Fiscal Responsibility: Fair and Open Competition Ordinance Ballot Initiative; Chula Vista Proposition G


The Fair and Open Competition Ordinance (Also known as Proposition G) has been placed on the June 8, 2010 ballot. The purpose of this measure is to "...ensure fair and open competition for public works projects funded in whole or in part with public funds; to aid in lowering the cost of public works projects; and to ensure that all workers, both union and non-union, have a fair and equal opportunity to work on public works projects."

The Fair and Open Competition Ordinance (FOCO) in Chula Vista will guarantee that both union and non-union workers will be able to work on every city project and protect job opportunities for all Chula Vistans. Fair and open competition increases the number of bidders for public jobs, which drives down costs, and increases taxpayer savings. The ordinance prohibits the City from funding contracts that discriminate against non-union companies or workers.

If FOCO is enacted by the people of Chula Vista in the June 2010 election, it can only be altered by a subsequent vote of the people or by the courts. The initiative process removes the power of the politicians to control this issue.

While this is primarily a Chula Vista issue, the concept is not new. Fresno and Orange County have enacted their own versions of FOCO.  A similar provision is included in a city charter to be voted on in Oceanside in June of 2010.  Citizens in the City of San Diego have begun the signature gathering process to put a version of this ordinance on their November 2010 ballot.

In tight budget times, Chula Vista taxpayers deserve the most efficient work.

The Fair and Open Competition Ordinance prevents the City from funding any union-only project labor agreement (PLA) that discriminates against non-union firms and workers. This type of discriminatory PLA is used to limit bidders and force contractors to use union workers, pay into union benefit plans, and follow outmoded and inefficient union work rules.

Union-only PLAs drive up construction project costs by decreasing the number of bidders and by forcing contractors to adopt inefficient union work practices and to use unfamiliar union workers.  A May 2006 study by the Beacon Hill Institute at Suffolk University in Boston, Massachusetts, found that the use of PLAs on school construction projects in New York increased the cost of the projects by 20 percent. This study concluded that the presence of a union-only PLA increased the projects’ base construction bids by $27 per square foot relative to non-PLA projects. [link]

Please note, worker’s wages are not at issue here. State law requires all contractors, union and non-union, to pay prevailing wages on most California public works jobs.  In fact, unionized workers often suffer from lower take-home pay because union leaders make them pay dues and other fees.

Currently, the City of Chula Vista awards contracts to the “lowest responsible bidder”. The Fair and Open Competition Ordinance protects the principle of “lowest responsible bidder” by prohibiting the City from funding contracts that favor union firms over non-union firms.

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"Fair and Open Competition Ordinance" Chula Vista City Council Resolution Chula Vista Civic Association Endorses Fair and Open Competition Ordinance for June 8, 2010 Election

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