1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 MAY 26, 2010 9 OTHER ADMINISTRATIVE MATTERS 10 ITEM P5 ADMINISTRATIVE DEPUTY DIRECTOR'S REPORT 11 ITEM 2 FACILTIES UPDATE 12 2A HEADQUARTERS FACILITIES 13 2B HEADQUARTERS ANNEX 14 ---o0o--- 15 16 17 18 19 20 21 22 23 Reported by: Juli Price Jackson 24 No. CSR 5214 25 26 27 28 1 1 P R E S E N T 2 3 For the Board Betty T. Yee of Equalization: Chair 4 Jerome E. Horton 5 Vice-Chair 6 Barbara Alby Acting Member 7 Michelle Steel 8 Member 9 Marcy Jo Mandel Appearing for John 10 Chiang, State Controller (per 11 Government Code Section 7.9) 12 Diane G. Olson 13 Chief, Board Proceedings Division 14 15 Liz Houser Deputy Director 16 Administration 17 18 ---oOo--- 19 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 MAY 26, 2010 4 ---oOo--- 5 MS. HOUSER: My next item is the facilities 6 update. The remediation work at 450 N Street continues. 7 DGS now anticipates the completion of the work by 8 mid-March of 2011. The schedule changes are tied to the 9 proposed move out dates of the employees being relocated 10 to the annex sites. 11 The elevator modernization project is also 12 underway. One car on each bank of the high rise and low 13 rise elevators will be out of service while the repairs 14 are performed. October 2011 is DGS's anticipated -- or 15 estimated project completion date. 16 On the headquarters annex locations, as you 17 know, we've working to move 6 to 700 employees out of 18 this building and into the new locations in three 19 groups. I'm very pleased to announce that a lease has 20 been signed for 160 Promenade Circle in Natomas for this 21 last group, the State Assessed Properties Division, the 22 County Assessed Properties Division, the Administration 23 Training Section, SUTD's Use Tax Administration section, 24 the Customer Service and Publishing Division and the 25 Outreach Services Division will be relocated, through a 26 phased move out which is planned to begin in December of 27 2010. The site is located off of I-5 and Truxel 28 Boulevard, with RT bus access and a dedicated shuttle 3 1 will provide transportation to and from 450 N Street in 2 the mornings and afternoons to accommodate commuters. 3 We are working with the Department of General Services 4 and the building owner to finalizes amenities. The 5 executed lease has been provided to your offices. 6 The move of the IFTA @@@ Motor Carrier section 7 of the Fuels Tax Division to 1030 Riverside Parkway in 8 West Sacramento began on Friday, April 30th and was 9 seamlessly completed on May 1st. 10 Tentative improvements continue at 621 Capitol 11 Mall, where we anticipate the move of the Legal 12 Department, Board Proceedings Division and the Web and 13 Media Design Services Division. This is approximately 14 300 staff. And that should be begin in July of 2010. 15 We are holding meetings with program staff to 16 answer any questions they may have on upcoming moves. 17 In addition, we are briefing the unions and offering 18 them a tour of the facilities. 19 I would be happy to answer any questions you 20 have on the facilities or annex locations. 21 MS. YEE: Thank you, Ms. Houser. 22 Questions, Members? 23 MR. HORTON: Madam Chair? 24 MS. YEE: Mr. Horton? 25 MR. HORTON: I thought Natomas had a mold issue 26 and that was just -- 27 MS. YEE: Had a what issue? 28 MR. HORTON: Mold. I mean the -- 4 1 MS. HOUSER: Oh, mold, I'm sorry. 2 The building -- when we go look at a site, we 3 have a 21-page site assessment survey that any site 4 we're looking at going to the building owner must fill 5 out in addition to the work that -- the questions that 6 DGS asks. 7 So, we have -- we asked extensive questions 8 about water intrusion, any prior mold growth, any prior 9 hazardous materials in the building. And we only 10 proceed with sites that pass that questionnaire, if you 11 will. 12 So, for this building there has not been any 13 prior water intrusion, any known mold discoveries or any 14 sort of hazardous material, such as asbestos, or 15 anything discovered. It's a brand-new building. 16 MR. HORTON: In addition to the questionnaire, 17 has DGS changed its policy about having language in 18 there that sort of protects the State in the event that 19 it does come up at some point? 20 MS. HOUSER: Not at this point, but what we did 21 is because the -- DGS has not changed their policy, but 22 the way BOE's requiring our leases to be written is we 23 reference the questionnaire that we had them complete. 24 And if they were untruthful or did not fully disclose in 25 that questionnaire, that's grounds for us to go ahead 26 and leave. 27 MR. HORTON: Does that give us some -- us, the 28 agency, aside from DGS -- some legal standing as well? 5 1 MS. HOUSER: That's our understanding from 2 working with our attorneys, that that would give us 3 authority to leave. 4 MR. HORTON: Good work, thank you. 5 MS. YEE: Thank you, Mr. Horton. 6 Other questions, Members? 7 Okay, thank you. 8 ---o0o--- 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 1 . 2 REPORTER'S CERTIFICATE 3 4 State of California ) 5 ) ss 6 County of Sacramento ) 7 8 I, JULI PRICE JACKSON, Hearing Reporter for the 9 California State Board of Equalization certify that on 10 MAY 26, 2010 I recorded verbatim, in shorthand, to the 11 best of my ability, the proceedings in the 12 above-entitled hearing; that I transcribed the shorthand 13 writing into typewriting; and that the preceding pages 1 14 through 6 constitute a complete and accurate 15 transcription of the shorthand writing. 16 17 Dated: January 22, 2011 18 19 20 ____________________________ 21 JULI PRICE JACKSON 22 Hearing Reporter 23 24 25 26 27 28 7