1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 REPORTER'S TRANSCRIPT 7 JUNE 25, 2019 8 9 10 11 ITEM L 12 BOARD MEMBER REQUESTED MATTERS; 13 ITEM L1 14 STRATEGIC PLANNING SESSION: 15 DISCUSSION ON BOARD MEMBERS' PRIORITIES AND 16 GO-FORWARD PLAN 17 18 19 20 21 22 23 24 25 26 27 REPORTED BY: Jillian M. Sumner 28 CSR NO. 13619 1 1 P R E S E N T 2 3 For the Board of Honorable Malia S. Cohen Equalization: Chair 4 Honorable Antonio Vazquez 5 Vice Chair 6 Honorable Ted Gaines First District 7 Honorable Mike Schaefer 8 Fourth District 9 Yvette Stowers Appearing for Betty T. 10 Yee, State Controller (per Government Code 11 Section 7.9) 12 For the Board of Brenda Fleming 13 Equalization Staff: Executive Director 14 Henry Nanjo Chief Counsel 15 Toya Davis 16 Clerk Board Proceedings 17 18 ---oOo--- 19 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 JUNE 25, 2019 4 ---oOo--- 5 MS. DAVIS: Our next item is Item L1, 6 Strategic Planning Session: Discussion of the Board 7 Members' Priorities. 8 MS. COHEN: Thank you very much. 9 And so what I'd like to do at this time is 10 pivot and allow Mr. Vazquez an opportunity to discuss 11 his -- his idea and his memo to this body. 12 Mr. Vazquez. 13 MR. VAZQUEZ: Yes. Thank you, Chair Cohen. 14 And I was just looking at the -- if you look 15 at the draft that's before you, I just wanted to, 16 before we get into some of the discussion, emphasize 17 that this is a strategic plan that is for the Board, 18 not for the agency or its employees. Just to make 19 that clear. 20 And as you look at the memo, this memo was 21 meant to be more of a -- really just kind of a 22 starting point for all of us to look at. And since 23 we don't really have the opportunity to interact or 24 to converse privately, that this all be done in this 25 open-form fashion. 26 So if you look at the strategic goals that 27 we have here, by no means are these set in cement, or 28 are these all inclusive. So if Members who had a 3 1 chance to look at this have any suggestions, 2 modifications, comments, I'd be open and willing to 3 hear those so we can move forward. 4 And then, of course, I don't expect us to 5 actually get into this today, but rather to plan for 6 this, hopefully that we can start on something like 7 this as a second meeting when we meet in our Board 8 Meeting in July. So this would be something that we 9 would take up on a Wednesday following our Board 10 Meeting on a Tuesday. 11 Because, as you can see, if we were to do 12 this at the end of our meeting, I know most of us are 13 kind of brain dead by the end of the afternoon. And 14 I'd rather see us get into this discussion and the 15 strategic planning at the beginning of the day. So 16 this would happen hopefully on a Wednesday morning 17 that we would come back and start fresh. 18 MS. COHEN: All right. 19 So thank you for the presentation. 20 Members, I just wanted to also highlight 21 that if there is something in this memo that you had 22 a chance to review that you'd like to add, or any 23 goals that you'd like to add to the list, please 24 speak up. I'd love to hear what your ideas are. 25 I do want to talk to Ms. Fleming for a 26 moment. I want to talk a little bit about possibly 27 bringing back the previous Board's, the work that 28 they did. 4 1 If I understand, they did -- the staff 2 undertook some serious -- did some serious work 3 around goals for the agency, but were unable to get 4 them approved; is that correct? 5 MS. FLEMING: So if what we're referring to 6 is -- and don't quote me at this moment on the exact 7 date, but I want to say 2015/2016 timeframe -- 8 MS. COHEN: I think you're -- I think you're 9 right. 10 MS. FLEMING: -- we had a -- as we would 11 propose our strategic plans that typically were a 12 three-year window, we worked with some interactions 13 with a company that assisted us with that. We 14 developed the agency strategic plan. 15 That strategic plan was never fully adopted 16 by the Board. And so we actually transitioned the 17 name of it to the strategic management plan, and 18 shifted it to just a tool for agencies. 19 MS. COHEN: Understood. 20 MS. FLEMING: So that allowed us to have 21 targets for, you know, operational tax program and 22 administrative matters. 23 MS. COHEN: So thank you for that 24 clarification. So that means that the work that was 25 done is now in the process and has been implemented 26 already for the agency. 27 MS. FLEMING: So that was implemented -- we 28 acted on it from 2015 to basically the 2017 5 1 timeframe, of which -- 2 MS. COHEN: Okay. 3 MS. FLEMING: -- the BOE 1.0 shifted to the 4 current version of itself. 5 MS. COHEN: All right. Well, that -- so 6 we'll scratch that. 7 Colleagues, is there any discussion on this? 8 This -- yes. Okay. Come on. 9 MR. GAINES: If this is the right time. 10 MS. COHEN: This is the right time, 11 Senator Gaines. 12 MR. GAINES: I want to thank Mr. Vazquez for 13 bringing this forward. 14 And you had asked about areas of focus. 15 MS. COHEN: Mm-hm. 16 MR. GAINES: And I like that you've included 17 the educational component. Because I think that's 18 exactly the sorts of things that we ought to be 19 focusing on. That there's an opportunity to develop 20 these partnerships that you're talking about with 21 assessors. 22 We just had a great discussion with Assessor 23 Davis. I think an opportunity to reach out, I think 24 our communication with the Legislature is critical. 25 So I think we ought to be focused on educating them 26 so they're familiar with what we're doing. 27 I know that we're doing that kind of in an 28 informal way, and making sure that we're 6 1 communicating and being transparent with the 2 Legislature. But means of formalizing that, having 3 opportunities to have legislators come here and share 4 things that they may be working on in conjunction 5 with the BOE would be helpful. 6 I like this aspect of reaching out to 7 nonprofits, that they understand the working of the 8 BOE, and how we might be able to assist those. And 9 certainly for taxpayers, too. 10 And we've got to -- I think it all fits 11 within the matrix of AB 102. We have to make sure 12 that we're living within whatever requirements are 13 within that. 14 But that's the area that I see great 15 opportunity with. So I appreciate that. 16 MS. COHEN: Thank you. 17 Mr. Vazquez, do you want to respond or 18 anything? 19 MR. VAZQUEZ: I appreciate your feedback on 20 that. I was just -- and if there's anything that you 21 think -- you know, we don't actually need to have it, 22 if you don't have it now. But I'm thinking when we 23 do start this brainstorming in July, by all means, 24 you know, this is just something, kind of a broiler 25 plate to kind of work with -- 26 MR. GAINES: Sure. 27 MR. VAZQUEZ: You know, let's tweak it and 28 make it hopefully as tight and as comprehensive as 7 1 possible. 2 MR. GAINES: Right. There -- it was 3 interesting, because in visiting my assessors, I met 4 with Kristen Spears, and she's in Placer County, one 5 of my counties. And she said she's having a 6 conference with assessors kind of regionally. And I 7 was just impressed with her leadership in putting 8 that conference on. And I'm hoping will have Members 9 of the BOE there to see what's happening. 10 But wouldn't it be nice if the BOE could do 11 that? Now, I know we've got a lot of challenges in 12 front of us from the staffing standpoint. 13 MR. VAZQUEZ: Yes. 14 MR. GAINES: We've got to make sure that 15 we're at full power. But I think we can provide a 16 lot of leadership to assessors, and we're 17 collaborating with them and providing expertise as we 18 fill these vacancies. 19 MS. COHEN: All right. 20 MR. SCHAEFER: Chair. 21 MS. COHEN: Yes, Mr. Schaefer. 22 MR. SCHAEFER: Whenever you talk about 23 strategic planning, I recall your proposal for 24 committees some months ago, and I don't know where 25 that is now. 26 But I would hope that the strategy for how 27 we communicate with the public would go back to 28 whether we've had committees in the past, and how 8 1 they worked out, and how could we consider that 2 today. 3 MS. COHEN: Thank you. That's actually a 4 really good question. It's a question that I've been 5 asking the staff -- maybe Henry Nanjo has an answer 6 for us -- for at least three months. 7 Mr. Nanjo, where are we on committee 8 structures? I originally asked for a letter. I 9 don't believe I've ever seen one. If I have, I 10 apologize. 11 MR. NANJO: I put together a response and a 12 legal memo that went to the Executive Director. I 13 believe it went to the Members of the Board. So you 14 should have that. If you need anything, let me 15 know. 16 MS. COHEN: You'll resend it? I appreciate 17 that. Thank you. 18 MR. NANJO: That's fine. 19 MS. COHEN: Could you summarize what that 20 letter says for Mr. Schaefer and the rest of us? 21 MR. NANJO: It's a little complicated. And 22 I don't have it handy, so I'm not prepared to 23 summarize it. 24 But we will make sure it gets sent out. And 25 if you have any questions, you can contact me 26 individually. 27 MS. COHEN: All right. 28 MR. NANJO: Thank you. 9 1 MS. COHEN: All right. 2 And sticking with my theme about the budget, 3 this strategic planning endeavor is going to require 4 a budget. I'm not quite sure what exactly that 5 budget is going to look like -- that's okay -- what 6 that budget is going to look like. 7 What I'd like to do is to propose a motion 8 for us to hire a facilitator. But let's be mindful 9 of what that cost is. 10 So let's begin to explore and hire -- 11 explore a facilitator, the hiring of a facilitator, 12 not to exceed the amount of $4,999. 13 Okay. So that we can start to get this ball 14 moving. We are in June, and we're not very close to 15 getting this plan shaped or moving. So today is a 16 good step. 17 I made a motion to hire a facilitator. 18 MR. VAZQUEZ: I'll second it. 19 MS. COHEN: And the reason why -- 20 MR. GAINES: I'd like to comment at the 21 appropriate time. 22 MS. COHEN: Okay. 23 I was going to say, the reason why I 24 selected the figure $4,999 is because it has become 25 brought to my attention that the agency doesn't need 26 clearance -- is that the correct phrase -- in order 27 to engage in this endeavor. 28 MS. FLEMING: Thank you, Members. Brenda 10 1 Fleming. 2 MS. COHEN: Thank you. 3 MS. FLEMING: So I'll go back and revisit 4 the numbers. But there is a threshold from a 5 procurement prospective that allows us to basically 6 just do kind of like a time and materials. And so it 7 doesn't have to go through the competitive process. 8 So we'll revisit that part of the process 9 and nail down that detail, and then come back with 10 the opportunities. 11 MS. COHEN: We're grateful. 12 So we're going to go ahead and authorize 13 that if we can to move forward -- move forward in 14 that vain. 15 MS. FLEMING: Mm-hm. 16 MS. COHEN: And, however, if you come back, 17 and your due diligence shows that it's going to cost 18 us $10,000, then we -- that obviously makes the 19 motion null and void, and we'll continue the 20 discussion. 21 Thank you. 22 Mr. Gaines. 23 MR. GAINES: Yeah. I just -- I'm just 24 really nervous about spending money. And I just want 25 to be careful, because of the -- because of the 26 history of the BOE. I think we've got to make sure 27 that we're very careful with dollars spent. 28 And that if we can bring something plausible 11 1 that's inexpensive, I could support that. So if you 2 would clarify the motion. It sounds like it's going 3 to be reviewed -- 4 MS. COHEN: Yes. 5 MR. GAINES: -- by staff, and then we will 6 come back and have a second vote based on whatever is 7 proposed, if we agree to it? 8 MS. COHEN: Let me clarify. I am not making 9 a motion to authorize -- 10 MR. GAINES: Okay. 11 MS. COHEN: -- the purchase, or to enter 12 into an agreement. That's not what I'm doing. 13 MR. GAINES: Okay. 14 MS. COHEN: What I am doing is I'd like to 15 make a motion for us to begin to explore the hiring 16 of a facilitator not to exceed a certain amount of 17 money. 18 MR. GAINES: Okay. 19 MS. COHEN: This is just an exploratory 20 exercise so we know what is out there, the hourly 21 rate of a facilitator, to help us begin to fully 22 engage in this process. 23 The staff will come back with a full 24 recommendation, as well as a budget, on what the cost 25 will be for a strategic planning. 26 MR. GAINES: Okay. 27 MS. COHEN: So this is not -- we're not 28 saying -- 12 1 MR. GAINES: It would be a proposal with the 2 cost of facilitator and a budget. 3 MS. COHEN: Okay. 4 MR. GAINES: Very well. 5 MS. COHEN: Okay. 6 MR. GAINES: And can we provide input during 7 the interim? 8 MS. COHEN: Absolutely. 9 MR. GAINES: How does that -- I guess we can 10 do that through the Executive Director. 11 MS. COHEN: Exactly. 12 MR. GAINES: Okay. Good. 13 MS. COHEN: And if you have information that 14 you'd like to give to the Executive Director, again, 15 everyone has the ability do communicate directly with 16 the Executive Director or with Mr. Nanjo. 17 MR. GAINES: Wonderful. 18 MS. COHEN: And I'm always mindful not to 19 violate Bagley-Keene, so there won't be any 20 cross-communication between a majority of this 21 body. 22 MS. FLEMING: Madam Chair, just a point of 23 correction. 24 So I do want Chief Counsel Nanjo to be 25 available to you and to not be bottlenecked. But I 26 would ask that if you're communicating with 27 Mr. Nanjo, just so we're in compliance with the law, 28 that you do just cc me on the e-mail. 13 1 MS. COHEN: Of course. 2 MS. FLEMING: So that we have an opportunity 3 to create balance for his workload also. 4 MS. COHEN: Of course. Thank you. 5 MS. FLEMING: Thank you. 6 MS. COHEN: So I believe I've clearly stated 7 the motion. 8 Yes, Mr. Schaefer. 9 MR. SCHAEFER: Well, only after this motion 10 is done I have a comment. 11 MS. COHEN: Oh, okay. 12 Is there a second to my motion? 13 MR. VAZQUEZ: I seconded it. 14 MS. COHEN: All right. A second made by 15 Mr. Vazquez. 16 Can we take this without objection? 17 Is this unanimous? 18 Are you abstaining? 19 MS. STOWERS: No, I'm voting. 20 MS. COHEN: Okay. Well, can we take this 21 without objection? Or do we need a roll-call vote? 22 All right. We'll take this without 23 objection. 24 Thank you. Motion passes unanimously. 25 All right. Thank you. Thank you, 26 everyone. 27 MS. FLEMING: Mr. Schaefer, comment. 28 MS. COHEN: Oh, Mr. Schaefer. Comment. 14 1 MR. SCHAEFER: Yes. I asked Ms. Fleming by 2 e-mail about a half an hour ago about getting a 12 to 3 18 inch or 12 to 15 inch seal of either the state or 4 the BOE -- 5 MS. COHEN: Wait, wait, wait. We will save 6 that. We're almost at that part of the calendar 7 agenda. Hold on. We will definitely revisit that. 8 All right. Thank you. 9 MR. VAZQUEZ: And I understand we'll excuse 10 our Chair, and I will take over for the last part of 11 the meeting. 12 MS. COHEN: Yes, that's right. 13 MR. VAZQUEZ: And I'm going to ask Ms. Davis 14 to call the next item. 15 And thank you for your service. 16 MS. COHEN: Thank you. 17 MR. VAZQUEZ: And safe travels. 18 ---o0o--- 19 20 21 22 23 24 25 26 27 28 15 1 REPORTER'S CERTIFICATE 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, Jillian Sumner, Hearing Reporter for 8 the California State Board of Equalization, certify 9 that on June 25, 2019 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 15 14 constitute a complete and accurate transcription of 15 the shorthand writing. 16 17 Dated: July 23, 2019 18 19 20 ____________________________ 21 JILLIAN SUMNER, CSR #13619 22 Hearing Reporter 23 24 25 26 27 28 16