BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 450 N Street, Room 121 Sacramento, California REPORTER'S TRANSCRIPT MARCH 25, 2010 ITEM P5 OTHER ADMINISTRATIVE MATTERS ADMINISTRATION DEPUTY DIRECTOR'S REPORT Reported by: Beverly D. Toms No. CSR 1662 1 1 2 P R E S E N T 3 4 For the Board Betty Yee of Equalization: Chair 5 Jerome E. Horton 6 Vice-Chair 7 Barbara Alby Acting Member 8 Michelle Steel 9 Member 10 Diane Olson 11 Chief, Board Proceedings Division 12 13 Board of Equalization Staff: Christine Demes 14 Acting Chief Administrative Support 15 Division 16 Caroline Cabias Chief, Financial Management 17 Division 18 Anna Brannen Chief Information Officer 19 20 ---oOo--- 21 22 23 24 25 26 27 28 2 1 SUB-ITEM 1 - CONTRACTS OVER $1 MILLION 2 Sacramento, California 3 March 25, 2010 4 ---oOO--- 5 MS. YEE: Our next item. 6 MS. OLSON: Next item is P5, Administrative 7 Deputy Director's Report. 8 MS. YEE: Okay. 9 MS. DEMES: Good afternoon, Madam Chairwoman 10 and Members. I am Christine Demes, Acting Chief of the 11 Administrative Support Division, speaking on behalf of 12 Liz Houser, Deputy Director - Administration. 13 Caroline Cabias, Chief, Financial Management 14 Division, is here with me today to assist in responding 15 to questions. 16 My first item requests your approval of the 17 Microsoft Office licenses contract via the Department of 18 General Services Software Licensing Program for 19 $1,224,107. 20 This acquisition will allow BOE to upgrade our 21 existing 2003 Microsoft software to the 2007 version. 22 The software upgrade will move BOE to the version of 23 Microsoft Office that is commonly being utilized. 24 Anna Brannen, Chief Information Officer, is 25 available to answer any questions you may have. 26 MS. YEE: Thank you very much, Ms. Demes. 27 Questions, Members? 28 Ms. Steel. 3 1 MS. STEEL: For the contract we are talking 2 about Microsoft that is coming up, I want to look at the 3 market price and, you know, we are not over-paying. 4 Because last year, you know, we were talking about Dell 5 computers that, you know, we were paying include 6 services, so it was much more than what average citizen 7 is paying out there. 8 So I really want to have some comparison here 9 that, you know, how much we are paying and then, you 10 know, what's the market price, so we not going to 11 over-pay -- 12 MS. YEE: Yeah. 13 MS. STEEL: -- any expenses here. 14 MS. YEE: I -- I think that may have been done. 15 Ms. Brannen. 16 MS. BRANNEN: Actually, the -- the way that it 17 works for State purchases, they -- in this case they 18 negotiated a very large statewide contract and they got 19 the rates down probably lower than what you guys -- what 20 we could pay as average folks out there. 21 Typically, the way it works for us, we keep our 22 Microsoft products much longer than most State agencies 23 do. And so it typically works out about $75 per user 24 per year for five years. 25 MS. MANDEL: Madam Chair, I'm not -- I'm not 26 going to participate in this. 27 MS. YEE: Okay. Thank you, Ms. Mandel. 28 MS. STEEL: But is there reasonable -- 4 1 MS. BRANNEN: But we can provide you -- 2 MS. STEEL: Yeah. 3 MS. BRANNEN: -- how it would -- what it breaks 4 down -- 5 MS. STEEL: Okay. 6 MS. BRANNEN: -- based on this one. 7 MS. STEEL: Sure. Thank you. 8 MS. YEE: Okay. Other questions, Members? 9 Okay, hearing none is there a motion? 10 I'll move approval of the contract. 11 Is there a second? 12 MR. HORTON: Second. 13 MS. YEE: Seconded by Mr. Horton. 14 Objection? 15 Hearing none, that motion is approved. Thank 16 you. 17 ---oOo--- 18 19 20 21 22 23 24 25 26 27 28 5 1 SUB-ITEM 2 - FACILITIESUPDATE 2 MS. YEE: Our next item. 3 MS. DEMES: There are no new updates on the 4 remediation work at the 450 N Street building. 5 However, the contract to perform the fiscal analysis on 6 the building has been awarded to California State 7 University at Sacramento and the University of 8 California at Irvine, who will prepare this report as a 9 joint effort. 10 The report is due no later than June 15th. 11 When completed, the report will be routed to your 12 offices. If the Board wishes, a formal presentation can 13 be made at the July Board meeting. 14 MS. YEE: Okay. 15 ---oOo--- 16 MS. DEMES: My last item is the 2009 State 17 Agency Recognition Award. This award honors State 18 Departments and employees for their best practices, 19 creativity and outstanding achievements to advance the 20 State's Small Business and Disabled Veteran Business 21 Enterprise Programs. 22 Every year State agencies must report to the 23 Governor and the Legislature their total contracting 24 participation. 25 Last fiscal year the Acquisitions Branch 26 managed to increase its Small Business participation by 27 16.6 percent and its Disabled Veteran Business 28 Enterprise Program participation by 4.48 percent. 6 1 The Board of Equalization received the 2 Governor's Bronze Award for the superior work of the 3 Acquisitions Branch. 4 If it pleases the Board, we would like the 5 staff from the Acquisitions Branch to stand and be 6 acknowledged. 7 MS. YEE: Okay. Please. 8 (Applause) 9 MS. YEE: Thank you very much. 10 Thank you very much for your great work on -- 11 on this area. 12 Comments, Members? 13 Mr. Horton. 14 MR. HORTON: Yes. Thank you, Madam Chair. I 15 think this is outstanding. I mean, I really do. I -- I 16 think it's something that the -- the Legislature has an 17 opportunity to say great things about a great agency. 18 And maybe we should encourage them -- make them aware so 19 that we can give them that opportunity to acknowledge 20 the fine work of the Board of Equalization and those who 21 are working in this particular area. 22 So, please provide -- I would recommend we sort 23 of approach that through the Chair, if the Chair is of a 24 mind, to make sure that we extend -- that we tell the 25 world, "You're doing a good job." Thank you. 26 MS. DEMES: Thank you. 27 MS. YEE: Thank you, Mr. Horton. 28 Other comments? 7 1 MS. STEEL: Outstanding job and thank you very 2 much for great work. 3 MS. YEE: Yes. Particularly in this 4 environment, I'm -- I know the support of small business 5 is really -- really important. 6 Okay. Thank you. Ms. Demes, anything else? 7 MS. DEMES: That concludes my presentation. 8 Thank you. 9 MS. YEE: Thank you very much. Thank you, Ms. 10 Cabias. 11 ---oOo--- 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8 1 REPORTER'S CERTIFICATE. 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, BEVERLY D. TOMS, Hearing Reporter for the 8 California State Board of Equalization certify that on 9 March 25, 2010 I recorded verbatim, in shorthand, to the 10 best of my ability, the proceedings in the 11 above-entitled hearing; that I transcribed the shorthand 12 writing into typewriting; and that the preceding 8 13 pages constitute a complete and accurate transcription 14 of the shorthand writing. 15 16 Dated: May 20, 2010. 17 18 19 20 ____________________________ 21 BEVERLY D. TOMS 22 Hearing Reporter 23 24 25 26 27 28 9