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 10 STATE ASSESSED PROPERTIES VALUE SETTING 11 12 13 14 15 16 17 18 19 Reported by: Juli Price Jackson 20 No. CSR 5214 21 22 23 24 25 26 27 28 1 1 2 P R E S E N T 3 4 For the Board Betty T. Yee of Equalization: Chair 5 Jerome E. Horton 6 Vice-Chair 7 Barbara Alby Acting Member 8 Michelle Steel 9 Member 10 John Chiang State Controller 11 Joann Richmond for 12 Diane G. Olson Chief, Board 13 Proceedings Division 14 15 16 ---oOo--- 17 18 John K. Thompson Chief 19 State-Assessed Properties Division 20 David Yeung 21 Principal Property Appraiser 22 Donald Jackson 23 Principal Property Appraiser 24 Richard Reisinger 25 Senior Specialist Property 26 Auditor-Appraiser 27 28 2 1 2 3 450 N STREET 4 SACRAMENTO, CALIFORNIA 5 MAY 26, 2010 6 ---oOo--- 7 MS. YEE: Okay, let's reconvene the Board of 8 Equalization meeting to order. 9 Ms. Richmond, what is our next item? 10 MS. RICHMOND: Our next item is the State 11 Assessed Properties Value Setting. 12 MS. YEE: Okay, Members we are -- we have the 13 State Assessed Property Valuation before us. 14 Let me turn to Mr. Thompson for an overview 15 before the Board acts. 16 MR. THOMPSON: Good afternoon. 17 We're here today to set the values for over 400 18 State assessed companies that participate in electric 19 generation, electric transmission, telephone, pipeline 20 and a railroad. 21 We have prepared value indicators that we have 22 supplied to the Board Members and their staff. And 23 we're here to answer any questions. 24 Also to my right is Donald Jackson, to his 25 right is David Yeung, Principal Property Appraisers, amd 26 to their right, Dick Reisinger, the Supervising Property 27 Appraiser over the Unit Value Section, to assist in 28 answering any questions that the Board might have. 3 1 MS. YEE: Great, thank you much, Mr. Thompson. 2 First of all, let me commend the staff, I know 3 it's always a challenging process to get to this point, 4 given the short timelines after receiving all of the 5 information from the assessees and the property 6 statements. So, we appreciate the diligence of the 7 staff in a getting these east values before us. 8 Members, we have eight industry groups before 9 us. I think the staff has been through all of the 10 information that's been submitted. 11 What's the pleasure of the Board? 12 MR. HORTON: Madam Chair, I move that we adopt 13 staff recommendation on all eight, unless it's the 14 desire of the Board to take them individually. 15 MS. YEE: Okay, we have a motion by Mr. Horton 16 to adopt the staff recommendation on each of the 17 assessees in all eight industry groups. 18 Is there a second? 19 MR. CHIANG: I second. 20 MS. YEE: Second by Mr. Chiang. 21 Discussion? 22 MS. STEEL: Everything's okay except I have 23 potential financial conflicts on pipeline companies. 24 MS. YEE: Okay. Do you want to identify those? 25 So, this is -- 26 MS. STEEL: 465, Plains Pipeline, and 467, 27 ConocoPhillips. 28 MS. YEE: Hang on one second. 4 1 MR. CHIANG: Michelle, don't announce the 2 company. 3 MS. YEE: Yeah. 4 MS. STEEL: Okay. 5 MS. YEE: Yes. 6 MS. STEEL: 465, 467, 480, 486 and 488. 7 MR. HORTON: Madam Chair, I'd change the motion 8 to move adoption of staff recommendation with the 9 exception of items 465, 467, 480, 488, to be taken up as 10 a separate matter. 11 MR. CHIANG: Actually -- 12 MS. YEE: Actually, it's just nonparticipation 13 by Ms. Steel. 14 MR. HORTON: Okay. 15 MS. YEE: So, the motion's been revised to 16 adopt the staff recommendation for all assessees under 17 under all eight industry groups, noting the 18 nonparticipation items on the part of Board Member 19 Steel. 20 We have a motion by Mr. Horton, second by Mr. 21 Chiang. 22 Without objection? 23 MS. STEEL: Hold on one second, is that 24 interexchange telephone companies, we are doing it too? 25 MS. YEE: Yes, we're doing them all. 26 MS. STEEL: Can we vote that on separately? 27 MS. YEE: Vote on that separately? 28 MS. STEEL: Yeah. 5 1 MS. YEE: Are there issues of participation or 2 are they substantive issues? 3 MS. STEEL: Well, just issues. 4 MS. YEE: Okay. Okay, particular assessees or 5 the entire industry? 6 MS. STEEL: All the industry, except just one 7 for ABC-CBN Telecom (verbatim)>. 8 MS. YEE: Okay, so, you want to hold the 9 interstate telephone companies, you want to take that up 10 separately? 11 MS. STEEL: Right. 12 MS. YEE: The entire industry? 13 Okay, let us amend the motion once more. We'll 14 adopt the motion -- Mr. Horton -- by Mr. Horton to adopt 15 the staff recommendation for all eight industry groups 16 with the noted nonparticipation on the -- with respect 17 to the pipeline industry by Board Member Steel -- I'm 18 sorry on all seven industry groups. 19 We will vote the interexchange telephone 20 companies separately. 21 Second by Mr. Chiang. 22 Without objection? 23 MR. CHIANG: I'm sorry, just so that we have 24 clarification, with Member Steel not participating on 25 465, 467 -- 26 MS. YEE: 480 and 488 -- 27 MR. CHIANG: Yes. 28 MS. YEE: -- under pipelines, yes. 6 1 MR. CHIANG: Okay, thank you. 2 MS. YEE: Thank you. 3 Without objection, that motion carries. 4 Okay. Let us turn our attention to the 5 interexchange telephone companies. 6 Ms. Steel, do you want to state your concerns 7 here? 8 MS. STEEL: Well, for the penalty on the ABC -- 9 ABS-CBN Telecom North America, Inc., that they had -- 10 MS. YEE: What's the assessee number? I'm 11 sorry. 12 MS. STEEL: It's SBE number is 7581. 13 MS. YEE: Okay. 14 MS. STEEL: That they have a good filing 15 history and was late only two days and I want to abate 16 the penalty. 17 MS. YEE: Okay. This is an item on consent, 18 can we -- do you have others that are on consent for 19 which you have issues? 20 MS. STEEL: No. 21 MS. YEE: Okay, why don't I suggest this, we 22 will pull assessee item No. 28, assessee No. 7581, off 23 the consent agenda. 24 May I have a motion on the remainder of the 25 calendar? 26 MR. HORTON: So moved, Madam Chair. 27 MS. ALBY: Second. 28 MS. YEE: Motion by Mr. Horton, second by 7 1 Ms. Alby. 2 Without objection, the remaining values are 3 adopted. 4 Then with respect to item No. 28, Ms. Steel has 5 a motion to -- did you make a motion? 6 MS. STEEL: Abate the penalty. 7 MS. YEE: Okay, motion by Ms. Steel to abate 8 the penalty. 9 Is there a second? 10 MS. ALBY: Second. 11 MS. YEE: Second by Ms. Alby. 12 Further discussion? 13 MS. YEE: Mr. Chiang? 14 MR. CHIANG: Could I have the staff 15 recommendation for assessment on the penalty? 16 MR. THOMPSON: The company was two days late in 17 filing it's return. They have had an exemplary pattern 18 of filing in the past. 19 MR. CHIANG: And do you want to -- 20 MR. THOMPSON: This is the first time. 21 MS. STEEL: I thought this was the first time. 22 I didn't see it last week, three years period? 23 MR. THOMPSON: Excuse me? 24 MS. STEEL: That's what I heard, that it has 25 very good -- 26 MR. THOMPSON: Yes, that's -- 27 MS. STEEL: -- so, that's the first time? 28 MR. THOMPSON: -- excuse me if I misstated, 8 1 they have an exemplary filing history and today's -- 2 MS. STEEL: Yeah. 3 MR. THOMPSON: -- this year's the first time -- 4 MS. STEEL: Just this. 5 MR. THOMPSON: -- and they were two days late. 6 MS. STEEL: Thank you. 7 MR. CHIANG: And the penalty is -- do we 8 have -- are we allowed the range on State assessee 9 penalties? 10 MR. THOMPSON: Yeah, I believe that is the 11 practice. 12 MS. YEE: Yes. 13 MR. THOMPSON: The penalty on this particular 14 company is in the -- in the amount of 27,400 in value, 15 which is roughly about $300 in tax. 16 MS. YEE: Say that again? Did I hear that 17 right? 18 MR. THOMPSON: The amount of the penalty on 19 this company is $27,400 in value -- 20 MS. YEE: Right. 21 MR. THOMPSON: -- which is roughly $300 in 22 tax. 23 MS. YEE: All right, I'm sorry, I missed that. 24 Thank you. 25 MR. CHIANG: I'll give half. 26 MS. STEEL: I'll take whatever -- 27 MR. CHIANG: It's not the amount, it's that 28 they were late. 9 1 MS. STEEL: -- I take whatever you give me. 2 MS. YEE: You want to revise your motion, 3 Ms. Steel? 4 MS. STEEL: Okay, I make motion, move to staff 5 recommendations but abate the half of the penalty. 6 MR. CHIANG: Half of the full -- 7 MS. STEEL: -- the full penalty. 8 MR. CHIANG: What we're allowed to? 9 MS. YEE: Okay, I have a motion by Ms. Steel. 10 Is there a second? 11 MR. CHIANG: You can second. 12 MS. ALBY: Second. 13 MS. STEEL: You have to second that. 14 MR. CHIANG: I'll vote for it. 15 MS. YEE: Second by Ms. Alby. 16 Without objection, that motion carries. 17 MS. STEEL: Thank you. 18 MS. YEE: And that concludes the value setting 19 item. 20 Thank you very much. 21 MR. THOMPSON: Thank you very much. 22 ---o0o--- 23 24 25 26 27 28 10 1 REPORTER'S CERTIFICATE. 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, JULI PRICE JACKSON, Hearing Reporter for the 8 California State Board of Equalization certify that on 9 MAY 26, 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 pages 1 13 through 11 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: JUNE 7, 2010 17 18 19 ____________________________ 20 JULI PRICE JACKSON 21 Hearing Reporter 22 23 24 25 26 27 28 11