1      BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION

            2                        450 N STREET

            3                   SACRAMENTO, CALIFORNIA

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            8                    REPORTER'S TRANSCRIPT

            9                      DECEMBER 16, 2015

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           14                           ITEM P 

           15                OTHER ADMINISTRATIVE MATTERS

           16                          ITEM P1 

           17                 EXECUTIVE DIRECTOR'S REPORT

           18             4.  CROS PROJECT UPDATE AND ACTIONS

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           27                      REPORTED BY:  Kathleen Skidgel 

           28                                     CSR NO. 9039




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            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 Chair
            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    For Staff:                 David Gau
                                            Chief Deputy Director 
           18    
                 
           19    

           20                          ---oOo---

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            1                               450 N STREET

            2                               SACRAMENTO, CALIFORNIA

            3                               DECEMBER 16, 2015

            4                          ---oOo--- 

            5             MR. HORTON:  Ms. Richmond.  

            6             MS. RICHMOND:  Our next matter is P1.4, 

            7    CROS Project Update and Actions.  

            8             MR. GAU:  Good afternoon, Members.  

            9             The Board is continuing to evaluate the 

           10    final proc- -- proposals for the CROS Project.  The 

           11    next milestone will be a public cost opening, which 

           12    we anticipate to occur in February of 2016.  

           13             The project team continues to make progress 

           14    on the -- several of their pre-implementation 

           15    activities.  Just to highlight a couple:  They 

           16    recently submitted to the Legislature their annual 

           17    report; and they also automated the revenue stream 

           18    reports, and those are what will be used to 

           19    determine vendor compensation during the 

           20    implementation.  So a couple milestones there.  

           21             We also had a kick-off of the CROS 

           22    organizational change management activities that was 

           23    conducted earlier this month.  

           24             With respect to budget issues, the project 

           25    has met with the Department of Finance and the 

           26    Department of Technology to preview our spring 

           27    finance letter and also our special project report 

           28    which will provide CROS funding for the '16-'17 




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            1    fiscal year, as well as the '17-'18.  

            2             The objective of the meeting was really 

            3    just to start getting some early feedback on some 

            4    potential red flags or issues.  The meeting went 

            5    well and the project continues to prepare these 

            6    documents.  

            7             And then in October of '15, our 

            8    expenditures for the month were about $666,000; that 

            9    was under budget of 732,000.  

           10             And then, as far as year-to-date and 

           11    project-to-date, the project does remain under 

           12    budget in both year-to-date as well as project.  

           13             That concludes my report.  Thank you.  

           14             MR. HORTON:  Discussion, Members?  

           15             Without objection, Members, we'll receive 

           16    and file.  

           17             Thank you very much, Mr. Gau.  

           18             MR. GAU:  Thank you, Members.  

           19                          ---oOo---

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            1                   REPORTER'S CERTIFICATE

            2    

            3    State of California    )

            4                           )  ss

            5    County of Sacramento   )

            6    

            7             I, KATHLEEN SKIDGEL, Hearing Reporter for 

            8    the California State Board of Equalization certify 

            9    that on December 16, 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 4 constitute 

           14    a complete and accurate transcription of the 

           15    shorthand writing.

           16    

           17    Dated:  January 21, 2016

           18    

           19    

           20                           ____________________________

           21                           KATHLEEN SKIDGEL, CSR #9039

           22                           Hearing Reporter

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