1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 MAY 27, 2015 9 P5 ADMINISTRATION DEPUTY DIRECTOR'S REPORT 10 P5.1 REPORT ON DISCUSSIONS WITH SEIU 11 REGARDING IN-HOUSE SECURITY SERVICES 12 13 14 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 For the Board Jerome E. Horton of Equalization: Chairman 3 4 Sen. George Runner (Ret.) Vice-Chairman 5 6 Fiona Ma, CPA Member 7 8 Diane L. Harkey Member 9 10 Betty T. Yee State Controller 11 12 Joann Richmond Chief, Board 13 Proceedings Division 14 15 16 ---oOo--- 17 For Staff: Edna Murphy Deputy Director 18 Administration 19 20 ---O0O--- 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 MAY 27, 2015 4 ---oOo--- 5 MR. HORTON: One second, Members. 6 I'm in some kind of pain. I don't know 7 what it is, but it's pain. 8 Okay. Members, at the request of the 9 Controller, such that her schedule requires her to 10 be -- oh, man. 11 Ms. Richmond, let's move -- let's move to 12 the security guard item. 13 The staff will be just be advised we'll 14 bring this item up just for discussion by the 15 Members and still move the items over to allow 16 Member Yee to share her thoughts. 17 Thank you. 18 MS. RICHMOND: So, our next item is item 19 P5, the Administration Deputy Director's Report, 20 report on discussions with SEIU regarding in-house 21 security services. 22 MR. HORTON: I'd ask staff to come forward. 23 Welcome. 24 MS. MURPHY: Thank you. 25 Good morning, Chairman Horton and Members. 26 I'm Edna Murphy, Deputy Director of Administration. 27 This item is an informational update. Back 28 in April 2014, during the Board meeting, SEIU 3 1 Legislative Analyst, Mr. Randall Cheek, asked 2 that -- the Board to consider utilizing State 3 employees in lieu of the contracted security guards. 4 Specifically, the Department was requested 5 to: 6 One, engage the SEIU Local 1000 7 representatives on their request to transition to 8 civil service employees from private contractors; 9 Two, to determine the cost comparison 10 difference and related funding if such a transition 11 was to occur; . 12 And then, third, establish the transition 13 plan parameters required for cancellation of the 14 current Master Service Agreement through CHP and 15 implement a civil service recruiting and hiring 16 program. 17 In addressing the first items, both parties 18 acknowledge that this is a statewide matter, not BOE 19 specific, thereby requiring consultation with other 20 agencies. 21 So, from May of 2014 to current, BOE staff 22 have had numerous meetings with members of SEIU 23 Local 1000, Cal HR, the Department of Finance and 24 the legislature to address this issue. 25 If the funding is included in fiscal year 26 2015-16 budget, BOE would need to begin the 27 recruitment and hiring process. This includes, but 28 is not limited to, developing duty statements for 22 4 1 positions -- 16 that will be located here at 2 headquarters and six in San Jose -- to meet the 3 security and safety needs, to develop a security 4 guard manual for the new civil service staff, to 5 institute a training program for security guard 6 training, identify and implement logistics to 7 establish a 24-hour manned BOE security center, 8 which includes being trained on our equipment 9 outside, identify and procure all appropriate 10 communication equipment and technology, including 11 uniforms, equivalent to that which Intercom 12 currently provides and then identify and implement 13 solutions to transition off the MSA contract to 14 civil service positions. 15 Currently the contract costs 880,000 and 16 that also includes our San Jose. The cost of the 17 civil service staff would be $1.2 million annually, 18 with a slight decrease in outgoing years due to 19 elimination of one-time costs. 20 I want to thank you for allowing this 21 presentation of this information. 22 MR. HORTON: Members, we are in receipt of 23 a resolution wherein SEIU had asked us to take a 24 leadership role in adopting the resolution 25 signifying the views of this body, or lack thereof. 26 I would ask that -- oh, boy. 27 Have all the Members had an opportunity to 28 review the resolution? 5 1 MS. HARKEY: Yes. 2 MS. MA: Yes. 3 MS. HARKEY: I'm looking for it. 4 MR. HORTON: We had -- we had originally 5 planned, Members, to put this matter over to allow 6 for testimony and those who had expressed desire to 7 testify. It indicated they would be here tomorrow. 8 So, I would ask that we accommodate them as 9 well, but in accommodating Madam Controller, we will 10 open it up for discussion. 11 Member Yee. 12 MS. YEE: Thank you, Mr. Chairman, for the 13 courtesy of opening up this matter. 14 And I would encourage you to still receive 15 the testimony, I just wanted to be able to provide 16 some input on this. 17 I wanted to express my support for the 18 direction of moving to in-source security guards at 19 the Board of Equalization. 20 I, however, found the resolution a little 21 lacking and that's why I wanted to comment. I think 22 there are some specific concerns relative to the 23 Board of Equalization that should be highlighted. 24 And I have had these conversations previously with 25 the representatives at SEIU 1000. 26 And specifically related to the sensitivity 27 of our work environment relative to the handling of 28 confidential taxpayer information, I think that 6 1 makes us unique. It makes us, I think, an agency 2 where we want to have the confidence that our 3 security guards are in-source and understand the 4 unique -- the uniqueness of our work environment and 5 can appropriately safeguard them. 6 Secondly, I wanted to have some mention 7 about really an understanding to the extent that our 8 in-source security guards will be integrated as part 9 of the overall organization, the understanding of 10 the fluctuations or cycles of our business 11 operations. 12 And by that I mean when we have even the 13 slightest increase in call center volume or any 14 other aspect of this organization that is affected 15 by cycles or new policies, that they are every part 16 of that communication with respect to changes in the 17 organization. 18 And then, thirdly, something that I think 19 we're all sensitive to, and that is the business 20 disruptions with respect to the ongoing challenges 21 of this building. And certainly I would look to our 22 security work force to be part of the front line and 23 really being responsive to any of the emergent 24 issues that come up with the challenges related to 25 the building. 26 So, I wanted to see if those could be 27 incorporated into the resolution because I think it 28 actually helps us with respect to justifying the 7 1 direction in which I believe most of us are looking 2 to move in. 3 And then just a question of Ms. Murphy. 4 And that is, we talked about this being a statewide 5 issue. Are we also engaging other agencies -- or 6 other agencies with contracted security being 7 consulted as well? 8 I suppose that's probably a Cal HR 9 question? 10 MS. MURPHY: Yes, but we actually had a 11 meeting with -- set up for yesterday with SEIU. And 12 that was one of the things that they wanted to talk 13 about. 14 So, they wanted to identify all of the DGS 15 buildings that have private security guards so that 16 as we look at this for BOE, we're also looking at to 17 what's going to be kind of the global approach to 18 roll this out to the other departments as well. 19 MS. YEE: Great, great. 20 So, I agree with the global approach, but I 21 do think we have some unique circumstances that 22 should be acknowledged in the resolution that we 23 ultimately adopt as a Board. 24 Thank you, Mr. Chairman. 25 MR. HORTON: Thank you, Member Yee. 26 Further discussion? 27 Member Runner. 28 MR. RUNNER: You know, I think the -- the 8 1 concept is certainly consistent with what we 2 discussed back in April -- or April of last year, 3 right, April of last year. 4 And, so, I think that it certainly is -- to 5 strengthen it and memorialize it, I think, is a good 6 step. 7 My concern is I think we can do a -- I 8 think we can do a more specific, stronger resolution 9 also. 10 And I think specifically the thing that 11 concerned me -- I got a copy of this yesterday -- 12 and, so, I would have appreciated, I think, some 13 more dialogue and discussion that would have helped 14 us even build a stronger resolution. 15 So, I'm fine with the concept, but I'm 16 certainly agreed that I think we can work together 17 and develop a more specific statement. 18 And I'd like to sit down and talk with the 19 folks about it. 20 MR. HORTON: Okay. Mr. Runner, is a day 21 sufficient? Or do you want to put it over to -- 22 MR. RUNNER: Yeah, I think we can do that 23 through the day. 24 MR. HORTON: Today? 25 MR. RUNNER: Is that what the Controller is 26 thinking or -- 27 MS. YEE: No preference, I really -- 28 because of my tight schedule -- and I appreciate the 9 1 courtesy of letting me put my comments on the 2 record -- but I would hope that just in terms 3 of full participation and getting a robust 4 resolution forwarded, that we would want the input 5 that we were expecting on the item when it was up on 6 the agenda. 7 MR. RUNNER: So, is it -- is the thought to 8 have the Deputy Director, along with our staffs, 9 work togeth -- work with a resolution that would be 10 satisfactory for bringing up tomorrow? 11 MS. YEE: Sure, yes. 12 MR. RUNNER: Okay. 13 MR. HORTON: Okay. Further discussion, 14 Members? 15 Members, we'll continue this item to 16 tomorrow and look forward to the -- look forward to 17 including the comments that have been provided to us 18 today and those that be will provided by 19 Member Runner. 20 MS. YEE: Thank you, Mr. Chair. 21 MR. HORTON: Members, let's take a 22 five-minute break. 23 ---o0o--- 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 8 the California State Board of Equalization certify 9 that on MAY 27, 2015 I recorded verbatim, in 10 shorthand, to the best of my ability, the 11 proceedings in the above-entitled hearing; that I 12 transcribed the shorthand writing into typewriting; 13 and that the preceding pages 1 through 10 constitute 14 a complete and accurate transcription of the 15 shorthand writing. 16 17 Dated: AUGUST 19, 2015 18 19 20 ____________________________ 21 JULI PRICE JACKSON 22 Hearing Reporter 23 24 25 26 27 28 11