Pass: 134,724 / 58.1% Yes votes ...... 97,209 / 41.9% No votes

See Also: Index of all Propositions

Fiscal Impact:

The ballot measure states that except as required by State or federal contracting or procurement obligation, or as a condition of the receipt of State or federal funds, the City shall not require a contractor on a construction project to participate in a Project Labor Agreement (PLA) as a contract condition. It is uncertain whether the City would lose State assistance for City construction projects as a result of voter approval of this ballot measure. California Public Contract Code, Section 2502 prescribes that if a governing body, such as the City Council, is prohibited from considering a PLA for a City construction project, then State funding or financial assistance shall not be used for the project.

A legal interpretation of Section 2502 would be required to determine whether the City's receipt of State funds for construction projects will be affected by the ballot measure. State funding for the City varies from year to year. Major State funding awarded to the City in in fiscal years 2010 and 2011 was approximately $36 million and $158 million respectively.

The requirement of the ballot measure to post the text of all construction project contracts over $25,000 in a given year (including redacting proprietary information and presenting certain other information) is preliminarily estimated to cost $450,000 annually, in addition to $500,000 in set-up costs.

Whether the use of a PLA on a construction project would add to the cost of a project is a widely debated matter. Some studies indicate that PLAs increase project costs, while others dispute the analysis and the conclusions of such studies.

Impartial Analysis from City Attorney

This proposition would amend the San Diego Municipal Code to prohibit the City from requiring a Project Labor Agreement (PLA) on City construction projects, 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. This proposition would affect projects that are paid for "in whole or in part out of City funds." It would affect such projects involving "the construction, rehabilitation, alteration, conversion, extension, maintenance, repair, replacement or improvement of any structures or real property."

A PLA is generally defined as a collective bargaining agreement between a contractor and a labor organization setting terms and conditions of employment for a given project. PLAs can cover a variety of terms, and may address issues such as strikes, lockouts and similar disruptions, as well as wages and benefits.

If the proposition passes, the City could not require a Contractor on a construction project to enter into a PLA "as a condition of bidding, negotiating, awarding or the performing of a contract" for City construction projects unless an exception applies.

One exception would allow the City to require a PLA on a given project if required by state or federal law as a contracting or procurement obligation.

Another exception would allow the City to require a PLA on a given project if a PLA is required as a condition of the project's receipt of state or federal funds.

A new California law, effective after signatures were gathered for this ballot measure, affects funding of municipal project if consideration of a PLA is prohibited. The law, California Public Contract Code section 2502, states: "If a Charter provision, initiative, or agreement that includes all the taxpayer protection provisions of Section 2500 for a project to be awarded by the city, or prohibits the governing board from considering whether to allocate funds to a city-funded project covered by such an agreement, then state funding or financial assistance shall not be used to support that project."

As of the deadline for publication, it is unclear whether the proposition, if approved, would affect future state funding of City construction projects. It will be up to the California Attorney General, and possible the courts, to determine whether state funding will be affected for City construction projects.

The proposition would not restrict contractors and labor organizations from voluntarily entering into PLAs.

The proposition also would require the Mayor to post online all City construction contracts valued at more than $25,000 in a given fiscal year.

The proposition can be amended or repealed by a majority vote of City voters, but cannot be amended or repealed by the City Council.

UT San Diego

• EXPENSE AND IMPACT OF PROP. A DRIVE DEBATE - 5/27/12

• Five Steps to Understanding Prop A: Reader's Guide - 05/14/12

• Debate Over Prop A: Should City Ban Project Labor Agreements? - 05/07/12

• LABOR COUNCIL SAYS NO ON "A" "B" AND "D" - 05/04/12

Yes on Prop. A: It's awesome

published in the UT San Diego 5/12/12

No on Prop. A: It's awful

published in the UT San Diego 5/12/12

Yes on A Campaign

Find out more at the website of the Yes on A campaign

No on A

Stop Prop A