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Office of Council President Office of City Attorney Todd Gloria Jan Goldsmith

Council President Todd Gloria has put forward a resolution for the City Council's consideration that would adopt an interpretation of Proposition A allowing the City of San Diego to continue receiving millions in state funding for projects. Proposition A banned project labor agreements on city construction projects but included an exception for when such agreements are required by state law to receive funds. The resolution would confirm the city maintains the discretion to require project labor agreements as needed to obtain state funding for water, wastewater and other projects totaling over $383 million identified as eligible for funding. Adopting this resolution would ensure the city's eligibility for critical state infrastructure funds is not jeopardized.

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Office of Council President Office of City Attorney Todd Gloria Jan Goldsmith

Council President Todd Gloria has put forward a resolution for the City Council's consideration that would adopt an interpretation of Proposition A allowing the City of San Diego to continue receiving millions in state funding for projects. Proposition A banned project labor agreements on city construction projects but included an exception for when such agreements are required by state law to receive funds. The resolution would confirm the city maintains the discretion to require project labor agreements as needed to obtain state funding for water, wastewater and other projects totaling over $383 million identified as eligible for funding. Adopting this resolution would ensure the city's eligibility for critical state infrastructure funds is not jeopardized.

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Office of Council President Office of City Attorney

Todd Gloria Jan Goldsmith



Contact: Katie Keach Contact: Gerry Braun
(619) 235-5268 (619) 533-4782

FOR IMMEDIATE RELEASE
October 20, 2014

MEDIA ADVISORY

COUNCIL PRESIDENT BRINGS FORWARD
PROP. A CLARIFICATION
Resolution Will Protect State Funding of City Projects
San Diego, CA: Council President Todd Gloria has docketed a Resolution for the
City Councils consideration today that would adopt an interpretation of
Proposition A that could keep millions of needed state dollars coming to San Diego
for maintenance and improvement projects.

The Resolution would support an interpretation of Proposition A -- an initiative
approved by voters on June 5, 2012 -- which prohibits the City from requiring
project labor agreements on City construction projects. Proposition A, however,
contains an exception clause that states, except where required by state or federal
law as a contracting or procurement obligation, or as a condition of the receipt of
state or federal funds.

Current state law withholds state construction funds from cities that ban project
labor agreements. Since 2012, the City Attorneys office has interpreted the
Proposition A exception clause as allowing the City to consider project labor
agreements and, therefore, preserving the Citys right to receive state funds.
Although no state funds have been denied to date, the State Water Resources
Board recently asked the City of San Diego to explain how the City is reconciling
State law and Proposition A.


The City Council on Monday will consider adopting a resolution that supports this
legal interpretation by confirming that the City and City Council maintain
discretion to adopt, require of utilize Project Labor Agreements as a condition for
state funding and financial assistance. On October 16, State Attorney Michael
Lauffer wrote in the attached letter:

[A]ssuming that the necessary majority of the City Council votes to adopt and
implement the resolution, Public Contract Code section 2503 and San Diego
Municipal Code section 22.4402 would not appear to stand as obstacles to financial
assistance from either of the state revolving funds administered by the State Water
Board.

Council President Todd Gloria was instrumental in working with Toni Atkins, the
Speaker of the State Assembly, to open the lines of communications with state
officials. The City Council must abide by the will of the voters who approved
Proposition A, which includes this exception clause, said Council President
Gloria. I am optimistic that we will preserve millions of dollars while still
abiding by Proposition A.

City Attorney Jan Goldsmith thanked Council President Gloria, Mayor Kevin
Faulconer and Speaker Atkins for opening the lines of communications and
working to remove politics from the situation. This is a reasonable legal
interpretation of Proposition A which saves the City of San Diego millions of
dollars, Goldsmith said. We certainly urge the City Council to adopt the
Resolution.

At risk is the Citys eligibility for State funds for water projects including pipeline
replacements, wastewater projects including pump station reliability and surge
projection, and recycled water facilities. The Citys Public Utilities Department
identified in 2013 more than $383 million in projects that may qualify for state
funds. Recycled water projects are estimated to cost approximately $2 billion
through 2050.

The City Council meeting starts at 2:00 p.m. in the City Administration Building,
202 C Street, San Diego, CA 92101.

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