The Burlingame Voice

Election 2024: The action is in the initiatives

Dan Walters at Calmatters.org has distilled the upcoming election for us noting that the candidate-based voting is a forgone conclusion, but the numerous initiatives is where the action will take place.  I grew up in "Taxachusetts" but my home state has nothing on California.  Squeezing more blood from the middle-class stone is on-going and the question is will this be the election where the backlash arrives?  As Walters writes

The scale of the conflicts is most evident in an initiative, sponsored by the Business Roundtable and anti-tax groups, that would make state and local tax increases markedly more difficult to enact.  It hits Democrats and their allied public employee unions where they live and they have mounted a two-pronged effort to block passage: a lawsuit, now pending in the state Supreme Court, to strike the measure from the ballot, and a competing proposition that would impose a higher and potentially prohibitive vote threshold on the tax measure.

On crime, he notes the ballot will include an "initiative that would modify Proposition 47, a 2014 ballot measure that reduced penalties for many crimes."  I think of it as the "Walgreen's initiative" after hearing multiple instances of people walking out of the store on B'way with a garbage bag full of stuff.  You want shampoo?  Call a clerk to unlock it.  Today's Comicle has a piece about some Safeway taking out the self-check kiosks and it ain't because they want to hire more checkers.  Walters expects the backlash initiative to qualify.  Further down the ballot:

Other high-profile measures either qualified or likely to qualify include a business-sponsored initiative that would repeal the Private Attorneys General Act, a two-decade-old union-sponsored law that makes class action lawsuits against employers relatively easy to file. Others include a third effort to make it easier for local governments to enact rent control, a boost in income taxes on high-income Californians to finance pandemic prevention, and an increase in the state’s minimum wage.

Talk about dumb and dumber.  Let's mess up the rental market, the entry-level job market and kill the Golden Goose all in one fell swoop.  There are five months to go.  We shall see if the voters have had enough or if we get more of the same.  Stay tuned.

Fundraiser-in-chief buzzes B'game

The fundraiser-in-chief has been in town for a couple of days ringing the Silicon Valley cash register.  The caravan of one, two or five V-22 Ospreys makes quite a ruckus overhead since they fly quite low and the chop from the two rotors in the upright position is distinctive.

UC Berkeley: "Cluster hires". What could go wrong?

Let's do one more education-related post to keep the streak running.  The Sunday SF Comicle section titled "Insight" provided a rare sliver of insight this week.  I enjoy watching new words being created and this piece brought wider notice to the term "Pretendianism" to describe the act of faking your ethnic background to take advantage of ethnicity-driven hiring programs.  The piece titled "Pretendianism too common in academia" asks the question: How do so many people with no Native ties get away with using a false heritage to infiltrate some of the most rarefied academic spaces in America?

I'll skip over the details of one Associate professor Elizabeth Hoover's gaming of the system because the article leaked an even more egregious practice at UC Berkeley that probably exists elsewhere in publicly funded academia.  It's hardly news and it's quite profitable as the Other Elizabeth has been proving for more than a decade.

But deep in the article, this tidbit is revealed

Contrary to some reports, Hoover was not a “cluster hire,” the faculty member said, which is when several new faculty members identified as members of a minority or historically disadvantaged groups are brought aboard simultaneously — a method has been championed at UC Berkeley to make “an immediate and substantial impact far greater than a few isolated hires.” 

Yikes!  Is this a "cheaper by the dozen" approach?  Let's not spend time and effort examining individuals' skill sets.  We'll just hire a handful all at once that look the right way.  One wonders if that tactic would survive the "shoe on the other foot" test?  Is it any wonder that campuses are a mess?  California taxpayers are not getting their money's worth, and the faculty lounge is the first place where the shades should be lifted and sunlight should shine.  "Rarefied spaces" indeed.

Squatter zoning restrictions being studied for B'game

In a proactive effort to get ahead of the burgeoning trend of squatters taking over uninhabited residences, the Burlingame City Council has asked staff to quickly assess which sections of town should be zoned for squatting.  Staff has been asked to assess whether the zones should be patterned after the new city council districts, the elementary school districts or the zones for legal leaf blowing on a particular day of the week.  There are legal guidelines for squatters to follow as shown here:

Squatters’ rights, also known as “adverse possession”, refers to laws that allow a person to gain legal ownership of a property they have occupied without permission from the legal owner. In California, squatters can make a legal claim to own the property they are occupying after residing there continuously for 5 years. 

Squatters differ from trespassers, in that trespassers occupy a property illegally but make no claim of ownership or legal right to live there. Squatters, on the other hand, occupy the property without permission but may be able to gain legal rights if they meet the criteria for adverse possession.

With the recent arrest of a squatter at the Burlingame train station master's quarters after flying below the radar for several years, the city council felt some urgency to codify which sections of town should and should not welcome squatters.  Enhanced surveillance of the no-squat zones would preclude the 5-year window from opening.

State Senator Scott Weiner immediately attacked the proposed ordinance as "knee jerk NIMBYism of the first degree" and promised to introduce legislation in Sacramento to prevent local governments from reducing the squat-friendly housing supply in the name of fairness and equity.  Weiner did not rule out including affordable squatting requirements based on income and reduced gas and electric rates for young, first-time squatters. 

B'game Train Station ADU?

I guess deputy directors at Caltrain struggle to find affordable living quarters on the Peninsula even though the payroll at Caltrain is very bloated IMHO.  But who knew it would get this weird?  Former deputy director for operations Joe Navarro and a contractor friend named Seth Worden have been charged with skimming public funds to create living spaces in the B'game and Millbrae train stations!  In small increments, Navarro is alleged to have paid Worden $42,000 for the secret apartment in the B'game station and another $8K for the Millbrae hideaway.

As shown below, the B'game station has always had living space on the south side as that was the original station master's quarters (to the right of the arches).  Later on, it was the B'game Chamber of Commerce office and had a kitchenette and toilet already.  That was where an arsonist tried to burn the place down in 2016.  It must be tricked out pretty nicely for $42K.  According to the Merc

Worden was caught first, in 2020, after employees discovered the converted space, authorities said. But the transit agency was reportedly unaware of Navarro’s place in Burlingame until getting an anonymous tip in 2022.  Navarro was fired after being confronted with the tip, and reportedly admitted to “occasionally using the station as his residence,” prosecutors said, though they allege that he was using the small apartment as his primary residence.

I can't wait to find out why it took years to bring the felony embezzlement charges.

EV charging ahead with preferred parking spots at Walgreens

The news is all pointing to a deceleration in EV sales as car companies' losses per EV pile up and consumers start to really question the benefits of going electric.  People who don't worry about the high initial costs or the lengthy payback (some estimates put it at 7 years) have bought their EVs already.  We are now approaching the trough of adoption while waiting for cheaper versions, longer range and more charging stations.  These trends haven't stopped B'game from going full speed ahead with 16 new charger spaces downtown.  The latest swap of fully public spaces to preferred parking for EVs in need of a boost is coming to the public lot (K) between Walgreen's and Safeway.  This is a busy lot for much of the day and early dining evening.  Per the Daily Journal piece

The City Council authorized the city manager to proceed with negotiations on a contract for Tesla to rent the parking lot space from Burlingame, although councilmembers said they’d like to see details on lease and fee rates as well as plans for signs that would delineate the chargers as usable for all electric vehicles.  Tesla has said they will pay a monthly rent of $6,000, and everything will be free to the city, including installation.

Let's go easy with the F-word (i.e. "free").  It's only "free" if $6K per month covers the lost revenue of the 19 spaces lost.  That's about $315 per month or about a dollar a day per space.  My math says these new charger spaces are far from "free".  

After Beach inquired about the leasing agreement and rental cost, Tesla Supercharger Project Developer Caitlyn Hanner said the company would require a 10-year lease minimum but could provide a rent increase of up to 3% a year.   Installation of the Tesla superchargers would create a loss of three parking spots.

Ten years with a very modest rent escalator is quite a deal.  There are about 57 spaces in Lot K now.  Three will be taken for the e-infrastructure, so about 30 percent of the lot is planned to be preferred parking for EVs.  As the DJ article notes, several council members are Tesla owners and others own other brands which these new superchargers will accommodate.  Did we just witness a conflict of interest that should have caused recusals on the vote?   Just kidding.  But it would have made a great April Fool's Day post.

Maybe the time has come to require chargers to also pay for the parking.  EVs already skirt the gas tax and they inflict more wear and tear on our roads than gas cars due to their higher weight.  I will tag the "Friends with benefits" category as well since this looks like a sweet deal for a few people and the car companies.

Contract negotiations: city staff turnover--not a lot to see here

Unless I missed it, which is possible due to some travel, the news has been quiet regarding the heated contract negotiations at City Hall.  We last covered it in October here.  There was the one-day strike back on December 4th as reported by the DJ here:

More than 100 Burlingame workers picketed in front of city hall Dec. 4 for a one-day strike based on alleged free speech violations by city management that closed down many city services, including the Community Center, the Easton Library and the finance department.  The strike is the first by Burlingame’s municipal workers since 1981.

Aside from the "free speech" claims, the more substantive claim was that low pay was causing much turnover of city staff.  As usual, I am reluctant to go along with broad statements when the actual data is easy to get.  With that in mind, a simple inquiry to the city led to the data through mid-December when I made the request:

• There were 27 CN (casual non benefited) employees who separated with the City in 2023 to current.
• There were 2 CP (Casual with PERS) employees who separated with the City in 2023 to current.
• There were 31 FT (Full Time) employees who separated with the City in 2023 to current.
• There was 1 PN (PERS non-contributory) employee who separated with the City in 2023 to current.

Is the departure of 31 full-timers a lot?  Normal?  A problem?  I'm not sure, but when you think of all the departments as listed here, it doesn't seem like a crisis.  All of these negotiations rightfully happen behind closed doors, but the public statements--mostly by the union reps--bear examination.  And now you have "the rest of the story".

Jan 30 update:  There's a bit more to the story.  I was going to use the DJ article about AI and County employees for a separate post, but commenter Timothy Hooker made such an elegant point below about operational efficiency from tech (see Jan 29) that I will just add the headline here.  Supes, please do not make promises to retain long-term headcount that is no longer needed.  Just don't, OK.

City Strike? Free speech for all?

The only thing I'm certain about regarding this post is that we do not have the whole story.  Kudos to the Daily Journal for running with what they did know yesterday about the potential strike over "free speech" issues among City employees.  The DJ piece starts with

The union representing 130 Burlingame city workers could strike after complaints allege city managers in various departments are interfering with employees’ rights to free speech.  Rod Palmquist, spokesperson for the American Federation of State, County and Municipal Employees Local 829, said the city workers have a right to free speech and express their desire for better-paying wages.

The bit of background we do have is

The state’s Public Employment Relations Board issued an unfair labor practice complaint against the city Sept. 8. In early June, several employees attended a City Council meeting to speak in favor of fair wages. The next day, an employee at the meeting allegedly asked police Capt. Robert Boll a routine operational question. Boll allegedly said, “Why don’t you ask the AFSCME people.” While speaking to a group of employees who voiced the need for a pay increase, Park Superintendent Richard Holtz allegedly responded that they should talk with him if they didn’t like working for the city for the pay they receive, adding he would help them find another place to work, according to a PERB complaint.

First, one could ask why there is such a thing as a Public Employment Relations Board, who is on it and how much homework do they do before they issue a complaint?  I'd like to know what the "routine operational question" was and whether it was asked in good faith.  As far as the second comment by Rich Holtz, that sounds like him exercising his free speech, not interfering with someone else's.  And it's not like he gets to decide who gets paid what in town.  For me the kicker is this bit

City employee Joleen Helley said the city pays 6% less than neighboring cities doing similar jobs, according to the release.

Blanket statistics like that always concern me.  There are so many variables that boiling a pay comparison down to a single number is impossible.  What about time in grade (seniority), performance reviews, benefit packages and the like?  B'game is in contract negotiations now--did the other cities just finish theirs so raises come at different times?  And the BIg Question is who cares what other cities are paying?  That is a false comparison meant to continue a faster upward spiral than is needed to provide the services.  I recall back in the day, a clerical job opening at City Hall drew more than 200 applicants.  The pay must have been competitive enough.

This is just a place marker post for when we know more--if we ever do.

  

Millbrae mayhem or County disdain?

“Information is power and I understand the emotion around it, I expected it, but I want people to understand housing the homeless is the responsibility of everyone,”

                    San Mateo County manager Mike Callagy

That is a quote from the Daily Journal's article titled Mayhem in Millbrae about the proposed purchase by the County of La Quinta Inn to convert it to a homeless project.  One has to wonder where these people in positions of authority come up with these look-down-their-noses ideas of what is and isn't someone else's responsibility.  The statement just oozes with disdain and a strong sniff of elitism.  "I understand, but...."

And then there are the financial consequences as laid out by the Millbrae city manager:

City Manager Tom Williams said the city is on track to receive around $540,000 in TOT from the La Quinta Inn in this year and taking on the inn’s potential residents will cost the city around $168,000 a year in services.

“The hotel market is becoming healthy and it’s a productive hotel,” Williams said Monday. “Every penny counts for this city. I am just worried we are taking three steps forward and four back.”

The county will reimburse the city for one year of TOT, and at the same time either supply it with a sheriff deputy and a mental health clinician, which the city said it needs, for 2 1/2 years or the cash equivalent, Callagy said Tuesday.

Permanent revenue losses and permanent additional costs, but short-term reimbursements.  What could go wrong?  This mindset seems to be pervasive at the County as more free money flows at every opportunity.  This letter writer to the DJ this week hit the nail on the head regarding the Jackie Speier plan to partially fund more welfare--50/50 with her foundation and County taxpayer monies:

Not to sound cold, but the new program announced by county officials doesn’t make sense. The pilot plan will give $300 a month to 200 families with children ages 0-3 who meet income requirements.

I see a couple of problems with this. First, a number of families who would qualify for this program are probably already on at least one form of assistance. Second, does this not further preach a lack of self accountability this country is sorely lacking? If you can’t afford to raise a child due to financial or time restraints, it should not be up to local taxpayers to fill the gap. Furthermore, as we’ve seen with the current welfare system over the last few generations, there will be plenty of people who will take advantage of assistance provided and use it as a lifestyle.

Joe Guttenbeil

Redwood City

I think he understates the number of programs that make up the free money flow.  They are everywhere at the federal, state and county level.  Food, health care, bus tickets, childcare, tuition, electricity, tax "credits" without paying any taxes--you name it there is a subsidy for it.  All the while more housing is shoved down our throats making it more expensive for everyone else to live here.  That's the real mayhem hidden behind the curtain.

Calpers: Losses pile up and cities pay up

Watching the performance of the state's pension manager, CalPers, isn't quite like watching paint dry, but close.  It is the largest pension fund in the country--and it has to be given how poorly the state is run up in Sacramento.  While it may seem arcane and far away, here is the WSJ's take on why we should watch:

The California Public Employees’ Retirement System returned minus 6.1% for the year ended June 30, the fund said Wednesday.   A multiyear downturn could be costly for states, towns and school systems around the country and by extension their residents, leading them to squeeze money from workers, taxpayers or other government services.  Calpers’ stock portfolio returned minus 13.1%, while bonds returned minus 14.5%, the pension fund said.  (Ed:  Private equity made up some of the loss but relying on it is tricky as valuations are being written down left and right.)

The lackluster return will mean California towns, counties and school districts will face higher annual pension contributions during their 2024 or 2025 fiscal year.  U.S. state and local pension funds have accumulated hundreds of billions of dollars since the last financial crisis in 2008, thanks to blockbuster returns from an 11-year bull market. Last year, huge gains in public and private equity markets drove median returns to nearly 27%, a 30-year record.

Some states also topped up their pension coffers with tax revenues from the stimulus-fueled Covid-19 recovery.  But all of those gains have been outpaced by the growth in the cost of the benefits that state and local governments have promised.

We shall see what the impact on the city budget is going forward.  We have been holding on pretty well -- you can look here for the last update from March.  I'll get around to addressing the move to raise local business tax rates in a bit, but Calpers' performance this year highlights the variability and risk associated with being tied so closely to the state.