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 JUNE 23, 2015 9 P OTHER ADMINISTRATIVE MATTERS 10 P5 ADMINISTRATION DEPUTY DIRECTOR'S REPORT 11 P5.1 REPORT ON DISCUSSION WITH SEIU 12 REGARDING IN-HOUSE SECURITY SERVICES 13 ---o0o--- 14 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 Jerome E. Horton of Equalization: Chairman 4 5 Sen. George Runner (Ret.) Vice-Chairman 6 7 Fiona Ma, CPA Member 8 9 Diane L. Harkey Member 10 11 Yvette Stowers Appearing for Betty T. 12 Yee, State Controller (per Government Code 13 Section 7.9) 14 Joann Richmond 15 Chief, Board Proceedings Division 16 17 18 ---oOo--- 19 20 SPEAKERS: Margarita Maldonado Vice President 21 SEIU Local 1000 22 Mario Guerro Legislative Director 23 SEIU Local 1000 24 ---o0o--- 25 26 27 28 2 1 INDEX OF SPEAKERS 2 3 NAME PAGE 4 5 Margarita Maldonado 5 6 Mario Guerrero 6 7 ---o0o--- 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 1 5901 GREEN VALLEY CIRCLE 2 CULVER CITY, CALIFORNIA 3 JUNE 23, 2015 4 ---oOo--- 5 MR. HORTON: Members and guests, let us 6 reconvene the meeting of the Board of Equalization. 7 Ms. Richmond, what is our next matter? 8 MS. RICHMOND: Our next matter is item P5, 9 Administration Deputy Director's Report, P5.1, we 10 have a report on discussions with SEIU regarding 11 in-house security services. 12 MR. HORTON: Members, let us -- let us also 13 invite Margarita Maldonado, Mario Guerrero to the -- 14 representing SEIU. 15 Welcome to the Board of Equalization. 16 MS. MURPHY: Good morning, Chairman Horton 17 and Members. I'm Edna Murphy, the Deputy Director 18 of Administration. 19 This item is a carryover from our May 27, 20 2015 Board meeting, when I presented an 21 informational item on the current status of our 22 transition of contracted security guards to civil 23 service positions. 24 Here today to address the Board is 25 Ms. Margarita Maldonado, the Vice President for 26 Bargaining with SEIU Local 100 -- 1000, and Mario 27 Guerrero, Legislative Interim Research Director, 28 also with SEIU. 4 1 Thank you. 2 MR. HORTON: Welcome, Ms. Maldonado. 3 ---o0o--- 4 MARGARITA MALDONADO 5 ---o0o--- 6 MS. MALDONADO: Thank you very much Board 7 Members and Chairman Horton. We really appreciate 8 the opportunity to be here and appreciate your 9 support. 10 So, I'm the Vice President with SEIU 1000, 11 and I am speaking in favor of the resolution. I 12 want to believe that you believe in the same thing 13 that we do around ensuring people can have a livable 14 wage and earn the money necessary in order to 15 contribute to the economies that we represent in the 16 State. 17 And we ask that, as a Board, you work with 18 us to end the contract with Intercon Security and 19 hire those security officers -- you can hire them or 20 give them the opportunity to enter civil service and 21 give them -- those civil servants -- the very same 22 experience and opportunity to protect the Board, the 23 offices. 24 And for Intercon guards at your buildings, 25 continue to contract at lower cost might mean 26 imposing higher human costs in the form of not 27 having the right kinds of skills or familiarity in 28 the needs of the Board of Equalization and making 5 1 some arbitrary discipline and discharge without the 2 benefits of civil service protections is also 3 something that's very important. 4 And I don't know if you're aware, but they 5 also have mandatory overtime and 12-hour shifts. 6 I'm not sure if that's really the best way that they 7 proceed because you should be very alert as you're 8 administering the security for the assets of the 9 Board of Equalization, as well as the human 10 resources that are contained. 11 So, we would really appreciate all of your 12 support with this resolution, and we believe that 13 this is an excellent step in the next direction in 14 bringing what we've been talking about for sometime 15 to fruition. 16 So, thank you very much for your support on 17 this resolution. 18 MR. HORTON: Mr. Guerrero. 19 ---o0o--- 20 MARIO GUERRERO 21 ---o0o--- 22 MR. GUERRERO: Sure. I just wanted to take 23 the opportunity to thank all of the Board Members. 24 We've had great conversations with each of you, with 25 your staff. 26 I think we've addressed a lot the concerns, 27 maybe not all of the concerns, but we really do 28 appreciate the openness and willingness to do that. 6 1 We do believe that insourcing these 2 security guards bring a lot of benefits to the 3 Board. 4 And we thank you for this opportunity to 5 speak to you today. 6 MR. HORTON: Thank you. Discussion, 7 Members? 8 Member Harkey. 9 MS. HARKEY: Hi, I'd just like to thank you 10 very much for working with me. I appreciate the 11 information, the back and forth, the exchange. 12 This was new to me, a totally new topic. 13 And, so, I had probably more questions than those 14 that were here at the east previous meeting. 15 I just want to ensure that this is a 16 resolution. It's not a -- it's not a contract at 17 this point, it's a resolution. 18 MS. MALDONADO: Correct. 19 MS. HARKEY: And, so, that way to me IT 20 kind of means we're going to investigate this. 21 And it's for Sacramento and San Jose? 22 MS. MALDONADO: Yes. 23 MS. HARKEY: Okay. And we will be 24 reviewing contracts, compare pricing, get those 25 options before we make a final decision. 26 And I also did raise some issues with 27 regard to if there were negotiations over to strike 28 or not strike, I needed to kind of know how that 7 1 would impact us. 2 So, I am proposed to -- to assist with passing 3 this resolution today, but I do want for the record 4 to note that I really want to review those questions 5 before it comes forward to the Board for approval. 6 MS. MALDONADO: Absolutely. And those are 7 valid concerns and definite questions -- or answers 8 that we can provide to you. 9 We really look forward to continuing this 10 opportunity to have the dialogue. We believe that 11 this is the best direction to move forward in 12 bringing those classifications into civil service 13 for the Board of Equalization. 14 So, we look forward to that next 15 opportunity. 16 Thank you. 17 MS. HARKEY: I appreciate you modifying the 18 resolution to make me comfortable. 19 Thank you. 20 MS. MALDONADO: All right. 21 MR. HORTON: Member Runner. 22 MR. RUNNER: Yeah, just real quick. 23 Can you -- can I have Ms. Murphy kind of 24 review what this -- what the process is? 25 Because this is -- this is an issue that 26 goes beyond just us. 27 MS. MURPHY: Absolutely. 28 MR. RUNNER: Where this resolution goes and 8 1 what the decision points are and how it would then 2 end up coming back to us? 3 MS. MURPHY: Sure. So, the resolution is 4 just kind of the initial step for SEIU as they start 5 to have conversations with the legislature and the 6 control agencies. 7 As a part of our process, we would be doing 8 a budget concept proposal that would go to 9 Department of Finance. 10 And, so, that would come before the Board 11 prior to that happening, as well as the Department 12 of Finance. It will go through the legislative 13 hearing process, like all other budget concepts. 14 And, so, you'll have an opportunity to 15 re-visit it in more detail -- all of the numbers, 16 all of the figures and kind of what the proposal is 17 going to be for the '16-'17 year. 18 So, that would be around August it would 19 come back before this Board as a BCP. 20 MR. RUNNER: But the -- the contract itself 21 now is the -- is a broad contract? 22 MS. MURPHY: It is. The contract is a 23 broad contract right now. 24 So, what they provide in service for us is 25 they do do the contracting for the security guards 26 in Sacramento and San Jose. But they also provide 27 any emergency -- 28 MR. RUNNER: I'm sorry, I meant -- I'm 9 1 sorry, I didn't mean the current contract -- with 2 the contract, I meant the current agreement out for 3 SEIU's involvement with guards is not a -- unique to 4 the BOE? 5 MS. MURPHY: No. When we -- 6 MR. RUNNER: So, that would be a discussion 7 that has to happen with Finance and the Governor's 8 office, unless they decide to carve the BOE off -- 9 MS. MURPHY: Right. 10 MR. RUNNER: -- out. 11 Right now they have a broader contract 12 beyond just the relationship that we have with the 13 guards, correct? 14 MS. MURPHY: Yes, they do. 15 And the legislature is looking at this at 16 -- holistically. So, they are looking at all of the 17 departments that are State owned that have 18 contracting. 19 And, so, yes. 20 MR. RUNNER: Thanks. 21 MR. HORTON: Further discussion, Members? 22 Member Stowers. 23 MS. STOWERS: Yes, I think it's a -- it is 24 a resolution, I understand that. 25 I think it's a step in the right direction 26 in working with the control agencies and not just 27 for BOE, but for all other State agencies that are 28 using third party contract. 10 1 I -- and my thought is that I think having 2 them within our organization will add that added 3 benefit of security to knowing our organization and 4 our structure. 5 MR. HORTON: I want to thank each of the 6 Members for their involvement in this process. It 7 is the dialogue, beginning the dialogue, that 8 ends -- that eventually guides us along the way, 9 having the discussions to be able to address this 10 issue. 11 It's been around for a long time, but in 12 light of, you know, 9-11 and all of the other crises 13 that we face as a country, I think it's important 14 that the first -- you know, the individuals who will 15 be there in the beginning of a crisis, that they 16 have the most amount of information about the 17 organization, that they are a part of this 18 organization in such a way that they can understand 19 us, they can assist us, they can begin to save 20 lives. 21 They will have a better relationship. And 22 I think that's of extreme value, in addition to the 23 economic value that exists in the long term. 24 When there's -- when there's a financial 25 crisis, we have better control over -- over our 26 expenses and so forth. And I think that's extremely 27 important. 28 I wanted to share just a personal 11 1 experience. Many of you know at the last hearing I 2 was rushed out of here to the hospital. 3 And, so, as I was placed on the ambulance, 4 the security guard came out and he said, 5 "Oh, oh, what's his name? Who 6 is that? I have to fill out a report." 7 And I'm like, my God, just what if he 8 really needed to know my involvement? What if there 9 was more involved and he needed to tell Mr. Runner, 10 as Vice Chair, or other colleagues that they need to 11 now implement some emergency because it was a much 12 larger issue than just me having a potential heart 13 attack? 14 So, I much appreciate SEIU's engagement and 15 leadership in this regard, as well as our staff, and 16 look forward to the ultimate data that will evolve 17 from this process. 18 Thank you very much. 19 MS. MALDONADO: Thank you for the 20 opportunity. 21 MR. HORTON: Is there a motion, Members? 22 MS. MA: Move. 23 MR. HORTON: Member Ma moves to approve, 24 second by Member Harkey. 25 Without objection, Members, such will be 26 the order. 27 Thank you. 28 MS. MALDONADO: Thank you very much. 12 1 MR. RUNNER: Thank you. 2 MS. MALDONADO: Have a great day. 3 ---o0o--- 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 13 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 JUNE 23, 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 13 constitute 14 a complete and accurate transcription of the 15 shorthand writing. 16 17 Dated: July 10, 2015 18 19 20 ____________________________ 21 JULI PRICE JACKSON 22 Hearing Reporter 23 24 25 26 27 28 14