Mayor Ed Lee: Kicks the Can Down the Road
Welcome to San Francisco in the year 2020. Mayor Lee has finally been termed out and is watching the new Mayor sweat the infrastructure problems Lee created building 30,000 housing units in six years. The new Mayor will quickly become the fall guy for the collapse of San Francisco’s infrastructure.
San Francisco had built 1,500 housing units annually during the previous two decades, but Lee began adding 5,000 units annually during the six years beginning in 2014 — 30,000 units total.
Once upon a time, San Francisco’s entire infrastructure (water, sewage, roads, general maintenance) was funded by the City’s general fund. As City employee salaries grew higher and the number of City employees increased, San Francisco started deferring infrastructure payments to pay for its City employees.
There is deferred city maintenance everywhere! San Francisco’s infrastructure cannot support the 30,000 dwellings that Mayor Lee is trying to build over the next five years. City Government is just kicking the can down the road.”
Due to inadequate annual funding of capital improvements, and deferred maintenance, City politicians have allowed public works to deteriorate. The City is now forced to pass bond measures to pay for basic, routine infrastructure. The San Francisco PUC (SFPUC) utilizes revenue bonds — meaning the SFPUC pays for bonds by raising customer rates.
City officials have allowed San Francisco’s infrastructure crisis to roll forward year after year. It’s relatively easy for Mayor Lee to defer maintenance because the consequences are not apparent for many years. His failure to have publicly-available information on the condition and cost of deferred maintenance hides the problem. There is little public clamor and few advocates for increased spending on the City’s capital needs.
The 30,000 units that the mayor will build cannot be supported by the City’s current infrastructure.
Additionally, capital improvement bonds are a horrible way to finance deferred maintenance. Bond measures allocate 30% to 50% for deferred maintenance projects. In other words, property taxpayers are paying for deferred maintenance with 30 years of interest payments. The interest on these bond projects almost doubles the cost of each project.
Almost all of these capital improvement projects could have been addressed through regular annual appropriations; instead they are neglected and the money goes to City salaries.
Nearly one in three (12,504) of San Francisco’s 39,122 City employees earned $100,000 or more in total pay in the fiscal year that ended June 30, 2015 — a number that has been growing steadily for the past decade — and averaged $141,703 in total pay. These salary amounts do not include the costs of often-generous City fringe benefits, including health care and pensions.
In November 2014, San Francisco voters passed Proposition K, a non-binding, “declaration of policy” which allowed the City to help construct or rehabilitate at least 30,000 homes or more by 2020. Policy declarations are non-binding because Mayors and City Supervisors are not bound to budget for them. Prop. K was also both redundant and unneeded because Lee had already unilaterally declared it to be official City policy in his January 2014 State-of-the-City speech.
The City’s deferred infrastructure cannot handle the massive growth Mayor Lee proposed, and little of the new property taxes generated by the 30,000 units will be used to fund neighborhood infrastructure improvements.
San Franciscans will smell the first whiff of a broken sewer line as they wait for a bus that is averaging five miles per hour. The MUNI bus is new, but cannot go faster than the traffi C. When the bus does come 20 minutes late, it is full and trapped behind a Google bus, and you’ll have to walk into the street to board.
The SFMTA will need at least $10 billion by 2030 just to maintain and possibly increase its service by up to 20% (very optimistic and very doubtful). By its own estimates, SFMTA will still have a $3.3 billion shortfall by 2030. SFMTA bonds, taxes, general fund set-asides, vehicle license fees, increased ridership fares, parking meter rates, and traffic ticket citations have not been able to, and can’t, support SFMTA’s operations.
Without cars, the SFMTA would lose over 30% of its annual revenue. The SFMTA cannot afford to get rid of cars or it would go broke, rapidly.
According to a City transportation report, “Without investing in transportation infrastructure, San Francisco will have more than 600,000 vehicles added to its streets every day by 2040, which is more traffic than all the vehicles traveling each day on the Bay Bridge and Golden Gate Bridge combined. Caltrain ridership has grown by 60% in the last decade. Ridership on Muni is projected to increase by 300,000 trips per day (or 43%) by 2040. Significant design measures need to be implemented to make it safer for cyclists and pedestrians to navigate San Francisco’s heavily-trafficked streets.”
Commercial shuttle “Google buses” will soon have upwards of 1.2 million shuttle buses stopping in Muni red zones, since SFMTA’s Board approved making the shuttle program permanent but creatively exempted the program from a full Environment Impact Review (EIR).
There is no more parking throughout the City and the asphalt/slurry on the roads is deteriorating to its lowest usable level ever. City roads used to be excellent and were rated at a pavement and road condition of 75 (good) in 1989. By 2009, due to 20 years of deferred maintenance, San Francisco roads declined to a pavement condition of 64 (bad).
Terrible road conditions forced San Franciscans to pass the $368 million 2009 Safe Streets and Road Repair Bond. The road repair was underfunded by approximately $230 million and only $209 million — just 56.8% of the $368 million bond — went to street resurfacing and reconstruction. Ironically, after the bond money will be spent through 2018, San Francisco road ratings will only reach a pavement and road condition of 67.
Bicyclists are finding It harder and harder to run stoplights or stop signs. The 8% who are cyclists are being hailed as environmental crusaders; however, the fast, young cyclists hate car drivers, pedestrians, and out-of-shape, old, or pregnant cyclists who block their lanes.
How funny: Once-unique neighborhood corridors have been homogenized. The natural character of each neighborhood and their individual businesses are disappearing. Every SF transit corridor has begun to look the same: Surrounding buildings are taller, with a much higher population density. Remember, a transit corridor is considered to be 250 feet wide on both sides of the street.
The architectural design of these new buildings ranges from utilitarian to mediocre, at best. Dwelling sizes have been decreased and garages have been removed to cram in more people per square foot.
Drought or no drought, we already have the lowest water consumption in California at 41.6 gallons per resident per day, yet water rates are sky rocketing. More people will lead to lower water-per-person consumption, but higher water rates.
San Francisco’s sewer system is over 100 years old, and several component parts of the infrastructure were constructed in the 1800’s. The sewer infrastructure is failing and in need of significant repair. Sewer conditions threaten public health.
The SFPUC’s Sewer System Improvement Program (SSIP) — another huge maintenance deferment — is the SFPUC’s wastewater capital improvement program that includes multiple projects to improve the existing system.
Routine repairs are no longer sufficient to keep pace with San Francisco’s aging and seismically vulnerable sewer infrastructure. It is important to invest now in larger capital improvements to avoid more costly emergency repairs, potential regulatory fines, and greater impacts on our communities. The longer upgrades are delayed, the more expensive they become. Another clear case of deferred maintenance.
The SSIP is the culmination of several years of wastewater system planning efforts, public meetings, and SFPUC Commission workshops to develop proposed improvements to deferred maintenance of SF’s sewage system. The SSIP is expected to cost billions. The first phase is expected to cost $2.78 billion, alone.
If you have gray hair and don’t own your own home, you may also be disappearing — since City-backed developers need to convert your rental apartment into a condominium to make a profit. The Planning Department needs to charge developers higher permit fees to maintain its budget, and the City needs more density to generate more property taxes.
The more dwellings that can be demolished, rebuilt, or increased in density, the more income will be generated by the City. San Franciscans that stay in place in their own homes pay much less in property taxes than new owners.
Mayor Lee and the Board of Supervisors have just financially linked housing prices to residential units.
City government amended the Planning Code so that developers who build residential structures of 20 or more units throughout the City will have to pay an extra $7.74 per square foot, per unit.
The City’s old Transit Development Impact Fee (TDIF) applied to only commercial developments and PDR (production, design, and repair) facilities. Heretofore, the TDIF fees only came from downtown commercial developers.
The new TSF transit funding is an open door for financial misuse and abuse. TSF funds should be used for transit maintenance and repair only. However, the new TSF funds a complete streets component, enhancement and expansion of bicycle facilities, as well as pedestrian and other streetscape infrastructure to accommodate growth. The TSF is also responsible for maintaining the existing amount of sidewalk space per pedestrian.
This is why there are so many well-paid City employees and so much deferred maintenance
By charging residential housing developers a transportation fee, the City will collect an additional 40% more in transportation fees annually.
San Francisco’s new TSF fee/tax will increase the price of larger residential projects by 2% to 3% per unit. The City hopes to increase transportation fee collection by $480 million over the next 30 years.
The City will add 190,000 jobs and 100,000 homes by 2040, according to the Association of Bay Area Governments (ABAG), but without improving public transit, traffic in the City could increase by 40%.
Other than as a source of revenue, cars have become the City’s lowest priority.
The City set the TSF fee/tax by estimating how much development impacts transit in terms of cost, roughly $31 per square foot, then balanced it with the results of a fiscal feasibility study that looked at what level fees would discourage development.
According to the TSF Financial Feasibility Report, the average residential base cost per square foot should be $6.19; however, the City chose to increase TSF residential taxes by 125% to a tax of $7.74 per square foot.
A brand new 750-square-foot, two-bedroom condominium just became $5,805.00 more expensive, but comes with a bus that is late, full, broken, or never comes.
Look around you: There is deferred city maintenance everywhere! Our infrastructure cannot support the 30,000 dwellings that Mayor Lee is trying to build over the next five years. City Government is just kicking the can down the road.
Wooding is a board member of the Midtown Terrace Homeowners Association.
December 2015