Public Works Solutions

Stimulus Signed--$787 billion, but Where Does it Go?

noreply@blogger.com (Charles Bradshaw, PMP) — Wed, 18 Feb 2009 17:40:00 +0000

I am just starting to peel back the onion on this, Here are some articles about the funds that are headed to California.

More to come....

California has a Tentative Budget Deal?

noreply@blogger.com (Charles Bradshaw, PMP) — Thu, 12 Feb 2009 17:23:00 +0000

So no votes have been cast, but it looks like a final budget deal is in the works. Details seem to be coming out in real time so stay tuned. It looks like there is going to be a lot of pain to go around.

It should be noted that just because there is a deal with the "Big 5", that does not mean that there are the votes to pass the budget.

Here is an summary of the budget "highlights" from the California Weekly:

Overall, according to Capitol sources, the plan includes about $15.8 billion in spending cuts, $14.3 billion in tax increases and about $10.9 billion in new borrowing. Details of the revenue package began to surface earlier this week, with increases expected in the state sales tax, gasoline tax and vehicle license fee.

More than half of the cuts are to K-12 schools and community colleges. The plan calls for about $8.4 billion in savings by reducing the constitutional guarantee to schools. Details of where the specific cuts would be made remained unclear, but Capitol sources indicated more than $5.6 billion would be cut in the current budget year.

From the Republican camp it looks like getting the votes is going to be difficult. From the SacBee.

Assemblyman Chuck DeVore, R-Irvine, said legislative leaders will have a hard time finding votes.
"The tax increases are far too much, the budget cuts aren't enough and the spending cap is illusory because it's based on prior revenue, not based on a calculation of the economic capacity of the state to pay it," DeVore said.

However as an old friend said: Always count your votes.

Water Conservation Works for Long Beach

noreply@blogger.com (Charles Bradshaw, PMP) — Wed, 11 Feb 2009 16:02:00 +0000

In San Diego we are in the middle of a series of storms that are going to help us meet our rainfall totals. While this is really helping us with regards to our local totals, it does not significantly impact San Diego's water crisis. 90 % of San Diego's water is imported from Northern California or the Colorado River.

Here is an article about how water conservation efforts helped Long Beach to cut its water use and avoid water rationing. I think other cities and water districts should take notice. They have taken their case to the residents of the city by having a blog, facebook page, myspace and twitter.

The original article can be found here.

South state city turns down tap

The city of Long Beach says it won't require additional customer cutbacks this year, because it successfully changed residents' water habits.In 2007, Long Beach – which depends on imported water from the Delta and local groundwater – predicted long-term shortages. Rather than order residents to ration water, the city set out to make it socially unacceptable to waste water.

The city outlawed certain types of water waste, especially irresponsible landscape irrigation. It encouraged residents to report violators. It imposed tiered pricing to punish gluttons. And it used the Internet to spread its message.Since then it has received 4,500 complaints about water waste. It followed up on every one with enforcement action.

The city achieved an 11 percent water savings in 2008, including 24 percent in December."I expect it to be a hardship for every other city in Southern California that has a significant reliance on imported water, because they haven't been as proactive," said water department General Manager Kevin Wattier.

Economic Stimulus Plan passes Senate....Off to Conference Committee

noreply@blogger.com (Charles Bradshaw, PMP) — Tue, 10 Feb 2009 18:02:00 +0000

This just in:

WASHINGTON – President Barack Obama's economic recovery plan has passed the Senate and is on its way to difficult House-Senate negotiations.

Just three Republicans helped pass the plan on a 61-37 vote and they're already signaling they'll play hardball to preserve more than $108 billion in spending cuts made last week in Senate dealmaking. Obama wants to restore cuts in funds for school construction jobs and help for cash-starved states.

Those cuts are among the major differences between the $819 billion House version of Obama's plan and a Senate bill costing $838 billion. Obama has warned of a deepening economic crisis if Congress fails to act. He wants a bill completed by the weekend.

The bill backed by the White House survived a key test vote in the Senate Monday despite strong Republican opposition, and Democratic leaders vowed to deliver legislation for President Barack Obama's signature within a few days.

You can read more here:

http://news.yahoo.com/s/ap/20090210/ap_on_go_co/congress_stimulus

President Obama overturns Bush ban of Federal project labor agreements

noreply@blogger.com (Charles Bradshaw, PMP) — Mon, 09 Feb 2009 16:10:00 +0000

I picked this up from Joe' Union Review.

I think his blog posting sums it up nicely.

"This is yet another reason for working families to be grateful that we have a champion in the White House,"..."Project labor agreements are a win-win for everyone involved. Contractors get highly trained, skilled labor with fixed costs, and workers are fairly compensated with their rights and safety protected."- Jimmy Hoffa Jr, President International Brotherhood Of Teamsters

Make no mistake about it, former President Bush had it "out for" for union construction workers. One of the first Executive Orders of the Bush administration was "Executive Order 13208 of April 6, 2001", which banned the use of Project Labor Agreements(PLA's) on Federally funded projects.

Just two weeks ago the US Senate rejected an attempt to codify Bush's ban into law. Senator David Vitter, a Republican from Louisiana proposed that his legislation, the Government Neutrality in Contracting Act, be amended into the Lilly Ledbetter Fair Pay Act. By a Senate vote of 59-38 the Vitter amendment failed. The only Republican that voted against Vitter's plan was Arlen Specter from Pennsylvania. If you do the math that means 97.3% of Senate Republicans absolutely hate Union construction workers. If the Bush EO banning PLA's on Federal projects had been codified into law it would have been extremely hard to reverse.

Today with just a few weeks in office President Obama has repealed 13208, with the Executive Order titled "USE OF PROJECT LABOR AGREEMENTS FOR FEDERAL CONSTRUCTION PROJECTS", here's part of the briefing from the White House site:

Section 1. Policy. (a) Large-scale construction projects pose special challenges to efficient and timely procurement by the Federal Government. Construction employers typically do not have a permanent workforce, which makes it difficult for them to predict labor costs when bidding on contracts and to ensure a steady supply of labor on contracts being performed. Challenges also arise due to the fact that construction projects typically involve multiple employers at a single location. A labor dispute involving one employer can delay the entire project. A lack of coordination among various employers, or uncertainty about the terms and conditions of employment of various groups of workers, can create frictions and disputes in the absence of an agreed-upon resolution mechanism. These problems threaten the efficient and timely completion of construction projects undertaken by Federal contractors. On larger projects, which are generally more complex and of longer duration, these problems tend to be more pronounced.

(b) The use of a project labor agreement may prevent these problems from developing by providing structure and stability to large-scale construction projects, thereby promoting the efficient and expeditious completion of Federal construction contracts. Accordingly, it is the policy of the Federal Government to encourage executive agencies to consider requiring the use of project labor agreements in connection with large-scale construction projects in order to promote economy and efficiency in Federal procurement.

Building Trades President Mark H. Ayers:

America's Building Trades Unions praise the action today by President Obama in issuing an Executive Order overturning the Bush Administration's ban on federal project labor agreements (PLAs).

The Bush anti-PLA Executive Order was exactly the type of special interest-driven politics and policy that American voters rejected overwhelmingly last November.

PLAs are designed to provide maximum benefit to construction users; union and non-union workers; union and non-union contractors; lenders and insurance companies; and taxpayers. PLAs are frequently negotiated to address a wide range of local and social needs, including the assurance of hiring of local residents, and outreach programs designed to offer local residents the opportunity for a career in the skilled trades.

We acknowledge and praise this Executive Order as being one of the first steps in ushering in a new, more pragmatic and value-conscious approach to governing.

International Brotherhood Of Teamsters President Jimmy Hoffa:

...Such agreements are efficient, save money and promote safety and labor standards.

Obama's order overturns an order signed by President George W. Bush in 2001 that banned the federal government from requiring PLAs. Obama's order does not mandate PLAs on large-scale, federally funded projects, but it encourages agencies to consider requiring them to promote efficiency and achieve cost savings.

Mike Hall over at the AFL-CIO Now blog add's

Today’s action follows Obama’s three executive orders last week that reversed a trio of Bush-era orders governing the way federal contractors deal with union workers. The new orders:

Require federal service contractors to offer jobs to current workers when contracts change.
Reverse a Bush order requiring federal contractors to post notice that workers can limit financial support of unions serving as their exclusive bargaining representatives.
Prevent federal contractors from being reimbursed for expenses meant to influence workers deciding whether to form a union and engage in collective bargaining.

This is a great day indeed, thank you President Obama.

Note: I made some slight edits to the post.

Apollo Alliance Action Alert: Green Jobs and Stimulus Package

noreply@blogger.com (Charles Bradshaw, PMP) — Fri, 06 Feb 2009 17:26:00 +0000

I am a few action alert lists and I think this one is really important. I dont think my Senators need much education on this issue, but there are Senators that do, but I called anyways. Please pass this along and let your voice be heard.

From the Apollo Alliance:

Thanks to supporters like you, we've reached a turning point.
Apollo Alliance priorities – the right priorities – are part of the stimulus bill that just passed the US House.

But with the Senate about to vote, some Senators are trying to cut back on critical green jobs and clean energy investments – or strip them out altogether.

We have a major opportunity to turn our economy around and reduce our dependence on oil. We can't let our clean energy future stall.

Senators Boxer and Feinstein could vote any day now – please tell them to keep clean energy and green jobs in the stimulus package.

Few doubt that this stimulus bill is going to pass in some form or another. The question is this: Will it help end our addiction to oil? Or will it bring us more pollution and tangled highways? Will it harness America's breakthroughs in green technology, or will we continue to be left behind by Europe and Asia?

I'm particularly concerned about funding for green-collar job training – a key priority we've been working on for years, included in the House bill at $500 million but cut in half to $250 million in the Senate version of the bill.

If we want to retain and create jobs in the new green economy, we must train the workforce of the future to fill these jobs!

Tell your Senators that clean energy, good jobs, and a trained workforce must remain a priority in the stimulus bill.

This bill is an opportunity to get our country back on track! We need to mobilize people across the political spectrum around the need to make sure the right priorities are in it.

We can do this with your help. Thanks for taking action.

Phil Angelides
Chairman
The Apollo Alliance

P.S. Please spread the word! Here's a sample message you can send to your friends:

Hi,

Leaders in Washington are on the verge of spending over $800 billion to stimulate the economy. We have a chance to make sure it promotes clean energy and good jobs, to end our oil addiction and turn around our economy.

The Apollo Alliance has been working on these issues for years, and now many of their good ideas are in the economic stimulus bill. But with the Senate set to vote on the bill in the coming days, we need to make sure our voices are hear there as well.
I just wrote to my Senators asking them to keep these investments in the stimulus, and I hope you'll join me. Can you take a minute to write your Senators? Go to: http://ga0.org/campaign/stimulusbill_0209

San Diego City Beat: Dont fear the PLA

noreply@blogger.com (Charles Bradshaw, PMP) — Wed, 04 Feb 2009 17:13:00 +0000

From the San Diego City Beat.

School district is right to negotiate with unions on Prop. S projects

When San Diego voters went to the polls last November, they were faced with a choice of five candidates for three open seats on the local school board. In one district, Richard Barrera was unopposed; in the other two, incumbent Shelia Jackson won with 61.1 percent of the vote, and John Evans beat incumbent Mitz Lee with 54.5 percent.
If they’d paid any attention at all, voters would know that all three winners were ideologically aligned with labor unions, and they might even know that Barrera and Evans are aspiring progressive politicians who in the past had either run for, or considered running for, other elective offices.
So it should have come as no surprise at all when Barrera, at the urging of the San Diego County Building & Construction Trades Council—the umbrella union for local skilled workers—proposed a project labor agreement (PLA) between the school district and the people who’ll be doing the work on the projects funded by the recently passed school-facilities bond measure, Prop. S.
Does a PLA benefit the unions? Absolutely. But, frankly, that’s part of what voters were asking for when then cast their ballots for Barrera, Evans and Jackson, who cast the three votes that directed school district staff to begin negotiations with the unions on specific PLA language. Moderate Katherine Nakamura could have gone either way, but we were surprised that liberal John deBeck took such a strong stand against a PLA.

The rest of the editorial can be found in the link above.

LIUNA Action Alert: Urgent Action Needed Immediately: Jobs Depend on It

noreply@blogger.com (Charles Bradshaw, PMP) — Tue, 03 Feb 2009 16:11:00 +0000

Right now the U.S. Senate is considering an amendment to the economic recovery plan that
would invest more resources to build America, creating an additional 655,000 badly needed transportation jobs. Please send a message to your Senator now, telling them to support the Feinstein-Murray amendment to the economic recovery plan.

Click here to send a mesage to Congress now!

Congress is considering a massive, $800 billion-plus economic recovery plan. With a 15.3-percent unemployment rate among the men and women who build America - equating to 1.4 million construction workers who are jobless – the investment is urgent.

Senators Murray and Feinstein have proposed an amendment to include an additional $25 billion investment for roads and transit.

Tell your Senator now to invest more resources in building our transportation systems and our roads by amending the economic recovery plan.

It's a no-brainer. We can put America back to work and leave behind real assets for future generations by taking care of the essential and long neglected basics of our country - our roads, bridges, schoolhouses, and transit and energy systems.

Tell your Senator now to invest more in build America jobs, by passing the Murray-Feinstein Amendment.

The jobs of hundreds of thousands of Americans depend on us. Send a message to build America so America works!

Sincerely,

LIUNA Action Network

Hands Off Won't Work -Letter to the Editor

noreply@blogger.com (Charles Bradshaw, PMP) — Mon, 02 Feb 2009 17:12:00 +0000

Below is a copy of a letter to the editor that I sent in to the Voice of San Diego in response to the proposed project labor agreement for San Diego Unified School District.

Hands Off Won't Work

By Charles Bradshaw, Mission Beach

Thursday, Jan. 29, 2009 | I support a project stabilization agreement for San Diego Unified, because the agreements work. It is too bad that the opponents are threatening and bullying school board president Sheila Jackson and members Richard Barrera and John Lee Evans. I commend these members for their courage.

I have administered several project labor agreements and know that they are one of the best tools for facilitating local participation. While I was in Oakland I administered a project labor agreement for the Port of Oakland that had over 60 percent of the workforce come from the local area. Additionally union and nonunion contractors bid, won and executed work. The Port of Oakland and the community met their goals. The Port got new maritime and aviation facilities, the community got careers and local contractors got paid.

These were public works that worked for the community. I believe that San Diego is capable of the same kind of success. Los Angeles Unified School District and other districts throughout the state have used these agreements to meet their goals of providing educational and job opportunities for their district residents. I have not seen any other tools that have been as effective at providing opportunity. A "hands off" approach has not and will not get results.

I have seen Eric Christen, executive director of the Coalition for Fair Employment in Construction, attempt to intimidate educational boards in the past and unfortunately he uses inflammatory and bombastic rhetoric everywhere he does this pony show.

I think one of the worst parts of his rhetoric is that he actively discourages contractors from participating on projects. He spreads fear and attempts to create a self fulfilling prophecy by pushing contractors not to bid and win work.

Tension Rises at San Diego Unified School District Over Proposed PLA

noreply@blogger.com (Charles Bradshaw, PMP) — Fri, 30 Jan 2009 16:12:00 +0000

The concept of San Diego Unified School District having a project labor agreement is starting to really heat things up here. (and you thought it was the sun) Eric Christen and his cohorts have really inflated their PR campaign and are trying to spread fear like it is butter. The Voice of San Diego has been covering the issue.

For starters Mr. Christen (someone not from my community) has resorted to name calling and ultimately threatening to recall our elected officials.

"We are targeting the three board members who are handmaidens for the union," said Eric Christen, executive director of the Coalition for Fair Employment in Construction, a group that lobbies against labor agreements. Christen added, "The public has a right to know what their school board has been up to."

This is the same guy that could not figure out how to legally qualify a ballot measure in Chula Vista. I doubt he has the skills to pull off a recall.

Well here was some more information about Mr. Christen:

Christen's group is part of a nationwide nonprofit called Congressional District Programs, a public charity that that is itself a subset of National Heritage Family. Christen earns more than $160,000 annually as a consultant to Congressional District Programs, according to its most recently available tax return. Prior to its merger with Congressional District Programs four years ago, it pulled in roughly $33,000 in revenue in a year.

Since when do consultants of non profits make more than state legislators, city council members, and over $60,000 more than the mayor of San Diego? I think his efforts and bombastic threats are the way that he justifies his salary.

Board member Sheila Jackson penned a letter to the editor supporting the agreement. You can read it here. It is on point.

Stay tuned...

Stiumuls Passes House

noreply@blogger.com (Charles Bradshaw, PMP) — Thu, 29 Jan 2009 16:57:00 +0000

Well the stimulus is half way here.

Last night the House of Representatives passed the $819 billion dollar stimulus package. It goes to the Senate now, where barring a filibuster the stimulus package will soon be headed to states soon.

According the SF Gate:

President Obama scored his first legislative victory as the House passed an $819 billion economic stimulus package Wednesday night, but his bipartisan outreach failed to net even one Republican vote.

If he was upset with the outcome, Obama didn't show it. After the vote, he invited top House and Senate leaders of both parties to the White House for cocktails, hoping to smooth the way for the bill in the Senate, which could begin debating the bill later this week.

Is a Relaxing of the Air Quality Rules Is on the Budget Table?

noreply@blogger.com (Charles Bradshaw, PMP) — Wed, 28 Jan 2009 14:44:00 +0000

It looks like the Diesel Off-Road rule is "in play" with regards to settling the budget crisis. Philosophically I am not for using the budget process to amend laws. I think legislators should have to line up the votes and pass bills the traditional way. Some might call this "trickeration"

But I think this is one rule that could use some amending.

According to the SacBee,

Another change would relieve construction firms and other businesses from having to meet a 2007 retrofit requirement for diesel off-road vehicles. Mike Lewis, senior vice president for the Construction Industry Air Quality Coalition, said contractors already have reduced emissions below targeted levels because the economic slowdown has reduced activity and firms have begun complying with new rules.

Under the air-board requirement, he said businesses would have to pay $1 billion to retrofit 35,000 particulate traps by next year: "The industry simply doesn't have a billion to do that."

Well we will just see how this turns out.

Laborers Union Demands that the Stimulus Plan Get "Americans Back to Work"

noreply@blogger.com (Charles Bradshaw, PMP) — Wed, 28 Jan 2009 05:30:00 +0000

The Laborers have rolled out an ad campaign to push the economic stimulus to create jobs. There seems to some parts of the stimulus plan that are developing that are not going to provide jobs. Well the Laborers have a response and a solution.

A copy of the press release can be found here.

“Working Americans need paychecks, not stimulus checks”

LIUNA – the Laborers’ International Union of North America – today launched an effort to increase the share of job-creating investment in the economic recovery plan under consideration in Congress. The effort by LIUNA, with a half-million members, will include intense member mobilization, supported by TV ads initially in Washington, D.C. and four states.

LIUNA General President Terence M. O’Sullivan will deliver automated phone messages to members, allowing them to immediately patch-through to the office of their Senator. This effort will be supported by TV ads, which will air in Nevada, Kentucky, Tennessee, Iowa and Washington, D.C. Additional markets may be added. As the bill currently stands in Congress, less than 20 percent of the $825 billion cost will directly create jobs.

LIUNA has called the economic recovery proposal a major step forward, dedicating badly needed
resources to building America, including its roads, bridges, transit systems, schoolhouses and energy systems. However, the union believes at least a third of the package should directly create “build America” jobs.

“The current proposal is true progress, but falls short,” O’Sullivan said. “It fails to fully take advantage of the opportunity to put America back to work building the essential and long neglected basics of our country, which would leave behind real assets for future generations.”

I really like the tone of the campaign...lets hope those in the halls of power hear it.

Larger List of Projects with Delayed Funding Released

noreply@blogger.com (Charles Bradshaw, PMP) — Tue, 27 Jan 2009 16:23:00 +0000

Sorry about this. This post is late but unfortunately not overcome by events.

The Department of Finance has released its updated list of projects that will have payment delayed. You can find the list of over 5000 projects here. The list encompasses projects from all over the state. It has a wide range of projects from schools, fire stations, roads and just about everything else.

To make matters worse the state Controller John Chaing says that the state will start running out of cash next week and payments will be delayed for more than just the construction projects. You can find the list here.

Pressure Building for Stimulus

noreply@blogger.com (Charles Bradshaw, PMP) — Mon, 26 Jan 2009 17:27:00 +0000

So there has been more and more talk about the Stimulus Package coming. However the more I look the harder it is to follow. One of the major issues is that the stimulus package seems to be administered by federal agencies instead of the "earmark process". The bad thing about this is that now that it is not a legislative earmarked program you can not just look at the authorizing and appropriating bill to find the answer.

I just think that is hard to follow.

Here are a few interesting articles that I found regarding the stimulus.
California could reap $21.5 billion from U.S. stimulus plan.-SacBee

On Thursday, staffers of the House Transportation Committee estimated that California would receive $4.5 billion to spend on highways, bridges and other projects. But that's only a small part of the overall package, as the new numbers make clear.

Economic stimulus or just more pork?-SF Gate

In his first presidential radio address Saturday, he said it would accomplish big things: renovate 10,000 public schools, build 3,000 miles of new electric grid, computerize all Americans' health records in five years, weatherize 2.5 million homes, provide Pell Grants to 7 million college students, and protect the health insurance of 8 million Americans who risk losing coverage during the downturn.

Obama stimulus, Schwarzenegger budget plans at odds- San Jose Mercury

Within the next few weeks, President Barack Obama is expected to sign an enormous package of federal spending and tax cuts in a bid to revive the nation's economy.
Around the same time, Gov. Arnold Schwarzenegger hopes to sign a budget plan imposing steep tax increases and spending cuts to wipe out a $40 billion deficit.
The contradiction underscores a difficult reality: The solution to the state's yawning budget deficit may well blunt the effects of the federal stimulus here.

When I find out more I'll pass it along.

Report Says California Needs a New Public Works Finance Structure

noreply@blogger.com (Charles Bradshaw, PMP) — Fri, 23 Jan 2009 17:46:00 +0000

In the short term the stimulus package may bring economic relief, but in the long term California needs to figure out how it is going to fund the hundreds of billions of dollars of work that are needed to move the state forward.

I found this one on a Capitol Alert from the SacBee. The Public Policy Institute of California published a report that looks at what we are doing now and believes that we will not be able to pay for our what our needs if we do not change course.

California may need a half-trillion dollars to expand and upgrade transportation systems, schools, water delivery and other infrastructure during the next 20 years but the state's system for financing public works is "seriously flawed," the Public Policy Institute of California says in a new report.
With constraints on taxes, including super-majority votes in the Legislature and among local voters, state and local governments rely on general obligation bonds whose repayment must compete with other claims on public treasuries. But, PPIC's report says, GO bonds are a "mixed blessing" and repaying the large amounts of money needed for infrastructure are beyond the capacity of state and local budgets without alternative financing.

"The Obama administration may include funding for state infrastructure projects in an economic stimulus package," Ellen Hanak, PPIC research director and author of the report, said in a statement accompanying its release. "But California needs a long-term solution. There's an opportunity here for the state to rise to the challenge and improve the way we finance the investments in our future."

The full report can be found here.

I think the check is coming for the "free lunch".

Off Road Air Quality, Part 2: The Construction Industry Side

noreply@blogger.com (Charles Bradshaw, PMP) — Thu, 22 Jan 2009 15:58:00 +0000

So I had a little conversation with some of my friends yesterday and today about the Air Quality Rule. It seems as though I had taken some of the environmentalist positions without describing the how this issue has a real impact on the construction community.

One of the key aspects is the requirement that Off-Road Diesel construction equipment regulation meet stringent Tier 4 requirements for air quality. The manufacturer Caterpillar has a white paper about the subject here. It appears the rule could negatively impact the industry at a time when it is already down.

So as the Washington Post reported, maybe this could bottleneck the stimulus. How would the work get done if the vehicles and equipment were not available?

I spoke with Mike Caples who publishes the Contractor News and Views and he shed some light on the issue.

The industry groups have found numerous issues with the rules.

Cost: It will cost engineering contractors a great deal of money to comply with the rule. Specifically the retrofitting and purchasing of the new engines could cost as much as $250,000. Additionally the since the engines are going to become obsolete before their normal life span the life cycle costing has been thrown out of whack. Instead of having 20 years for a off-highway vehicle to pay itself off, it now has a handful depending on the engine.

Technology: The technology is under development but it is not widely available. And more than likely will not be by 2011.

Safety: Some of the filters may obstruct the operators view. This could be a real safety hazard on sites.

According to the Construction Industry Air Quality Coalition (CIAQC):

The coalition members warned that admirable as the regulations may be, as they are currently written, the goals are simply unachievable and will only result in 10,000 to 30,000 lost jobs, delayed infrastructure improvement projects and unmet clean air goals.

Ill keep drilling down on this one.

Thanks for the quick response and input.

AGC Fighting Clean Air Rules

noreply@blogger.com (Charles Bradshaw, PMP) — Wed, 21 Jan 2009 00:35:00 +0000

The AGC is starting to put pressure on the incoming administration to roll back clean air regulations here in California. They are saying that they will not be able to do the work if the regulations are put in place.

As stated in yesterday's Washington Post:

About $30 billion of Obama's $825 billion economic stimulus plan is being set aside for highways and bridges. Some of that money would be squandered unless the new president blocks a rule that might keep some earthmovers from doing their economy-lifting work, a group of contractors says.

The Associated General Contractors of America wants Obama to put up a federal barrier to a California clean-air rule that regulates off-road diesel engines already in use. It will require the replacement or retrofitting of the engines of earthmoving equipment. The state has an estimated 180,000 loaders, graders, excavators and other heavy equipment.

"What is the point of stimulus money if it's used to replace equipment instead of building?" asked Mike Kennedy, general counsel of the Arlington-based group. The regulators "assumed costs could be passed along, but economic circumstances have changed so dramatically that the rule has to be reopened."

California Legislative Democrats Are Looking for Stimulus without Gutting Environmental Laws

noreply@blogger.com (Charles Bradshaw, PMP) — Thu, 15 Jan 2009 15:33:00 +0000

I am wondering how this stimulus will be utilized, when the funds become allocated. Though there are many great green projects there is much planning and engineering that goes into many projects. So it is fair to expect that the projects will not flow when the spigot is turned.

One of my friends reminded me that of the time on a project, the planning and design can take up more time than the actual construction. That being said these are some of the least resource intensive parts of the project. The majority of the money is spent when the project is executed. The people working in the field stimulate the economy.

Here is what Speaker Bass and Senate President Steinberg put forward:

Assembly Speaker Karen Bass and Senate President Pro Tem Darrell Steinberg jointly proposed expediting the spending of $2.3 billion in bond funds on "green" projects that secure environmental permits.
"There is no better time to move that money than in the midst of a struggling economy," Steinberg said.

Money for the construction would come from infrastructure bonds passed by voters in 2006. Projects could not be funded, however, until the state passes a budget to ease its projected $40 billion shortfall over 18 months.
The Democratic plan does not identify the projects to be funded, but it allocates sums for specific kinds of improvements - including water, public transit, flood protection, affordable housing and street pothole projects.
Bass and Steinberg said their "green economic stimulus" package would create more than 40,000 new jobs. The focus is on projects that are environmentally clean or curb greenhouse gas emissions.
"There is no need to gut environmental laws and risk public health and safety to get these projects going," Bass said.

Currently the governor wants to waive environmental regulations on $1.2 billion dollars of work on highway projects. The Democrats have rebuffed the proposal.

This story was reported in the SacBee.

San Diego Unified School District Moves Forward with Project Works Agreement

noreply@blogger.com (Charles Bradshaw, PMP) — Wed, 14 Jan 2009 16:02:00 +0000

Last night the San Diego Unified School District moved forward with negotiating a Project Works Agreement for the $2.1 billion Proposition S program. The Public Works Agreement more than likely will have many of the components of a project labor agreement.

It was a great meeting, with the exception of two board members saying that they "supported labor", but could not support this agreement. There were about 400-500 union supporters in attendance at the meeting. It is a huge step forward for the district and could mean thousands of local jobs over the course of the program.

Let it be known, Labor has got game in San Diego.

The Voice of San Diego wrote an article about the meeting and the vote.

The San Diego Unified school board late Tuesday night opted to hash out a work agreement with a union coalition on how $2.1 billion facilities bond that voters approved in November is spent.
The move was widely seen as a sign of union prowess on the San Diego Unified school board, which tilted in November to a new majority that is more sympathetic to labor. Its new members include Richard Barrera, a labor organizer who ran unopposed, and John Lee Evans, a child psychologist who was strongly backed by the teachers union in his bid against incumbent Mitz Lee. Both voted along with school board President Shelia Jackson to begin negotiating the agreement, in opposition to board members John de Beck and Katherine Nakamura.
Union proponents contend that the agreements can actually save money by improving workplace safety and avoiding labor disputes, and could encourage more union shops to bid for jobs. They marshaled hundreds of supporters to combat their opponents' claims. Roy Grimes, the president of the Sacramento City Unified school board, said that a similar agreement in his district saved money and improved the quality of work, as did a former school board member from Los Angeles Unified. Some framed the agreement as a social justice issue and an investment in the future of San Diego.

Though this process is just beginning, I think that the local building trades and the district and make that "win-win" for the community.

Labor Agreement for San Diego Unified School District?

noreply@blogger.com (Charles Bradshaw, PMP) — Tue, 13 Jan 2009 17:44:00 +0000

Tonight the San Diego Unified School District will take up a resolution to ask the district to engage in negotiations with the San Diego Building Trades for a Project Works Agreement.

I am simply amazed that this is happening. It is a real positive step for the district. Specifically there is discussion of social justice provisions in the agreement. While I was administering the Maritime and Aviation Project Labor Agreement (MAPLA) for the Port of Oakland, I took a lot of pride in helping to introduce careers to people that have been excluded from traditional pathways to construction.

The MAPLA's success speaks for itself:

Local apprentice participation was 75% higher than in 2004. In calendar year 2005, local workers made up 67% of all construction workers used on Port construction under MAPLA. Local apprentices made up 13% of the overall workforce during 2005 (three year-high), and comprised 86% of all the apprentice project hours.

Social Justice provisions are more and more a part of labor agreements. The San Francisco Public Utilities Hetch Hetchy project, Los Angeles Unified School District and the redevelopment agencies in Los Angeles.

Typically the San Diego AGC and ABC are having tantrums about the issue. The venom here is palpable and totally unprofessional. Read it here.

The Union Tribune published a story on about this.

Contractors Starting to Feel Funds Drying Up on Some Projects

noreply@blogger.com (Charles Bradshaw, PMP) — Thu, 08 Jan 2009 15:53:00 +0000

Yesterday the Capitol Weekly reported that construction contractors on public works projects were starting to feel the cash crunch that the state is in right now. This includes projects that were financed by bonds approved by voters.

According to the article,

State payments for more than three dozen public works projects are being held up as the state grapples with an unprecedented budget shortage, contractors say. The stopped payments, some $33 million worth, mark the first time that money has been withheld for voter-approved work and signal a delay in the state's planned infrastructure improvements.

"What is creating this angst is that we paid the program payments on work that was not bond-funded first," said Cal-Trans director Will Kempton, who has urged Chiang to make the December payments. "Bond-funded payments came later. We have processed those invoices for payment. The question that has been raised is will the controller make the payments," he added.

Mr, Chiang is in the drivers seat here. I never thought that the State Controller had that much influence over the state, but at times of crisis the roles of our state constitutional officers are defined.

Governor Vetoes New Budget-$42 Billion Deficit and Counting

noreply@blogger.com (Charles Bradshaw, PMP) — Wed, 07 Jan 2009 17:43:00 +0000

Even though the Governator said he would veto the proposed budget plan, I did not think he would.

According to the SF Gate:

The 16-bill package went to Schwarzenegger despite his earlier promise to reject it. His veto moved the Legislature back to square one - the state bleeding revenue and expected to run short of cash to pay its bills as early as next month.

"It was wishful thinking on (the Democrats') part," said Aaron McLear, a spokesman for Schwarzenegger. "The governor said three weeks ago that he would veto this budget, and they have sent to him the exact same budget, which he had said he would veto."

He has decided to work for a bipartisan solution. However history has shown he cant get the votes from his party to get to get this mythical bipartisan budget.

Creative Borrowing Hurts Caifornia Cities

noreply@blogger.com (Charles Bradshaw, PMP) — Wed, 07 Jan 2009 05:11:00 +0000

The Los Angeles Times recently published an article about some of the dangers of creative financing that many public agencies pursued. Kind of like the pitfalls of subprime mortgages, cities found ways to fund needed improvements, while engaging in risky financing.

California's Office of Planning and Research describes the types of financing that is available to public agencies. The most secure way is to pay for projects from funds collected from taxes. This is the best way for most cities. However Proposition 13 limited the ability for cities to raise property taxes.

Many cities use bonds or incur other debt to finance infrastructure projects. Of course with a bond cities issue debt and pay interest on those bonds. The more risk the higher the cost to the cities. The more that cities have to pay interest on the bonds, the less they have for operations and maintenance of the existing infrastructure.

Lease backs are an end around having to go to the voters to get money, but often have all of the risks of bonds and other financing.

Below is an example of how Oxnard leased themselves in the red.

Oxnard's sale of its streets in December 2007 was a variation on a borrowing technique known as a lease-back.

In a typical example in the private sector, a business sells a property to raise money, then leases it back from the buyer. In the public sector, lease-backs are more a financial sleight of hand. A city council that needs to raise money might sell its city hall to a council-controlled finance authority. The council would then rent, or lease back, the building from the finance authority.

The authority, meanwhile, would issue bonds using the city hall as collateral. It would pay back the bondholders with the "rent" it collects from the city.

The sale of the building is a legal abstraction, a shuffling of paper whose purpose is to keep the debt off the city's books. That way, officials can circumvent the state Constitution's requirement of voter approval for government borrowing.

Oxnard's sale of its streets in December 2007 was a variation on a borrowing technique known as a lease-back.

In a typical example in the private sector, a business sells a property to raise money, then leases it back from the buyer. In the public sector, lease-backs are more a financial sleight of hand. A city council that needs to raise money might sell its city hall to a council-controlled finance authority. The council would then rent, or lease back, the building from the finance authority.

The authority, meanwhile, would issue bonds using the city hall as collateral. It would pay back the bondholders with the "rent" it collects from the city.

The sale of the building is a legal abstraction, a shuffling of paper whose purpose is to keep the debt off the city's books. That way, officials can circumvent the state Constitution's requirement of voter approval for government borrowing.

Funding Freeze Stalls Project as Cal Poly Pomona

noreply@blogger.com (Charles Bradshaw, PMP) — Tue, 06 Jan 2009 18:25:00 +0000

So as promised the state has cut off funding for projects that are in the pipeline. This appears to have already started to have ramifications. The projects that were funded by past bond measures are not able to find the state funds promised. This in turn is putting in jeopardy the funds that were privately raised.

According to the San Gabriel Tribune, Cal State Pomona's new business administration building is being delayed by the budget stalemate.

Cal Poly Pomona has been forced to suspend construction on its new Business Administration Building due to a state freeze of $3.8 billion in infrastructure funding.
Construction for the $34 million project was scheduled to break ground Jan. 22. The 75,000 square foot building was slated to be completed by the winter of 2011.
"I am upset about this decision. These bonds were approved years ago," Cal Poly Pomona President Michael Ortiz said. "We have donors waiting for that building."
Donors gave $5 million to help fund the project and match state funds. Since state funds have been locked, the donor contributions are trapped in limbo.
The Pooled Money Investment Board, made up of state legislators, froze nearly the $3.8 billion statewide in an effort to curb spending. All general-obligation bonds and approved capital construction projects in the state have been suspended.