Kelly; former City Administrator Naomi Kelly; and former Department of Building Inspection head Tom Hui. Nuru has since pleaded guilty to fraud and the four others have all resigned. Harlan Kelly is also facing charges.

Recology chose to contribute the maximum $25,000 donation for the events, becoming a featured “Emerald Green” sponsor. The sponsorship ensured that Giusti and other Recology employees had seats on a Muni bus branded with the company’s logo in celebration of Earth Day. Other people who were reserved seats on the bus included a who’s who of the corruption scandal: Nuru; former San Francisco Public Utilities Commission chief Harlan Kelly; former City Administrator Naomi Kelly; and former Department of Building Inspection head Tom Hui. Nuru has since pleaded guilty to fraud and the four others have all resigned. Harlan Kelly is also facing charges.

Records show Recology officially cut the $25,000 check months later on May 19, 2015. At the time, its landfill proposal was making its way through the approval process at City Hall, which included a hearing two days later at the Planning Commission.

Records show Recology officially cut the $25,000 check months later on May 19, 2015. At the time, its landfill proposal was making its way through the approval process at City Hall, which included a hearing two days later at the Planning Commission.

Instead of receiving the funding directly, the department had its nonprofit partner, Friends of San Francisco Environment, accept the check through its fiscal sponsor, Community Initiatives. Friends of SF Environment is staffed by department employees.

Instead of receiving the funding directly, the department had its nonprofit partner, Friends of San Francisco Environment, accept the check through its fiscal sponsor, Community Initiatives. Friends of SF Environment is staffed by department employees.

On July 22, 2015, Raphael signed a grant agreement with both nonprofits to disburse the funds from Recology and other sponsors to the city. That same day, records show, the department executed and approved Recology’s landfill contract, giving the company a key piece of San Francisco’s garbage business on top of its long-running monopoly on trash collection in the city. Raphael also signed the landfill contract.

On July 22, 2015, Raphael signed a grant agreement with both nonprofits to disburse the funds from Recology and other sponsors to the city. That same day, records show, the department executed and approved Recology’s landfill contract, giving the company a key piece of San Francisco’s garbage business on top of its long-running monopoly on trash collection in the city. Raphael also signed the landfill contract.

When the department sought to use the donated funds to cover Mayor Lee’s travel expenses to visit the Vatican that summer for a climate change conference, Community Initiatives objected.

When the department sought to use the donated funds to cover Mayor Lee’s travel expenses to visit the Vatican that summer for a climate change conference, Community Initiatives objected.

“We have concerns about whether it’s appropriate for the project to be paying for this trip because we don’t see how this activity furthers your mission to sustain a healthy SF,” a Community Initiatives program specialist wrote in an email.

“We have concerns about whether it’s appropriate for the project to be paying for this trip because we don’t see how this activity furthers your mission to sustain a healthy SF,” a Community Initiatives program specialist wrote in an email.

While city law requires departments to obtain approval from the Board of Supervisors for gifts of over $10,000 and to disclose gifts of more than $100 on their website, no records could be found of the department doing either for Recology’s 2015 donation.

While city law requires departments to obtain approval from the Board of Supervisors for gifts of over $10,000 and to disclose gifts of more than $100 on their website, no records could be found of the department doing either for Recology’s 2015 donation.

Sheehan, the department of environment spokesman, said sponsors to the events were “announced, acknowledged, and publicly thanked.” But he said the department did not have to disclose the $25,000 donation because Recology did not give the money directly to the agency.

Sheehan, the department of environment spokesman, said sponsors to the events were “announced, acknowledged, and publicly thanked.” But he said the department did not have to disclose the $25,000 donation because Recology did not give the money directly to the agency.

“The department never received the $25,000 sponsorship,” Sheehan said. “It was received by Friends of SFE and therefore was not a gift to the Department.”

“The department never received the $25,000 sponsorship,” Sheehan said. “It was received by Friends of SFE and therefore was not a gift to the Department.”

Recology did not respond to a request for comment, and an attorney representing Giusti in his criminal case also did not return a request for comment.

Recology did not respond to a request for comment, and an attorney representing Giusti in his criminal case also did not return a request for comment.

Previously, the Controller’s Office has found that city contractors donating to nonprofits on behalf of a city agency can “create a ‘pay-to-play’ relationship.” In a September 2020 report, the controller found that a nonprofit can serve as an intermediary when a contractor donates money to influence or attempts to influence city business.

Previously, the Controller’s Office has found that city contractors donating to nonprofits on behalf of a city agency can “create a ‘pay-to-play’ relationship.” In a September 2020 report, the controller found that a nonprofit can serve as an intermediary when a contractor donates money to influence or attempts to influence city business.

Retired Judge Quentin Kopp, a former member of the city’s Ethics Commission, said the situation surrounding Recology’s donation on behalf of the Department of the Environment seemed unfair. He called for the company’s contract to be nullified, and for the city to put the landfill contract out to bid through a competitive process.

Retired Judge Quentin Kopp, a former member of the city’s Ethics Commission, said the situation surrounding Recology’s donation on behalf of the Department of the Environment seemed unfair. He called for the company’s contract to be nullified, and for the city to put the landfill contract out to bid through a competitive process.

“If you are the donor to the charity, that gives you a favored position in terms of not only the contract, but also the terms and conditions of that contract with the city and county of San Francisco,” Kopp said.

“If you are the donor to the charity, that gives you a favored position in terms of not only the contract, but also the terms and conditions of that contract with the city and county of San Francisco,” Kopp said.

Supervisor Aaron Peskin, who pushed legislation through the Board of Supervisors to ban officials from asking their contractors for donations in response to the Nuru scandal, said there should be both criminal and civil investigations into the donation.

Supervisor Aaron Peskin, who pushed legislation through the Board of Supervisors to ban officials from asking their contractors for donations in response to the Nuru scandal, said there should be both criminal and civil investigations into the donation.

“Having learned about this, it makes me sick to my stomach,” Peskin said. “If the contract was entered into under fraudulent pretenses, it may be invalid.”

“Having learned about this, it makes me sick to my stomach,” Peskin said. “If the contract was entered into under fraudulent pretenses, it may be invalid.”

But Supervisor Ahsha Safai had a different view. Safai said it was accepted practice for departments to ask their contractors to sponsor events until the Board of Supervisors changed the rules around so-called “behested payments” beginning this year.

But Supervisor Ahsha Safai had a different view. Safai said it was accepted practice for departments to ask their contractors to sponsor events until the Board of Supervisors changed the rules around so-called “behested payments” beginning this year.

“On its face it doesn&#8217;t seem nefarious but it certainly seems like it’s something that should have been disclosed,” Safai said.

“On its face it doesn't seem nefarious but it certainly seems like it’s something that should have been disclosed,” Safai said.

“On its face it doesn&#8217;t seem nefarious but it certainly seems like it’s something that should have been disclosed,” Safai said.

Privately, department employees have acknowledged in internal emails that its past fundraising efforts could open them up to public scrutiny.

Privately, department employees have acknowledged in internal emails that its past fundraising efforts could open them up to public scrutiny.

When federal prosecutors charged Giusti in late 2020, the department was already preparing for a series of public hearings involving Recology. Records show the charges prompted the department to begin reviewing the company’s past donations.

When federal prosecutors charged Giusti in late 2020, the department was already preparing for a series of public hearings involving Recology. Records show the charges prompted the department to begin reviewing the company’s past donations.

“This timing is awkward,” Sheehan wrote in a flustered email exchanged with colleagues. “We are getting prepared on multiple fronts.”

“This timing is awkward,” Sheehan wrote in a flustered email exchanged with colleagues. “We are getting prepared on multiple fronts.”

The $25,000 check is not the only donation Raphael has solicited from Recology.

The $25,000 check is not the only donation Raphael has solicited from Recology.

In 2019, Recology contributed $1,100 worth of wine and a $6,400 check for the department’s Earth Day reception, which featured Mayor London Breed. While the department disclosed the $6,400 check as a gift on its website, emails show it never actually received the funding because Friends of SF Environment received the check the following year—when the corruption scandal broke.

In 2019, Recology contributed $1,100 worth of wine and a $6,400 check for the department’s Earth Day reception, which featured Mayor London Breed. While the department disclosed the $6,400 check as a gift on its website, emails show it never actually received the funding because Friends of SF Environment received the check the following year—when the corruption scandal broke.

Sheehan told The Standard that the check was “refunded because there were questions about Recology’s conduct.”

Sheehan told The Standard that the check was “refunded because there were questions about Recology’s conduct.”

Sheehan said the department no longer plans to ask Recology to contribute to its climate awareness events, in accordance with the reforms the scandal forced on City Hall. In addition to the city barring behested payments from contractors, Recology agreed last year that it will no longer contribute money on behalf of city officials as part of a $100 million settlement agreement for overcharging San Francisco customers.

Sheehan said the department no longer plans to ask Recology to contribute to its climate awareness events, in accordance with the reforms the scandal forced on City Hall. In addition to the city barring behested payments from contractors, Recology agreed last year that it will no longer contribute money on behalf of city officials as part of a $100 million settlement agreement for overcharging San Francisco customers.

SF’s environmental agency under scrutiny after director asked Recology for $25k while awarding lucrative trash contract

Sarah Wright

City officials are gearing up for a major battle over legislation that would allow multiple housing units on lots across the city—a hugely consequential change in local development rules that may well end up before voters next year.

City officials are gearing up for a major battle over legislation that would allow multiple housing units on lots across the city—a hugely consequential change in local development rules that may well end up before voters next year.

Faced with sky-high rents and a state mandate to build more units, Supervisor Rafael Mandelman kicked off the latest effort to stoke housing construction with a proposed zoning change that would allow fourplexes on all lots currently limited to single-family housing. Two fellow supervisors have weighed in with their own proposals to allow fourplexes, but only with extensive affordable housing requirements.&nbsp;

Faced with sky-high rents and a state mandate to build more units, Supervisor Rafael Mandelman kicked off the latest effort to stoke housing construction with a proposed zoning change that would allow fourplexes on all lots currently limited to single-family housing. Two fellow supervisors have weighed in with their own proposals to allow fourplexes, but only with extensive affordable housing requirements.&nbsp;

Now, with a green light in the form of unanimous approval from the city’s Planning Commission, Mandleman’s proposal is farthest along and will likely be taken up by the full Board of Supervisors in late January or early February. But if the proposals fail—or if the board approves a measure with too many restrictions—one pro-housing group says it plans to bring the question in front of voters in the form of a ballot measure.&nbsp;

Now, with a green light in the form of unanimous approval from the city’s Planning Commission, Mandleman’s proposal is farthest along and will likely be taken up by the full Board of Supervisors in late January or early February. But if the proposals fail—or if the board approves a measure with too many restrictions—one pro-housing group says it plans to bring the question in front of voters in the form of a ballot measure.&nbsp;

Corey Smith, deputy director of the Housing Action Coalition, said the organization is working now to write a ballot measure that would upzone all single-family housing to allow fourplexes and enshrine tenant protections. His group would encourage Mayor London Breed to use her power to put the question on the ballot sometime next year.&nbsp;

Corey Smith, deputy director of the Housing Action Coalition, said the organization is working now to write a ballot measure that would upzone all single-family housing to allow fourplexes and enshrine tenant protections. His group would encourage Mayor London Breed to use her power to put the question on the ballot sometime next year.&nbsp;

“If the Board of Supervisors doesn&#8217;t pass an economically feasible [ordinance] &#8230; we are going to be aggressive, and we will go to the ballot collecting signatures,” Smith said.&nbsp;

“If the Board of Supervisors doesn't pass an economically feasible [ordinance] ... we are going to be aggressive, and we will go to the ballot collecting signatures,” Smith said.&nbsp;

“If the Board of Supervisors doesn&#8217;t pass an economically feasible [ordinance] &#8230; we are going to be aggressive, and we will go to the ballot collecting signatures,” Smith said.&nbsp;

The Housing Action Coalition, a local advocacy group, supports Mandelman’s proposal, which, unlike the other two, does not include provisions guaranteeing that new units would have to be affordable. Mandelman introduced the two ordinances that would enact his proposal earlier this year, and <a href="https://sfstandard.com/citywide-fourplex-ordinance-clears-planning-commission/">they were passed unanimously by the Planning Commission in mid-November</a>.&nbsp;

The Housing Action Coalition, a local advocacy group, supports Mandelman’s proposal, which, unlike the other two, does not include provisions guaranteeing that new units would have to be affordable. Mandelman introduced the two ordinances that would enact his proposal earlier this year, and <a href="https://sfstandard.com/citywide-fourplex-ordinance-clears-planning-commission/">they were passed unanimously by the Planning Commission in mid-November</a>.&nbsp;

A provision in Mandelman’s proposal added by the city’s planning department would also allow up to six units on all residential corner lots. Paving the way for these ordinances are two new state laws, Senate Bills 9 and 10, which will go into effect in January of 2022. SB 10 allows proposals like Mandelman’s—or any that allow up to 10 units per residential lot—to pass without waiting for normal environmental review processes, while SB 9 allows all residential lots to be split, effectively doubling the housing potential on any given lot.&nbsp;

A provision in Mandelman’s proposal added by the city’s planning department would also allow up to six units on all residential corner lots. Paving the way for these ordinances are two new state laws, Senate Bills 9 and 10, which will go into effect in January of 2022. SB 10 allows proposals like Mandelman’s—or any that allow up to 10 units per residential lot—to pass without waiting for normal environmental review processes, while SB 9 allows all residential lots to be split, effectively doubling the housing potential on any given lot.&nbsp;

Paired with Mandelman’s ordinances, the laws would open up areas in the city like the Sunset District that were previously closed off to medium- or high-density housing. The ordinances will be reviewed by the board’s land use committee before going in front of the full board.

Paired with Mandelman’s ordinances, the laws would open up areas in the city like the Sunset District that were previously closed off to medium- or high-density housing. The ordinances will be reviewed by the board’s land use committee before going in front of the full board.

&#8220;It feels like we are approaching the home stretch,” Mandelman said.&nbsp;

"It feels like we are approaching the home stretch,” Mandelman said.&nbsp;

&#8220;It feels like we are approaching the home stretch,” Mandelman said.&nbsp;

But his colleagues on the board have other ideas about how to make housing more accessible for San Franciscans.&nbsp;&nbsp;

But his colleagues on the board have other ideas about how to make housing more accessible for San Franciscans.&nbsp;&nbsp;

Earlier this year, Supervisor Gordon Mar introduced his own proposal, which would allow fourplexes citywide so long as the newly built units provide a minimum of two bedrooms and are 100% affordable. His proposal would also institute rental rate caps and set limits on rent increases. Critics, including Smith, say those requirements will make it uneconomical for anyone to build additional units.&nbsp;

Earlier this year, Supervisor Gordon Mar introduced his own proposal, which would allow fourplexes citywide so long as the newly built units provide a minimum of two bedrooms and are 100% affordable. His proposal would also institute rental rate caps and set limits on rent increases. Critics, including Smith, say those requirements will make it uneconomical for anyone to build additional units.&nbsp;

Supervisor Ahsha Safaí, meanwhile, introduced a proposal earlier the month that targets what he calls the “missing middle,” offering developers and owners streamlined project approval if they agree to build additional units on their lots and guarantee that half of them are affordable to anyone making 110% of the city’s median income as a renter, or 140% as an owner.&nbsp;

Supervisor Ahsha Safaí, meanwhile, introduced a proposal earlier the month that targets what he calls the “missing middle,” offering developers and owners streamlined project approval if they agree to build additional units on their lots and guarantee that half of them are affordable to anyone making 110% of the city’s median income as a renter, or 140% as an owner.&nbsp;

Mandelman said he will consider integrating rent control into his ordinances, but said it’s too much to ask small building owners to absorb the costs of the below-market-rate unit requirements included in Mar’s and Safaí’s proposals.

Mandelman said he will consider integrating rent control into his ordinances, but said it’s too much to ask small building owners to absorb the costs of the below-market-rate unit requirements included in Mar’s and Safaí’s proposals.

Dan Sider, chief of staff at the San Francisco Planning Department, said his staff is just starting to look at Mar’s and Safaí’s proposals and has yet to release any recommendations. But he said the planning department agrees that tacking on affordability restrictions to deeds would deter building, thus undermining the goal of creating more housing.

Dan Sider, chief of staff at the San Francisco Planning Department, said his staff is just starting to look at Mar’s and Safaí’s proposals and has yet to release any recommendations. But he said the planning department agrees that tacking on affordability restrictions to deeds would deter building, thus undermining the goal of creating more housing.

“If we ask too much on affordability and we get no units, that&#8217;s not a gain,” Sider said.&nbsp;

“If we ask too much on affordability and we get no units, that's not a gain,” Sider said.&nbsp;

“If we ask too much on affordability and we get no units, that&#8217;s not a gain,” Sider said.&nbsp;

Smith said deed-restricted, below-market-rate unit requirements like those in Mar’s and Safaí’s proposals are a “nonstarter.” He’s also worried about the capacity of the Mayor’s Office of Housing and Community Development to manage an influx of new deed-restricted housing units.&nbsp;

Smith said deed-restricted, below-market-rate unit requirements like those in Mar’s and Safaí’s proposals are a “nonstarter.” He’s also worried about the capacity of the Mayor’s Office of Housing and Community Development to manage an influx of new deed-restricted housing units.&nbsp;

“Every single person we&#8217;ve talked to that builds housing says putting deed-restrictions on housing &#8230; will be an economic disincentive to build housing,” Smith said.&nbsp;&nbsp;

“Every single person we've talked to that builds housing says putting deed-restrictions on housing ... will be an economic disincentive to build housing,” Smith said.&nbsp;&nbsp;

“Every single person we&#8217;ve talked to that builds housing says putting deed-restrictions on housing &#8230; will be an economic disincentive to build housing,” Smith said.&nbsp;&nbsp;

In an email to the San Francisco Standard, Supervisor Matt Haney voiced his support for Mandelman’s legislation, of which he is a co-sponsor. No other supervisors responded to requests for comment for this story.&nbsp;

In an email to the San Francisco Standard, Supervisor Matt Haney voiced his support for Mandelman’s legislation, of which he is a co-sponsor. No other supervisors responded to requests for comment for this story.&nbsp;

In any case, Smith said his group isn’t waiting around. HAC has been collaborating with other pro-housing advocates on a ballot measure with language similar to Mandelman’s proposal should the ordinances fail at the Board of Supervisors, which he calls the most anti-housing board in the city’s history. 

In any case, Smith said his group isn’t waiting around. HAC has been collaborating with other pro-housing advocates on a ballot measure with language similar to Mandelman’s proposal should the ordinances fail at the Board of Supervisors, which he calls the most anti-housing board in the city’s history.

“Fourplexes are the next checkpoint in terms of increasing density,” Smith said. &#8220;We see this as a starting point.”

“Fourplexes are the next checkpoint in terms of increasing density,” Smith said. "We see this as a starting point.”

“Fourplexes are the next checkpoint in terms of increasing density,” Smith said. &#8220;We see this as a starting point.”

This version clarifies that the ballot measure is being written by advocates, including those at the Housing Action Coalition.

This version clarifies that the ballot measure is being written by advocates, including those at the Housing Action Coalition.

Fight for the fourplex: Supes weigh building on single-family lots, but voters may decide

Annie Gaus

With a moratorium on commercial evictions set to expire, San Francisco plans to establish a relief fund intended to help stave off a wave of closures and settle hundreds of millions in outstanding rent debt.&nbsp;

With a moratorium on commercial evictions set to expire, San Francisco plans to establish a relief fund intended to help stave off a wave of closures and settle hundreds of millions in outstanding rent debt.&nbsp;

Combined with a forbearance period, the city hopes that the fund will save thousands of small businesses and jobs, said Supervisor Ahsha Safai at a hearing of the Board of Supervisors Budget and Finance committee on Wednesday. The three-person committee voted unanimously to advance the plan to the full board.&nbsp;

Combined with a forbearance period, the city hopes that the fund will save thousands of small businesses and jobs, said Supervisor Ahsha Safai at a hearing of the Board of Supervisors Budget and Finance committee on Wednesday. The three-person committee voted unanimously to advance the plan to the full board.&nbsp;

“This is an imminent crisis&#8230;with the scale of back rent exceeding the hundreds of millions, this is something we’re very concerned about,” said Safai. “It affects every single district and every single merchant corridor.”

“This is an imminent crisis...with the scale of back rent exceeding the hundreds of millions, this is something we’re very concerned about,” said Safai. “It affects every single district and every single merchant corridor.”

“This is an imminent crisis&#8230;with the scale of back rent exceeding the hundreds of millions, this is something we’re very concerned about,” said Safai. “It affects every single district and every single merchant corridor.”

If approved and signed by Mayor London Breed, a relief fund would be created to offer grants for commercial landlords. Safai proposed that the fund include $25 million—a fraction of the total back rent owed, according to estimates—though it&#8217;s not yet clear where the funding would come from.

If approved and signed by Mayor London Breed, a relief fund would be created to offer grants for commercial landlords. Safai proposed that the fund include $25 million—a fraction of the total back rent owed, according to estimates—though it's not yet clear where the funding would come from.

If approved and signed by Mayor London Breed, a relief fund would be created to offer grants for commercial landlords. Safai proposed that the fund include $25 million—a fraction of the total back rent owed, according to estimates—though it&#8217;s not yet clear where the funding would come from.

Those landlords would have to agree to apply the full grant to the balance of back rent, and to renegotiate the lease with their tenant and cut a deal for the remaining balance. The Office of Economic and Workforce Development (OEWD) would administer the grants, which will be capped at $35,000 each.&nbsp;

Those landlords would have to agree to apply the full grant to the balance of back rent, and to renegotiate the lease with their tenant and cut a deal for the remaining balance. The Office of Economic and Workforce Development (OEWD) would administer the grants, which will be capped at $35,000 each.&nbsp;

Many business owners said they’d accrued tens of thousands in back rent during pandemic-related shutdowns, or had landlords who were unwilling to negotiate rent reductions as their revenues withered.&nbsp;

Many business owners said they’d accrued tens of thousands in back rent during pandemic-related shutdowns, or had landlords who were unwilling to negotiate rent reductions as their revenues withered.&nbsp;

One speaker at Wednesday’s meeting, a stylist at House of Mahogany salon in the Ingleside district, said that the salon’s cooperative business model made it ineligible for federal Paycheck Protection Program (PPP) loans because it doesn’t pay out salaries.&nbsp;

One speaker at Wednesday’s meeting, a stylist at House of Mahogany salon in the Ingleside district, said that the salon’s cooperative business model made it ineligible for federal Paycheck Protection Program (PPP) loans because it doesn’t pay out salaries.&nbsp;

“I think we all know the federal financial relief, through the Paycheck Protection Program and Restaurant Revitalization Fund loans, fell far short of our need,” added Laurie Thomas, executive director of the Golden Gate Restaurant Association. The Restaurant Revitalization Fund, approved by Congress in March, ran out of money in June and with a backlog of more than 177,000 applications.&nbsp;

“I think we all know the federal financial relief, through the Paycheck Protection Program and Restaurant Revitalization Fund loans, fell far short of our need,” added Laurie Thomas, executive director of the Golden Gate Restaurant Association. The Restaurant Revitalization Fund, approved by Congress in March, ran out of money in June and with a backlog of more than 177,000 applications.&nbsp;

Others described an impossible situation: Crushing rent debts, coupled with a dramatic and continuing drop in revenue.

Others described an impossible situation: Crushing rent debts, coupled with a dramatic and continuing drop in revenue.

“Our rent is one of the highest in the country; we owe hundreds of thousands in back rent,” said Sterling Quan of Lee’s Deli, a small chain of eateries in the Financial District. “We have reopened and are doing not even 10% of pre-COVID sales. It’s impossible to make up 18 months of lost sales⁠—no one is coming in to eat twice a day.”&nbsp;

“Our rent is one of the highest in the country; we owe hundreds of thousands in back rent,” said Sterling Quan of Lee’s Deli, a small chain of eateries in the Financial District. “We have reopened and are doing not even 10% of pre-COVID sales. It’s impossible to make up 18 months of lost sales⁠—no one is coming in to eat twice a day.”&nbsp;

Commercial tenants, along with residential tenants, face a cliff at the end of this month.&nbsp;

Commercial tenants, along with residential tenants, face a cliff at the end of this month.&nbsp;

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