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After 33 Years, San Diego Submits to State Prevailing Wage Law

This afternoon (Tuesday, July 30, 2013), the San Diego City Council voted 5-4 to cease taking advantage of its constitutional right to establish its own policies concerning government-mandated wage rates for construction contracts. It adopted a proposal from Mayor Bob Filner to submit to state law and require its construction contractors to pay “prevailing wage” rates set by the state on the basis of union collective bargaining agreements.

Since 1980, the City of San Diego had used its authority as a charter city to exempt almost all of its purely municipal construction contracts from costly and burdensome “prevailing wage” laws. That right was upheld in a July 2012 California Supreme Court decision, State Building and Construction Trades Council, AFL-CIO v. City of Vista.

For those looking for motivations behind Mayor Filner’s determination to remain in office despite scandals and criticism, this vote today was a triumph in his long political career to advance the causes of unions and the “Progressive” movement. He issued a press release titled “BOB FILNER’S PROPOSAL FOR PREVAILING WAGE WINS COUNCIL APPROVAL!!!”

MAYOR BOB FILNER’S PROPOSAL FOR PREVAILING WAGE WINS COUNCIL APPROVAL!!!

MAYOR BOB FILNER’S PROPOSAL FOR PREVAILING WAGE WINS COUNCIL APPROVAL!!!

The five-member Democrat majority on the nine-member city council was pleased to take the eighth most populous city in the country a step forward toward the government setting employee wages.

As proclaimed by some union representatives and community organizers who spoke during the July 30 city council meeting, state prevailing wage mandates will also apply to private development projects that get any sort of financial assistance from the City of San Diego. Under state law, these private projects are “public works,” equivalent to a courthouse or post office.

Democrats justified their support for Filner’s proposal based on the usual rhetoric about strengthening the middle class. They claimed the ordinance would ensure quality work, as if everything built in San Diego for the past 33 years has fallen down. Union officials claimed that state prevailing wage mandates would not actually increase costs because higher wages would attract better workers, thus saving money. Assemblywoman Lorena Gonzalez – the former head of the San Diego County Central Labor Council – insinuated (contrary to city findings on local employment for city construction contracts) that workers from Arizona and Mexico would stop building city projects.

The actual process of ending this 33 year-old policy happened quickly. On May 8, 2013, Mayor Filner sent a memo to the San Diego City Council proposing an ordinance to impose full city submission to state prevailing wage laws. Jennifer Badgley, Director of Special Projects and Labor Affairs for Mayor Filner, subsequently wrote a staff report in support of the ordinance that didn’t include one acknowledgement of opposing views. (She was formerly an Organizer/Political Director for the International Brotherhood of Electrical Workers (IBEW) Local Union No. 569.)

Former IBEW Union Political Director Presents Mayor Filner's Prevailing Wage Ordinance

Former IBEW Union Political Director Presents Mayor Filner’s Prevailing Wage Ordinance

Badgley also made a presentation at the July 30 city council meeting and falsely informed the city council that the state determines prevailing wage rates by conducting surveys. (The state never conducts surveys to determine prevailing wages; it simply adds up the employer payments in the collective bargaining agreements for each trade in each union geographical jurisdiction.)

The City of San Diego has an Office of the Independent Budget Analyst, which produced two reports suggesting and then reiterating that the prevailing wage mandate would increase costs of city construction contracts by 5 to 10 percent. Former union operatives now working for Mayor Filner as policy staffers strongly disputed the analyst’s findings. At the July 30 city council meeting, a union representative in the audience heckled the presentation of the Independent Budget Analyst.

Local government budget analysts are not appreciated by unions and their political allies when they exercise independent thinking, and the people of San Diego will need to watch carefully for an attempted political purge of this office.

In the meantime, the San Diego City Council follows the lead of the board of education for the San Diego Unified School District, which has “progressed” even further to require its construction contractors to sign a Project Labor Agreement as a condition of working on projects funded by $4.9 billion borrowed through the sale of bonds authorized by voters in November 2008 and November 2012.

Will the people of San Diego hold Mayor Bob Filner and the Democrat majority on the city council accountable for increasing costs for taxpayers at the demand of union officials? Or will people forget by the next election, as a result giving unions confidence to take the next step toward a union monopoly on city construction projects?

Sources:

Look Up State-Mandated Wage Rates (“Prevailing Wages”) for Construction Trades in the City of San Diego: General Prevailing Wage Journeyman Determinations

July 26, 2013 – Report No. 13-33 from City of San Diego Office of the Independent Legislative Analyst: Key Issues for Proposal to Require Compliance with State Prevailing Wage Laws on all City Public Works Projects with Report No. 13-33 – Attachment 1 and Report No. 13-33 – Attachment 2

June 18, 2013 – Report No. 13-26 from City of San Diego Office of the Independent Legislative Analyst: Review of Proposal to Require Compliance with the State’s Prevailing Wage Laws on all City Public Works Projects

June 17, 2013 – Memorandum of Law from San Diego City Attorney: Proposal to Apply State Prevailing Wage Laws to City Public Works Projects

July 16, 2013 – Report to the San Diego City Council No. 13-051 from Office of Mayor Bob Filner (Jennifer Badgley): Prevailing Wage Requirements for Municipal Public Works Projects

July 22, 2013 – Memorandum to the San Diego City Council President from Mayor Bob Filner: Supplemental Docket Request for Prevailing Wage Ordinance

May 8, 2013 – Memorandum to the San Diego City Council from Mayor Bob Filner: Prevailing Wage

Are Charter Cities Taking Advantage of State-Mandated Construction Wage Rate (“Prevailing Wage”) Exemptions? – 92-page guidebook to status of prevailing wage policies in California’s 121 charter cities.

State Building and Construction Trades Council of California, AFL-CIO v. City of Vista et al. – California Supreme Court decision of July 2, 2012 upholding constitutional right of charter cities to establish their own policies concerning government-mandated wage rates for municipal construction contracts.


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.

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.

Persistent Pressure Compels San Diego to Spit Out Project Labor Agreement

For five months, the City of San Diego refused to give the public a Project Labor Agreement negotiated for its planned $520 million convention center expansion. This union agreement was reportedly the result of a backroom deal involving top union leaders, but multiple requests for it under the authority of the California Public Records Act failed to dislodge it.

But today (April 23, 2013), the city provided the labor agreement to the public, less than 24 hours after a construction organization filed a lawsuit to get it. 

Here are some of the twists and turns of this saga, which serves as an excellent case study in how unions manipulate public policy at the state and local level in California.

In May 2012, the San Diego County Building and Construction Trades Council submitted a massive objection under the California Environmental Quality Act (CEQA) against the draft Environmental Impact Report for the proposed San Diego Convention Center Phase 3 Expansion. Four months later, the San Diego County Building and Construction Trades Council submitted another massive CEQA objection against the revised and final Environmental Impact Report, this time choosing the drama of presenting it during a packed meeting at which San Diego port commissioners were scheduled to approve the project. (Attorneys for unions routinely engage in last-minute CEQA “document dumps” at California public meetings in order to intimidate public officials and developers into surrendering to union economic demands.)

In November 2012, a few days after union-backed Congressman Bob Filner was elected as the next mayor, San Diego Mayor Jerry Sanders and Lorena Gonzalez – head of the San Diego-Imperial Counties Central Labor Council – held a press conference to announce a settlement concerning the union CEQA complaints and also a settlement concerning a union-backed lawsuit challenging the financing method for the project. The settlements resolved very few of the environmental concerns indicated in the union CEQA complaints – not even the subsequently high-profile concern of protecting the project from sea level rise caused by global warming.

However, the San Diego County Building and Construction Trades Council now had a Project Labor Agreement for construction of the Convention Center expansion, as proclaimed in a press release. And UNITE-HERE Local No. 30 “extended their Memorandum of Understanding (MOU), ensuring a unionized operation of the Convention Center once expanded,” according to Lorena Gonzalez.

If the apparent union “greenmail” of the project using CEQA as leverage to get labor agreements wasn’t controversial enough, the Project Labor Agreement also appeared to violate a ballot measure (Proposition A) approved by 58% of San Diego voters in June 2012. That ballot measure established a “Fair and Open Competition” ordinance prohibiting the city from entering into contracts that require construction companies to sign Project Labor Agreements with unions as a condition of work. It was put on the ballot in part to protect the convention center from ongoing union lobbying efforts at the city council to win monopoly control of  its construction.

Up to that time, voters and elected boards of local governments throughout the state had been defying union officials and approving Fair and Open Competition policies, starting in October 2009 with Orange County. In response, the California State Legislature passed and Governor Jerry Brown signed into law two bills (Senate Bill 922 and Senate Bill 829) pushed by then-State Senator Michael Rubio to nullify all Fair and Open Competition policies in counties and general law cities and cut off state funding for charter cities (such as San Diego) that enacted or failed to repeal such policies.

Union leaders in San Diego, particularly Lorena Gonzalez, repeatedly warned that the state would cut off money to the City of San Diego if voters didn’t repeal the Fair and Open Competition ordinance they had approved in June 2012. But for now this dramatic threat has proven to be empty, and Proposition A remains in the City of San Diego Municipal Code.

An unexpected political development occurred a few weeks after the mayor and top county union leader announced the settlement agreements for the convention center: Lorena Gonzalez announced her candidacy for the 80th Assembly District seat that would soon become vacant. Like the Eye of Sauron, union political focus in San Diego County shifted from government-mandated unionization to the task of getting her elected.

Meanwhile, a group called the Coalition for Fair Employment in Construction sought to obtain the Project Labor Agreement as the preliminary step to a planned lawsuit contending that the union deal violated the Proposition A ordinance. None of the many parties involved – including the City of San Diego – would provide the document, and finally the Coalition for Fair Employment in Construction filed a lawsuit against the city to get it.

A press release dated April 18, 2013 stated the following:

“We’re going to get that union Project Labor Agreement, expose it to the public, and make every schemer involved with this union sweetheart deal accountable for breaking the law,” said Eric Christen, executive director of the Coalition for Fair Employment in Construction.

Perhaps a schemer somewhere was getting nervous. The city promptly handed over the Project Labor Agreement today, April 23, 2013.

Note that the aggressive actions of the Coalition for Fair Employment in Construction repulse many civic leaders in San Diego. It disrupts the cozy relationship of politicians, unions, and business interests giving each other special favors to get the convention center expanded. It creates additional controversy for a project already under scrutiny for the bizarre tax scheme involving hotel room fee assessments that will be used to pay back the borrowed money (and interest) obtained through bond sales to pay for construction. At a more basic level, many impartial observers believe the expansion is unnecessary and foolish.

Exposing the shenanigans of unions and their cohorts in California wins few friends among the powerful, but it does disgust the ordinary voter who ends up paying for it, one way or another.

Sources:

Project Labor Agreement for the San Diego Convention Center Phase 3 Expansion

Lawsuit to Obtain Copy of Union Project Labor Agreement on San Diego Convention Center Phase 3 Expansion

Letter claiming the Project Labor Agreement for this public project is a “Trade Secret”

Settlement Agreement – Building Trades Unions – San Diego Convention Center – 2012

Settlement Agreement – Various Construction Trade Unions – San Diego Convention Center – 2012

May 2012 Union CEQA Objections to the Draft Environmental Impact Report on the San Diego Convention Center Phase 3 Expansion

September 2012 Union CEQA Objections to the Final Environmental Impact Report on the San Diego convention center Phase 3 Expansion

Background on Proposition A, the Fair and Open Competition ordinance approved by 58% of San Diego voters in June 2012

For more detailed information, see these web sites:

www.SanDiegoConventionCenterScam.com

“San Diego Convention Center” articles in www.LaborIssuesSolutions.com

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.

CEQA Debate Rule No. 1: Do NOT Mention Union “Greenmail”

“Here’s the plan: pretend that unions aren’t exploiting the California Environmental Quality Act (CEQA) as a tool to obtain labor agreements. Maybe no one will notice.”

Supporters and opponents of CEQA reform are straining to avoid this uncomfortable subject as influential Democrats in the California State Senate prepare to introduce an alleged reform of CEQA that would discourage abuses of the law.


Note: the second half of this article includes excerpts from my February 18, 2013 article on www.FlashReport.org entitled Highlighting the Top Union Abuses of the California Environmental Quality Act (CEQA). Thank you to www.FlashReport.org and www.UnionWatch.org for exposing generally unreported labor public policy issues to a wider audience in California and the United States.


This moratorium on referring to union “greenmail” reached absurd levels this week, as a noted journalist in San Diego who is left-leaning but generally recognized as honestly blunt neglected to report the obvious about union CEQA abuse.

An article entitled San Diego Hotels: Labor in Revolt was posted on February 20, 2013 in the “alternative” weekly newspaper San Diego Reader. It sympathetically portrayed the quest of organizers in the San Diego-based UNITE-HERE Local Union No. 30 to unionize the city’s hotel workforce.

Readers learn about various adversarial tactics used by UNITE-HERE Local Union No. 30 to pressure hotel operators to sign union agreements. The article mentions picket lines, boycotts, telling the hotel’s customers not to return, convincing elite universities to stop investing their endowment funds in hotel corporations, using labor laws offensively against employers, and encouraging workers to express themselves in public with chants, drum-beating, and labor songs.

All of these tactics reflect a typical union “corporate campaign.” But after reading the article, I went back and read it again. I couldn’t believe what I was – NOT – reading.

It mentions nothing about the high-profile CEQA actions filed by UNITE-HERE Local Union No. 30 against four proposed hotel projects! Here they are, as reported in www.PhonyUnionTreeHuggers.com:

1. Lane Field in San Diego: UNITE-HERE Local 30 Doesn’t Like a Proposed Hotel

2. San Diego Hotel Union (UNITE-HERE Local 30) Finds Environmental Calamity with San Diego Marriott Hotel & Marina Ballroom Expansion

3. San Diego Convention Center Expansion: Construction Unions and Hotel Unions File 63 Pages Worth of CEQA Complaints

4. Hotel Union Uses CEQA Objections to Try to Block Proposed Fat City Hotel in San Diego

Four cases of CEQA abuse in the context of organizing campaigns! Overlooked and unreported…

An article exposing this practice could attract web readers, sell newspapers, and enhance the professional reputation of the journalist who wrote it. A news vacuum is waiting to be filled.

Soon an enterprising California reporter (or national reporter) will draw attention to labor union CEQA exploitation with an investigative article. In recent years, the New York Times did this with a June 18, 2009 article A Move to Put the Union Label on Solar Power Plants; also, the Los Angeles Times did this with a February 5, 2011 article Labor Coalition’s Tactics on Renewable Energy Projects Are Criticized.

I anticipate this future investigative article will flush out the union greenmail by either providing a broad survey of 20 years of union CEQA abuse or by focusing in-depth on one of the dozens of recent union CEQA document dumps and lawsuits against proposed projects.

Here are the top examples of union “greenmail” in 2012 and in 2013 that are ripe for investigation and exposure.

The #1 Union “Greenmail” CEQA Exploitation Case of 2012: San Diego Convention Center Expansion, Phase 3

The most high-profile union-instigated CEQA action in California in 2012 was targeted at the proposed San Diego Convention Center Expansion, Phase 3, estimated to cost $520 million, or more than $1 billion total if interest on borrowed money through bond sales is included. Unions hired the law firm of Adams Broadwell Joseph & Cardozo to advance the union objections. The saga is summarized on the web site www.SanDiegoConventionCenterScam.com:

It was known for years that the San Diego County Building and Construction Trades Council planned to use CEQA to delay construction of the convention center expansion until it obtained a union monopoly on construction with a Project Labor Agreement. The plans were documented in a March 2011 article It’s Out in the Open: Project Labor Agreement a Costly Possibility for San Diego Convention Center Expansion.

Sure enough, it happened. In several hundred pages of submitted letters and exhibits, the San Diego County Building and Construction Trades Council and UNITE-HERE Local Union No. 30 in San Diego identified numerous problems…See the May 2012 union comments for the draft Environmental Impact report on the San Diego convention center expansion and the September 2012 union comments for the final Environmental Impact Report on the San Diego convention center expansion.

Read an account of the outrageous incidents that occurred at the September 19, 2012 meeting of the United Port of San Diego Board of Port Commissioners, where union leaders and their law firms brazenly pulled a “document dump” in front of the city’s civic leadership: Unions Threaten Environmental Litigation to Block San Diego Convention Center.

Press conference announcing unions dropping CEQA complaints against San Diego Convention Center Expansion Phase 3.

Press conference announcing unions dropping CEQA complaints against San Diego Convention Center Expansion Phase 3.

Yet all these environmental problems disappeared (except for some minor environmental mitigation in three settlement agreements between these unions and the City of San Diego) once contractors were required to sign a project labor agreement with unions as a condition of working on the project and unions won a memorandum of understanding expanding the unionization of the convention center workforce.

Mayor Jerry Sanders (who was about to leave office) held a press conference on November 8, 2012 with the county’s top union official Lorena Gonzalez (who is planning a campaign for a California State Assembly seat) essentially to announce that the union environmental extortion “greenmail” was effective. The unions made “deals” with the City of San Diego and the prime contractor (a joint venture of Clark Construction Group and Hunt Construction Group) for the San Diego Convention Center Expansion, Phase 3.

San Diego Building and Construction Trades Council Project Labor Agreement for San Diego Convention Center Expansion Phase 3

CEQA Works! Unions get a Project Labor Agreement for the San Diego Convention Center Expansion Phase 3 and environmental concerns are resolved.

The California Coastal Commission may soon consider approval of this project, now unimpeded by earlier concerns cited by unions about how the sea-level rise caused by global warming might submerge the convention center expansion.

The #1 Union “Greenmail” CEQA Exploitation Case of 2013 (So Far): Mono County Geothermal Plants

People in Mono County are incredulous about the tremendous opposition of construction trade unions (specifically, California Unions for Reliable Energy (CURE) and Laborers Union Local No. 783) to the Ormat Technologies proposed upgrade of its long-existing Mammoth Pacific I geothermal power plant and its proposed Casa Diablo IV geothermal power plant. Actually, every Californian should be outraged about this new round of union “greenmail.”

The web site www.PhonyUnionTreeHuggers.com explains what has happened so far with the proposed Mammoth Pacific I plant upgrade:

At the October 11, 2012 meeting of the Mono County Planning Commission, a staff member informed the commission about “documents received just today” from the law firms of Lozeau Drury and Adams Broadwell Joseph & Cardozo. In response, one commissioner stated that “last-minute documents can’t be read in two minutes without any background.” The commission approved the project on a 4-0 vote.

On October 19, 2012, California Unions for Reliable Energy (CURE) appealed the Mono County Planning Commission’s decision to approve the Mammoth Pacific I Replacement Project at its October 11, 2012 meeting. CURE was represented by the South San Francisco law firm of Adams Broadwell, Joseph & Cardozo.

Also on October 19, 2012, the Laborers International Union of North America (LIUNA), Local No. 783 (LIUNA) appealed the Mono County Planning Commission’s decision to approve the Mammoth Pacific I Replacement Project at its October 11, 2012 meeting. The union was represented by the Oakland law firm of Lozeau Drury.

On November 13, 2012, the Mono County Board of Supervisors rejected the two union appeals of project approval. Here is the staff report to the Mono County Board of Supervisors on CURE’s appeal.

Local officials knew that Ormat Technologies has been pressured to sign Project Labor Agreements giving unions a monopoly on construction and maintenance. Unions have also harassed the company at the Imperial County Planning Commission, the Imperial County Board of Supervisors, and the California Energy Commission as it seeks approval for geothermal power plants in Imperial County such as Hudson Ranch II.

In fact, the February 28, 2013 meeting agenda of the California Energy Commission includes this item:

California Unions for Reliable Energy v. Energy Resources Conservation and Development Commission [that is, the California Energy Commission], Real Parties in Interest Ormat Nevada, Inc., ORNI 18 LLC, and ORNI 19 LLC (Alameda County Superior Court, RG 12610669)

On December 14, 2012, Laborers Union (LIUNA) Local No. 783 filed a lawsuit (Concerned Bishop Residents v. County of Mono) in Mono County Superior Court claiming that the Mono County Board of Supervisors violated the California Environmental Quality Act (CEQA) when it approved Ormat Technologies‘ replacement project for the Mammoth Pacific Unit 1 geothermal power plant. The lawsuit explains that Laborers Union members “regularly travel to the Mammoth Lakes area of Mono County to enjoy its peaceful repose.”

Enjoying its peaceful repose and diversity and rarity of species of plants and animals.

Enjoying its peaceful repose and diversity and rarity of species of plants and animals.

But the ultimate CEQA strike by unions against geothermal power occurred on January 30, 2013, when the U.S. Bureau of Land Management office in Bishop was crushed by an incredible pile of comments from California Unions for Reliable Energy and Laborers Union Local No. 783 objecting to the draft Environmental Impact Report / Environmental Impact Statement for the Casa Diablo IV project. The amount of paper used for these objections probably required an Environmental Impact Report under CEQA.

The comments and associated exhibits are linked at Unions’ January 30, 2013 Comments Against Geothermal Power Plant Must Have Overheated the Printers!

Kevin Dayton is the President and 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.

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.