Tag Archive for Measure E (West Contra Costa Unified School District November 2012)

Voters Approve Selling Bonds to Borrow Huge Amounts of Money for Construction in Four Educational Districts that Use Project Labor Agreements

All four of these school districts require contractors to sign Project Labor Agreements, and the San Diego Unified School District has already approved a resolution requiring contractors to sign a Project Labor Agreement for certain future construction funded by Proposition Z.

  • At the Sacramento City Unified School District, 69% of voters approved Measure Q and 67% of voters approved Measure R. These authorize the school board to borrow $414 million through bond sales for construction.
  • At the Solano Community College District, 62% of voters approved Measure Q. This authorizes the governing board to borrow $348 million through bond sales for construction.
  • At the West Contra Costa Unified School District, 63% of voters approved Measure E. This authorizes the school board to borrow $360 million through bond sales for construction.
  • At the San Diego Unified School District, 60% of voters approved Proposition Z.  This authorizes the school board to borrow $2.8 billion through bond sales for construction.

My Report on www.UnionWatch.org: Tracking California’s November 2012 Elections Related to Labor Issues

See my article posted this morning (November 5, 2012) on www.UnionWatch.org called Tracking California’s November 2012 Elections Related to Labor Issues.

If you are a regular reader of the Dayton Public Policy Institute blog (a project of Labor Issues Solutions, LLC), you know a lot about the following races in California:

  • Proposition 32 – Stop Special Interests state ballot measure (includes “paycheck protection”)
  • Measure V – proposed charter in Costa Mesa
  • Proposition P – proposed charter in Escondido
  • Measure I-12 – proposed charter in Grover Beach
  • Measures Q and R – authorization to borrow $414 million through bond sales for construction at Sacramento City Unified School District (which imposes Project Labor Agreements)
  • Measure Q – authorization to borrow $348 million through bond sales for construction at Solano Community College District  (which imposes Project Labor Agreements)
  • Measure E – authorization to borrow $360 million through bond sales for construction at West Contra Costa Unified School District (which imposes Project Labor Agreements)
  • Proposition Z – authorization to borrow $2.8 billion through bond sales for construction at San Diego Unified School District (which imposes Project Labor Agreements)

There are also some elections for local government offices in California that have significance for people interested in labor policy issues.

City of San Diego

If Republican Ray Ellis defeats Democrat Councilwoman Sherri Lightner for the one undecided city council race (in La Jolla), Republicans will have a 5-4 majority on the city council. What a change from ten years ago, when Republicans almost disappeared from a city council they had long controlled. (I credit the Republican Party of San Diego County for this transformation: see my www.FlashReport.org article The Untold Story: Years of Challenging, Unglamorous Work Led to Big Republican Election Night in San Diego on June 5.

Republican Councilman Carl DeMaio stands a good chance of defeating Democrat Congressman Bob Filner and getting elected as Mayor of San Diego. A few weeks ago I wrote an article comparing DeMaio’s campaign to the 2010 campaign of Rob Ford, a libertarian-oriented city council member who unexpectedly won election as Mayor of Toronto, Ontario, Canada. (See Carl DeMaio’s Campaign for Mayor of San Diego Echoes Rob Ford’s Successful Campaign for Mayor of Toronto.) Chris Reed wrote the following in a November 1, 2012 article for The American Spectator (Anger Mismanagement on the Ballot; linked at www.CalWatchdog.com as Will San Diego Elect a Gay Libertarian or a Snarling Misanthrope as Mayor?):

All this is remarkably good news for DeMaio and for libertarians who have long wondered what a government run by a Reason-blessed true believer would be like…If Filner has this [negative] effect on enough people, in five weeks time, America’s eighth-largest city will inaugurate as mayor a brash reformer bent on transforming the government status quo. Thanks to a June initiative primarily authored by DeMaio, San Diego is by far the largest U.S. city to have ended costly defined-benefit pensions for nearly all its new hires. As mayor, DeMaio would ramp up San Diego’s already-aggressive attempts to bid out a wide array of government services. He also wants to end automatic “step” pay increases given to public employees just for years on the job and to finally bring to government the productivity revolution that has fueled U.S. private-sector growth for two decades. The goal, DeMaio told me in April, is to set up a national model for downsized, efficient government. If elected, DeMaio appears likely to have a GOP majority on the City Council. If these more conventional Republicans back him up, San Diego could become Ground Zero for government experimentation – of a sort that many will call radical but that libertarians will call long-overdue.

City of Costa Mesa (Orange County)

In the City of Costa Mesa, three of the four city councilmembers (the 3Ms, Gary Monahan, Steve Mensinger, and Colin McCarthy) who voted in 2011 with Councilman Jim Righeimer to “outsource” government services and put the Measure V charter on the ballot in 2012 are running as a slate. They are challenged by a slate of three candidates associated with a group called Costa Mesans for Responsible Government who oppose outsourcing and the charter. Obviously this a battle based largely on labor issues.

City of Brentwood (San Francisco Bay Area, in Contra Costa County)

In the City of Brentwood, unions are trying to keep Mayor Bob Taylor in office. Taylor voted in 2009 and 2010 to require contractors to sign a Project Labor Agreement to build the city’s civic center and associated parking garage. I wrote about this race in Electrical Workers Union Tries to Salvage Political Career of City of Brentwood Mayor Robert Taylor (Bob Taylor) and Contra Costa Times Recognizes Fiscally Responsible Candidates for Brentwood City Council: Endorsements EXCLUDE Project Labor Agreement Supporters.

$652,650 Contributed to Measure E Campaign: West Contra Costa Unified School District Seeks to Borrow Another $360 Million “For the Children of West County”

I obtained the paper copies of the campaign finance reports from the Contra Costa County Elections Office from October 1, 2012 through November 1, 2012 filed by the “For the Children of West County” campaign to convince voters to vote for Measure E. Measure E would authorize the school board of the West Contra Costa Unified School District to borrow another $360 million for construction by selling bonds to investors, thus adding $360 million plus interest payments to a $1.77 billion existing debt resulting from previous bond sales.

The total raised since the June 6, 2012 election by this committee as of November 1 is $652,650. It had $92,252 cash-on-hand as of October 20.

There are a few strange things in the October 20, 2012 report. First, the campaign refunded $15,000 to The Seville Group for a July 20, 2012 contribution, even as The Seville Group (aka SGI Construction Management) contributed another $7,500 on October 18. And the campaign refunded $25,000 to WLC Architects for an August 9, 2012 contibution, even as WLC Architects contributed another $5,000 on October 4.

There is also a mystery contribution – $20,000 on October 20 from “Moving Forward, 150 Post Street, Suite 405, San Francisco, CA 94108, ID#1348494.”

Moving Forward - Yes on Measure E Form 460 Campaign Report 2012-10-20 and Late 497

“Moving Forward” toward more than $2 billion in debt? Who thinks so?

There are no records available on the web about this organization; perhaps it filed something on paper with Contra Costa County. (There aren’t any electronic records from “Moving Forward” on the Contra Costa County Campaign Finance web site, either.)

Here’s the revised list of contributors to the campaign to convince voters to approve Measure E, allowing the board of the West Contra Costa Unified School District to borrow $360 million.

DONOR INTEREST AMOUNT
WLC Architects* Architect $175,000
Deems Lewis McKinley Architect $50,000
International Brotherhood of Electrical Workers Local Union No. 302 Construction trade union $35,000
Fred Powell, architect with Powell & Partners Architect $35,000
The Seville Group (now rebranded as SGI Construction Management)** Construction management $30,000
Quattrocchi Kwok Architects Architect $25,000
Moving Forward – based out of San Francisco-based law firm of Jim Sutton Unknown at this time: ID#1348494 not listed with California Secretary of State or San Francisco Ethics Commission $20,000
Hibser Yamauchi Architects Architect $20,000
Interactive Resources Architect $15,000
Baker Vilar Architects Architect $15,000
Sheet Metal Workers Local Union No. 104 Construction trade union $10,000
Hamilton + Aiken Architects Architect $10,000
Lathrop Construction Associates Construction contractor $10,000
Northern California Carpenters Regional Council Construction trade union $10,000
Orbach Huff & Suarez Law firm for school districts $10,000
District Council of Ironworkers of the State of California and Vicinity Construction trade union $7,500
Employers’ Advocate Construction labor relations $7,500
HMC Architects Architect $6,950
Northern California District Council of Laborers Construction trade union $5,000
California Teachers Association Teachers’ union $5,000
Interface Engineering Engineering $5,000
GCR Law firm for school districts $5,000
Jack Schrader & Associates Consultant for developer fees $5,000
John P. Grossman and Associates Architect $5,000
KNN Public Finance School financing consultant $5,000
Powell & Partners Architect $5,000
Amanco Construction management $5,000
Atkinson Andelson Loya Ruud & Romo Law firm, works for WCCUSD $5,000
AE3 Partners Architect, engineering $5,000
AEKO Consulting Information technology installation $5,000
Matthew Pettler, executive with School Facility Consultants School finance consultant $4,500
Kam Yan & Associates Engineers $4,500
Davillier-Sloan Construction labor relations $4,000
Arcala Land Company Affiliated in some way with Davillier-Sloan $4,000
Carducci & Associates Architect $3,500
CBX Technologies Information technology installation $3,000
Brelje & Race Consulting Civil Engineers Engineering $2,500
Cal Communication Service Company Construction contractor $2,500
[United Association of Plumbers & Steamfitters Local Union No. 159] TRICO Pipe Union-affiliated labor-management cooperation committee $2,500
Northern California Chapter, National Electrical Contractors Association Unionized construction contractor trade association $2,500
Del Monte Electric Construction contractor $2,500
H&M Mechanical Group Engineering $2,500
O’Mahony & Myer Engineering $2,500
ZFA Structural Engineers Engineering $2,500
Contra Costa County Electrical Industry Trust Union-affiliated labor-management cooperation committee $1,500
Vallier Design Associates Architect (landscape) $1,500
Total School Solutions School district administration consultant $1,500
Thornton Tomasetti Engineering $1,500
Sprinkler Fitters & Apprentices Local Union No. 483 Construction trade union $1,250
WHM Engineering $1,200
Cammisa and Wipf Consulting Engineers Engineering $1,000
15000 Incorporated Engineering $1,000
Bay Area Consulting Engineers (BAC Engineers) Engineering $1,000
Skinner for Assembly 2012 Politician $1,000
Kleinfelder West Engineering $1,000
ISSA Structural Engineering Engineering $1,000
McCracken & Woodman Engineering $1,000
Mechanical Design Studio Engineering $1,000
PMC School finance consultant $1,000
Security by Design Engineering $1,000
Cornerstone Structural Engineering Group Engineering $750
David L. Gates & Associates Architect $500
Brokaw Consulting Electrical Engineering Engineering $500
Bricklayers & Allied Craftsworkers Local Union No. 3 Construction trade union $500
Kronick Moskovitz Tiedemann & Girard Law firm for school districts $500
Ingraham DeJesse Associates Engineering $500
Miller & Associates Construction contractor? $500
Sally Swanson Architects Architect $500
Alexander Murdoch, executive with School Facility Consultants School finance consultant $500
Luk and Associates Engineering $300
SOHA Engineers Engineering $250
RGA Environmental Hazmat consultant $250
Willie Robinson Construction management $250
Alan Kroop & Associates Engineering $250
Ninyo & Moore Engineering $100
KPFF – San Francisco Engineering $100
Not itemized $0
TOTAL $652,650

Sources: contributions since the June 5, 2012 election for the period ending June 30, 2012the period ending September 30, 2012, and the period ending October 20, 2012 with one late contribution.

Who’s Paying to Convince Voters in the West Contra Costa Unified School District to Break the $2 Billion Debt Burden Threshold by Approving Measure E?

The Contra Costa County Elections Division has not posted the Form 460 finance report for the period from October 1 to October 20 of the campaign to support the West Contra Costa Unified School District’s $360 million Measure E. This campaign committee is known as “For the Children of West County.” Someone is going to drop by the county elections office in Martinez to obtain the paper copy of the report for me to analyze and provide to the public on this blog.

The county has posted the list of contributions since the June 5, 2012 election (for the period ending June 30, 2012 and the period ending September 30, 2012) to this perpetually-operating campaign committee. They total $608,650. Apparently a lot of people care about the children of West County! See the list below.

No one seems to care about the taxpayers of West County. Currently, they owe $1.77 billion in debt service for money borrowed by the West Contra Costa Unified School District through bond sales authorized by five previous ballot measures (see page 15). Here’s the history of bond measures that this school district has brought before voters since 1998.

Bond Measures for West Contra Costa Unified School District

Authorized Bond Amount. Does Not Include Interest and Fees

Date of Election

Ballot Designation

Outcome

$40 million June 2, 1998 Measure E Approved by 76.0% of voters
$150 million November 7, 2000 Measure M Approved by 77.5% of voters
$300 million March 5, 2002 Measure D Approved by 71.6% of voters
$450 Million September 16, 2003 Measure C Rejected in a special election because only 59.1% of voters approved the bond measure, which needed two-thirds voter approval
$400 million November 8, 2005 Measure J Approved by 56.9% of voters
$380 million June 8, 2010 Measure D Approved by 62.6% of voters
$1.27 billion Total from five bond measures from 1998 to the present.
$360 million November 6, 2012 Approved for consideration by district voters through a resolution of the school board on August 1, 2012

As you might guess, a school district of 27.500 students (see page 53) willing to accumulate debt of this magnitude despite the economic distress of the district’s residents is also eager to require its construction contractors to sign a Project Labor Agreement with unions as a condition of working on its projects. West Contra Costa Unified School District was the first educational district in Northern California to include a Project Labor Agreement in bid specifications (beating out Vallejo City Unified School District, Oakland Unified School District, and East Side Union High School District in San Jose.)

Project Labor Agreement Policies for West Contra Costa Unified School District

May 3, 2000 Board votes 5-0 to approve a policy that the school board will consider a Project Labor Agreement for each individual construction project of $1 million or more. (An administrative regulation for this policy was implemented on August 2, 2000.)
December 6, 2000 Board votes 5-0 to approve its first Project Labor Agreement, for the construction of a middle school.
July 11, 2002 Board votes 5-0 to amend its Project Labor Agreement to put the responsibility on the contractors (instead of the unions) to find local apprentices.

Here’s the list of contributors to the campaign to pass Measure E, through September 30, 2012.

DONOR INTEREST AMOUNT
WLC Architects Architect $195,000
Deems Lewis McKinley Architect $50,000
International Brotherhood of Electrical Workers Local Union No. 302 Construction trade union $35,000
Fred Powell, architect with Powell & Partners Architect $35,000
The Seville Group (now rebranded as SGI Construction Management) Construction management $30,000
Quattrocchi Kwok Architects Architect $25,000
Hibser Yamauchi Architects Architect $20,000
Interactive Resources Architect $15,000
Baker Vilar Architects Architect $15,000
Sheet Metal Workers Local Union No. 104 Construction trade union $10,000
Hamilton + Aiken Architects Architect $10,000
Lathrop Construction Associates Construction contractor $10,000
Northern California Carpenters Regional Council Construction trade union $10,000
Orbach Huff & Suarez Law firm for school districts $10,000
District Council of Ironworkers of the State of California and Vicinity Construction trade union $7,500
Employers’ Advocate Construction labor relations $7,500
HMC Architects Architect $6,950
Northern California District Council of Laborers Construction trade union $5,000
Interface Engineering Engineering $5,000
GCR Law firm for school districts $5,000
Jack Schrader & Associates Consultant for developer fees $5,000
John P. Grossman and Associates Architect $5,000
KNN Public Finance School financing consultant $5,000
Powell & Partners Architect $5,000
Amanco Construction management $5,000
Atkinson Andelson Loya Ruud & Romo Law firm, works for WCCUSD $5,000
AE3 Partners Architect, engineering $5,000
AEKO Consulting Information technology installation $5,000
Kam Yan & Associates Engineers $4,500
Davillier-Sloan Construction labor relations $4,000
Arcala Land Company Affiliated in some way with Davillier-Sloan $4,000
Carducci & Associates Architect $3,500
CBX Technologies Information technology installation $3,000
Brelje & Race Consulting Civil Engineers Engineering $2,500
Cal Communication Service Company Construction contractor $2,500
[Plumbers & Pipefitters Local Union No. 159] TRICO Pipes Union-affiliated labor-management cooperation committee $2,500
Del Monte Electric Construction contractor $2,500
H&M Mechanical Group Engineering $2,500
O’Mahony & Myer Engineering $2,500
ZFA Structural Engineers Engineering $2,500
Contra Costa County Electrical Industry Trust Union-affiliated labor-management cooperation committee $1,500
Vallier Design Associates Architect (landscape) $1,500
Total School Solutions School district administration consultant $1,500
Thornton Tomasetti Engineering $1,500
Sprinkler Fitters & Apprentices Local Union No. 483 Construction trade union $1,250
WHM Engineering $1,200
Cammisa and Wipf Consulting Engineers Engineering $1,000
15000 Incorporated Engineering $1,000
Bay Area Consulting Engineers (BAC Engineers) Engineering $1,000
Skinner for Assembly 2012 Politician $1,000
Kleinfelder West Engineering $1,000
ISSA Structural Engineering Engineering $1,000
McCracken & Woodman Engineering $1,000
Mechanical Design Studio Engineering $1,000
PMC School finance consultant $1,000
Security by Design Engineering $1,000
Cornerstone Structural Engineering Group Engineering $750
David L. Gates & Associates Architect $500
Brokaw Consulting Electrical Engineering Engineering $500
Bricklayers & Allied Craftsworkers Local Union No. 3 Construction trade union $500
Kronick Moskovitz Tiedemann & Girard Law firm for school districts $500
Ingraham DeJesse Associates Engineering $500
Miller & Associates Construction contractor? $500
Sally Swanson Architects Architect $500
Alexander Murdoch, executive with School Facility Consultants School finance consultant $500
Matthew Pettler, executive with School Facility Consultants School finance consultant $500
Luk and Associates Engineering $300
SOHA Engineers Engineering $250
RGA Environmental Hazmat consultant $250
Willie Robinson Construction management $250
Alan Kroop & Associates Engineering $250
Ninyo & Moore Engineering $100
KPFF – San Francisco Engineering $100
Not itemized $0
TOTAL $608,650

 

California Local Election Report: Construction Bond Measures for School Districts and Community College Districts – Four That Obviously Deserve a NO Vote

California’s elected school boards and community college boards have put 106 measures on local ballots for the November 6, 2012 election asking voters to authorize borrowing money for construction through bond sales. At least four of these proposed bond measures are so stunningly misguided that citizens in these districts should take democratic action, defy the well-funded Establishment, and reject the debt with a NO vote.

Below, I list and explain the four districts where voters should Close the Spigot of taxpayer money to the elected boards. First, some general background about educational facility bond measures on the November 6, 2012 ballot:

CALIFORNIA – 106 Bond Measures for Construction at Educational Districts

A web site – www.californiacityfinance.com – lists 106 school construction bond measures on the November 2012 ballot in California. An article from School Services of California and reprinted on September 26, 2012 by the Coalition for Adequate School Housing (CASH) confirms there are 106 proposed bond measures. That article also notes that 106 is the highest number of California school bond measures ever considered in an election. It also claims that voters authorize the sale of bonds in California school districts about 70% of the time.

The number of bond measures presented to voters throughout California has trended relentlessly upwards since November 2000, when 53.4% of California voters narrowly approved Proposition 39, which dropped the voter threshold for approval of educational construction bond measures from 66.67% to 55%. This was the start of California’s massive accumulation of debt for educational construction at the state and local levels of government.

A few professional political consulting firms (such as Tramutola Advisors, based in Oakland, and TBWB Strategies, based in San Francisco) specialize in the business of convincing voters to vote Yes for school bond measures. They are adept at emotive messaging (“it’s all about the kids”) and at exploiting technical loopholes to leverage public funds as much as legally possible to develop and promote the bond measures.

Funding for the campaigns to pass the bond measures is collected from banks, bond brokers (underwriters), and other financial service corporations that make money from bond transactions. This has generated some criticism; see Vote No on Sacramento’s Measures Q and R web site for a compilation of 2012 news articles about bond underwriters and campaign contributions.

Bond measures also generate business for the construction industry. A perusal of contributors to bond measures usually reveals architects, engineers, contractors and construction trade associations, and construction trade unions.

Have YOU checked the list of contributors to campaigns to pass bond measures in your K-12 school and community college district?

Rarely does significant opposition develop against proposed bond measures, as shown by how often official voter information guides outright lack an opposition statement to a proposed bond measure. When there is organized opposition, it usually centers around a regional taxpayers association, with help from the local Libertarian Party or Tea Party organizations. Generally, opposition campaigns are passionate, but amateurish. They usually don’t have any money to spend on getting their message out to voters.

PROFESSIONALIZING OPPOSITION WITH CALIFORNIA’S “OPERATION CLOSE THE SPIGOT” 

Earlier this year, I circulated a proposal for “Operation Close the Spigot,” a program to have a well-funded, coordinated opposition campaign statewide against the most egregious bond measures proposed for California K-12 school districts and community college districts. While a formal organization has not yet emerged to close the spigot of taxpayer funding, my agitation on this issue – like my agitation for charter cities – has inspired some promising grassroots movement for local individuals and organizations to gather together and make a more serious effort to inform voters about the huge debt burden accumulating on Californians as a result of the parade of bond measures.

As the November 6, 2012 election approaches, here are the most promising developments for organized opposition against four foolish proposed educational construction bond measures in California.

1. SACRAMENTO CITY UNIFIED SCHOOL DISTRICT – $414 Million Measures Q and R

The “Fair and Open Competition – Sacramento” committee that had organized in 2011 to enact Fair and Open Competition ordinances in the City of Sacramento and the County of Sacramento reorganized its leadership and membership and decided to expose the foolhardiness of the Sacramento City Unified School District’s proposal to borrow another $414 million by selling bonds. (District taxpayers currently owe $522 million from the last two bond measures.) This group was inspired to oppose Measures Q and R on the November 2012 ballot because the school board requires its construction contractors to sign a Project Labor Agreement with unions to work on Sacramento City Unified School District contracts. In fact, the leading spokesperson to pass Measures Q and R is school board member Patrick Kennedy, who has been and may still be employed by Sacramento construction trade unions or affiliated entities.

The Sacramento City Unified School District sold notorious Capital Appreciation Bonds to bury future generations in debt. These are bond issues for which investors collect a huge amount of compound interest when the bonds mature, rather than getting interest payments at regular intervals and then getting the principal back when the bonds mature.

Fair and Open Competition – Sacramento submitted excellent arguments against Measure Q and against Measure R for the official voter information guide. They tried to discourage Sacramento area business groups from knee-jerk “it’s for the kids” endorsements of Measures Q and R. Finally, they established a web site to make a logical, fact-based case against borrowing more money through bond sales to investors. As I declared in a Tweet yesterday, “Never before has a campaign web site so thoroughly analyzed and hammered a California school construction bond measure: http://fairandopencompetitionsacramento.com.”

The Sacramento Bee’s editorial board has not taken a position yet on Measures Q and R. On October 14, 2012, the Sacramento Bee endorsed Measures Q and R (Sacramento City Unified School Bonds Are a Smart Investment for Students), with the Project Labor Agreement policy as the only negative reference:

Opponents object to the district’s use of project labor agreements for large projects – as has this editorial board. But the district points out that only 14 of 74 projects since 2005 have had project labor agreements. Union and nonunion shops get a chance to bid on the vast majority of projects under $1 million.

2. WEST CONTRA COSTA UNIFIED SCHOOL DISTRICT – $360 Million Measure E

The Official Statement for the West Contra Costa Unified School District’s latest bond sale contains some harsh facts about this fiscally irresponsible, mismanaged school district in an economically struggling area. Residents and businesses in this school district have taken on a staggering amount of debt through construction – $1.77 billion to date by borrowing money from five bond measures since 1998. (A sixth attempt failed in 2003.) Five is not enough, so now there is the $360 million Measure E.

Chevron owns 13.1% of the assessed property value of this district, and what will happen when Chevron finally decides to shut down its Richmond refining facility? (I’ve been predicting for 14 years it will become a distribution center for fuels refined in Mexico.) And Chevron is not the only problem with the school board’s rosy expectations for future tax collection. In 2009-10, total property value tax assessment in the district dropped 12.3%, and it dropped another 7.7% in 2010-11. (It was up 1.1% in 2011-12, but that’s not a good rationale to take on more debt.)

Bond Measures for West Contra Costa Unified School District

Authorized Bond Amount. Does Not Include Interest and Fees. Does Not Include State Matching Grants.

Date of Election

Ballot Designation

Outcome

$40 million June 2, 1998 Measure E Approved by 76.0% of voters
$150 million November 7, 2000 Measure M Approved by 77.5% of voters
$300 million March 5, 2002 Measure D Approved by 71.6% of voters
$450 Million September 16, 2003 Measure C Rejected in a special election because only 59.1% of voters approved the bond measure, which needed two-thirds voter approval
$400 million November 8, 2005 Measure J Approved by 56.9% of voters
$380 million June 8, 2010 Measure D Approved by 62.6% of voters
$1.27 billion Total from five bond measures from 1998 to the present.
$360 million November 6, 2012 Approved for consideration by district voters through a resolution of the school board on August 1, 2012

No surprise, the school board requires its construction contractors to sign a Project Labor Agreement with unions to work on West Contra Costa Unified School District projects. It was the first school district in Northern California to adopt a Project Labor Agreement, leading the way for followers such as the Vallejo City Unified School District, the East Side Union High School District (in San Jose), and the Oakland Unified School District. (By the way, Oakland USD and East Side Union HSD also have big bond measures on the November 2012 ballot.)

Of course, the West Contra Costa Unified School District sold Capital Appreciation Bonds to bury future generations in debt. One school board member – Charles Ramsey – even recognized the risk, but voted for the West Contra Costa Unified School District to sell Capital Appreciation Bonds anyway.

The Contra Costa Taxpayers Association is leading the opposition to Measure E and submitted excellent arguments against West Contra Costa Unified School District’s Measure E for the official voter information guide. Opposition also includes a small group of local activists who understand the debt implications of this latest bond measure. Unfortunately, the web presence of opposition arguments to Measure E is sparse. A local political and community activist, Charley Cowens, writes a blog called Mystery Education Theater 3000 about this district, which his kids went through, and there is also a blog called West Contra Costa Unified School District Quality Improvement Project. This is a tough place to advocate for fiscal responsibility.

Today (October 13, 2012), the Contra Costa Times newspaper endorsed four bond measures in San Francisco’s East Bay (Four School Bond Measures that We Believe Should Pass), but held off on discussing West Contra Costa Unified School District: “Five East Bay school districts seek voter approval Nov. 6 for bond measures to fund school construction. We recommend passage of four. We will consider the fifth, West Contra Costa’s Measure E, on Monday.” It looks like this district’s proposed bond measure will get a special editorial from the Contra Costa Times on Monday, October 15, 2012.

UPDATE: The Contra Costa Times slammed the proposed bond sales through Measure E at the West Contra Costa Unified School District: see Yes on Measure G, No on Measure E in West County – Contra Costa Times – October 15, 2012. The editorial points out that the official ballot information for Measure E neglects essential information for voters to consider (business as usual), including the huge outstanding debt obligations from five previous bond measures, the projected tax burden in a few years of $290 per $100,000 of property value, and the projection for repayment in 40 years at disproportionately high interest rates. The editorial concludes with this blunt statement:

District leaders say they need the additional bond money to complete their school construction program. That’s what they said 2½ years ago for the last bond measure. They claimed then that they needed more because rising construction costs had eroded their purchasing power. In today’s economy, that excuse won’t work. We endorsed the successful 2010 measure. But we warned that would be the last time. We meant it. As far as we are concerned, this train has run out of track. Vote no on Measure E.

3. SAN DIEGO UNIFIED SCHOOL DISTRICT – $2.8 Billion Proposition Z

No, that $2.8 billion jaw-dropping figure is not a typographical error. It represents the unapologetic arrogance of a union-controlled school board that is spending itself close to bankruptcy; in the meantime, let the good times roll!

In November 2008, voters in the San Diego Unified School District approved a ballot measure (Proposition S) authorizing the school board to borrow a whopping $2.1 billion for construction by selling bonds to investors. With a new pro-union majority also elected to the school board, the board (on a 3-2 vote) subsequently required construction companies to sign a Project Labor Agreement to work on San Diego Unified School District construction projects of more than $1 million funded by Proposition S. Unions now have total control of the San Diego school board, which has already voted 5-0 for a union Project Labor Agreement on construction funded by the proposed Proposition Z.

Of course, the San Diego Unified School District sold Capital Appreciation Bonds to bury future generations in debt. The board passed a resolution claiming they wouldn’t sell any more Capital Appreciation Bonds. (See my article Board of San Diego Unified School District Senses Voters May Reject $2.8 Billion Bond Measure (Proposition Z) Because of Board’s Past Use of Capital Appreciation Bonds.) Now the Voice of San Diego reports (on October 12, 2012 in School Officials Pitch Prop. Z As The Only Alternative to Exotic Loans) that school district officials are claiming the San Diego Unified School District will have to sell MORE Capital Appreciation Bonds if voters reject Proposition Z. Unbelievable!

The San Diego County Taxpayers Association jumped on Proposition Z right away as unworthy of voter support. This particular taxpayers’ organization in San Diego extensively researches ballot measures and is very cautious about taking opposition positions.

The San Diego Union-Tribune editorial board has urged voters to reject Proposition Z: Vote No on San Diego School Bond: It Props Up a Broken Status QuoSan Diego Union-Tribune – September 22, 2012.

4. SOLANO COMMUNITY COLLEGE DISTRICT – $348 Million Measure Q

The $124.5 million Measure G bond approved by Solano County voters in 2002 was not enough for the businesses and individuals who feed off money borrowed through bond sales. Especially interested in this new proposed $348 million bond measure are construction unions who obtained monopoly control of Measure G work with a Project Labor Agreement on Solano Community College District projects.

Stunningly, one of the board members – Catherine Ritch (representing Fairfield) – voted NO on putting the bond measure on the November ballot. Ritch was appointed to the Solano Community College District Governing Board in March 2012. She is not running in 2012 for a full term, so she could actually vote based on what is right for the people rather than for what is politically expedient. She also has a professional background as a legislative and administrative government analyst, so she was evidently too informed to be hoodwinked by this scheme.

The Fairfield Daily Republic newspaper was not impressed with the 6-1 vote to ask voters to borrow $348 million by selling bonds. In an August 5, 2012 editorial entitled “Board Appears Set for Local Tax Measures,” the Daily Republic said the following:

Solano Community College jumped on the tax bandwagon this week when trustees voted 6-1 to place a $348 million property tax measure on the November ballot. Trustee Catherine Ritch voted no, and for good reason. She said the finer points of the proposal had not been laid out completely for the board to consider, and called for the board to take “a deep breath” before approving the staff recommendation.

The Central Solano Citizen/Taxpayer Group is opposing Measure Q, as reported in Opponents Mobilize Against Local Tax MeasuresFairfield Daily Republic – October 4, 2012.

In an October 13, 2012 opinion piece in the Vallejo Times-Herald (We Deserve the Entire Story on Measure Q), Eric Christen of the Coalition for Fair Employment in Construction considered the cost increases caused by the Project Labor Agreement on construction funded by Measure G:

…now this same college [Solano Community College District], which still has governing it three of the board members who voted for the PLA [Project Labor Agreement], wants almost $350 million for another bond measure. The reason? Measure G wasn’t large enough to cover the college’s needs. Do you think they could have used that extra $24 million they wasted under a PLA?

The SCCD Governing Board should be honest about whether or not a PLA will be used on this bond should it pass. Voters should have all the information possible before voting to put themselves another $350 million in debt, especially if what they get for that debt is reduced in value in order to placate union special interests. Every candidate running for the board should also be asked whether they would vote to have a PLA placed on Measure Q.

Board members and candidates won’t answer that question. Although the answer is YES to a Project Labor Agreement, Solano County voters won’t support Measure Q if they learn that unions will get a costly government-mandated monopoly on the work.

Solano Community College District sold $1,584,811.70 in Capital Appreciation Bonds in 2005 as part of a large package of refunding bonds. Will the college board do it again on a much larger scale when they have authority from voters to sell $348 million instead of $124.5 million in bonds?

A FINAL QUESTION: Why Should You Care?

As a beleaguered Californian bombarded by bad economic and political news every day, you may now be cynically asking, “Why should I care?” You might have these thoughts:

  • If you live in or pay property taxes to one of these four educational districts, you have probably assumed that any local community opposition to the bond measure will be weak, ineffective, and easily crushed by the bank-and-union funded campaign machine that supports it.
  • If you don’t live in nor own property in one of these four educational districts, you may conclude that citizens who choose to live there accept or are resigned to seeing their school districts waste taxpayers’ money. It’s not your problem – you live elsewhere.
  • And if you live in California but don’t own any property, you may assume that these ballot measures don’t apply to you, because you don’t pay the property taxes for the principal and interest that goes to bond investors, nor the fees to financial service companies for issuing the bonds. You think you have no financial interest in the matter.

Well, you SHOULD care, for four reasons:

  1. Imagine the power of the message voters would send to the state’s political leadership if they rejected huge bond measures to pay for construction in these districts. By using their democratic power and defeating these bond measures, California citizens would nudge their elected officials toward more accountability to the taxpayers instead of the financial industry and union lobbyists.
  2. Voter rejection of bond measures in these four districts would repudiate thoughtless borrowing, taxing, and spending, including the sale of Capital Appreciation Bonds and the adoption of public policies such as Project Labor Agreements that impose costly union monopolies on taxpayer-funded construction.
  3. Voters might encourage some relatively thoughtful school board members in these four districts and other school districts to stand up to the most absurd demands from union lobbyists for more money and more laws. (Surely there are elected board members in school districts who honestly want to focus on student academic performance and aren’t warped by selfish ambitions for higher office.)
  4. Finally, voters would send a message to every California school board member that “it’s for the children” is no longer a sufficient message in itself to collect more taxes for the purpose of repaying money borrowed with interest and fees from investment banks and insurance companies.

Californians need to realize that EVERYONE in the state pays for construction in these three large school districts. The obscure State Allocation Board regularly provides matching grants for construction projects at school districts with proceeds from bond sales authorized by three past statewide propositions totaling $35.8 billion:

Even renters and consumers pay for bond measures. Property owners consider property taxes as a cost of doing business. The tax burden “trickles down” to all Californians.

In addition, Californians need to start thinking about how some of the largest beneficiaries of these bond measures are investment banks, brokerage firms, and other corporate providers of financial services. The so-called “One Percent” makes good money off of Californians’ emotional desire to “help the children.” School districts borrow money now and arrange for property owners to pay it back, along with significant interest payments and financial transaction fees.

Future generations of Californians are going to be crushed under the burdens of debt repayments for the school construction programs of today. For example, the debt of the San Diego Unified School District for school construction bonds was listed in May 2012 at $4.7 billion. It’s time to Close the Spigot and protect those future generations.