1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 5901 GREEN VALLEY CIRCLE 3 CULVER CITY, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 FEBRUARY 23, 2016 10 11 12 13 14 ITEM P 15 OTHER ADMINISTRATIVE MATTERS 16 ITEM P1 17 EXECUTIVE DIRECTOR'S REPORT 18 5. CROS PROJECT UPDATE AND ACTIONS 19 20 21 22 23 24 25 26 27 REPORTED BY: Kathleen Skidgel 28 CSR NO. 9039 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 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--- 21 22 23 24 25 26 27 28 2 1 5901 GREEN VALLEY CIRCLE 2 CULVER CITY, CALIFORNIA 3 FEBRUARY 23, 2016 4 ---oOo--- 5 MR. HORTON: Ms. Richmond, our next matter? 6 MS. RICHMOND: Our next matter is Item 7 P1.5, CROS Project Update and Actions. 8 MS. HARKEY: Speaking of -- 9 MR. HORTON: Mr. Gau, welcome to the Board 10 of Equalization. 11 MR. GAU: Good evening, Chairman, Members. 12 David Gau, Chief Deputy Director. 13 Briefly on the CROS Project update, staff 14 is continuing to review the final proposals. And 15 that review is progressing on schedule. 16 We are moving forward with the recruitment 17 of the CROS Chief Technology Officer who will report 18 to Ms. Brenda Fleming, who is our Chief Information 19 Officer in the Technology Services Department. 20 The filing -- excuse me, the final filing 21 date for that was February 9th, and we are currently 22 reviewing the applications. 23 Cost information, for the past -- in 24 December actually, the last current month we have, 25 actual expenditures were $684,000. Our budget is 26 732,000 for on a monthly basis, so we came in under 27 the monthly. 28 Year-to-date we're at 4.258, and our budget 3 1 is 4.425 million. And the project to date is 28 -- 2 just a little over 28 million actual expenditures, 3 and our budget is about 35 million in that regard. 4 That concludes my report. 5 MR. HORTON: Discussion? 6 Mr. Gau, I don't know that it's necessary 7 to come back to the Board in your next report, but I 8 really want to take a look at the revenue 9 projections as it relates to this. 10 I know we're still in the process. I've 11 had some constant concerns about the projected 12 revenue. And every time I hear one of these 13 expenditures and understand that the revenue -- the 14 payment is tied into the revenue generation, I want 15 to make sure that we have complete control over 16 that. 17 Department of Finance has expressed some 18 concerns in the past and most recently, and so we 19 want to take a look at that and begin to codify our 20 viewpoint and position on that. 21 MR. GAU: Mr. Chairman. 22 MR. HORTON: Thank you. 23 Further discussion, Members? 24 Without objection, the Board will receive 25 and file. 26 MR. GAU: Thank you. 27 ---oOo--- 28 4 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 February 23, 2016 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: March 28, 2016 18 19 20 ____________________________ 21 KATHLEEN SKIDGEL, CSR #9039 22 Hearing Reporter 23 24 25 26 27 28 5