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Finally Got It! Secret Union Deal for San Diego Convention Center

Through relentless and tedious persistence and a willingness to disturb “the Establishment” of the country’s eighth most populous city, the Coalition for Fair Employment in Construction (based in California) has finally succeeded in obtaining and exposing a document revealing how the office of former San Diego Mayor Jerry Sanders (a Republican) arranged a secret and costly deal with Lorena Gonzalez, the former head of the San Diego and Imperial Counties Labor Council, AFL-CIO, to end union-initiated legal obstacles to the $520 million expansion of the San Diego Convention Center.

Mayor Sanders Calendar September 21 2012As outlined in the September 21, 2012 email from Mayor Sanders’ Chief of Staff Julie Dubick (see text below), unions would drop or settle their environmental objections under the California Environmental Quality Act (CEQA) to the proposed San Diego Convention Center Phase 3 Expansion. Unions would also drop their lawsuit challenging the structure of a tax assessment to pay back the principal and interest on bonds sold to borrow money for the expansion. Unions would openly and actively support the convention center expansion at the San Diego City Council and at the California Coastal Commission.

In exchange, the San Diego Mayor’s Office would facilitate negotiations between the unions and the construction manager at-risk selected for the project (Clark Construction) for a Project Labor Agreement with construction trade unions. (Yes, this was a classic case of union CEQA “greenmail” that Governor Jerry Brown and the Democrat majority in the California State Legislature apparently want to shield from CEQA reform measures.)

Developing this labor agreement had to be done subtly and undercover. San Diego voters had approved an ordinance (Proposition A) three months earlier that prohibited the city from requiring contractors to sign a Project Labor Agreement as a condition of working on city projects.

Also as part of the deal, the Mayor’s Office would initiate discussions with Marriott hotel management in support of a union position (apparently on behalf of UNITE HERE Local Union No. 30) and appoint someone acceptable to the unions to the San Diego Convention Center Corporation Board of Directors.

The-Moment-of-LIE-San-Diego-Convention-Center-Project-Labor-Agreement1-e1353109801912All of this was done without any public hearings or public votes by any elected or appointed board with any authority over the project. On November 8, Mayor Sanders hastily convened a press conference featuring Lorena Gonzalez to announce that unions now supported the convention center expansion.

On that same day, he appointed Laurie Coskey – the Executive Director of the Interfaith Committee for Worker Justice – to the San Diego Convention Center Corporation Board of Directors.

Even the environmental settlements were cynical. Unions ended up abandoning their demand that the Environmental Impact Report address the effect on the convention center expansion of an expected sea level rise caused by global warming. As it turns out, the California Coastal Commission sees this as a legitimate concern. City officials anticipated that the Coastal Commission would promptly approve the project, but this has not happened despite the new union enthusiasm for it.

The Coalition for Fair Employment in Construction needed nine months to fit this puzzle together. It had repeatedly failed under the authority of the California Public Records Act to obtain any records of substance about the suspected deal, even after filing a lawsuit against the City of San Diego.

Those requests for public records were foiled because the Chief of Staff for the Mayor of San Diego was using a private Gmail address to facilitate meetings between top city officials and top union officials. In fact, the Coalition for Fair Employment in Construction suspects that a lot more wheeling and dealing between the city and the unions was probably occurring through the use of private email accounts. The people of San Diego still remain ignorant of how their government works in practice. (One could surmise that union officials like it that way.)

This particular case suggests the following list of outrages:

  1. Using private email accounts for public business in order to evade the state’s public records access laws and keep the press and the public uninformed.
  2. Secret and devious arrangements meant to circumvent a city ordinance approved by voters.
  3. Abuse of the California Environmental Quality Act (CEQA) to attain economic objectives unrelated to environmental protection.
  4. Subversion of fair and open bid competition by requiring construction contractors to sign a contract with unions as a condition of work.
  5. Union favoritism.
  6. Appointing someone with obvious union connections to a government board in exchange for union support of a project.
  7. Government intervention in the relationship between a private employer and union officials eager to represent its employees (for a price) in exchange for union support of a project.
  8. Potential cost increases on a government project resulting from reduced bid competition and the administrative costs of an unnecessary labor contract.
  9. Abandonment of environmental objections subsequently identified by the California Coastal Commission to be legitimate concerns.
  10. Perpetuating civic decline by surrendering to organizations that exploit California’s burdensome legal code for personal gain.

Lorena Gonzalez SignLessons for the Next Generation

Mayor Jerry Sanders left office (to be replaced by Bob Filner) with a legacy of achievement and is now President & CEO of the San Diego Regional Chamber of Commerce. Lorena Gonzalez left her union position with a legacy of achievement and won a special election to the California State Assembly, District 80, with the heartfelt campaign slogan “Honesty in the Assembly.”


Here is the text of the document revealing the secret union deal for the San Diego Convention Center Phase 3 Expansion:

From: Dubick, Julie
Sent: Friday, September 21, 2012 9:46 AM
To: ‘LGonzalez@unionyes.org’; ‘tklein@unionyes.org’
Subject: Doc3[1 ].docx
Attachments: Doc31 doc.docx

From: Dubick, Julie
Sent: Friday, September 21, 2012 9:47 AM
To: ‘Stephen Cushman’
Subject: Doc3[1] .docx
Attachments: Doc31 doc.docx

Here is suggested language. Please confirm receipt to jpdubick@gmail.com. See you at 2pm today. Julie

San Diego Convention Center Union Deal

Primary Source Documents:

Proposition A (approved by 58% of San Diego voters in June 2012) – City of San Diego Fair and Open Competition ordinance – prohibition on city-mandated Project Labor Agreements

Browning vs. The San Diego City Council (UNITE HERE Local 30 lawsuit)

Union Comments on Draft Environmental Impact Report for San Diego Convention Center Phase 3 Expansion required under the California Environmental Quality Act (CEQA) – June 29, 2012

Union Comments on Final Environmental Impact Report for San Diego Convention Center Phase 3 Expansion required under the California Environmental Quality Act (CEQA) – September 19, 2012

Settlement Agreement – Building Trades Unions – San Diego Convention Center – 2012 (ENVIRONMENTAL SETTLEMENT AGREEMENT FOR THE CONVENTION CENTER PHASE III EXPANSION AND EXPANSION HOTEL PROJECT BY CITY OF SAN DIEGO; SAN DIEGO COALITION FOR A BETTER CONVENTION CENTER; SAN DIEGO COUNTY BUILDING AND CONSTRUCTION TRADES COUNCIL; UNITE HERE LOCAL 30; AND BILLIE JOHNSON)

Settlement Agreement – UNITE-HERE Union Local 30 – San Diego Convention Center – 2012 (SETTLEMENT AGREEMENT FOR THE CONVENTION CENTER PHASE III EXPANSION AND EXPANSION HOTEL PROJECT BY AND BETWEEN CITY OF SAN DIEGO; BRIGETTE BROWNING; SERGIO GONZALES; AND UNITE HERE LOCAL 30)

Settlement Agreement – Various Construction Trade Unions – San Diego Convention Center – 2012 (ENVIRONMENTAL SETTLEMENT AGREEMENT FOR THE CONVENTION CENTER PHASE III EXPANSION AND EXPANSION HOTEL PROJECT BY CITY OF SAN DIEGO; CITY OF SAN DIEGO CITY COUNCIL; SAN DIEGO CONVENTION CENTER FACILITIES DISTRICT NO. 2012-1; COALITION FOR RESPONSIBLE CONVENTION CENTER PLANNING; TERRY LUTNICK; CINNA BROWN; AARON MICHAELSON; INTERNATIONAL BROTHERHOOD OF ELECTRIC (sic) WORKERS LOCAL 569; UNITED ASSOCIATION OF PLUMBERS & STEAMFITTERS LOCAL 230; SHEETMETAL WORKERS LOCAL 206; AND IRONWORKERS LOCAL 229)

San Diego Convention Center Phase 3 Expansion Project Labor Agreement

San Diego County Building and Construction Trades Council press release celebrating the Project Labor Agreement on the San Diego Convention Center Phase 3 Expansion – November 15, 2012

Comprehensive Background:

www.SanDiegoConventionCenterScam.com

It’s Out in the Open: Project Labor Agreement a Costly Possibility for San Diego Convention Center Expansion – www.TheTruthaboutPLAs.com – March 11, 2011

Unions Submit 436 Pages of Objections to Draft Environmental Impact Report for Proposed San Diego Convention Center Phase III Expansion Project: CEQA Abuse Run Rampant – www.LaborIssuesSolutions.com – August 8, 2012

Brazen! Union Officials and Their Environmental Lawyers at Port Commissioners’ Meeting Threaten to Stop San Diego Convention Center Expansion Using California Environmental Quality Act (CEQA) – www.LaborIssuesSolutions.com – September 20, 2012

Unions Threaten Environmental Litigation to Block San Diego Convention Center – www.UnionWatch.org – September 20, 2012

Union Officials Intimidate San Diego Civic Leaders – www.FlashReport.org – September 20, 2012

CEQA Greenmail Still Effective for Unions in San Diego: Just a Cost of Doing Business for Pragmatic Civic Leaders – www.LaborIssuesSolutions.com – October 10, 2012

Unions Get Control of San Diego Convention Center Expansion: CEQA Abuse Is Effective, Fair and Open Competition Ordinance Evaded – www.LaborIssuesSolutions.com – November 8, 2012

Unions and Mayor in San Diego Brag to the Public about San Diego Convention Center Construction Deal, But Refuse to Provide It to the Public – www.LaborIssuesSolutions.com – November 13, 2012

Coalition for Fair Employment in Construction Obtains City of San Diego Settlement Agreements with Unions for Convention Center – www.LaborIssuesSolutions.com – November 15, 2012

San Diego Union Officials Ignored Global Warming-Related Sea Level Rise in Environmental Settlements for San Diego Convention Center Expansion, Despite Identifying It as Major Deficiency Under CEQA – www.LaborIssuesSolutions.com – November 15, 2012

San Diego News Media Reports on Aggressive Opposition to Project Labor Agreement on Convention Center Expansion – www.LaborIssuesSolutions.com – November 16, 2012

Where is the Project Labor Agreement for the San Diego Convention Center Expansion? A Press Conference Outlining an Action Plan – www.LaborIssuesSolutions.com – November 16, 2012

Website Dedicated to Exposing Wasteful and Fraudulent Nature of San Diego Convention Center Expansion – San Diego Rostra – January 16, 2013

Highlighting the Top Union Abuses of the California Environmental Quality Act (CEQA) – www.FlashReport.org – February 18, 2013

Persistent Pressure Compels San Diego to Spit Out Project Labor Agreement – www.UnionWatch.org – April 23, 2013


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 Threaten Environmental Litigation to Block San Diego Convention Center

Whatever your views concerning the wisdom of the proposed $520 million expansion of the San Diego Convention Center and the related expansion of the adjacent Hilton San Diego Bayfront Hotel, you should be outraged at the shameless stunt of top San Diego labor union officials and their lawyers at the September 19, 2012 meeting of the Board of Port Commissioners for the United Port of San Diego.

The spectacle at the Port of San Diego was a powerful illustration of how labor unions abuse the California Environmental Quality Act, commonly known as CEQA (California Public Resources Code Section 21000 et seq.), to delay projects while demanding labor agreements and other economic or labor concessions from public and private developers. It also showed how community leaders and developers are too helpless or intimidated to try to stop or evade this practice, known as “greenmail.”


A Summary of the Spectacle at the Port Commissioners’ Meeting: You Won’t Read This Story in the Mainstream News Media!

Before a crowded meeting room packed with the San Diego region’s top civic leaders – including the Mayor of San Diego, Jerry Sanders – union officials declared to the Port Commissioners that the 1400-page final Environmental Impact Report (EIR) that the Port Commissioners were about to approve for the proposed project was inadequate and incomplete under the California Environmental Quality Act (CEQA). They made this claim despite the Port’s efforts to address the original 62-page CEQA objection letter submitted by those same unions on June 29, 2012 to the Port concerning the proposed San Diego Convention Center expansion. To see the union letter AND the 374 pages of exhibits, go to the full set of Convention Center CEQA comments here. (The union submission starts at page 101 of the PDF document and ends at page 536.)

At the September 19, 2012 meeting of the Port Commissioners, top union officials made sure that all the important community leaders in the room recognized who had the power and the commitment to derail the project. An official of the UNITE HERE Local Union No. 30 led off the attack by declaring that the Port’s plan to comply with CEQA was deficient and needed to be withdrawn for revisions. Then a lawyer from the South San Francisco law firm of Adams Broadwell Joseph & Cardozo explained more specifically all of the newly discovered alleged problems with the Environmental Impact Report. She was given extra time to speak because Tom Lemmon – head of the San Diego County Building and Construction Trades Council – submitted a speaker card and then transferred his speaking time to her.

Along with her comments, the lawyer for the unions brought to the podium a NEW 42 page letter (with 197 footnotes) and 250 pages of referenced exhibits on behalf of “The San Diego Coalition for A Better Convention Center.” This phony, unincorporated group is actually a front for the San Diego County Building and Construction Trades Council and UNITE HERE Local Union No. 30. Such last-minute CEQA “document dumps” at government meetings are routinely used by Adams Broadwell Joseph & Cardozo on behalf of unions.

Union CEQA Documents Submitted to Port of San Diego - San Diego Convention Center Expansion

On behalf of the San Diego County Building and Construction Trades Council and UNITE HERE Local Union No. 30, the law firm of Adams Broadwell Joseph & Cardozo submitted a huge last-minute objection under the California Environmental Quality Act (CEQA) to the proposed expansion of the San Diego Convention Center. The San Diego Port Commissioners approved the Environmental Impact Report anyway at its September 19, 2012 meeting.

Finally, Lorena Gonzalez, head of the San Diego County Central Labor Council, rushed into the meeting late to announce there were problems with the Environmental Impact Report for the convention center. Perhaps voters rejected her when she ran for San Diego City Council in 2005-06, but at this meeting she exercised the aggressive and coercive power of unionism as she spoke in front of the civic leaders seeking to help Mayor Jerry Sanders achieve this final economic development goal before he leaves office. Gonzalez proposed that the Port Commissioners approve a “tolling agreement” that would extend the statute of limitations for the unions to file a lawsuit. This would give unions more time to squeeze their demands out of the developers and the convention center’s public and private partners.

After these antics, the Port Commissioners recessed the meeting for about 20 minutes so Port staff could scan the document dump by Adams Broadwell Joseph & Cardozo and make a preliminary determination of whether or not the unions introduced new and valid CEQA objections to the proposed convention center and hotel expansion. If the comments were serious threats, the Port Commissioners would need to table the item to approve the Environmental Impact Report.

Staff ultimately identified four potential areas vulnerable to lawsuits or appeals, but also indicated how the issues would be addressed. In the end, the Port Commissioners voted unanimously to approve the Environmental Impact Report, while noting that they expected litigation and appeals unless relevant parties were able to make a deal with the unions.


Using CEQA to Attain Objectives Unrelated to Environmental Protection

What is the San Diego County Building and Construction Trades Council seeking with its CEQA objections? As I documented in my March 11, 2011 www.TheTruthaboutPLAs.com article entitled It’s Out in the Open: Project Labor Agreement a Costly Possibility for San Diego Convention Center Expansion, union officials want a requirement for construction contractors to sign a Project Labor Agreement with trade unions as a condition of working on the projects.

Since the mid-1990s, Project Labor Agreements have become the primary political scheme that California construction trade unions use to gain monopoly control over public and private construction projects. While politicians are often lured by potential union campaign support into supporting government-mandated Project Labor Agreements, ordinary citizens don’t want their local government officials forcing contractors to sign costly union agreements to work on construction projects funded by tax dollars. Most people seem to understand instinctively what has been shown through a comprehensive study of California school construction released in 2011 by the National University System Institute for Policy Research in San Diego: Project Labor Agreements increase the cost of construction 13% to 15%. See the institute’s study at www.thecostofPLAs.com.

Since June 2010, voters in San Diego County, the City of San Diego, the City of Chula Vista, the City of Oceanside, and the City of El Cajon have all approved “Fair and Open Competition” charter provisions or ordinances that prohibit these local government entities from requiring their construction contractors to sign Project Labor Agreements with unions as a condition of winning a contract. Voters in the City of Escondido will consider a charter provision in the November 6, 2012 election that achieves the same purpose of fair and open bid competition. People in the San Diego region clearly REJECT government-mandated Project Labor Agreements.


Unions Routinely Block Private Projects in the San Diego Region with Environmental Objections Until Developers Surrender and Agree to Sign Project Labor Agreements with Unions and Require Their Contractors to Do the Same

It’s hard to track and document the numerous threats and legal actions in the San Diego area by construction unions and other unions such as UNITE-HERE to exploit the California Environmental Quality Act (CEQA) and other environmental laws to block and delay approval of development projects until a labor agreement is signed. The negotiations and applied pressure goes on behind closed doors, and often the victimized developer is compelled to succumb in secret. To add insult to injury, the developer is often dragged to a humiliating press conference to claim publicly that signing a Project Labor Agreement with unions is a wonderful business practice.

Two companies that exposed the union greenmail to the public were SeaWorld and Gaylord Entertainment.

1. SeaWorld San Diego Theme Park expansion – threatened in 2002, but resisted, and a Project Labor Agreement was not implemented. See background information here: Unions Fail to Force SeaWorld to Sign Project Labor Agreement.

2. Gaylord Entertainment hotel and convention center at the Chula Vista Bayfront – threatened in 2007 and 2008, but resisted. Gaylord ultimately abandoned the project and commenced construction instead of a resort complex in Arizona. See Gaylord Entertainment’s 2007 withdrawal letter: Out of Chula Vista; Unions Threaten CEQA Abuse.

Other companies have dealt with CEQA greenmail against proposed San Diego projects in various ways:

1. San Diego Padres Petco Park – the International Brotherhood of Electrical Workers Local Union No. 569 identified alleged environmental problems in 1999. The developer agreed to a Project Labor Agreement in 2000. The project magically became environmentally sound.

2. Ballpark Village – there was a Ballpark Village draft Project Labor Agreement circulating in 2005, after Adams Broadwell Joseph & Cardozo – representing the International Brotherhood of Electrical Workers Local Union No. 569 – identified environmental problems with the project. Four years later, the same law firm identified environmental problems with the project on behalf of UNITE-HERE Local Union No. 30.

3. Poseidon Desalination Plant in Carlsbad – developer avoided union interference by agreeing to a Project Labor Agreement in 2005.

4. Downtown San Diego hotel projects, including Lane Field (Intercontinental Hotel and Aviana Suites), Sunroad Harbor Island Hotel, and San Diego Marriott Marquis & Marina facilities expansion projects – the law firm of Adams Broadwell Joseph & Cardozo has identified alleged environmental problems with these proposed projects on behalf of UNITE-HERE Local No. 30.

5. Palomar Power Plant in Escondido – Sempra Energy signed a Project Labor Agreement and avoided licensing delays at the California Energy Commission instigated by intervenor California Unions for Reliable Energy (CURE). There is also a 30-year Maintenance Labor Agreement for this power plant.

6. Otay Mesa Generating Station – see here how CURE extracted this Project Labor Agreement from Calpine.

7. Sunrise Powerlink transmission line – Project Labor Agreement implemented in 2010.

8. Pio Pico Energy Center in East Otay Mesa – The State Building and Construction Trades Council of California proudly announced on November 3, 2011 that it had extracted a Project Labor Agreement for the construction of this power plant. California Unions for Reliable Energy (CURE) did NOT intervene in the licensing process at the California Energy Commission on this 300 MW project. It’s odd how unions see devastating environmental problems with projects related to solar energy generation, but didn’t see the need to comment on this one…

Other projects of uncertain status:

1. 655 Broadway – no Project Labor Agreement; union-only though.

2. Sapphire Tower at 1262 Kettner Boulevard (Santa Fe Parcel 6) – the International Brotherhood of Electrical Workers Local Union No. 569 identified alleged environmental problems in 2004. (I spoke at the August 12, 2004 meeting of the Centre City Development Corporation about the union’s CEQA objections to this project.)

3. Chula Vista Bayfront project – Pacifica Companies – news media indicated that a Project Labor Agreement seemed likely.

4. Carlsbad Energy Center – threat or already agreed to Project Labor Agreement.


How Can San Diego Civic Leaders Derail the Union CEQA Attack on the San Diego Convention Center Expansion? Specific Recommendations to Four Parties.

1. San Diego’s News Media: The local news media needs to stop dancing around this issue so ordinary citizens can learn what’s happening and respond to it.  Most people think this racket is outrageous, and they will lash out against it. Even some dedicated union members are uncomfortable with the decision of their leaders to hold up projects using the California Environmental Quality Act. It just sort of feels wrong.

The union CEQA threats against Gaylord Entertainment’s proposed Chula Vista Bayfront hotel and convention center were widely reported in 2007 and 2008, and ordinary citizens were aghast. But in the case of the convention center expansion, local news media is being very cautious in their reporting, perhaps because they sense that negative publicity might jeopardize an ambitious project wanted badly by the region’s civic leaders. (For the latest examples of news media downplaying the union maneuvers, see Convention Center Project Takes a Major Step Forward – San Diego Union-Tribune – September 20, 2012 and Port Approves Environmental Report For Convention Center Expansion – KPBS – September 19, 2012.)

After the Port’s deadline on June 29, 2012 for interested parties to submit comments concerning the draft Environmental Impact Report, local news media reported on the various submissions, but neglected to mention the comments submitted by the San Diego County Building and Construction Trades Council and UNITE HERE Local Union No. 30 through Adams Broadwell Joseph & Cardozo. This was a bizarre oversight, considering that the unions submitted 436 of the 536 total pages of comments! (See Convention Center EIR Cites Numerous Impacts – San Diego Union-Tribune – July 3, 2012, Concerns Expressed on Center Expansion: Report Brings Up Aesthetics, Noise, Air Quality, Traffic – San Diego Union-Tribune – July 6, 2012, and Port Preparing Final Convention Center Environmental Impact Report – San Diego Daily Transcript – July 3, 2012.) Those comments were the true story.

2. San Diego’s Business and Political Leaders: Someone in town has to be a courageous leader and organize a broad coalition to fight back publicly against this relentless exploitation of the California Environmental Quality Act (CEQA) by local labor union officials and their lawyers. Few people were willing to even mention the subject at the September 19, 2012 meeting of the Port Commissioners – there were no heroes in a room full of congratulatory adulation. Civic leaders need to collectively speak out against this racket. In addition, they need to stop recognizing as “community leaders” those union officials who threaten to abuse CEQA to hold up projects in order to extract labor agreements. People who pull such antics don’t belong on boards of directors and executive committees of reputable community organizations.

3. California’s Leading Environmentalists: Legitimate environmental groups such as the Sierra Club of California and the Natural Resources Defense Council don’t like how state legislators and Governor Jerry Brown are pushing for changes to the California Environmental Quality Act (CEQA). But if this sort of behavior keeps up, one day they’ll see the state legislature amending CEQA in a way much more radical than the relatively mild “Sustainable Environmental Protection Act” that they were shrieking about in August 2012. Perhaps it’s time for environmental leaders to ask their union ideological allies to stop using CEQA to extract labor agreements from developers and governments.

4. Reasonable State Legislators and Governor Jerry Brown: California elected officials – especially those representing San Diego County – have a great anecdote here as a basis for arguing the need for CEQA reform. Imagine all the pharmaceutical conventions that will go to Orlando and Phoenix when this proposed San Diego convention center expansion is blocked by the unions’ CEQA objections. I bet comic book enthusiasts will have a blast getting together in Las Vegas! By the way, the proposed CEQA reform known as the “Sustainable Environmental Protection Act” probably won’t make a difference in stopping the practice of union greenmail. More vigorous measures similar to Senate Bill 1631 (2008), Senate Bill 628 (2005), or Assembly Bill 598 (2012) will be needed to stop this racket.

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.