1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 MARCH 21, 2012 9 10 P5 ADMINISTRATION DEPUTY DIRECTOR'S REPORT 11 P5.1 HEADQUARTERS FACILITY UPDATE 12 13 14 15 16 17 18 19 20 Reported by: Juli Price Jackson 21 No. CSR 5214 22 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 For Staff: Liz Houser Deputy Director 19 Administration 20 21 ---oOo--- 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 MARCH 21, 2012 4 ---oOo--- 5 MR. HORTON: Ms. Olson? 6 MS. OLSON: Our next item is P5, Administration 7 Deputy Director reports. 8 MR. HORTON: Okay. Ms. Houser, will you please 9 introduce the issue? 10 MS. HOUSER: Yes. Good afternoon, 11 Chairman Horton and Members, I'm Liz Houser, Deputy 12 Director, Administration. 13 My first item is an update on the 450 N Street 14 facility. On March 12th, at the direction of the Board, 15 we met with the Director of Finance and the Director of 16 the Department of General Services and discussed our 17 request to begin the planning process to move BOE's 18 headquarters into a new facility. 19 Finance indicated that the bond sale requires 20 that the 450 N Street building remain occupied for at 21 least ten years, or until the year 2022. Therefore, 22 they could not see an option that would easily allow BOE 23 to move. Due to the size and complexity of the new 24 facility, BOE has asked that we be allowed to begin the 25 planning process and have a phased approach to move our 26 employees into this facility over the next ten years. 27 We felt this compromise was reasonable, given the 28 difficult fiscal climate the State now faces. 3 1 Finance indicated they would consider our 2 request and get back to us. 3 (Whereupon other proceedings were had.) 4 MR. HORTON: Mr. Runner. 5 MR. RUNNER: Following up on the 450 building 6 here, the discussion that the building has to be 7 occupied at least ten years, does that requirement be 8 the BOE occupies this building or a State agency 9 occupies this building? 10 MS. HOUSER: It would need to be occupied by a 11 State tenant who could pay the rent on it. So, we are 12 continuing that -- 13 MR. RUNNER: Okay. 14 MS. HOUSER: -- discussion with Department of 15 Finance. 16 MR. RUNNER: Right. 17 MS. HOUSER: Right now, obviously, the easiest 18 thing is for BOE to be in the building. 19 MR. RUNNER: Right. 20 MS. HOUSER: But it doesn't meet our business 21 needs. So -- 22 MR. RUNNER: If there was a -- if there was a 23 grander scheme that, you know, that could be put 24 together that would, indeed, fill the building and then 25 give an option then for BOE that would still -- the 26 issue of filling the building is not the BOE for ten 27 years, it's a State leasee (verbatim) that could then 28 continue on the bond payment to make sure the -- 4 1 MS. HOUSER: Yes, that is our understanding of 2 how the bond -- what the bond debt service requires. 3 MR. RUNNER: Okay, thank you. 4 MR. HORTON: Further discussion, Members? 5 ---o0o--- 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'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 MARCH 21, 2012 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 5 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: April 13, 2012 17 18 19 ____________________________ 20 JULI PRICE JACKSON 21 Hearing Reporter 22 23 24 25 26 27 28 6