November 2007

By Elizabeth L. Bradley, Bradley & Bradley, LLP

The Major Utilities Publicly Report to the CPUC

On September 25, 2007, the California Public Utilities Commission conducted its fifth annual public hearing on utility company diversity in Los Angeles.  Under the Commission’s Utility Supplier Diversity Program, authorized by General Order 156, the major regulated gas, electric and telecommunications utilities are required to submit annual detailed and verifiable plans for increasing WMDVBE (women, minority and disabled veterans) procurement.  The Commission has set goals of 15% procurement from MBEs, 5% from WBEs and 1.5% from DVEs.  During the hearing, sponsored in part by the State Bar of California, the Commission reported a continuing increased focus on traditionally under-represented procurement categories, including legal services.  In attendance to publicly report on the progress of their diversification efforts, were Chief Executive Officers of each of the major utilities, including PG&E, Sempra Energy (Southern California Gas Company and San Diego Gas & Electric), Southern California Edison, AT&T West and Verizon. Also in attendance were representatives from CalPERS, the Department of Insurance, and then-President of the State Bar of California, Sheldon Sloan. Following the annual public hearing, the Commission in turn reports to the California Legislature on the results of the utilities’ procurement diversity programs.

An Increase in Numbers but a Decrease in Overall Share

A review of the utilities' 2006 reports shows that progress continues to be made by some of the major utilities. According to the Commission, though the utilities’ total levels of procurement from WMDVBEs increased from $2.03 billion in 2005 to $2.70 billion in 2006 (34.9%), procurement dollars to WMDVBEs as a percentage of total utility procurement decreased 2.5% from 2005 to 2006.  As for dollars spent on diverse legal providers (including women, minorities and disabled veterans), Southern California Gas not only showed the highest level of achievement, but also showed the largest percentage increase, increasing from approximately 4.5% in 2005 to 8.08% in 2006.  It was followed by San Diego Gas & Electric at 5.71%, and PG&E at 4.55%.  PG&E also attained the highest dollar amount of diverse legal services procurement at $2.3 million, nearly doubling its prior spend. Though coming in at just under 2%, Southern California Edison also approximately doubled its spend. 

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Commissioner Timothy A. Simon applauded the utilities commitment to achieving the Commission's 15% goal for minority firms. Commissioner Simon, a strong and outspoken supporter of utility diversification, said, “The September 25th public hearing and the high level of utility executives involved show how serious these companies take the topic of diversity. In addition, these companies have generally accrued exemplary records in employment and general contracting." 

Moreover, congratulations are in order for California’s major regulated water utilities. Although not required to submit annual reports showing their procurement levels and activities, six of the major water utilities have voluntarily chosen to do so in an effort to demonstrate their willingness and desire to promote diversity goals.  Topping the list of water utilities reporting, were Suburban Water Company, Park Water Company, and California Water Services Company. Because the regulated water utilities have not been held accountable for their diversification efforts, and because they have nonetheless elected to voluntarily participate with the Commission, marketing efforts in this field by MBE law firms may prove fruitful.

Getting Your Foot in the Door and Staying There

As Commissioner Simon commented, “The basic problem confronting many offering professional services is getting your foot in the door. We hope that our combination of workshops and en bancs will provide an opportunity for professionals to develop networks and pitch their services.” The Commission and utilities do continue to expand efforts in the area of legal services, through various initiatives including regular networking events hosted by utilities to expand the available pool and increase utilization of diverse law firms. Ongoing efforts are also made to simplify and expedite the certification process.  Commissioner Simon offered the following advice to those minority firms looking to obtain work in the utility market: “First, be sure to register and be certified as a minority with the PUC’s Utility Supplier Diversity Program. Second, the Commission holds quarterly legal service forums that representatives of interested firms should attend. These sessions offer advice from industry experts and great networking opportunities.  Those interested should check thePUC’s web site.”  Commissioner Simon also welcomed suggestions as to how the PUC can improve or increase its diversification efforts. Mark Penskar (pictured) of PG&E's commercial litigation department, who is a strong supporter of the CMCP, concurs, suggesting that MBE firms seeking PG&E's work obtain certification and find a way to meet PG&E's lawyers in person. "We can help the firm through the process," Mr. Penskar stated.

Gleam Davis, in-house litigation counsel with AT&T, suggests that firms interested in working for AT&T send firm resumes and individual profiles to the Company. "It is important to emphasize areas of true expertise and to be honest about your experience. Unfortunately, we occasionally have firms oversell their capabilities. When they cannot provide the level of service, responsiveness, and efficiency that we require, we are reluctant to use that firm again even when we have a matter that might be a better fit for the firm. Over the last year, AT&T has established relationships with diverse firms, and it already has several diverse firms working with it, but may establish relationships with new firms in the coming year depending on the needs of the business." According to Ms. Davis, while AT&T uses outside firms in a number of areas, two of AT&T's most active areas of practice are personal injury defense and employment litigation, as is the case with many utilities.

The Bottom Line…

1. Get certified. For more information on the CPUC’s certification process, visit the Supplier Clearinghouse at www.asianinc.org.
2. Get active.  Attend CPUC and utility seminars and networking opportunities, even if they are not in your immediate geographic location.
3. Get noticed.  Introduce yourself and your firm to the Commissioners and utility representatives, and invest the time into developing long-term relationships.

Visit the CPUC Supplier Diversity program for more information and view the Commission’s report to the Legislature on its 2006 diversity efforts here.

By Tina Paikeday Shah, Talent Advisory Board

Manatt, Phelps & Phillips LLP is a national firm headquartered in Los Angeles, CA with 315 attorneys on staff.  Public service is a way of life at Manatt where currently 19% of attorneys are minorities and 36% are women – and 8.7% of partners are minorities and 24.8% are woman.  The firm was founded in 1965 by Chuck Manatt, who served as the Chairman of the Democratic National Committee from 1981 to 1985 and as chairman of the Board of Trustees at George Washington University from 2001 to 2007.  Three of the firm’s eight major offices are located in the capital cities of Washington D.C., Sacramento, CA and Albany, NY in order to provide proximity to government decision makers.  The other five offices are strategically located in major business and financial centers including New York, Los Angeles, Costa Mesa, Palo Alto and San Francisco.  The firm encourages associates and partners to do pro bono work and to take leadership positions in programs that enrich the lives of other people in the communities they serve.  The firm’s commitment to this work is evident in the investment it has made in hiring a full-time Pro Bono Director. 

The firm’s Managing Partner, Bill Quicksilver, sits on the Diversity Committee along with two Co-Chairs: Jack Yeh (pictured) who is based in Los Angeles and Peter Sherwood who is based in New York.  Their work is integrated into the human resources, recruiting and marketing functions.  Diversity Committee Co-Chair Jack Yeh believes that two factors are necessary for the firm’s diversity program to work effectively: (1) minorities must take responsibility to succeed and (2) law firms must inspire minorities.  It appears that developing deep relationships has enabled Manatt’s success with minorities. 

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The firm recruits minorities at the entry level and has also developed relationships in minority legal communities where its associates and partners are involved in leadership positions.  The presence of these relationships in the community makes attorneys aware of Manatt and increases possibilities for hiring laterally at more senior levels.  Once attorneys enter the firm either as new or lateral hires, they are paired with senior attorneys through a somewhat organic process in order to develop mentoring relationships.  In addition to serving the typical function of helping with choice staffing assignments, mentors consider attorneys to be protégés who they actively coach to develop their careers.  This type of protégé relationship is a significant commitment, and partners are held accountable for successful attorney development through the formal review process.

Because the firm actively seeks to bring in attorneys who are engaged in the outside community, many of the firm’s minority attorneys are leaders in the minority bar associations.  For example, Jack Yeh has been very active with the Southern California Chinese Lawyers Association (SCCLA).  He has served on the organization’s Board of Governors since 1999 and has chaired the Judicial and Political Appointments Committee since 2001.  Jack cites the importance of giving back to the community as the primary reason for his involvement.  Inevitably through his involvement Jack also serves as a role model to various members of the community, as evidenced by his recognition as one of twenty-five of the nation’s “Best Lawyers Under 40” by the National Asian Pacific American Bar Association (NAPABA).

Ileana Hernandez (pictured), who started at the firm as a first year associate in 1998, is another example of a community leader.  She credits her mentors at Manatt for enabling her successful path to joining the partnership this year.  Ileana’s parents emigrated from Honduras to provide the family with more opportunity, and she has a strong desire to encourage others in the Latino community to take advantage of access to higher education which she believes is critical to advancement.  Ileana’s mentors were critical in encouraging her to follow her passion to help others in the community by serving in leadership roles at the Mexican American Bar Foundation and Hispanic National Bar Foundation while managing a commercial litigation and bankruptcy practice.  Ileana is also a mother of twin toddlers and currently serves on the Board of Trustees for the Hispanic College Fund.  Since many attorneys like Ileana enter the profession in order to fulfill aspirations of advocating justice, the encouragement to pursue public service leadership at Manatt appears to be a critical factor in inspiring attorneys to invest in building their careers at the firm.

Tony Paikeday - Managing Partner
Silicon Counsel LLP

While still a law student, Tony Paikeday used to joke with his friends that they should start a law firm.  In 2004, Tony did just that by founding Silicon Counsel LLP – a minority-owned firm committed to serving a wide range of clients' corporate counsel needs, including complex business and technology transactions as well as securities and mergers and acquisitions.  Silicon Counsel is comprised of five attorneys who represent venture-funded start-up companies as well as larger companies such as PG&E and Safeway's Blackhawk Network subsidiary.

Tony began his career at Shearman & Sterling, LLP, after a judicial clerkship with the Honorable Eugene F. Lynch of the United States District Court in San Francisco.  In 1999, Tony started a venture‑funded technology company, zBox Company, where he served as General Counsel and EVP of Corporate Development.  zBox’s innovative consumer technology products and relationships with several Fortune 500 companies attracted coverage from the Wall Street Journal, New York Times, TIME Magazine, the Oprah Show, and National Public Radio prior to the acquisition of its product lines.   

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As General Counsel for zBox, Tony recognized the need for attorneys who were problem-solvers and who could provide sophisticated corporate representation at small firm prices.  Recognizing this need inspired Tony to find a way to fill that need – and with that the idea for Silicon Counsel was born. 

"We are relentlessly focused on solving problems," Tony explains.  "My biggest pet peeve as a client was when outside counsel spent excessive amounts of time identifying issues rather than identifying solutions."  Tony says that at Silicon Counsel, "We make it a priority to always have a clear sense of the client's goal.  At the beginning of any new client relationship or project, we spend the time necessary to make sure that we understand our client's needs.  Doing so helps ensure that we can close their important deals and provide legal solutions to business challenges they confront.”    

Interestingly, each of the partners at Silicon Counsel has been a partner at a large law firm or General Counsel at a publicly traded or VC-backed company.  And given Silicon Counsel's approach to providing legal representation, it comes as no surprise that after just two years in business, Silicon Counsel was awarded the prestigious CMCP Client Service Award.  Tony recalls that in mid-2006, he received a call from CMCP's former Executive Director, Tania Shah – seemingly out of the blue – informing him that his firm had won the Client Service Award.  Tony recalls being shocked, as he did not know that his firm had even been nominated.  Now, in 2007, Silicon Counsel represents more than 30 companies, a number of which are CMCP members, and the firm is looking to grow with lateral partners.

Tony has served on the Board of the North American South Asian Bar Association and is currently Co-Chair of the Practice Development Committee for the Asian American Bar Association of the Greater Bay Area.    He has been a featured speaker for the Association of Corporate Counsel, California Minority Counsel Program, and other bar organizations, and he enjoys mentoring junior attorneys.  Tony received his law degree at the University of Virginia, where he was admitted to the Order of the Coif and invited to the University of Virginia Law Review.  Tony received his undergraduate degree in finance and economics from Rockhurst College, where he graduated ranked first in his class. 

Tony is an avid cyclist and starts most mornings with a bike ride on this hills of San Francisco to keep him grounded before another day begins.  The next time you see Tony at a CMCP event, be sure to introduce yourself!

NOVEMBER

National Asian Pacific American Bar Association - 19th Annual NAPABA Convention (Las Vegas) - 11/15-11/18

Women Lawyers Association of Los Angeles - The Rainmaker Workshop (series of 6 lunchtime sessions) (L.A.) - 11/16, 12-1:30pm (1st session)

Black Women Lawyers Association of Los Angeles - Annual Thanksgiving Eve Cocktail Sip (L.A.) - 11/21, 6pm–1am

DECEMBER

Mexican American Bar Association
Christmas Party (L.A.) - 12/7

Women Lawyers Association of Los Angeles - The Rainmaker Workshop (series of 6 lunchtime sessions) (L.A.) - 12/14, 12-1:30 pm (2nd session)

[Remaining Rainmaker Workshop dates are: January 18, February 15, March 14, and April 18 12-1:30pm, all in L.A.]

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