Site
Index:
 |
Newest
Stories Appear First |
Back:

Utility
Lawsuit
Overview |
Suit challenges race, gender
weighting in SMUD contracting (06/22/00)
"Sacramento's ratepayer-owned electric utility is breaking a state law that bans race
or gender preferences by public agencies, and a judge should order it to stop, a lawsuit
contends.
"The suit, filed Tuesday in Sacramento Superior
Court, makes SMUD the latest target of the Pacific Legal Foundation, which has also sued
San Jose, San Francisco and a south state school district in defense of Proposition 209.
"At issue is whether federal law, which allows special treatment by race or gender as
a way to make up for proven bias in the past, can protect programs like SMUD's despite the
1996 statewide initiative.
"By passing 209, "California citizens have set a higher level of protection of
individual rights" than the U.S. government, and the state standard should prevail,
said Pacific Legal Foundation lawyer Stephen McCutcheon. The foundation won a
similar case against San Jose in lower courts and will be arguing it before the state
Supreme Court later this year.
"My judgment at the time was it would be difficult to defend [race and gender
preferences in SMUD's business dealings], but that's why we have a legal staff. The
fact that a lawsuit was filed does not necessarily mean they will prevail," said
[SMUD] director Howard Posner.
"The Sacramento-based Pacific Legal Foundation ... is asking a judge to declare
SMUD's policy unconstitutional and order the utility to set up race-neutral contracting
practices.
"It brought the suit on behalf of United Utilities Inc. of Rancho Cordova and C&C
Construction of Loomis. United Utilities was denied a subcontract based on race, and
C&C nearly lost a contract until it protested, the suit said.
"In December, when United Utilities sought work from prime contractors who wanted to
operate SMUD's co-generation plants, "They all said, 'Gee Tom, we would love to have
you. But we have to meet these (race and gender) requirements. We can't use you,' "
said Thomas Wilbert, company president. 'We got discriminated against because we
were not a minority. It's not a level playing field,' he said." (Sacramento
Bee, 06/22/00, by Carrie Payton)
[link http://www.sacbee.com/news/news/local11_20000622.html
]
California (Sacramento): SF
Utilities Continue Racial and Gender Quotas (10/02/98) (dead link)
If you are a woman-owned contractor, or if you are a "non-white" contractor, you
get a 5%
"bonus racial preference" from the Sacramento Municipal Utility District (SMUD)!
The SMUD board decided, apparently without the benefit of competent legal counsel, that
this racial set aside is legal in spite of Prop 209 which prohibits this kind of racism.
Expect to be seeing this municipal board in Court in the near future! (Based on the
Sacramento Bee, 10/2/98)
[former link
*www.sacbee.com/news/beetoday/newsroom/local/100298/local09.html]
END News
Summaries about the SMUD Preferences Case |