CFEC Crane Logo 2012
June 23, 2016
In This Issue
Sacramento Municipal Utility District Rejects Bids on PLA-Covered Headquarters Renovation
Transbay Terminal PLA Project in San Francisco Suffers Massive Cost Increases and Delays
Santa Clara County Jail Hardening Project Has PLA Approved
Monterey County Water Resources Agency Interlake Tunnel Project
School Bonds
Port of Long Beach Approves PLA
Union Greenmail and the Abuse of CEQA Garners Some Media Attention
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Sacramento Municipal Utility District Rejects Bids on PLA-Covered Headquarters Renovation
We warned the SMUD Board of Directors what a PLA would do to costs. They didn't listen but now maybe they might. Their Headquarter Renovation Project was supposed to cost $60 million. But after they slapped a PLA on it and reduced their bidder pool significantly , they ended up with three total bidders the lowest of which was $30 million over the estimated budget. That is quite a price to pay for your fidelity to union bosses. With little choice the Board has now had to, embarrassingly, reject the bids. Let's hope the Directors do what's right and bid this project PLA-free next time. If you would consider bidding this project PLA-free please contact CFEC today. The Board has asked that we provide them with a list of such contractors.
Transbay Terminal PLA Project in San Francisco Suffers Massive Cost Increases and Delays
Set to serve, among other things, as an intermodal train station for the never to be built California "High Speed" Rail scam, this project, which was placed under a PLA, has been a catastrophe from the start. It's $2.3 billion (who bets that number goes higher?) is now 43% higher than it was in 2010 when this project began. The project is now suffering cash flow issues and $100 million in San Francisco COP's have had to be purchased just to help keep it going. Just another reminder of the reality of PLAs vs their promises.
Santa Clara County Jail Hardening Project Has PLA Approved
At the June 21 Santa Clara County Board of Supervisors' meeting the Supervisors voted to approve a Project Labor Agreement (PLA) for their Main Jail North Jail Hardening Project.
Monterey County Water Resources Agency Interlake Tunnel Project
On April 4th the Monterey County Board of Supervisors voted unanimously to place a Project Labor Agreement (PLA) on its Interlake Tunnel Project. Thanks, in part to the PLA, costs for the project have skyrocketed from $23 million to $76 million (!) and will of course climb higher before this project is never built. Never built? Correct. The Supervisors have no funding source for this scheme only a "promised" $25 million from State Assemblyman Luis  Alejo who is running for the Board of Supervisors so he can continue to derive a paycheck from taxpayers.
 
Well done Monterey County. Aces, really.
School Bonds 
Alameda Unified School District:  In October, the Board directed staff to negotiate a PLA that would apply to projects funded by the District's Measure I bond program.
 
On May 10, 2016, staff presented the proposed terms and conditions so that the public and the Board could weigh in. The parties have since clarified and expanded the local hiring requirement by increasing the percentage goal for local workers and also expanding the geographical scope, and clarified language relating to exempt projects. The revised PLA   was approved by the board on June 14th. 
 
June Election Results for School Construction Bonds: On the June 7th Primary Election ballot there were 46 school bonds up for consideration. These bonds require 55% voter approval.   41 of the 46 bonds passed. 7 of these are likely PLA targets with another 9 being ones we will watch close. Stay tuned! 
Port of Long Beach Approves PLA 
  The Port of Long Beach has just approved a generic PLA for all $700+ million worth of work set to take place at the Port over the next 10 years. Despite opposition from contractors who have worked on previous Port projects the Port Commissioners took the easy road and sided with local union bosses who demand 100% fidelity. 
Union Greenmail and the Abuse of CEQA Garners Some Media Attention 
The Orange County Register and the Los Angeles Times have both had stories highlighting the abuse of the CEQA (California Environmental Quality Act) process by trade unions who hold up construction projects until PLAs are placed on them. Governor Jerry Brown comes across as a hapless victim to the unions and enviros who run this state and want nothing in the CEQA process to change, because they will get less rich off it.
 
CFEC's and Labor Issues Solutions' Kevin Dayton also exposed union CEQA abuse in this Union Watch column that methodically lays out how the unions tried and failed to use greenmail in Kern County. This completely exposes the strategy and tactics of the left (unions and enviros) and is a must read!
 
Lastly, one of the few sane members of the state legislature, State Senator John Moorlach, tried to stop this abuse of the CEQA process with a bill. Kevin Dayton sums up how the hearing on that bill went in the Democrat dominated California legislature:
 
The California Senate Environmental Quality Committee and the phalanx of lobbyists that attend its hearings are on the cutting edge of implementing a Vision to Save the Planet. We now know that revealing the true identity of front groups that object to projects under the California Environmental Quality Act (CEQA) is not part of that vision.
 
At today's Senate Bill 1248 hearing, Senator John Moorlach cited the "Kern County Citizens for Responsible Solar" as an example of why his bill needed to become law. Staff told me that Senator Moorlach chose that example because I had meticulously documented it in a UnionWatch.org article.
 
Expert witnesses in support of SB 1248 were Andrea Leisy of the law firm of Remy Moose & Manley in Sacramento and I. Andrea made the same points I did but from a legal perspective. I cited some specific cases and reported that I had been tracking this practice since the mid-1990s.
 
Lobbyists for the California Chamber of Commerce, the National Federation of Independent Business, and the Civil Justice Association of California spoke in support.
 
The environmentalist and union lobbyists were there in force to oppose us. The Sierra Club claimed that the recent high-profile analysis of CEQA abuse by Jennifer Hernandez of the law firm of Holland & Knight was full of errors. I was shocked that the lobbyist for the Sierra Club didn't seem to understand the intricacies of the law, considering that CEQA is their policy bread and butter. (Maybe they sent an intern to learn the ropes with a bill destined for certain defeat?)
 
The lobbyist for the State Building and Construction Trades Council of California expressed "strong opposition." He pointed out triumphantly that I admitted I was able to identify some of the CEQA parties through research and therefore proved this bill was "unnecessary." The bill was an effort to "attack and divide the community" dedicated to protecting the environment. The lobbyist for the California Labor Federation noted that witnesses specifically cited union involvement in CEQA.
 
Senator Gaines said the bill was a matter of transparency and asked some questions. Ms. Leisy answered them. The committee chairman expressed concern about project proponents intimidating citizens who wanted to participate in the CEQA process and also claimed that CEQA litigation isn't very common.
 
In response I argued that this worry about intimidation needed to be weighed against the right of the public to know who is influencing policies at local governments; for example, residents of Dublin should know that the "Concerned Dublin Citizens" organization objecting under CEQA to BART transit village development is actually the Carpenters Union. I also said that it didn't matter if only ONE front group was submitting CEQA objections; it was wrong and its true identity needed to be revealed for the public.
 
A majority disagreed with me. The four Democrats voted NO and the two Republicans (Gaines and Pat Bates) voted YES. One Democrat was absent.
 
I told Moorlach staff that this was a great way to expose phony union tree huggers (the attorney Andrea Leisy loves that name) and we need to think of this hearing as one step in a long-term plan to expose CEQA abuses and reform CEQA. Andrea will let me know when CEQA abuse crosses her desk. (Her firm - especially Jim Moose - has been unusually open about greenmail and I think we're on top of everything they've ever worked on.)
 
Bill text and analysis: http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB1248