Tag Archive for Southern California Public Power Authority

Project Labor Agreements at California Port Districts, Water Districts, Utility Districts, Airport Districts, Hospital Districts, Transportation Districts, Irrigation Districts, Housing Authorities, and Redevelopment Agencies

PORT DISTRICTS

Port of Oakland: “Vision 2000” Project Labor Agreement 1999, Maritime and Aviation Project Labor Agreement 2000, Maritime and Aviation Project Labor Agreement with Addendums 2004

Port of Long Beach (City of Long Beach Harbor Department): Middle Harbor Stages 1 & 2 Project Labor Agreement 2010Gerald Desmond Bridge Project Labor Agreement 2012, North Middle Harbor Project Labor Agreement 2012

Port of Los Angeles (City of Los Angeles Harbor Department): Seven individual projects: Port of Los Angeles Pier 400 Development Phase 2 Project Labor Agreement (2003), Berths 90-91 Cruise Terminal Baggage Handling Building (2005), 2006-2007 Site Improvements (2005), Berths 145-147 Wharf Improvements – Trapac Terminal (2008), Harry Bridges Boulevard Buffer Project (2008), Port of Los Angeles Cabrillo Way Marina Project (2008), and Berth 102 Wharf and Backland Improvements – China Shipping Terminal (2009). Then, City of Los Angeles Harbor Department (Port of Los Angeles) Project Labor Agreement Capital Improvement Program 2011

WATER DISTRICTS

Costa Costa Water District: Los Vaqueros Conveyance Facilities Project Labor Agreement 1994, Bollman Water Treatment Plant Project Labor Agreement 1995, Multi-Purpose Pipeline Project 2000, Brentwood Water Treatment Plant Project Labor Agreement 2005, Alternative Intake Project 2007, Los Vaqueros Dam Expansion 2010

San Francisco Public Utilities Commission Water System Improvement Program Project Labor Agreement 2007

Upper San Gabriel Valley Municipal Water District Project Labor Agreement 2011

Central Basin Municipal Water District Project Labor Agreement 2012

Water Replenishment District of Southern California Project Labor Agreement Resolution 2008

Metropolitan Water District of Southern California: Eastside Reservoir Project Labor Agreement 1994, Inland Feeder Project Labor Agreement 1996Skinner Filtration Plant, San Diego Pipeline 6, Recreational Facilities Project Labor Agreement 2003

San Diego County Water Authority Emergency Storage Project Labor Agreement 1999

MUNICIPAL UTILITY DISTRICTS

Northern California Power Agency Lodi Energy Center Project Labor Agreement 2009

Sacramento Municipal Utility District (SMUD): Carson Ice-Gen Plant Project Labor Agreement 1993, Proctor & Gamble Cogen Project Labor Agreement 1995, Campbell Soup Cogeneration Plant 1996, Cosumnes Power Plant Project Labor Agreement as of 2005, East Campus Operations Center Project Labor Agreement 2010, Solano Phase 3 Wind Project Project Labor Agreement 2010

Los Angeles Department of Water & Power Valley Generating Station 2001

City of Santa Clara Pico Power Project 2003

City of Burbank Magnolia Power Project 2003

City of Pasadena Glenarm Power Plant Units 3 and 4 Project Labor Agreement 2003

City of Vernon Malburg Generating Station 2003

City of Roseville (Roseville Electric) Energy Park Project Labor Agreement 2004

Canyon Power Project (in Anaheim) Southern California Public Power Authority Project Labor Agreement 2009

City of Palmdale Solar Hybrid Power Plant Project Labor Agreement 2009

AIRPORT DISTRICTS

San Francisco Airport Commission: Master Plan Project Labor Agreement 1996Master Plan Project Labor Agreement still in effect as of 2007

Los Angeles World Airports Project Labor Agreement 1999 Extension 2011

(Note: San Jose International Airport Master Plan Project Labor Agreement 2002 was approved by the San Jose City Council – not the Airport Commission, which has an advisory role – and is therefore classified under Project Labor Agreements at California Cities for Individual Projects.)

HOSPITAL DISTRICTS

El Camino Hospital District Project Labor Agreement 2006

TRANSPORTATION and TRANSIT DISTRICTS

Sacramento Regional Transit District South Corridor Phase 1 Project Labor Agreement 1998

Bay Area Rapid Transit (BART) District: Oakland Airport Connector Project Labor Agreement 2009, eBART East Contra Costa Extension Project Labor Agreement 2011

Metropolitan Transportation Commission Bay Area Headquarters Authority Project Labor Agreement 2012

Transbay Joint Powers Authority Transbay Transit Center Project Labor Agreement 2011

Santa Clara Valley Transportation Authority Silicon Valley Berryessa Extension Project Labor Agreement 2011

Santa Cruz Metropolitan Transit District Judy K. Souza Operations Facility, Parking Structure, and Related Site Conditions Project Labor Agreement 2012

Exposition Metro Line (Expo Line) Construction Authority Phase 2 Project Labor Agreement 2011

Los Angeles County Metropolitan Transportation Authority – Measure R and Other Capital Improvements Project Labor Agreement 2012

IRRIGATION DISTRICTS

Kings River Conservation District Peaking Plant Project Labor Agreement 2004

Imperial Irrigation District: Imperial Irrigation District Niland Gas Turbine Plant Project Labor Agreement 2006, El Centro Generating Station Unit 3 Project Labor Agreement 2007

HOUSING AUTHORITIES 

San Francisco Housing Authority 1994 Revised 1996

REDEVELOPMENT AGENCIES

Los Angeles Community Redevelopment Agency Project Labor Agreement 2008

Feds Need Better Oversight of Labor-Management Cooperation Committees, Such as the Union Slush Fund that Spent $1.1 Million in the June 2012 Election in the City of San Diego

An August 27, 2012 article on the Investigative Newsource – Southern California web site contains the latest fleeting news reference to the California Construction Industry Labor-Management Cooperation Trust. The last two paragraphs of “Outside Donors Fuel Prop. Opponents, Fund Mayoral Hopefuls” states the following about Proposition A campaign in the City of San Diego for the June 6, 2012 election:

The California Construction Industry Labor Management Cooperation Trust, a nonprofit located in Sacramento that promotes and protects project labor agreements around the state, donated more than $1 million to try unsuccessfully to defeat Prop. A, which banned project labor agreements. The agreements set some of the terms of employment, such as wage rates, on construction projects.

The Trust gets much of its money from laborers themselves. Clauses in some project labor agreements dictate that a portion of money per hour worked goes to the Trust.

The same Investigative Newsource was alone among news media groups in highlighting the extensive campaign involvement of this obscure organization before the June 6, 2012 election. From the May 25, 2012 article “Business Groups, Builders and Labor Battle over Propositions:”

All of the money for the one of the committees opposing Proposition A has come from the same donor.

Since March 18, the California Construction Industry Labor Management Cooperation Trust donated $675,000 to Taxpayers to Preserve Community Jobs.

The California Construction Industry Labor Management Cooperation Trust is a tax-exempt Sacramento-based organization, which says its mission is, among other things, to “improve public awareness of the benefit of using organized labor contractors and workers.” The group is not required by the IRS to list specific sources of funding, but in general, it reported on its 2010 tax returns collecting $678,000 in membership dues. It reported more than $3 million in assets.

And the trust fund is also cited in the June 1, 2012 Investigative Newsource article “Fundraising Amps Up for Proposition A, B Committees:”

In the past week, a union trust gave an additional $320,000 into defeating Proposition A, a ballot measure that would ban project labor agreements for San Diego city projects if passed.

That brings to $1.18 million the amount raised by the anti-Prop. A forces, far outpacing the business interests pushing Proposition A. That committee, Fair and Open Competition, has raised $755,000 so far.

Taxpayers to Preserve Community Jobs — an anti-Prop. A committee — has benefited mainly from the California Construction Industry Labor Management Cooperation Trust. The trust is responsible for more than 90 percent of its donations.

The labor trust is “heavily involved” with promoting and protecting project labor agreements (PLAs) around the state, according to secretary/treasurer Scott Strawbridge. A PLA is a type of collective bargaining agreement that a city can enter into with workers for city projects.

“We think (PLAs) are good business for our contractors and union members,” Strawbridge said.

A big part of the money in the trust comes from laborers themselves, he said. Clauses in certain PLAs specify that a small amount of money per hour worked goes into the trust.

The San Diego Union-Tribune briefly and generally mentioned the fund after the election, in the June 7, 2012 article “Impact of Proposition A on State Funds in Dispute:”

The major backer of the No on A campaign was a Sacramento-based group headed by Robert Balgenorth, the president of the State Building and Construction Trades Council of California, a statewide union, which donated $1.1 million to stop it from passing.

This brief public reference was enough to provoke Scott Strawbridge (cited in the Investigative Newsource article above) to defend the California Construction Industry Labor-Management Cooperative Trust publicly with an opinion piece in the Union-Tribune. (“In Response: Prop. A Put San Diego Citizens in Difficult Position,” June 22, 2012)

In doing so, he provided a public service in highlighting the unregulated slush fund that spent $1,095,000 to oppose Proposition A, a fair and open competition ordinance approved by 58% of San Diego voters on June 5.

This mysterious, Sacramento-based California Construction Industry Labor-Management Cooperative Trust is authorized by the obscure Labor-Management Cooperation Act of 1978, a law signed by President Jimmy Carter.

The law lists specific purposes for these trusts: “improving labor-management relationships, job security, organizational effectiveness, enhancing economic development or involving workers in decisions affecting their jobs including improving communication with respect to subjects of mutual interest and concern.” And many trusts operating under this law do just that.

Nevertheless, the California Construction Industry Labor-Management Cooperative Trust circumvents these purposes without consequence.

The Federal Mediation and Conciliation Service hasn’t implemented regulations to monitor or limit how such trusts operate. And these trusts don’t have any reporting requirements to the U.S. Department of Labor’s Office of Labor Management Standards.

Who wouldn’t enjoy having a slush fund with minimal oversight and controls?

The California Construction Industry Labor-Management Cooperative Trust recently gave $100,000 to the Apollo Alliance, $250,000 to a campaign committee opposing reforms to state eminent domain laws, and $770,000 to the biased California Construction Academy of the University of California Miguel Contreras Labor Program. It also gave $164,550 to “Other.”

How does the California Construction Industry Labor-Management Cooperative Trust get its money? Do people contribute to it through the goodness of their hearts?

Actually, owners of proposed power plants (and their construction contractors) fund it when they sign Project Labor Agreements (PLAs) that require payments to it.

Power plant owners don’t sign these union agreements because they want union monopolies on construction or appreciate the California Construction Industry Labor-Management Cooperative Trust.

Instead, they sign them to discourage California Unions for Reliable Energy (CURE) from exploiting environmental laws to interfere with approval of their proposed power plants at the California Energy Commission and other government agencies.

It’s a tangled conspiracy. Especially intriguing is that one union official is the head of the State Building and Construction Trades Council of California, the California Construction Industry Labor-Management Cooperative Trust, and California Unions for Reliable Energy.

Another interesting angle: when publicly-owned utilities sign these Project Labor Agreements, their electric customers ultimately fund the California Construction Industry Labor-Management Cooperative Trust through their bills.

Senate Bill 790 – signed into law by Governor Jerrry Brown in 2011 – allows publicly-owned utilities to pass through to ratepayers the cost of payments to trusts authorized by the Labor Management Cooperation Act of 1978.

In its annual Form 990 statements to the IRS, the California Construction Industry Labor-Management Cooperative Trust classifies its receipts as “membership dues.” How do “members” such as the Northern California Power Agency and the Southern California Public Power Authority decide to contribute $1,095,000 to the No on A campaign in the City of San Diego?

It’s time to stop these abuses. If Mitt Romney is elected President, his appointees to oversee the Federal Mediation and Conciliation Service and the Office of Labor Management Standards need to implement reasonable regulations for trusts authorized under the Labor-Management Cooperation Act of 1978.

California’s Top Construction Union Boss Opens the Slush Fund Hydrant: $1.14 Million Full-Blast Against San Diego’s Proposition A Voter Initiative

Here’s yet another scoop from the Dayton Public Policy Institute about how unions are influencing the June 2012 elections in California: one supreme union official based in Sacramento has pumped $1.14 million into San Diego to defeat a city voter initiative called Proposition A. And some of the cash originally comes from utility ratepayers.

For readers unfamiliar with Proposition A, read immediately below. Those who know about Proposition A can proceed down to read about the union sources of $1.14 million for the No on A campaign.

Who Supports Proposition A in San Diego, and Why?

In 2011, San Diego voters signed petitions to qualify a Fair and Open Competition ordinance for consideration in the June 5, 2012 election. It was the first measure placed by voters on the city ballot since 1998. Now designated on the ballot as Proposition A, the Fair and Open Competition ordinance would prohibit the City of San Diego from requiring construction companies to sign a Project Labor Agreement (PLA) with unions as a condition of working on a taxpayer-funded project. It also contains language requiring the city to post certain contract information on-line.

The campaign to enact Proposition A is strongly supported by construction companies and construction trade associations. This is no surprise, since most construction companies work directly with their employees (either individually or collectively through a union) to determine the terms and conditions of work. They don’t want two-bit local politicians to negotiate separate 30-page to 60-page labor agreements with union officials (i.e. the politicians’ campaign contributors) and then impose those agreements on their businesses.

Many companies refuse to bid on work that includes a government-mandated Project Labor Agreement in the bid specifications. The resulting reduction in the number of bidders competing for contracts results in higher costs for taxpayers (as academic studies, basic economic theory, and common sense would predict).

See the YES on A campaign web site here and contributors to the YES on A campaign here.

Who Opposes Proposition A in San Diego, and Why?

The main opponents of Fair and Open Competition policies are obviously construction trade unions, which regard government-mandated Project Labor Agreements as an effective political tactic to cut bid competition and raise costs for their own benefit. With Project Labor Agreements, union organizers can completely avoid the unpleasant and time-consuming task of selling the benefits of unionization to skeptical workers. Instead, they simply ask their political allies in government to give them a union monopoly on construction!

Most construction unions in California belong under the umbrella of the State Building and Construction Trades Council of California, a union conglomerate based in Sacramento under the leadership of president Bob Balgenorth. If you look at the list of contributors to the No on A campaign (Taxpayers to Preserve Community Jobs, No on Measure A, sponsored by labor and management organizations), you’ll see the top two donors are Sacramento-based union-affiliated organizations under the direction of Bob Balgenorth. These two entities contributed $1.14 million to the No on A campaign, comprising 96% of all campaign receipts.

Let’s take a closer look at these two massive organizations funding the No on A campaign. One of them is a routine political action committee, but the other is a conspiracy theorist’s dream come true.

A Union Political Action Committee Gave One $45,000 Late Contribution, Comprising 3.8 Percent of the Contributions to the No on A Campaign

The Sacramento-based committee known as “Members’ Voice of the State Building Trades Council of California” made a late expenditure contribution of $45,000 to the No on A campaign on May 24. As you can see on the California Secretary of State’s web site, this committee collects money from various local construction unions and disburses the money to various campaigns for candidates and ballot measures. The Assistant Treasurer of the Members’ Voice of the State Building Trades Council of California is Bob Balgenorth.

A Mysterious Union Slush Fund, Authorized by an Obscure 1978 Federal Law to Encourage Better Relationships Between Unions and Manufacturers, Gave $1,095,000 to No on A – a Whopping 92% of All Receipts!

Something called the California Construction Industry Labor-Management Cooperative Trust contributed a total of $1,095,000 to the No on A campaign. This is an extraordinarily high amount for a political contribution from one entity, especially concerning a local ballot measure! The head of the California Construction Industry Labor-Management Cooperative Trust is Bob Balgenorth.

This is NOT a traditional Political Action Committee. It is an arcane type of union trust authorized by the obscure Labor-Management Cooperation Act of 1978, a law signed by President Jimmy Carter and implemented by the Federal Mediation and Conciliation Service. Inspired by the decline of unionized manufacturing in the Northeast, this federal law was meant to help industrial management and union officials build better personal relationships and cooperate against the threat of outside competition. There are no federal or state regulations specifically addressed toward these trusts, and these trusts do not have any reporting requirements to the U.S. Department of Labor’s Office of Labor-Management Standards. This is an ambiguous and forgotten law that’s ripe for abuse.

It’s Not Union Members that Give the Money to the California Construction Industry Labor-Management Cooperative Trust: It’s Utility Ratepayers and Contractors Working for Extorted Power Plant Owners

Since the 1990s, whenever an energy company or public utility submits an application to the California Energy Commission seeking approval of a new power plant, an organization called California Unions for Reliable Energy (CURE) often “intervenes” in the licensing process. Represented by a South San Francisco law firm called Adams Broadwell Joseph & Cardozo, CURE submits massive data requests and environmental objections to the California Energy Commission. The applicant by law is required to answer CURE’s submissions, at significant cost and delay. The chairman of California Unions for Reliable Energy (CURE) is Bob Balgenorth.

If the power plant owner agrees to sign a Project Labor Agreement and require its construction contractors to sign a Project Labor Agreement with the State Building and Construction Trades Council of California or its regional affiliates, CURE’s objections go away and the power plant can proceed unhindered through the licensing process. If the company or utility does not surrender to CURE’s demand, then CURE’s interference and lawsuits continue.

This racket – sometimes called “greenmail” because it’s the use of environmental laws to pressure developers to sign Project Labor Agreements – is well-known to the energy industry in California and has been extensively reported in the news media over the past dozen years. (For example, see Labor Coalition’s Tactics on Renewable Energy Projects Are Criticized – Los Angeles Times – February 5, 2011.)

For cases in which the power plant applicant succumbs to CURE’s harassment, the Project Labor Agreement that the power plant owner signs usually contains a provision requiring the owner or its contractors to make a lump-sum payment or series of payments to the California Construction Industry Labor-Management Cooperative Trust.

For example, the Project Labor Agreement signed by the Northern California Power Agency (a conglomerate of publicly-owned utilities) for the construction of the Lodi Energy Center required the agency to shell out $90,000 to the California Construction Industry Labor-Management Cooperative Trust. That amount was dutifully mailed to Bob Balgenorth on August 17, 2010. (For more on this payment, see High Energy: Lodi Center Designed to be a Powerhouse for Chunk of State – Stockton Record – October 4, 2011; also, the union rebuttal on the California Building Trades Council web site – ABC Falsehoods Refuted in Letter to Stockton Record – a denial that the California Construction Industry Labor-Management Cooperative Trust is used for political contributions.)

And the Project Labor Agreement signed by the Southern California Public Power Authority (another conglomerate of publicly-owned utilities) for the construction of the City of Anaheim’s Canyon Power Plant required the agency to shell out $65,000 to the California Construction Industry Labor-Management Cooperative Trust. See Section 13.1 of the Project Labor Agreement here.

The California Construction Industry Labor-Management Cooperative Trust reports these payments as “membership dues” to the Internal Revenue Service. Which brings up a question: are the local elected officials who serve as commissioners for the Northern California Power Agency and the Southern California Public Power Authority exercising their responsibilities as “members” to approve $1,095,000 in political contributions to the No on A campaign?

But Wait a Minute…Is It Legal to Have Utility Ratepayers Fund a Mysterious Union Trust Fund that Contributes to Political Campaigns, Such as No on A?

Well, in 2009 an internal committee of the Northern California Power Agency discussed whether or not a payment to the California Construction Industry Labor-Management Cooperative Trust was an illegal gift of public funds. (See here. Note the original amount to the California Construction Industry Labor-Management Cooperative Trust was supposed to be $150,000, but aggressive opposition to the Project Labor Agreement forced the unions to cut it down to $90,000 in order to win approval from the board of commissioners.)

To solve this uncertainty, in May 2011 State Senator Mark Leno (D-San Francisco) added a cryptic amendment at the request of union lobbyists and lawyers to the end of a large unrelated public utilities bill (Senate Bill 790) regarding “community choice aggregation.” It added Section 3260 to the Public Utilities Code: “Nothing in this division prohibits payments pursuant to an agreement authorized by the National Labor Relations Act (29 U.S.C. Sec. 151 et seq.), or payments permitted by the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Secs. 173, 175a, and 186). Nothing in this division restricts any use permitted by federal law of money paid pursuant to these acts.”

No one in the California State Legislature – apparently not even Senator Leno – initially knew what this strange new provision meant. In the end, a few legislators such as Assemblywoman Shannon Grove (R-Bakersfield) came to understand and reveal in floor debate that it authorized public utilities to pass on the costs of payments to labor-management cooperation committees to ratepayers. Governor Brown signed the bill into law with the language tacked on the end.

For more information, see the investigative report of the Coalition for Fair Employment in Construction at this September 23, 2011 post at www.TheTruthaboutPLAs.com: A Genuine California Union Conspiracy: Senate Bill 790 and the California Building Trades Council’s Ratepayer Funded Political Slush Fund

Confused about the Conspiracy? Here’s a Chart.

A public utility or private energy company applies to the California Energy Commission for approval to build a power plant.

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California Unions for Reliable Energy (CURE) uses its “intervenor” status at the California Energy Commission to submit massive data requests and environmental complaints about the proposed power plant, as a result gumming up the licensing process and causing costly and lengthy delays for the applicant.

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Applicant for prospective power plant surrenders and agrees to sign Project Labor Agreement with State Building and Construction Trades Council of California or its regional affiliates. CURE releases its grip of legal paperwork and the project moves forward unimpeded and acclaimed as environmentally sound.

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The Project Labor Agreement contains a required payment or payments to the California Construction Industry Labor-Management Cooperative Trust. California Public Utilities Code Section 3260 – enacted by Senate Bill 790 in 2011 – allows public utilities to pass costs through to ratepayers.

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California Construction Industry Labor-Management Cooperative Trust reports those payments to the IRS as “Membership Dues,” creating questions about the rights inherent for dues-paying members.

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California Construction Industry Labor-Management Cooperative Trust makes contributions to political campaigns, such as $1,095,000 to fund 92% of the No on A campaign (Taxpayers to Preserve Community Jobs, No on Measure A, sponsored by labor and management organizations) in the City of San Diego in 2012.