BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 450 N Street, Room 121 Sacramento, California REPORTER'S TRANSCRIPT APRIL 13, 2010 ITEM P5.1 OTHER ADMINISTRATIVE MATTERS ADMINISTRATION DEPUTY DIRECTOR'S REPORT FACILITIES UPDATE 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 Marcy Jo Mandel Appearing for John 11 Chiang, State Controller (per Government Code 12 Section 7.9) 13 Diane Olson Chief, Board 14 Proceedings Division 15 16 ---oOo--- 17 18 19 20 21 22 23 24 25 26 27 28 2 1 SUB-ITEM A - HEADQUARTERS FACILITIES 2 Sacramento, California 3 April 13, 2010 4 ---oOO--- 5 MS. OLSON: The next item is P5, Administration 6 Deputy Director's Reports. First is Facilities Update. 7 MS. YEE: Okay. Good afternoon, Ms. Houser. 8 MS. HOUSER: Good afternoon, Madam Chair and 9 Members. I'm Liz Houser, Deputy Director of 10 Administration. 11 My first item is the Facilities Update. The 12 remediation work at 450 N Street continues. As of today 13 the Department of General Services has completed half of 14 the identified remediation work, 11 of the 22 floors. 15 DGS has informed us that their cost for this project may 16 potentially increase an additional $1.6 million due to 17 the added remediation required on several of the 18 remaining floors. 19 This brings the total estimated cost of 20 remediation to $31.6 million. DGS anticipates 21 completion of the work by mid-January 2011. 22 ---oOo--- 23 24 25 26 27 28 3 1 SUB-ITEM B - HEADQUARTERS ANNEX 2 MS. HOUSER: My next item is an update on the 3 headquarters annex locations, which will accommodate 600 4 to 700 employees who will move in three groups. Two 5 leases have been signed and the tenant improvements are 6 under way for these sites. Spring and summer moves are 7 anticipated. 8 A tentative site has been selected for the 9 third group, which includes County and State Assessed 10 Property Tax Division -- Property Division, the 11 Administration Training Section, SUTDs, Service Business 12 Registration Section and the Call Center. 13 DGS is in the final stages of lease 14 negotiations and they anticipate a signed lease in May. 15 Once we have a signed lease I will announce the final 16 site to the Board. 17 We are hopeful for a winter of 2010 or Spring 18 of 2011 move for this last group. 19 On the San Diego relocation, BOE requests to 20 DGS to move from the 1350 Front Street location has been 21 placed on hold by DGS's Director, Ron Dietrich, pending 22 the outcome from the bidding process to replace the 23 building which they expect to complete by Fall of 2010. 24 BOE is exploring options to appeal this 25 decision to the Secretary of the State and Consumer 26 Services Agency, who oversees the Department of General 27 Services. 28 I would be happy to answer any questions you 4 1 have on the facilities or annex locations. 2 MS. YEE: Okay. Thank you, Ms. Houser. 3 Questions, Members? 4 Okay, thank you. 5 ---oOo--- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 1 REPORTER'SCERTIFICATE 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 April 13, 1020 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 5 pages 13 constitute a complete and accurate transcription of the 14 shorthand writing. 15 16 Dated: May 17, 2010. 17 18 19 ____________________________ 20 BEVERLY D. TOMS 21 Hearing Reporter 22 23 24 25 26 27 28 6