1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 5901 GREEN VALLEY CIRCLE 3 CULVER CITY, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 OCTOBER 25, 2011 9 10 M OTHER CHIEF COUNSEL MATTERS 11 ITEM M1 12 RESOLUTION CONFERRING POWERS ON THE EXECUTIVE DIRECTOR 13 14 ---O0O--- 15 16 17 18 19 20 21 Reported by: Juli Price Jackson 22 No. CSR 5214 23 24 25 26 27 28 1 1 P R E S E N T 2 3 For the Board Jerome E. Horton of Equalization: Chairman 4 5 Michelle Steel Vice-Chairwoman 6 7 Betty T. Yee Member 8 9 George Runner Member 10 11 Marcy Jo Mandel Appearing for John 12 Chiang, State Controller (per 13 Government Code Section 7.9) 14 15 Diane G. Olson Chief, Board 16 Proceedings Division 17 18 Liz Houser Deputy Director 19 Administration 20 David Gau Deputy Director 21 Property and Special Taxes Department 22 23 ---oOo--- 24 25 26 27 28 2 1 5901 GREEN VALLEY CIRCLE 2 CULVER CITY, CALIFORNIA 3 OCTOBER 25, 2011 4 ---oOo--- 5 MS. OLSON: Our next item is M1, Resolutions 6 conferring powers on the Executive Director report. 7 MR. GAU: Yes, David Gau, sitting in for 8 Mr. Ferris. 9 This is the request of approval of the 10 conferring powers on Kristine Cazadd, newly appointed 11 Director. 12 MR. HORTON: Discussion, Members? 13 MS. YEE: I have a question. 14 MR. HORTON: Question, Member Yee. 15 MS. YEE: I think this is the same powers that 16 we've seen in the past -- 17 MR. GAU: Yes, it is, as I understand. 18 MS. YEE: -- in the resolution. 19 MR. GAU: Correct. 20 MS. YEE: I just had a question regarding 21 the -- let's see, 1, 2, 3, 4 -- the fourth resolve 22 clause or section. 23 And it's just clarification, maybe, under 24 subdivision A, item 2, where the -- it relates to the 25 execution of any and all personnel documents as the 26 appointing power. 27 And item 2 states, 28 "Obtain approval of the Board Member whose 3 1 District in which appointments are located for 2 all District personnel appointments." 3 Are -- I understand we probably have discretion 4 as Board Members in terms of whether we want to 5 participate in that matter, but it just struck me as 6 being a little degree of -- a good degree of 7 micromanaging, that I wanted to see how -- what the 8 sentiment of the other Members are. 9 MR. HORTON: Further discussion, Members? 10 MS. YEE: I mean, we've been involved, I think, 11 certainly for high level positions, like the 12 administrators and the principals, but I think beyond 13 that I would have some concern. 14 MR. RUNNER: Is it -- is this a change from 15 previous? 16 MS. MANDEL: No. 17 MR. GAU: No, it is not. 18 MS. YEE: No, no. And I guess I wasn't really 19 clear reading it that, you know, we, as Members, have 20 discretion in terms of how deep we want to go. 21 But I'm -- I'd like to think that we've got 22 some consistency across Districts in terms of how we're 23 looking at the appointment of personnel. 24 MR. HORTON: Hmm -- further discussion, 25 Members? 26 Member Mandel. 27 MS. MANDEL: There's probably some history to 28 it, but we don't have a District, so, I don't know 4 1 what -- what you all -- 2 MR. HORTON: I mean, I can speak to the 3 history -- 4 MS. YEE: Uh-huh. 5 MR. HORTON: -- but it would not necessarily be 6 germane to the statement in the document, but certainly 7 from a policy from the Board Member's side, it 8 has ranged from one end of the spectrum to the other. 9 But I think there's been a consensus that the 10 Board Members have not participated, to my knowledge, 11 beyond the front line supervisors position on both sides 12 of the audit and compliance. 13 There has been situations that has required the 14 Board Members' participation because of alleged 15 inequities and so forth in District 4, District 1 -- not 16 1, District 2 and so forth. 17 But this was back in -- 18 MS. YEE: Yeah, it's while -- 19 MR. HORTON: -- this was back -- 20 MS. YEE: -- a while ago, yes. 21 MR. HORTON: -- sometime ago that we had these 22 challenges. 23 So, it's more of a discretion of the Member. 24 MS. YEE: And I guess part of what had me pause 25 a bit on this particular item is, as compared to item 1 26 where there's Board approval of all appointments of 27 personnel at the CEA levels, we actually are engaged in 28 interviews, we meet the candidates. 5 1 Unless we're going to be engaged in 2 interviewing at these supervisorial levels in the 3 District, which I have no intention of doing, and 4 perhaps it could say, "At the Board Member's 5 discretion," but I just think it's getting to a degree 6 of micromanagement that is not a very healthy dynamic. 7 MR. HORTON: Okay. 8 MS. YEE: But I have no issues with respect 9 to -- certainly the District Administrators, the 10 principals -- the principal levels both on the audit and 11 compliance side. 12 MR. HORTON: Okay. 13 MS. YEE: Okay. 14 MR. HORTON: So noted. 15 Further discussion, Members? 16 Is there -- is there a motion? 17 MR. RUNNER: I would move the issue. 18 MR. HORTON: Moved by Mr. Runner, second by -- 19 MS. STEEL: I'll second. 20 MR. HORTON: Member -- 21 MS. YEE: Can I -- can I suggest an amendment, 22 perhaps? 23 MS. STEEL: Yeah. 24 MR. HORTON: Sure. 25 MS. YEE: That may get my approval. 26 How about, 27 "Obtain approval of the Board Member at his or 28 her discretion."? 6 1 Just so it's clear, I mean, I -- I still have 2 an issue with the level of appointments, but that, at 3 least, will suggest that we may not be necessarily 4 uniform in terms of the degree of involvement in the 5 approval. 6 MR. HORTON: Okay, we got you. 7 The -- where would you like to place the -- 8 MS. YEE: "Obtain approval of the Board Member 9 at the Member's discretion." 10 MR. HORTON: Right after "Board Member"? 11 MS. YEE: Uh-huh. d 12 MR. HORTON: "At Member's discretion"? 13 MS. YEE: "At Member's discretion." 14 MR. HORTON: Okay. So noted. 15 MR. RUNNER: I don't think -- 16 MR. HORTON: Further discussion? 17 MR. RUNNER: I'll take that as a friendly 18 amendment. 19 I mean, I don't think that changes the intent 20 of what's there. 21 I'm going -- let me go back -- let me ask a 22 little -- maybe an opinion from -- from Administration 23 and HR in regards to that change. 24 MR. HORTON: Well, I think -- 25 MR. RUNNER: Okay. 26 MS. YEE: What I want to indicate is that we 27 may have varying practices across Districts and if we're 28 going to be inconsistent, I want it known that we're 7 1 inconsistent. 2 MS. HOUSER: Okay. 3 MS. YEE: If we're going to be consistent, then 4 let's be consistent. 5 But some of us may want to delve deep in terms 6 of want to be involved in approvals -- and if you are, I 7 hope that you're interviewing these candidates before 8 you weigh in. 9 I certainly am not interested in that. And if 10 it's not going to be uniform across Districts, this is 11 the way that I want it indicated, that it's at the 12 Member's discretion and it may not be consistent -- 13 MS. HOUSER: Yeah, I think -- 14 MS. YEE: -- practice across the Districts. 15 MS. HOUSER: -- yeah, Liz Houser, Admin Deputy. 16 I think that would be helpful, Ms. Yee, if we 17 put, "At the Member's discretion," so that the staff, as 18 we move forward who weren't involved in this discussion, 19 would understand that it may vary from District to 20 District. 21 Historically, it's the District Administrator 22 and the Principals that the Board Members have been 23 involved in, but there have been Board Members who 24 wanted to be engaged in hires further down -- further 25 down hires. 26 MS. YEE: Uh-huh. 27 MS. HOUSER: And now we have the Assistant 28 Chiefs and they're -- you know, that's a different 8 1 situation. And the Board Members are involved in that. 2 So, it -- it does fluctuate from office to 3 office. So, I think that, "At the Member's discretion," 4 would be very helpful. 5 So, we'll make sure that's added. 6 MR. HORTON: Okay. Further discussion, 7 Members? 8 MS. MANDEL: Well -- 9 MR. HORTON: Miss -- Member Mandel. 10 MS. MANDEL: -- yeah, I don't know it's 11 appropriate to say this now or when I give you the vote. 12 So, I guess I'll say it now, get it in. 13 Yes? Or you want me to wait? 14 I'm going to vote yes -- 15 MR. HORTON: Oh. 16 MS. MANDEL: -- but I have something to say. 17 MR. HORTON: Oh. 18 MR. RUNNER: We might as well vote. 19 MS. MANDEL: I made him nervous. 20 Okay, anyway, as -- you know, we have a new 21 Executive Director, so, we need to give her the 22 authority to act or a yes on making sure she's got 23 authority to act. 24 And the Controller is very concerned that it's 25 taken the Board as long as it has and still ongoing to 26 find a permanent director and that we haven't had 27 success in getting someone appointed for the long term 28 in this very critical position and in a very critical 9 1 organization in State government. 2 And he looks forward to working with the Board 3 on getting someone appointed to -- as a permanent, long 4 term Executive Director. 5 Basically Miss Cazadd's been acting for a year 6 and now she's Executive Director, but she's effectively 7 really still kind of our Acting because we -- as we 8 stated when she was appointed -- are looking for someone 9 permanent for the -- for the position. 10 And so we look forward to getting someone 11 appointed without further undue delay in that. 12 Thank you, Mr. Chairman. 13 MR. HORTON: Thank you very much, Member 14 Mandel. 15 Further discussion, Members? 16 I couldn't agree with Ms. Mandel more and want 17 to reiterate, I believe, that this gives Miss Cazadd the 18 full authority of the position and the entire Board is 19 supportive of that, evidently. 20 Is there a motion? 21 MR. RUNNER: I think made a motion. 22 MS. YEE: Yes. 23 MR. HORTON: No, uhmm -- 24 MR. RUNNER: I took a friendly amendment. 25 MR. HORTON: -- there was a motion, we pulled 26 it back. We made an amendment to it to -- to the 27 document. 28 Now we need -- 10 1 MR. RUNNER: Okay. 2 MR. HORTON: -- a motion to adopt as amended. 3 MR. RUNNER: Okay. I'll move -- 4 MR. HORTON: So moved. 5 Moved by Mr. Runner, second by Member Yee. 6 Without objection, Members, such will be the 7 order. 8 ---o0o--- 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 11 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 OCTOBER 25, 2011 I recorded verbatim, in shorthand, to 10 the 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: NOVEMBER 7, 2011 17 18 19 ____________________________ 20 JULI PRICE JACKSON 21 Hearing Reporter 22 23 24 25 26 27 28 12