December 20, 2004

Steve Larson
Executive Director
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102

Dear Mr. Steve Larson:

Subject: Your appointment of Paul Clanon and Laura Doll to be Deputy Executive
Directors

The Concerned Staff Committee would like to get the following information:
• Is the Deputy Executive Director position a Career Executive Assignment (CEA)?
• If it is CEA, did you comply with the rules, DPA Laws, SPB laws and Government Codes governing the appointments in this classification?
• Were the exams a competitive or you just decide to hire Clanon and Doll?
• Were the exams publicized for others interested had the opportunity to apply?
• Can you provide copies of the public announcement to Commission staff about these posts? Are you required to do so?
• Does the State of California have a standard position mandated by law on how state agency is required to proceed in the hiring process?
• Was a list of applicant established as required by government code regulating employment in state service?
• What role did personal manager George Carazo play in this? Did he ok it?
• Did President Peevey approve these appointments?
• It is being speculated that you followed instructions from the Governor’s Office and you had no choice but to follow instructions? Is this correct that is the Governor’s Office directed you to appoint Doll and Clanon? Can you tell us who gave you the directions from the Governor’s Office?
• Do you believe that your appointments are lawful? If so? How and why do you think it is lawful?
• Do you think that if we inform the State Controllers about the conditions under which these appointments were made, that he would cut a check for Salaries for Doll and Clanon?
• Your December 17, 2004 memo stated that you have created the new posts of Deputy Executive Directors. Did the Dept of Finance approve this additional layer of senior management when the state is still facing acute budgetary problems? What is the name of the person in Dept of Finance who approved it?
• Did the Dept of Personnel Administration, in Sacramento, approve the creation these new posts? What is the name of the person who made that decision?

Please see this as a due process notice to you to clarify or dispel the general perception that the appointments are unlawful. We intend to report this to the Governor as examples of gross misconduct, inefficiency and ruse to counter the intent of CPR.

We are going to wait until Friday for your response before we write to the Governor. Remember this President Peevey is accountable to the Governor.

Yours truly,

Yaya Fanusie, Ph.D.
Publisher, What Now?!
Concerned Staff Committee

cc. Peter Siggins, Legal Affairs Secretary-Office of the Governor
Dan Skopec, Deputy Cabinet Secretary-Office of the Governor
Joe Elwell-Scardino, Legislative Advocate for What Now?!-Sacramento, CA