How Much California Water Bond Money is for Storage?

Californians have approved two water bonds in recent years, with another facing voters this November. In 2014 voters approved Prop. 1, allocating $7.1 billion for water projects. This June, voters approved Prop. 68, allocating another $4.0 billion for water projects. And this November, voters are being asked to approve Prop. 3, allocating another $8.9 billion for water projects. This totals $20.0 billion in just four years. But how much of that $20.0 billion is to be invested in water infrastructure and water storage?

Summaries of how these funds are spent, or will be spent, can be found on Ballotpedia for Prop. 1, 2014, Prop. 68, 2018 (June), and the upcoming Prop. 3, 2018 (November). Reviewing the line items for each of these bonds and compiling them into five categories is necessarily subjective. There are several line items that don’t fit into a single category. But overall, the following chart offers a useful view of where the money has gone, or where it is proposed to go. To review the assumptions made, the Excel worksheet used to compile this data can be downloaded here. The five categories are (1) Habitat Restoration, (2) Water Infrastructure, (3) Park Maintenance, (4) Reservoir Storage, and (5) Other Supply/Storage.

California Water Bonds, 2014-2018  –  Use of Funds
($=millions)

The Case for More Water Storage

It isn’t hard to endorse the projects funded by these water bonds. If you review the line items, there is a case for all of them. This November, voters will have a chance to approve $200 million to restore Salton Sea habitat, a sum that joins the $200 million of Salton Sea habitat restoration approved by voters in June 2018 in Prop. 68. This November, voters will have a chance to approve $150 million to turn the Los Angeles River back into a river, instead of the concrete culvert that was completely paved over between 1938 and 1960.

Who would be against projects like this? But Californians are heavy water consumers in a relatively arid state. Habitat restoration and park maintenance spending must be balanced against spending for water infrastructure. And conservation mandates must be balanced with investments in infrastructure that increase the overall supply of water. Here’s how Californians are currently managing their water:

Total Water Supply and Usage in California

As can be seen on the above table, residential water consumption represents less than 6% of California’s total water diversions. Indoor water consumption, only about half of that. Yet conservation measures imposed on California’s households are somehow expected to enable more water to be returned to the environment. Even with farmers, where conservation measures have the potential to yield far more savings, putting more irrigated land into agricultural production easily offsets those savings.

Not only does conservation fail to return sufficient water to the environment for habitat maintenance, but there is a downside in terms of system resiliency. During the last drought, when households were asked to reduce water consumption by 20%, it wasn’t an impossible request to fulfill. But as these reductions in consumption become permanent, far less flexibility remains.

California’s climate has always endured periods of drought, sometimes lasting several years. Meanwhile, the population continues to increase, farming production continues to rise, and we have higher expectations than ever in terms of maintaining and restoring healthy ecosystems throughout the state. We cannot merely conserve water. We need to also increase supplies of water. Ideally, by several million acre feet per year.

How Much California Water Bond Money is for Surface Storage?

Prop. 1, approved by voters in 2014, was called the “Water Quality, Supply, and Infrastructure Improvement Act of 2014.” It was marketed as necessary to increase water storage in order to protect Californians against droughts, and was overwhelmingly approved by over 67% of voters. But only about one-third of the money actually went to water storage, and it took nearly four years before any of those funds were allocated to specific storage projects. It was only this month, July 2018, that the California Water Commission awarded grants under their “Water Storage Investment Program.”

A review of these grants indicates that only two of them allocate funds to construct large new reservoirs. The proposed Temperance Flat Reservoir will add 1.2 million acre feet of storage. Situated south of the delta, it will be constructed on the San Joaquin River above a much smaller existing dam. It is estimated to cost $2.7 billion, and the California Water Commission awarded $171 million, only about 6% of the total required funds.

The proposed Sites Reservoir is situated north of the delta, west of the Sacramento river. It is an offstream reservoir, meaning that it will be filled using excess storm runoff pumped out of the Sacramento river during the rainy season. It is designed to store up to 1.8 million acre feet of water and is estimated to cost $5.2 billion to construct. The California Water Commission awarded $816 million, a large sum, but only about 16% of the total required funds.

Two other surface storage projects were approved, expansion of the existing Los Vaqueros and Pacheco reservoirs. Both of these reservoirs serve water consumers in the San Francisco Bay Area, both are supplied water via the California Aqueduct, and both expansion projects are estimated to cost not quite a billion dollars – $795 million for Los Vaqueros and $969 million for Pacheco. The California water commission awarded Los Vaqueros $459 million, and they awarded Pacheco $484 million.

When you consider surface storage, the total capacity of a reservoir is a critical variable, but in many ways more significant is the annual “yield.” This is the amount of water that on average, over decades, the reservoir is planned to deliver to water consumers in normal years. While the Los Vaqueros and Pacheco reservoir expansions combined will add roughly 250,000 acre feet of storage capacity, most of this added capacity is to save for drought years. Los Vaqueros may actually yield up to 35,000 acre feet per year in normal years; Pacheco may yield around 20,000 acre feet per year in normal years.

With respect to annual yields, the case for the much larger Sites and Temperance Flat reservoirs becomes more compelling. The Temperance Flat Reservoir is projected to yield 250,000 acre feet of water in normal years, the Sites Reservoir, a massive 500,000 acre feet. To put this in perspective, 750,000 acre feet represents 20% of ALL residential water consumption in California, or, put another way, each year these reservoirs will yield a quantity of water equivalent to 100% of the reductions achieved via conservation measures imposed on California’s residents during the drought. But will they ever get built?

According to spokespersons for the Sites and Temperance Flats projects, some federal funding is expected, but most of the funding will be from agricultural and urban water districts who will purchase the water (as well as the right to store surplus water in the new reservoir) as soon as its available. The projects still require congressional approval, and then will face a multi-year gauntlet of permit processes and the inevitable litigation. If all goes well, however, both of them could be built and delivering water by 2030.

How Else is Water Bond Money Being Used to Increase Water Supply?

All three of the recent water bonds had some money allocated to invest in water supply. Prop. 1 in 2014, in addition to investing $1.9 billion in surface water storage, allocated $1.4 billion to other projects intended to increase water supply. The projects they approved are either intended to store water in underground aquifers, or fund advanced water treatment and recycling technologies which have the practical effect of increasing water supply. While it isn’t clear from these groundwater storage proposals how much water they would then release in normal years, it appears that cumulatively the projects intend to eventually store as much as 1.0 million acre feet in underground aquifers.

At a combined cost total cost of under one billion, the aquifer storage projects just approved appear to be more cost effective than surface storage. It is also a critical priority to recharge California’s aquifers which have been drawn down significantly over the past several years, especially during the recent drought.

Prop. 68, the “Parks, Environment, and Water Bond” passed earlier this year, while mostly allocating its $4.0 billion to other projects, did allocate $290 million to “groundwater investments, including groundwater recharge with surface water, stormwater, and recycled water and projects to prevent contamination of groundwater sources of drinking water.”

The upcoming Prop. 3, the $8.9 billion “Water Infrastructure and Watershed Conservation Bond Initiative” that will appear on the November 2018 ballot, invests another $350 million to maintain existing, mostly small urban reservoirs, along with $200 million to complete repairs on the Oroville Dam. Prop. 3 also includes $1.6 billion to otherwise increase water storage and supply, including $400 million for wastewater recycling and $400 million for desalination of brackish groundwater.

It is important to emphasize again that all of the funds allocated in these three water bonds are paying for what are arguably worthwhile, if not critical projects. $6.3 billion for habitat restoration, $6.2 billion for water infrastructure, $1.6 billion to maintain our parks. But despite the worth of these other projects, Californians urgently need to increase their annual supply of water to ensure ecosystem health, irrigate crops, and supply urban consumers. And to address that need, out of $20 billion in water bonds passed or proposed between 2014 and this November, only $5.8 billion, less than one-third, is being used to increase water supplies.

What Other Ways Could Water Bond Money Be Used to Increase Water Supply?

Clearly the most important region to increase water supply is Southern California. Two thirds of all Californians live south of the Sacramento River Delta, while most of the rain falls on in Northern California. One way to increase California’s supply of fresh water is to build desalination plants. This technology is already in widespread use throughout the world, deployed at massive scale in Singapore, Israel, Saudi Arabia, Australia, and elsewhere. One of the newest plants worldwide, the Sorek plant in Israel, cost $500 million to build and desalinates 120,000 acre feet of water per year.

Theoretically – because capital costs in California are far higher than in most of the rest of the developed world – desalination offers a cost-effective solution to water scarcity. Uniquely, desalination creates new water, not dependent on rainfall, not requiring storage for drought years, not requiring redirecting of water from other uses. Imagine if Californians invested in desalination plants along the entire Southern California Coast. Eight desalination plants the same size as the Sorek plant would cost $4.0 billion to build if constructed for the same cost as the one in Israel cost. They could desalinate 1.0 million acre feet per year.

The energy costs for desalination have come down in recent years. Modern plants, using 16″ diameter reverse osmosis filtration tubes, only require 5 kWh per cubic meter of desalinated water. This means it would only require a 700 megawatt power plant to provide sufficient energy to desalinate 1.0 million acre feet per year. Currently it takes about 300 megawatts for the Edmonston Pumping Plant to lift one million acre feet of water from the California aqueduct 1,926 ft (587 m) over the Tehachapi Mountains into the Los Angeles basin. And that’s just the biggest lift, the California aqueduct uses several pumping stations to transport water from north to south. So the net energy costs to desalinate water on location vs transporting it hundreds of miles are not that far apart.

The entire net urban water consumption on California’s “South Coast” (this includes all of Los Angeles and Orange County – over 13 million people) is 3.5 million acre feet. It is conceivable that desalination plants producing 1.0 million acre feet of new water each year, combined with comprehensive sewage reuse and natural runoff harvesting could render the most populous region in California water independent.

Why is Infrastructure so Expensive in California?

The Carlsbad desalination plant in San Diego cost $925 million to build, and it has a capacity of 56,000 acre feet per year. That is a capital cost per acre foot of annual yield of $16,500. How is it that the Sorek desalination plant in Israel cost $500 million to build and has a capacity of 120,000 acre feet per year – a capital cost per acre foot of annual yield of only $4,100? Why did it cost four times as much to build the Carlsbad desalination plant?

This is the prevailing question when evaluating infrastructure investment in California. Why does everything cost so much more? The Sites reservoir is projected to cost $5.2 billion. An off-stream reservoir of equal size, the San Luis Reservoir, was constructed in California in the 1960s at a total cost, in 2018 dollars, of $2.3 billion. That all-in cost includes not just the dam, but also includes pumping stations, the forebay, the intertie to the California Aqueduct, and conveyances to get some of the water over the Diablo Range into the Santa Clara Valley. All of these costs (in today’s dollars) for the San Luis Reservoir, compared to the proposed Sites Reservoir, cost less than half as much. Why?

It’s easy to become enthusiastic about virtually any project that will increase our resiliency to disasters and droughts, improve our quality of life, steward our ecosystems, and hopefully create abundance of vital resources such as water. But when considering the need for these various projects, it is equally important to ask why they cost so much more here in California, and to explore ways to bring costs back down to national and international norms. We could do so much more with what we have to spend.

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This is part one of an investigation into California’s water future. Part two is “How to Make California’s Southland Water Independent for $30 Billion,” and the third and final part is “Towards a Grand Bargain on California Water Policy.” Edward Ring is a co-founder of the California Policy Center and served as its first president.

 

 

 

 

The perilous state of Santa Ana schools

Class conflict: Santa Ana schools are spending more and more on fewer students. (U.S. Air Force file photo)

School officials in California’s sixth-largest school district are working overtime to promote a massive $1.2 billion bond tentatively scheduled for a districtwide vote in November. Yet behind their chatter about improving Santa Ana Unified facilities is a stark fact: Student enrollment there has been falling steadily for over 15 years. And declining enrollment means declining revenue from federal, state and local sources – about $10,000 per student. But at the same time, district spending, particularly on teacher salaries and benefits, has been rising. Where those two trends intersect – falling revenue, rising costs– is crisis.

Just last summer, the crisis claimed its first victims when the district declared it would have to lay off 287 teachers. The same teacher’s union that had pushed for the pay increases that precipitated the crisis helpfully provided district officials with the hit list – all of it based on one metric only: the last hired were the first fired.

But the crisis didn’t begin in 2017. An SAUSD demographer’s 2016 report illustrates a steady decline in SAUSD enrollment starting in 2003. That year, total student enrollment was 60,973. By 2012, enrollment had fallen to 53,493. This equates to an approximately 12% drop in enrollment and a $75 million loss in revenue. Long-range projections through this school year predict that the decline will continue.

As recently as June 26th — school trustees backed by the powerful teaches union approved regular annual salary increases. In addition to this most recent salary increase, teacher salaries were also raised from 2013-2015.

Losing cash, union-backed trustees ordered district staff to find a solution. Facilities maintenance was delayed. Major renovations were impossible. And so they settled on the November bond.

A bond is basically an IOU — the district’s promise that it will repay Wall Street lenders interest on a multi-million-dollar loan. District officials first pegged the amount of the loan at $479 million – enough, they said, to repair damage created by time and mismanagement. But in the past few weeks the amount of the bond has fluctuated from $518 million back down to $232 million. Neither figure includes interest payments on the loan, which will more than double its cost.

Santa Ana Unified hasn’t even finished paying off two existing loans, from 1999 and 2008. They should be paid off by 2040. By that time, last month’s graduates will be about 40 years old, some with children of their own attending Santa Ana schools that will boast well-paid adults, falling test scores, failing infrastructure – and perhaps still laboring beneath hundreds of millions of dollars in repayments on the Great Bond of 2018.

Kelly McGee is a Rhodes College graduate and a journalism intern at California Policy Center.

 

 

Water Rationing Laws Exemplify the Malthusian Mentality of California’s Legislators

As reported in the Sacramento Bee and elsewhere, on May 31st Gov. Jerry Brown “signed a pair of bills Thursday to set permanent overall targets for indoor and outdoor water consumption.”

After pressure from the Association of California Water Agencies and others, the final form of these bills, Assembly Bill 1668 by Assemblywoman Laura Friedman, D-Glendale, and Senate Bill 606 from state Sen. Bob Hertzberg, D-Los Angeles, offers water districts more flexibility in enforcing the new restrictions. But the focus of AB 1668, limiting indoor water use to 50 gallons per resident per day, is a step too far. Way too far.

There’s nothing wrong with conserving water. But urban water consumption in California is already low, and squeezing even more out of Californians will be costly and bothersome without making much difference in the big picture. Here is a table showing California’s overall water consumption by user:

Total Water Supply and Usage in California

As can be seen, in a state where total human water diversions total around 65 million acre feet (MAF) per year [1], in 2010 residential customers only consumed 3.7 MAF [2, 3]. According to more recent data obtained by the Sacramento Bee from California’s State Water Resources Control Board, by 2017 the average California resident consumed 90 gallons per day, which equates to around 4.0 MAF per year. Slightly more than half of that is for indoor water, which means that on average, Californians are already consuming less than 50 gallons per day per resident!

So why the new law? We must immediately rule out the desire to save significant amounts of water. On average, Californians are already in compliance with the new restrictions on indoor water consumption, meaning only a minority of households, those over the new cap, will be forced to reduce consumption. And while AB 1668 also mandates individual “water budgets” for outdoor water consumption, even if they cut all outdoor water use by another 20%, that would only save 400,000 acre feet. But at what cost?

THE COST TO FURTHER REDUCE INDOOR WATER CONSUMPTION

Here is a fairly recent analysis of what it costs to implement comprehensive indoor water savings [4]:

Cost to Retrofit a Home to Reduce Water Consumption

That’s a lot of money. But why? How many households are still “overusing” water, if the average consumption is only around 50 gallons per day?

For what it would cost Californians who are not taking their clothes to the laundry mat, who prefer to wash their dishes in the sink, who are not willing to stand under shower heads that cannot rinse soap out of long hair, who don’t want to purchase side loading dishwashers because it hurts their back to load and unload them, how much water will actually be saved? And how does one “overuse” indoor water? Doesn’t it flow down to the sewage treatment plant, where these plants release all that water back into the streams and aquifers, or even in some cases pump the water back uphill to be reused by residents?

THE COST TO FURTHER REDUCE OUTDOOR WATER CONSUMPTION

For outdoor water use, the solutions are even more draconian, and, of course, are disproportionately aimed at people who happen to live in homes with yards. People with lawns where their children play, people with trees that provide shade, people with aesthetically pleasing hedges that offer privacy, people with who love to grow flowers and vegetables – people who love living things. In the short run, these people will be visited by water agency bureaucrats, who will assign a “water budget.” How much will that cost, forcing local water agencies to reach out individually to 12.5 million residential property owners?

In the long run, the costs to manage outdoor water use will get much higher. Every home will need to have two meters, one to measure indoor water use, one to measure outdoor water use. These meters, increasingly, will be “smart,” able to monitor time-of-day use in anticipation of variable pricing depending on when you water. (Don’t water your plants after 9 a.m.!) And eventually, first in new construction, and later in retrofits, every home will have two sources of water supply – one pipe to provide potable water for indoor use, and a separate pipe to provide marginally less potable reclaimed water for outdoor use.

This is epic folly. These conservation measures, as described, are going to cost consumers tens of billions of dollars. When fully implemented, the total annual savings might be around 500,000 acre feet. That’s less than one percent of California’s total human water diversions for agriculture, the environment, commercial, industrial, and residential use.

And not one dime of this money will be instead paying for water treatment, water storage, or desalination projects that could add millions of acre feet to California’s annual water supply.

THE ALTERNATIVE TO THE MALTHUSIAN MENTALITY

Thomas Mathus was an English cleric and scholar living in the early 19th century who developed the theory that global population increases exponentially, while global production increases arithmetically. His theory, and the eventual collapse of civilization that it implies, has enjoyed lasting and ongoing influence. In California, it found its earliest expression in a 1976 speech by Gov. Jerry Brown, who announced that we had entered an “era of limits.” For over forty years now, Governor Brown, and like-minded environmentalists and the politicians they’ve influenced, have embraced the Malthusian vision. But there is an alternative.

One of the most thoughtful and bipartisan visions to counter the Malthusian mentality is offered by the so-called EcoModernists, who in April 2015 published the “EcoModernist Manifesto.” The powerful premise they offer to confront the Malthusians is this: “Both human prosperity and an ecologically vibrant planet are not only possible, but inseparable. By committing to the real processes, already underway, that have begun to decouple human well-being from environmental destruction, we believe that such a future might be achieved. As such, we embrace an optimistic view toward human capacities and the future.”

The devil is in the details, of course. What “real processes” are they referring to? One of the authors, Michael Shellenberger – who just ran as a Democratic gubernatorial candidate in this week’s primary – offers concrete examples. Shellenberger, who runs the nonprofit “Environmental Progress” in Berkeley, is a progressive Democrat. And yet he strongly advocates nuclear power, desalination plants, and permitting suburban housing developments on California’s vast tracts of cattle rangeland.

There is a convergence possible here, of pro-growth progressive Democrats joining independent voters and Republicans to embrace ecomodernism instead of malthusianism. In practical terms, this would mean rejecting rationing of water, energy, land and transportation, and instead investing in infrastructure for the 21st century.  In ideological terms, it would mean rejecting environmentalist extremism rooted in pessimism in favor of economic growth rooted in optimism.

THE HIDDEN AGENDA OF CALIFORNIA’S MALTHUSIANS

California’s voters have not questioned Malthusian policies, partly because they’ve been oversold the environmentalist agenda, and partly because too many of them have been convinced that nothing matters more than the color of their skin or the consequences of their gender. As a result, leftist oligarchs have been left free to consolidate their interests. Water rationing is just one manifestation of policy-driven artificial scarcity. This Malthusian policy also informs suppression of energy development, land development, and sensible investment in road and freeway upgrades. Public money is diverted to preposterous projects such as high-speed rail, while private investment in energy and housing is proscribed to exclude all but the wealthiest players. And those politically connected billionaires then make outrageous profits when their products – energy, utilities, housing – are produced at constant costs but sold at scarcity driven sky-high prices.

The reason Malthusian ideology constitutes the conventional political wisdom in California has little to do with the environment. It has to do with power and profit. These spectacularly wealthy special interest billionaires have coopted politicians, mostly Democrats, to spew the rhetoric of environmentalism and identity politics because it makes them richer, at the same time as it has made everyone else poorer. Everyone knows that California has the highest cost-of-living in the United States. But less understood is where all that money is going. It is going into the pockets of left-wing billionaires. To ensure government complicity, government unions get their cut, in the form of staggeringly over-market rates of pay and benefits.

POLICIES SHOULD NURTURE ABUNDANCE, NOT ENFORCE RATIONING

Permanent water rationing sets a horrific precedent. It also is just the wrong way to solve water scarcity. Let farmers sell their water to cities without losing their grandfathered water rights. For that matter, reform the water rights that allow farmers to buy water for next to nothing. Invest in more surface and ground storage to harvest storm runoff. Build desalination plants on the coast of Los Angeles County – BIG ones like they use in the Middle East, producing millions of acre feet per year – using less energy than the Tehachapi pumps.

Water is life. People should be able to use as much water as they are willing to pay for, and if they are required to pay a slight premium for overuse, that can fund investment in more water infrastructure. But the law as written will impose punitive fines for overuse. For less money than the cost of implementing water rationing, Californians could experience water abundance. From fragrant lawns to a rejuvenated Salton Sea, to not having to choose between taking a shower or doing the laundry, Californians can enjoy a better quality of life.

We don’t have to live in a society defined by Malthusian struggle. We can create abundance of water and energy in ways that are largely if not completely decoupled from environmental harm. Conservation has its place but when it is the only solution and is not accompanied by increasing supply it reveals its hidden agenda: Greed for money on the part of the firms that manufacture the instruments of conservation, greed for power on the part of the politicians that enforce conservation, and a contempt for the aspirations of ordinary people on the part of environmentalists who have let their principles run amok.

Nobody should have to submit to monitoring of how they use water and submit to punitive fines if they use more than their ration. The idea that everyone has to submit to draconian restrictions on their water use is ridiculous. It comes from a Malthusian mentality that is admirable in moderation and tyrannical in the extreme.

REFERENCES

Permanent Water Rationing is Coming to California, January 17, 2018

Increasing Water Supply Must Balance Conservation Measures, February 21, 2017

California’s Misguided Water Conservation Priorities, August 27, 2016

FOOTNOTES

(1) Total Precipitation in California during wet, average, and dry years:
California Water Supply and Demand: Technical Report
Stockholm Environment Institute
Table 2: Baseline Annual Values by Water Year Type and Climate-Scenario (MAF)
http://sei-us.org/Publications_PDF/SEI-WesternWater-CWSD-0211.pdf

(2) California water use by sector:
California Water Today
Public Policy Institute of California
Table 2.2, Average annual water use by sector, 1998–2005
http://www.ppic.org/content/pubs/report/R_211EHChapter2R.pdf

(3) California urban water use by sector:
California Dept. of Water Resources
2010 Urban Water Management Plan Data – Tables
Download spreadsheet “DOST Tables 3, 4, 5, 6, 7a, 7b, & 7c: Water Deliveries – Actual and Projected, 2005-2035”
http://www.water.ca.gov/urbanwatermanagement/2010_Urban_Water_Management_Plan_Data.cfm

(4) Cost for water efficient appliances:

Water Saving Potential of water-efficient appliances (Source: USGS)
https://water.usgs.gov/edu/activity-percapita.php

California Water Plan Update 2013 Chapter 3 – Urban Water Use Efficiency
http://www.water.ca.gov/calendar/materials/vol3_urbanwue_apr_release_16033.pdf

Cost to purchase and install various water-saving appliances:

Cost (including installation) for a tankless water heater
https://www.bankrate.com/personal-finance/cost-of-tankless-water-heater/

Cost (including installation) for a water efficient dishwasher
https://www.consumerreports.org/cro/news/2015/04/dishwashers-that-save-water-energy-and-money/index.htm

Cost (including installation) for a water efficient clothes washer
ps://www.homeadvisor.com/cost/kitchens/install-an-appliance/

Cost (including installation) for a low flow toilet
https://www.remodelingexpense.com/costs/cost-of-low-flow-toilets

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California’s Transportation Future, Part Two – The Hyperloop Option

In July 2012, Elon Musk sat down for a “fireside chat” with Sara Lacy, founder of the PandoDaily website. In between discussions of Paypal, Tesla, and SpaceX, 43 minutes in, Musk unveiled his idea for the “Hyperloop,” a new transportation technology that “incorporates reduced-pressure tubes in which pressurized capsules ride on air bearings driven by linear induction motors and air compressors.”

The concept wasn’t new. Hyperloop concepts have existed for nearly 200 years. Small scale “pneumatic railways” were actually built in Dublin, London, and Paris, mostly as a novelty, as far back as the 1850’s. In 1910, American rocket pioneer Robert Goddard proposed a train that would go from Boston to New York in 12 minutes. Goddard’s design advanced the technology, replacing wheels with magnetic levitation of the passenger capsule inside a vacuum-sealed tunnel.

Musk’s “Hyperloop Alpha” study was released by a joint team from SpaceX and Tesla in August 2013. This 58 page study remains an excellent investigation of the financial and engineering feasibility of Hyperloop technology. The concept is relatively simple. Passengers and freight travel in “pods” or “capsules,” through a tube that has had all the air pumped out, eliminating the friction of air resistance. Moreover, these pods ride on electromagnets, repelled away from the inner surface of the tube, eliminating the friction of wheels. Not only would these electromagnets keep the pods levitated off the inside surfaces of the travel tube, but through “linear induction,” they would provide the force to propel the pod through the tube. Most proponents claim these innovations make speeds feasible in excess of 700 MPH.

A system like this, assuming there were nonstop service, could deliver passengers from San Francisco to Los Angeles in around 30 minutes. From the Hyperloop Alpha report, here is the route a Hyperloop system could take in California:

“Hyperloop Alpha” – The Original Proposed Route Connecting SF to LA

The Hyperloop Alpha study was released as an open source document, and none of the companies currently developing Hyperloop systems are directly affiliated with Musk or his companies. Since 2013, at least three noteworthy companies have emerged. Each of these companies have developed substantial technical changes to the design imagined in Musk’s Hyperloop Alpha study. And sadly, despite two of them being headquartered in California, none of these companies are currently proposing a system to connect San Francisco to Los Angeles.

THE MAJOR HYPERLOOP CONTENDERS

Virgin Hyperloop One, founded in 2014, is based in Los Angeles. They have over 300 employees and have raised over $295 million in investment capital. The company was rebranded in October 2017 after receiving a significant investment from Virgin Group founder Richard Branson. In May 2017 they began testing a Hyperloop system on a 500 meter “development loop” built in the desert north of Las Vegas. Regarding next steps for the company, a spokesperson for Virgin Hyperloop One claimed “we’ve already seen ground-breaking commitments in India, UAE, Saudi Arabia and the U.S.” He said construction of the Mumbai-Pune route in India could begin as early as 2022 and be completed in less than five years for passenger operations.

Virgin Hyperloop One’s 500 meter long “DevLoop” in the Nevada Desert

Hyperloop Transportation Technologies, or “HTT,” founded in late 2013, is based in Culver City in the Los Angeles area. They claim to have over 800 collaborators located all over the world who are working mostly in exchange for stock options.  While HTT uses crowd sourcing and is crowd funded, they have developed proprietary technology. An HTT spokesperson reached for comment said “The model is tricky to define. It isn’t open source, we call it ‘open collaboration.’ We don’t disclose our patents and schematics, we have signed contracts and non-disclosure agreements. But this way qualified candidates can be found worldwide and can contribute their talents in exchange for stock options.”

A Harvard Business School case study on HTT had this to say about the company’s prospects using this business model: “Rather than employees, HTT has invited over 800 people to contribute a minimum of 10 hours per week in exchange for future equity. Everything from recruitment, incentives, culture, technology, and intellectual property controls are handled with the idea that a community can work together to solve a global problem (transportation) by ‘turning a collective passion into a vision and the vision into a reality.’ The open question is how this approach will fair as the organization moves from design to delivery.”

Apparently so far HTT’s novel approach to financing and recruitment is working, because in April 2018 they announced construction of a kilometer-long test track near its R&D center in France near Toulouse. In addition to being headquartered in California with a test track underway in France, HTT has entered into government partnerships to perform feasibility studies and testing in Slovakia, India, as well as in the U.S. states of Ohio and Illinois. HTT also has impressive commercial technology partners including AECOM, Ansys, and Oerlikon.

Hyperloop Transportation Technology’s full-scale tubes are transported to French test site 

Another entrant in the Hyperloop industry is Transpod, founded in 2015, based in Toronto with satellite offices in Italy and France. In 2018 they announced plans to build a half-scale, 3 kilometer test track in France. Transpod president Sebastien Gendron, reached by phone, said construction would start this summer. He expected it to be ready for tests to begin within a year, or by Spring of 2019. He stated the decision to go at half-scale was based on a need to finalize the technology based on the results of the testing.

The designs Transpod are exploring are illustrative of the variations in the engineering solutions being developed at these three main competitors. Gendron explained that to reduce the cost per kilometer of tube, a major factor is the type of magnetic levitation. “We are developing technology to keep 80-90% of the levitation system on the vehicle itself,” he said. This would eliminate the need for expensive permanent magnets powered up for the entire length of the corridor. Like his counterparts at Virgin One Hyperloop and HTT, Gendron was reluctant to explain further details of their proprietary technology.

Hypothetical Hyperloop Station (artists rendering from Transpod)

WILL HYPERLOOP WORK AND IS IT SAFE?

A rather caustic attempt to debunk Hyperloop technology was released in July 2016 by Phil Mason, a British scientist and videoblogger who has nearly 800,000 subscribers to his YouTube channel. His video, entitled “The Hyperloop Busted!,” has gotten over 1.5 million views, and takes a dim view of Hyperloop technology. Some of Mason’s criticisms are valid but obvious, and not deal killers. In particular, that Hyperloop systems will cost more than claimed by proponents, and that Hyperloop systems will use more energy than claimed by proponents. Mason is almost certainly correct in these criticisms, but they don’t necessarily kill the argument for Hyperloop transportation solutions. How much more will they cost? How much more energy will they consume? Other concerns merit more attention.

For example, Mason claims that current designs for lengthy Hyperloop routes don’t take into account thermal expansion of metal tubes that are literally hundreds of miles long. When reached for comment on this challenge, a Hyperloop One spokesperson said “We have successfully built a test track in the Nevada desert which is the perfect environment to test the impact of temperature changes upon the Hyperloop tube as temperatures range from over 100F to below freezing. The DevLoop tube experiences daily movement due to expansion and contraction of the steel during temperature swings. To accommodate this movement, we have designed proprietary structural systems into the DevLoop columns to allow for this movement which allows the tube to expand and contract without causing structural damage to the tube, vacuum, and other supporting mechanisms. As systems get longer, we are confident that we can build a flexible, strong, affordable, safe system that can endure a multitude of weather conditions given our testing experience in the harsh climate of the Nevada desert.”

Until systems get longer, it is difficult for Hyperloop proponents to muster convincing arguments that it will be absolutely safe. Depressurizing a tube several hundred miles long is a major engineering feat requiring a lot of energy, as is constructing a tube that long that is capable of structurally withstanding depressurization. There are many unanswered questions.

How will passenger pods exit the main Hyperloop route and switch onto sidings to board and disembark passengers at intermediate stops? How will pods airlock themselves to exit points at the station without letting air into the tube? Since these pods will be traveling at very high speeds, packing almost unimaginable kinetic energy, how certain can operators be that a pod might never bump into the inside of the tube? Wouldn’t a minor “bump,” at high speed in a narrow tube, result in a catastrophic collision, rupturing and depressurizing the tube and likely killing not only the passengers in the colliding pod, but all the passengers in all the pods transiting the tube as they encounter a wall of air?

THE TUNNELING OPTION

One of the strongest arguments for Hyperloop systems, should they function as planned, is that implementing them uses less space. Hyperloop systems can be put onto pylons, elevating the tubes so they don’t disrupt activities on the ground below them, whether that is farmland or the median of a divided highway or freeway. Hyperloop tubes can also be buried underground, enabling them to establish routes through densely populated cities.

It may be that the first use of Hyperloop technology will be within urban areas, where the space advantage they offer constitutes a more decisive argument for investing in a system than the maximum speeds they might achieve on longer routes. It may be the technology can be perfected at lower, safer speeds. Elon Musk, who is not directly involved with any of the companies vying to build the first Hyperloop systems, has founded The Boring Company, where he hopes to apply the same aggressive innovation to tunneling technology as he has applied to rocketry with SpaceX.

If SpaceX challenges NASA in the field of rocketry, The Boring Company faces a similarly entrenched competitor in the German firm Herrenknecht AG. Founded in 1975, its massive factory nestled along the Rhine, this multi-billion dollar company sells tunneling systems – sophisticated snakelike machines that can be over 1,000 feet long – all over the world. Herrenknecht TBMs (tunnel boring machines) dug the 35 mile long Gotthard Base Tunnel under the Swiss Alps in 2009, the longest and deepest tunnel in the world. Today, most of Herrenknecht’s TBMs are digging subways in urban areas, primarily in the Middle East and Asia. For more on Herrenknecht and tunneling technology today, read “The Long Dig” (New Yorker, 2008), or watch this fascinating animation of an operating TBM.

Tunneling, like blasting payloads into low earth orbit, is extremely expensive. But The Boring Company claims tunneling costs can be dramatically reduced. On The Boring Company’s FAQ page, the following innovations are proposed: (1) Triple the power output of the TBM’s cutting unit, (2) Continuously tunnel instead of alternating between boring and installing supporting walls, (3) Automate the TBM, eliminating most human operators, (4) Go electric, and (5) Engage in tunneling R&D, “the construction industry is one of the only sectors in our economy that has not improved its productivity in the last 50 years.”

Apparently tunneling, whether for Hyperloop pods, or just electric powered “skates,” has the attention of the Los Angeles City Council, which in April 2018 approved a CEQA exemption so The Tunneling Company can immediately begin digging a 14 foot diameter, 2.7 mile long tunnel through the heart of West LA. The Boring Company believes they will complete this tunnel in 9 months. Don’t laugh. SpaceX is now routinely reusing first stage rocket boosters, an achievement that eluded NASA for decades. And imagine how long it would take LA Metro to complete the same project.

According to The Tunneling Company, tunneling using conventional methods costs about $1.0 billion per mile. But the current standard for a one-lane tunnel is approximately 28 feet. By placing vehicles on a stabilized electric skate, the diameter can be reduced to less than 14 feet. The area of a 14 foot diameter circle is 615 square feet, whereas a 28 foot diameter circle has an area of 2,463 square feet, exactly four times as much. If Musk is correct that a 14 foot tunnel – which just happens to be the diameter of the tunnel he’s been approved to dig in Los Angeles – is a viable size for mass transit, he’s just brought costs down by 75%. If other proposed innovations are successful, The Boring Company may reduce tunnel costs from $1.0 billion per mile per lane to $100 million per mile per lane. As shown in this animation, electric “skates” can carry cars through these tunnels at speeds of 120 MPH, using elevators to move them down to the tunnel and back up to the roads.

THE FUTURE OF HYPERLOOP TECHNOLOGY

The pace of innovation clearly makes a case that California’s high speed rail project could end up being obsolete before it’s even completed, at staggering expense. But can the same be said for the Hyperloop? What are the emerging competitors to Hyperloop?

Within urban areas, where transportation challenges remain most acute, tunnels underground don’t have to move people at 700 MPH through zero PSI to constitute breakthrough improvement. They can use proven, much safer technology, such as electronic skates that transport cars through tunnels at normal air pressure. Traveling from the San Fernando Valley to downtown Los Angeles takes about 15 minutes if you’re going 120 MPH. You don’t need to go faster.

Between urban areas, there is a clear case for Hyperloop as a superior competitor to high speed rail. Assuming the safety issues and remaining technical challenges can be overcome, it is probably cheaper to construct, and it’s much faster. But these are big ifs. And even if Hyperloop can compete with high speed rail, that’s a low bar. What about conventional air travel? Can Hyperloop construct a network of zero PSI tunnels that connect every major city in California, the way, for example, Southwest Airlines does today?

And at what point does Hyperloop itself become obsolete, unable to cost-effectively compete with new innovations? When the energy density of batteries descends to under 400 watt-hours per kilogram (the best are currently already packing about 300 watt-hours per kilogram), high-speed electric planes become feasible. Because these planes would not have air-breathing jet engines, they could ascend to 60,000 feet where the thinner air offers less resistance, allowing them to travel at supersonic speeds using less energy. And because these planes could be designed like the V-12 Osprey, with rotating engine nacelles, they could take off and land vertically, eliminating the need for airport runways.

One big problem with Hyperloop, ultimately, is same problem with any rail transport. You can only go where the rails – or tubes – go. And only very specialized vehicles can go onto these rails, or into these tubes. Roads, on the other hand, can accommodate anything with wheels. The air, an even more versatile transportation medium, can accommodate anything that flies.

The next article in this series will examine advances in small scale transportation innovations. Advanced vehicles designed for roads and for flight. These new technologies will deliver passengers and freight at high speeds, with ranges that reach from the fringes to the center of large urban areas. It may be that embedded rail or tunnel technologies only make sense in the most densely packed urban cores, or along heavily traveled transportation corridors.

It makes sense to come up with high speed options to connect California’s North Central Valley to the Silicon Valley, or to connect California’s South Central Valley to the Los Angeles Basin. To connect the Silicon Valley to Los Angeles does not make sense for high speed rail, because it doesn’t go fast enough to compete with jets. Whether or not Hyperloop technology provides any of these solutions depends on whether it can indeed reduce the costs significantly below high speed rail, at the same time as it delivers safer, much faster transportation than high speed rail. It also depends on what other high-tech transportation solutions are on the way, using those most versatile of all transportation technologies, wheels and wings.

 *   *   *

This article is the 2nd in a series on California’s transportation future. The first installment was “California’s Transportation Future, Part One – The Fatally Flawed Centerpiece,” published in April 2018. Edward Ring co-founded the California Policy Center in 2010 and served as its president through 2016. He is a prolific writer on the topics of political reform and sustainable economic development.

How Can Local Officials Prepare for the Upcoming Janus vs AFSCME Ruling?

“A public employer shall provide all public employees an orientation and shall permit the exclusive representative, if applicable, to participate.”
– Excerpt from California State Assembly Bill AB 52, December 2016

In plain English, AB 52 requires every local government agency in California to bring union representatives into contact with every new hire, to “allow workers the opportunity to hear from their union about their contractual rights and benefits.” What’s this all about?

As explained by Adam Ashton, writing for the Sacramento Bee, “New California government workers will hear from union representatives almost as soon as they start their jobs under a state budget provision bolstering labor groups as they prepare for court decisions that may cut into their membership and revenue.”

Ashton is referring to the case set to be heard by the U.S. Supreme Court early next year, Janus v. American Federation of State, County, and Municipal Employees. A ruling is expected by mid-year. It is possible, if not likely, that the ruling will change the rules governing public sector union membership. In pro-union states like California, public sector workers are required to pay “agency fees,” which constitute the vast majority of union revenue, even if they laboriously opt-out of paying that portion of union dues that are used explicitly for political campaigning and lobbying.

Needless to say, this law is designed to allow union representatives to get to newly hired public employees as soon as they walk in the door, in order to convince them to join the union and pay those dues. But can anyone argue against union membership?

The short answer is no. To deter such shenanigans, SB 285, thoughtfully introduced by Senator Atkins (D-San Diego), adds the following section to the Government Code: “A public employer shall not deter or discourage public employees from becoming or remaining members of an employee organization.” Governor Brown signed this legislation on October 9th. So much for equal time.

So what can local elected officials do, those among them who actually want to do their part to attenuate the torrent of taxpayer funded dues pouring into the coffers of public employee unions in California? Can they provide the contact information for public employees to outside groups who may be able to provide equal time?

Once again, the answer is no. To deter access even to the agency emails of public employees, a new law bans public agencies from releasing the personal email addresses of government workers, creating a new exemption in the California Public Records Act. Those email addresses could be used by union reformers to provide the facts to public employees. How this all became law provides another example of just how powerful public sector unions are in Sacramento.

In order to quickly get the primary provision of AB 52 enacted, which allows union representatives into new public employee orientations, along with a provision to deny public access to public employee emails, both were added at the last minute to the California Legislature’s 2017-2018 budget trailer bill, AB 119. The union access to new employee orientations is Article 1. The denial of email access is Article 2.

So how are the unions preparing for the Janus ruling? By (1) making sure the union operatives get to new employees as soon as they begin working, (2) by preventing agency employers from saying anything to deter new employees from joining the unions, and (3) by preventing anyone else from getting the official agency emails for new employees in order to inform them of their rights to not join a union. That’s a lot.

So what can you do, if union reformers control a majority on your agency board or city council, and you in a position to try to oppose these unions?

First, examine the legal opinions surrounding the wording of SB 285, “A public employer shall not deter or discourage public employees from becoming or remaining members of an employee organization.” The words “deter” and “discourage” do not in any way preclude providing facts. Consider this preliminary opinion posted on the website of the union-controlled Public Employee Relations Board:

“One major concern I have is that the terms “deter” and “discourage” are not defined. What if an employee comes to an employer with questions about what it means to be a member of the union, and the employer provides truthful responses. For example, assume that the employer confirms that being a member will mean paying dues. What if that has the effect of deterring or discouraging the employee from joining the union?”

It is possible for employers to present facts regarding union membership without violating the new law. Find out what disclosures remain permissible, and make sure new employees get the information.

Another step that can be taken, although probably not by local elected officials, is to challenge the new law that exempts public agency emails from public information act requests. And apart from accessing their work emails, there are other ways that outside groups can communicate with public employees to make sure they are aware of their rights.

California’s public employee unions collect and spend over $1.0 billion per year. If the Janus vs AFSCME ruling takes away the ability of government unions to compel payment of agency fees, and imposes annual opt-in requirements for both agency fees and political dues, these unions will collect less money. How much less will depend on courage and innovative thinking on the part of reformers who want to rescue California from unionized government.

REFERENCES

Get a state job and meet your labor rep: How state budget protects California unions, Sacramento Bee, June 21, 2017
http://www.sacbee.com/news/politics-government/the-state-worker/article156146364.html

AB 52, Public employees: orientation and informational programs: exclusive representatives, California Legislature
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB52

Janus v. American Federation of State, County, and Municipal Employees, Supreme Court of the United States Blog
http://www.scotusblog.com/case-files/cases/janus-v-american-federation-state-county-municipal-employees-council-31/

SB 285, Atkins. Public employers: union organizing, California Legislature
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB285

2017-2018 budget trailer bill, AB 119, California Legislature
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB119

California Public Records Act, Office of the Attorney General
http://ag.ca.gov/publications/summary_public_records_act.pdf

Fact Sheet – AB 52 (Cooper) & SB 285 (Atkins), California Labor Federation
http://calaborfed.org/wp-content/uploads/2017/04/2-AB-52-Cooper-and-SB-285-Atkinsweb.pdf

Legislative Bulletin – California School Employees Association
http://www.csea.com/web/portals/0/csea_pdf/leg_rpt.pdf

SB 285: Public Employers Cannot Discourage Union Membership, Public Employee Relations Board
http://www.caperb.com/2017/04/04/sb-285-public-employers-cannot-discourage-union-membership/

Public employee unions wield hefty Atkins stick [SB 285], San Diego Reader
https://www.sandiegoreader.com/news/2017/aug/28/ticker-public-employee-unions-wield-atkins-stick/#

Jeff Morales defends California High-Speed Rail to a Santa Clarita delegation at the California State Capitol, March 15, 2015.

Is the California High-Speed Rail Authority Paying for Legendary Leadership?

Union-Owned Non-Profit Affordable Housing Development Active in San Diego County Politics

A non-profit affordable housing complex located in National City, California has become a major political force in San Diego County.

Since 2010, the “San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments” has donated about $800,000 directly to campaign committees, most of them based in San Diego County. It has been a top donor in 2016 to campaigns to pass bond measures for San Diego County community college and school districts where construction contractors are required to sign Project Labor Agreements (PLAs).

For example, this “low to moderate income apartment community” in National City has given $50,000 to the campaign to pass Measure X, which authorizes the Grossmont-Cuyamaca Community College District to borrow $348 million via bond sales to investors. In addition, it helped to pay for polling services on behalf of the college administration. (The polling results had to be obtained from the college through a public records request.) It also gave $50,000 to the campaign to pass Measure Z, which authorizes the Southwestern Community College District to borrow $400 million via bond sales to investors.

National City Park Apartments

National City Park Apartments

This money is obtained through rental payments of apartment tenants. Built in 1968 with US Department of Housing and Urban Development funds, the National City Park Apartments have apparently been owned and managed by the San Diego County Building and Construction Trades Council since their construction. The head of the Trades Council – Tom Lemmon – is chairman of the Board of Directors for the San Diego County Building Trades Council Family Housing Corporation and receives some compensation from the Corporation. He also lived there as a boy. In 2008, the Trades Council paid off the loans from its purchase of the apartment complex.

The payoff of those loans may have triggered the decision to start getting the affordable housing complex involved in politics in 2010. Another inspiration may have been the Citizens United decision issued on January 22, 2010 by the U.S. Supreme Court. That controversial decision extended certain political speech rights to non-profit organizations classified under Internal Revenue Code section 501(c)(4) as “operated exclusively for the promotion of social welfare . . . the net earnings of which are devoted exclusively to chari­table, educational, or recreational purposes.” The San Diego County Building Trades Council Family Housing Corporation tells the IRS that its purpose is “to provide affordable rental housing for low to moderate income families.”

Below is a list of ways that the National City Park Apartments are providing “affordable rental housing for low to moderate income families.”

Political Contributions of San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments and Affiliated Entities, 2010-2016

Election Recipient of Contribution Amount
2010 Yes on Prop J (San Diego Unified School District parcel tax) $50,000
2011 No on Prop A and Prop B (City of San Diego Project Labor Agreement ban and pension reform) $5,000
2011 Californians Against Identity Theft and Ballot Fraud (radio ads to discourage people from signing petitions for PLA bans and pension reform) $25,000
2012 A Better San Diego Issues Committee, a Sponsored Committee of the San Diego and Imperial Counties Labor Council, AFL-CIO $100,000
2012 Kids First/Yes on Prop Z (San Diego Unified School District bond measure) $85,000
2013 David Alvarez for City of San Diego Mayor (after Bob Filner resignation) $75,000
2014 San Diego County Democratic Party (for David Alvarez for City of San Diego Mayor, after Bob Filner resignation) $12,500
2014 Yes on Prop 41 (Coalition for Veterans Housing, to pass California Veterans Housing and Homeless Prevention Bond Act) $5,000
2014 San Diego County Democratic Party (for November 2014 Election) $47,500
2014 Escondido Taxpayers Association (opposing ballot measure to enact charter for City of Escondido) $10,000
2014 Chula Vista Voters Against Corruption (committee formed to oppose John McCann for Chula Vista City Council) $25,000
2015 San Diego Works! sponsored by San Diego Imperial Counties Labor Council, AFL-CIO $15,000
2016 Contribution to independent expenditure committee primarily formed to support Proposition I, Barbara Bry, and Justin DeCesare, sponsored by Alliance San Diego Mobilization Fund (preserve San Diego High School in Balboa Park, elect Bry and DeCesare to San Diego City Council) $25,000
2016 San Diego County Building and Construction Trades Council Political Action Committee $25,000
2016 San Diego County Democratic Party $10,000
2016 South Bay Parents and Community for Quality School Construction (Sweetwater Union High School District bond measure)* $73,650
2016 Rendon Ballot Measure Committee to Keep California Competitive (committee under control of California State Assembly Speaker) $10,000
2016 San Diego County Democratic Party $7,000
2016 Educators & Parents for Great Schools to Support Whitehurst-Payne for School Board 2016, sponsored by San Diego Education Association (independent expenditure committee primarily formed to support Sharon Whitehurst-Payne; Board Member; San Diego USD) $10,000
2016 Teachers and Parents Putting Kids First Supporting Kevin Pike 2016 (independent expenditure committee primarily formed to support Kevin Pike; Board Member, Sweetwater Union HSD) $8,000
2016 South Bay Families for Affordable College – Yes on Z (Southwestern Community College bond measure) $50,000
2016 Rodriguez for City Council 2016 (Jose Rodriguez, National City Council) $1,000
2016 Rodriguez for City Council 2016 (Jose Rodriguez, National City Council) – office space $2,700
2016 Irene Lopez for San Ysidro School Board 2016 $1,000
2016 Tremper for Chula Vista School Board 2016 (Glendora Tremper for Chula Vista Elementary School District board) $2,000
2016 Careers & Affordable Education for East County – Yes on X (Grossmont-Cuyamaca Community College District bond measure) $50,000
2016 San Diegans for Full Voter Participation, Yes on K and L, Sponsored by Community and Voter Rights Organizations (City of San Diego ballot measures to shift election significance from June to November, when more people vote) $75,000
2016 Careers & Affordable Education for East County – Yes on X – polling (Grossmont/Cuyamaca Community College District bond measure) $1,875
TOTAL 2010-2016 $807,225
Political Contributions - San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments

Click the chart to download an Excel version of “Political Contributions 2010-2016 from San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments”

* Campaign reports from South Bay Parents and Community for Quality School Construction indicate two $22,500 contributions on February 1, 2016 from the San Diego County Building Trades Council Family Housing Corporation that are not in the Corporation’s own campaign reports. Those contributions are included in this amount.

Lobbying and Policy Activity

The San Diego County Building Trades Council Family Housing Corporation also provides funding and support for labor union activism and allied causes. Some examples:

  • Since 2011 the San Diego County Building Trades Council Family Housing Corporation has employed Murtaza Baxamusa as Director of Planning and Development. Baxamusa is a union-oriented economist involved in many policy debates in San Diego County going back to his previous position with a San Diego-based union-oriented think tank called the Center on Policy Initiatives. He is a leader of the Middle Class Taxpayers Association, a union front group that is displacing traditional fiscally-conservative taxpayers associations as the statutorily-required taxpayers representative on local government bond and tax oversight committees.
  • It provides grants to organizations such as the Center for Policy Initiatives, Cesar Chavez Service Club, and the Gay & Lesbian Victory Fund.
  • It sponsored a lunch in 2016 at the San Diego Housing Federation 25th Annual Affordable Housing and Community Development Conference. The San Diego County Building and Construction Trades Council is among the highest-status members in this organization.
  • It uses the legal services of Ricardo Ochoa, a union lawyer. Ochoa represented the San Diego County Building Trades Council Family Housing Corporation No. 1 for its defense of a civil rights lawsuit for housing and accommodations (Gash v. San Diego County Building Trades Council Family Housing Corporation No. 1). Ochoa also represents school and community college district faculty unions in San Diego County. Recently he filed a lawsuit on behalf of a coalition of unions and other groups called “Quality of Life Coalition” – with the political director of the International Brotherhood of Electrical Workers Local 569 as lead plaintiff – to challenge the ballot arguments in support of a transportation investment plan and sales tax (Measure A) on the November 2016 ballot. During the development of the transportation plan, unions had demanded that the San Diego Association of Governments (SANDAG) mandate a Project Labor Agreement on construction contracts funded by the tax.

It’s all about providing affordable rental housing for low to moderate income families.

CAMPAIGN CONTRIBUTIONS – SOURCES

2010 Election Political Campaign Contributions – San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments

2011 Political Contributions – San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments

2012 Political Election Campaign Contributions – San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments

2013-2014 Political Special Election Contributions for San Diego Mayor – San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments

2014 Primary Election Political Contributions San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments

2014 General Election Political Contributions San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments

2015 Election Political Contributions San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments

2016 Primary Election Political Contributions San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments

2016 General Election Monetary and In-Kind Contributions San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments (as of October 26, 2016)

OTHER SOURCES

IRS Form 990 2014  San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments Nos. 1 2 3

The Local Affordable Housing That Labor Built – commentary by Tom Lemmon – San Diego Union-Tribune – June 3, 2011

San Diego County Building Trades Council Family Housing Corporation dba National City Park Apartments website

2013 “San Diego Housing Video” posted by the International Brotherhood of Electrical Workers (IBEW) and featuring the National City Park Apartments

San Diego Housing Federation 25th Annual Affordable Housing and Community Development Conference

Building Trades’ Family Housing Corporation Re-Elects Board MembersSan Diego Reader – February 8, 2012

San Diego County Building Trades Council Family Housing Corporation Hires Policy Director for Redevelopment – February 16, 2011


Kevin Dayton is the President & CEO of Labor Issues Solutions, LLC, and is the author of frequent postings about generally unreported California state and local policy issues at www.laborissuessolutions.com. Follow him on Twitter at @DaytonPubPolicy.

Unions Foiled in Plot to Evade Open Government Law

It’s rare to see a California local government rescind a vote. But on October 4, 2016, the San Joaquin County Board of Supervisors voted 5-0 to rescind a controversial and probably illegal vote taken three weeks earlier to satisfy the political demands of construction unions.

Rescind Project Labor Agreement Vote - San Joaquin County Board of Supervisors - October 4, 2016

Rescind Project Labor Agreement Vote – San Joaquin County Board of Supervisors – October 4, 2016

On September 13, the board had voted 3-2 to direct staff to negotiate a Project Labor Agreement (PLA) with construction trade unions for a $41 million county hospital expansion. Organizations that defend fair and open bid competition for public contracts were caught by surprise. There was nothing on the September 13, 2016 meeting agenda to indicate board discussion – let alone action – concerning a government-mandated Project Labor Agreement.

But some people seemed to know a vote would happen. Union officials and activists attended the September 13 meeting and called on the Board of Supervisors to negotiate a Project Labor Agreement. At least one Supervisor was ready to make a motion for it even though the proposal was introduced to the board via public comment.

In addition to undermining the public interest, the vote appeared to be illegal. Under the California Ralph M. Brown Act, an elected governing board cannot vote on items without notifying the public in advance that such items will be considered for action. This is a basic principle of open and transparent government.

But having a law and actually enforcing it are sometimes two different things. Frequently the public encounters insurmountable challenges in making California local governments accountable for violating what’s commonly called “the Brown Act.” In this case, opponents of government-mandated Project Labor Agreements needed persistence and determination to confirm the illegal action and get it rectified.

A video record of the meeting posted on the county website after the meeting strangely cut off before the vote, thereby depriving the public of a source to prove what had happened. A reporter who covered the September 13 Board of Supervisors meeting for the local newspaper insisted that the board had not taken a vote to negotiate a Project Labor Agreement. Members of the public trying to obtain draft meeting minutes were frustrated by what seemed to be bureaucratic delays.

Yet there was one reliable witness at the meeting who was paying close attention to the proceedings. This witness was sure that a 3-2 vote had been taken specifically to authorize staff to negotiate a union Project Labor Agreement to include as a bid specification for the San Joaquin General Hospital Phase 2 Acute Care Patient Wing Expansion Project.

Eventually, the county was able to restore the video to completeness and provide the order of the board. It was indeed a vote directing staff to negotiate a Project Labor Agreement with unions, with the agreement to come back for ratification at the September 27 board meeting. (Allowing only two weeks for “negotiations” of a major labor relations contract suggests that union officials and some county supervisors were going to pressure staff to hastily sign off on a standard boilerplate agreement that unions typically introduce at the start of negotiations.)

The plot was now proven. A coalition of organizations banded together and hired a law firm to send a letter to the Board of Supervisors demanding that the vote be nullified. Meanwhile, the Board of Supervisors cancelled its September 27 meeting for unknown reasons. Then the Board of Supervisors scheduled an agenda item at the October 4 meeting to rescind the original September 13 vote.

San Joaquin County Administration Building Evacuation - October 4, 2016

Evacuating the San Joaquin County Administration Building on a beautiful fall day.

But supporters of fair and open bid competition on taxpayer-funded contracts even struggled at the October 4 board meeting to get that 5-0 vote to correct the apparently illegal action. Hundreds of Service Employees International Union (SEIU) activists repeatedly disrupted and delayed the meeting to express displeasure with their own contract negotiations. When a representative of the Coalition for Fair Employment in Construction was speaking during public comment to urge the board to rescind their Project Labor Agreement vote, someone set off the fire alarm, resulting in the evacuation of the building.

In the past 20 years, the militant union activism and underhanded political tricks formerly concentrated in a few urban centers of California have rippled out 75 miles to places such as San Joaquin County. While many fiscal conservatives are fleeing the state or dying, those who choose to remain in California must monitor their local government agendas and make elected officials accountable when they violate the law for a special interest group.

Sources

September 26, 2016 Letter to San Joaquin County Board of Supervisors – Brown Act Violation – Project Labor Agreement Vote

October 4, 2016 San Joaquin County Board of Supervisors Meeting Agenda Item – Rescind Vote to Negotiate Project Labor Agreement

Union Creates Bedlam at San Joaquin Supervisors Meeting – Stockton Record – October 4, 2016


Kevin Dayton is the President & CEO of Labor Issues Solutions, LLC, and is the author of frequent postings about generally unreported California state and local policy issues at www.laborissuessolutions.com. Follow him on Twitter at @DaytonPubPolicy.

California Needs Infrastructure, and Unions Should be Helping

“Infrastructure” is a perennial topic that enters and leaves California’s public consciousness in the following manner: A politician says “we must rebuild our crumbling infrastructure,” journalists report it, almost nothing is done, and the infrastructure continues to crumble. The talking point is made. Check the box. Repeat. Decades pass.

If you’ve driven west on Interstate 580 from California’s central valley into the San Francisco Bay Area, “infrastructure” becomes more than a hard-to-pronounce, sort of awkward sounding four syllable word that emanates from the mouths of politicians every election cycle. Because the divots, pot-holes, fissures and bumps on Interstate 580 west are impossible to ignore. The road is literally falling apart.

It isn’t enough to marvel at how Californians tolerate this negligence. Because it harms our quality of life. Today the failure is measured in terms of how many cars and trucks require far more frequent maintenance to repair their battered suspensions because we can’t fix our roads. Today it’s short showers and annoying light switches that turn off automatically because we won’t build new water and power infrastructure. But tomorrow it could be a catastrophe, as entire regions are potentially denied water, power or transportation, because over time, less and less viable infrastructure became critical to supporting more and more people.

Why? Why have California’s policymakers paid lip service to infrastructure for the last 20-30 years, all the while watching it crumble? Here are three reasons:

(1) Environmentalists provide the moral cover for neglect. There isn’t a road, a bridge, a power plant, a port upgrade, new housing, a water treatment plant – not one scratch in the ground that isn’t bitterly contested by the environmentalist lobby. Powerful environmentalist organizations, often receiving government funds, with opportunistic trial lawyers populating their boards of directors, have an incentive to tie every possible infrastructure investment up in knots. While some environmental oversight is necessary, the challenge of complying with every environmentalist objection deters all but the wealthiest corporations, and creates costly delays that last for decades.

(2) Many corporate special interests benefit from neglect. Corporations who own existing sources of supply can charge higher prices and generate higher profits. Utilities are the obvious examples of this – ever since “decoupling” legislation was passed in California, the only way utilities can generate higher profits is to raise unit costs, since unit output and profit percentages are fixed by law. So if water costs $2.00 per CCU instead of $0.25, or if electricity costs $0.50 per KWH instead of $0.05, utility companies make a killing for their shareholders. Similarly, owners of land that has finally been approved for development, or quarries that got operating permits before the regulations made them prohibitive, are able to sell their inventory at fantastic markups.

(3) Public sector unions also benefit from infrastructure neglect. Taxpayer funds that ought to be paying to construct and upgrade roads and bridges end up being allocated instead to pay government workers higher salaries and fund generous pensions. These unions also benefit from the legislated and entirely artificial scarcity that drives up prices for land and homes, because it increases property tax revenue. And of course, every additional environmentalist inspired regulation and code means more unionized government inspectors and enforcement officers can be hired. Government over-management and mismanagement always benefits public sector unions.

So where is California’s private sector labor movement when it comes to infrastructure? Here is a quote from the California Labor Federation’s website, under “Advocacy / Key Issues.” Revealingly, this is number ten of ten on their “issues” page:

“Invest in California’s Infrastructure: We must have a comprehensive strategy for making investments in infrastructure and a sustainable, equitable way to finance them. We need to restore our public transportation systems, modernize our rail system and rebuild our roads and waterways. We must double our efforts to build high speed rail in California.”

Apart from “high speed rail,” a project that fails to justify itself under any rational cost/benefit analysis, this all sounds good. But where’s the follow up?

When scoping meetings are held to approve infrastructure projects, whether it is widening a highway, approving a new subdivision, repairing a bridge, or building the Temperance Flat or Sites reservoirs, where are the unions? Why aren’t hundreds of them showing up two hours early to these meetings, elbowing the environmentalist trial lawyers and their zealous puppets out of the room? Why aren’t they packing the out-of-control California Air Resources Board meetings to show solidarity with the workers in dairies, agriculture, manufacturing, mining and timber, trucking, and countless other industries who employ hundreds of thousands of Californians?

Instead California’s labor unions typically resort to “greenmail,” a tactic that goes as follows: Pick a project that the environmentalist lobby doesn’t actually object to, then sue the developer on environmentalist grounds until they concede to enact a project labor agreement, than drop the lawsuit.

Is this the best they can do?

California’s private sector labor movement should consider how environmentalism, married with the special interests of monopolistic corporations, allied with government labor whose agenda is utterly different than their own, have destroyed literally millions of good jobs in this state. They should consider how close California is to becoming an authoritarian wasteland, where land, water, energy, housing and transportation are cynically rationed by this alliance of oligarchs and elitists. They need to wake up and fight for their core principles – the welfare of workers and their families.

An essential point that union leaders and their members ought to understand is the cost of building infrastructure in California is prohibitive for reasons that go far beyond paying a prevailing wage, or even the cost of hiring a few extra employees on a project to comply with union work rules. The costs are prohibitive because oligarchs and elitists have colluded to make every element of a project more expensive – the land, power, materials, transportation, staging, permits, and time-delays. The compounding effect of these pernicious barriers have enriched oligarchs, government workers, and the trial lawyers representing the environmentalists. They’ve made the rest of us poorer, and they’re the real reason we don’t have more good jobs.

To take one dramatic example, consider the Carlsbad desalination plant, which – not even including distribution pipes to move the water into the municipal supply – was built at at a capital cost of $12,733 per acre foot of annual capacity. Compare that to the Sorek desalination plant, completed in Israel in 2013 at a capital cost of $4,111 per acre foot of annual capacity, less than one-third as much! This was accomplished in a nation where labor is not cheap, nor is the government a paragon of free market deregulation. This is not an isolated case.

It is a crime against all Californians that other developed nations can build infrastructure for less than one-third what it costs here, and that other states in the U.S. can build infrastructure for less than half what it costs in California. Labor costs occupy a dwindling percentage of what infrastructure projects cost, which means that unions should start lobbying aggressively for infrastructure investment, instead of playing petty greenmail games. They may not win every project labor agreement battle. But they will win the war to create millions of good new jobs, and change California from a land of authoritarian scarcity back into a land of opportunity and abundance.

 *   *   *

Ed Ring is the president of the California Policy Center.

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High Speed Rail Is ‘On Track’ to Incur Billions in Overruns

Editor’s Note: This article by Jon Coupal provides an update on what has to be one of the biggest con jobs ever perpetrated on California’s voters – “High Speed Rail” that will never make a profit, will never move significant numbers of people, will not even be “high speed” in many sections of track, cannot integrate with other rail assets (different track gauge), and is going to cost at least $50 billion more than they said it would. So why are we still doing this project? One significant reason is the political support it gets from organized labor. Rather than fight for projects that would actually improve the lives of millions of Californians, such as better roads, refurbished bridges, upgraded ports, new power stations, and sorely needed water infrastructure, California’s labor movement backs high speed rail. And the reason they do that is because they don’t want to fight the powerful environmentalist lobby. This is a failure of vision and it is a failure of courage. And it is difficult to overstate how much this fails the ordinary working families that organized labor purports to support above all else. Read on.

High-speed rail continues to be an expensive, sick joke for California. Under the current plan, it is no longer “high-speed” and projected costs, which seem to change almost daily, appear to be doubling.

In the latest news, the nascent California high-speed rail system is running $50 million over budget for a two mile stretch in Fresno.

Let that sink in for a moment.

$50 million, over budget, for just a two mile stretch.

Let’s see, HSR has a $50,000,000 cost over run on 2 miles of a 32 mile job. Does that mean we can expect total cost overrun of $25 million per mile times 32 miles or $800,000,000?

Better yet, let’s extrapolate that to the entire project. You know, the one sold to voters. According to High Speed Rail Authority itself, over 800 miles of track are needed. So, at $25 million of cost overruns per mile, that works out to $20,000,000,000. That’s $20 billion in cost overruns!

In just 3 years, from the original passage of Proposition 1A authorizing about $10 billion in High Speed Rail bonds, the estimated cost for high-speed rail had gone from $40 billion to $98 billion, the amount that independent expert analysis had predicted prior to the bond’s being approved.

Responding to public outrage, the High-Speed Rail Authority came up with a plan costing “only” $68 billion. The new “blended” system would combine high and low speed rail, doubling the travel times as well as ticket prices.

Fearing a voter revolt, the High-Speed Rail Authority rushed to break ground, hoping that once they dug a hole, the pet project of Gov. Brown and the majority of Sacramento lawmakers, who receive backing from construction contractors and labor unions that expect to be the primary beneficiaries of billions of dollars of public spending, would be safe from outside interference.

By beginning a first segment between Merced and Fresno, the rail authority engaged in the classic Willie Brown strategy. The former Assembly Speaker, in a moment of candor, once told the San Francisco Chronicle, “In the world of civic projects, the first budget is really just a down payment. If people knew the real cost from the start, nothing would ever be approved. The idea is to get going. Start digging a hole and make it so big, there’s no alternative to coming up with the money to fill it in.”

Constant cost overruns and a lack of accountability plague California’s infrastructure projects. Perhaps, as a public service, it should be required that Brown’s words be reprinted in every ballot summary for every construction bond placed before the voters.

Jon Coupal is president of the Howard Jarvis Taxpayers Association — California’s largest grass-roots taxpayer organization dedicated to the protection of Proposition 13 and the advancement of taxpayers’ rights.