SUBCOMMITTEE FORESTED
ADMINISTRATION.
TODAY WE'LL DISCUSS THE BUDGETS
OF CAL STIRS.
THE STATE TREASURER'S OFFICE
CALIFORNIA SECURE CHOICE
RETIREMENT SAVINGS INVESTMENT
BOARD.
CALIFORNIA ALTERNATIVE ENERGY
AND ADVANCED TRANSPORTATION
FINANCING AUTHORITY. IN THE
STATE COMPTROLLER'S OFFICE.
THE PLAN FOR THE GENDER ZERO ALL
ITEMS RETURNED ABILITIES ITEMS
LATER THE BUDGET SESSION.
WE WILL CALL WHICH IS WOULD OF A
QUORUM FIRST WILL HELP GO IT'S
OFTEN SUBCOMMITTEE SERGEANTS WE
CALL THAT THE MEMBERS PLEASE.
SO GO HEAD START OFF ON A
MISSION NUMBER ONE.
UPDATE ON THE TWENTY SEVENTEEN
TWENTY EIGHTEEN SUPPLY REPORT
LANGUAGE.
FOR CUSTOMERS
.
MISTER CHAIR MEMBERS OF THE
COMMITTEE THANK YOU VERY MUCH
FOR THIS OPPORTUNITY TO GIVE YOU
A BRIEF UPDATE ON THE
SUPPLEMENTAL REPORTING LANGUAGE.
ON THAT WAS PART OF THAT TWENTY
SEVENTEEN EIGHTEEN BUDGET ACT.
SO.
AS THE AS A BRIEF BACKGROUND.
LAST YEAR THE.
AND IT STATE TEACHERS RETIREMENT
BOARD.
.
REQUIRED CALAVERAS STAFF TO
REVIEW.
TO REVIEW.
SORRY.
TO REVIEW VARIOUS.
OPTIONS WITH REGARD TO A LONG
TERM FACILITY PLANNING.
A ONE OF THOSE OPTIONS WAS TO
LOOK AT THE CONSTRUCTION. OF AN
ADDITIONAL.
.
TOWER ADJACENT TO OUR.
EXISTING.
CAMPUS
OTHER ALTERNATIVES WERE ALSO TO
BE EXPLORED INCLUDING A LONG
TERM LEASE OPTION. AND.
PURSUING.
THE PURCHASE OF A SEPARATE
BUILDING.
AND ALSO.
.
DOING THEIR THE NECESSARY TENANT
IMPROVEMENTS FOR THAT.
WHEN THE SUPPLEMENTAL REPORTING
LANGUAGE I WAS FINALIZED
I'M IT WAS ENVISIONED THAT CAL
STORE STAFF WOULD ACTUALLY TAKE
THAT INFORMATION TO THE BOARD.
IN NOVEMBER OF TWENTY NINETEEN
AND PROVIDE THE LEGISLATURE.
AREN'T THE SUPPLEMENTAL
REPORTING REQUIREMENT.
HA AND BY OCTOBER FIRST AT
TWENTY NINETEEN.
SINCE THAT TIME.
CAL STATE THE CULTURES BOARD
HAS REQUESTED THAT STOP
ACCELERATE THIS PROCESS.
AND ACTUALLY BRING FORWARD THIS
ANALYSIS IN THIS DATA ON BACK TO
THE BOARD IN NOVEMBER OF TWENTY
EIGHTEEN.
EXACTLY ONE YEAR EARLIER.
SO AS PART OF THAT WE WOULD
ALSO.
MEET OUR COMMITMENT TO THE
SUPPLEMENTAL REPORTING LANGUAGE
BY BRINGING FORWARD THAT DATA
I'M TO YOU AT THE LATEST BY
OCTOBER FIRST TWENTY EIGHTEEN.
ARE WE ARE ENDEAVORING TO
ACTUALLY PROVIDE THAT
INFORMATION TO YOU EARLIER.
BUT THERE ARE SOME CONSTRAINTS
WITH OUR THIRD PARTY INVESTMENT
CONSULTANTS REALISTIC
CONSULTANTS THAT WE ARE
DEPENDING ON CERTAIN DATA.
ANALYSIS FROM THEM AS WELL.
WITHOUT I'D BE HAPPY TO ANSWER
ANY QUESTIONS AND I ALSO FORGOT
TO INTRODUCE WITH ME TODAY I
HAVE.
ROBIN MATTSON CHIEF FINANCIAL
OFFICER OF CUSTER'S.
GO ABOUT YOUR QUESTION WE GOT IN
ONE OF THE BOARD. THAT ONLY
LEAVES ONE MONTH FOR OVERSIGHT
IF YOU COME BACK IN OCTOBER
GHOST THE BOARD NOVEMBER
CORRECT.
THAT'S CORRECT THE SUPPLEMENTAL
REPORTING WOULD COME TO THE
LEGISLATURE IN OCTOBER AT THE
ABSOLUTE LATEST OCTOBER FIRST.
THE BOARD WOULD HERE AND TAKING
ACTION ON THAT INFORMATION IT
MID NOVEMBER.
AND THAT'S CONSISTENT WITH THE
SUPPLE ONE LANGUAGE IT'S JUST A
YEAR EARLIER.
BUT IT.
OKAY I'M SO GLAD.
SO THE ORIGINAL.
TIMELINE WAS TO GO TO THE BOARD
IN NOVEMBER OF NINETEEN WITH A
REPORT TO IN OCTOBER OF NINETEEN
SO THE SAME.
SPAN OF TIME BETWEEN THE ACTUAL
BOARD ITEM AND THAT DUE DATE FOR
THE REPORT.
THEY'RE JUST A COUPLE OF REPORT
ITEMS THAT WE WON'T BE ABLE TO
GET.
ANY EARLIER THAN OCTOBER FIRST
OR COMMIT TO GETING ANY EARLIER
AND THAT REALLY HAS TO DO WITH
THE ACTUAL COSTS.
UP THE PROJECTED SPENDING ON THE
OPTION TO BUILD THE TOWER.
ANY QUESTIONS DUTCH CHOI.
I DON'T KNOW ARM.
EXACT.
YOU KNOW AND.
NEED CELL OF YOUR CUSTOMER BUT.
SINCE YOU YOU ARE SPEAKING
ABOUT THE NEED FOR.
PROF XIN TO BILLION ABOUT POWER.
AMANDA SO IN OTHER.
IN ALL. EXPANSION OF YOUR
OPERATION.
I I KNOW WHAT THE CUSTOMER IS SO
I I I AM YOU KNOW ONE OF THE.
WE TIED TO TEACHERS AND GETTING
COSTS MORE P. SELF UP.
PENSION BENEFIT RIGHT NOW.
BUT.
.
INSTEAD OF.
EXPANDING.
FISCAL FACILITY OR EMPLOYEES.
HAVE YOU DONE ANY ANALYSIS SO.
OF.
CONTRACTING OUT.
TO OUTSIDERS.
THE.
ARE FOR EXAMPLE ALONE NON LIGHT
LIKE A FEW DATA T. FINISH OUR
SERVICE IS SAYING THAT'S WHEN
YOU KNOW MANAGEMENT FIRM SET OUT
THE ODD LA.
YOU YOU YOU CAN YOU.
A MY MY FOR.
GUT FEELING IS THAT YOU CANSAVE
HUNDREDS OF MILLIONS OF DOLLARS.
CONSTRUCTING THE BUILDING ITSELF
BY AND DAN NOW FEELING WITH THE.
NOW YOU'RE TALKING ABOUT THE
UNIT TO FEAR LA WITH YOU MORE
ASSETTHE MANAGERS I DON'T KNOW
WHAT THE SALARY WOULD BE IS
SOMEWHERE.
AT LEAST A HUNDRED THOUSAND
TWENTY THOUSAND DOLLARS AND.
MAXIMUM ONE HUNDRED PEOPLE TO
FEEL IN THAT BUILDING.
NICK IF YOU COMPARE THAT THE
THAT WOULD BE.
PROBABLY EVEN NAM BETTER
PERFORMANCE OUT OF YOUR ASSETS
ARE AND THOSE SAVINGS STATE SOME
MONEY. HAVE YOU DONE THAT KIND
OF APPROACH ANALYSES.
ABSOLUTELY I THINK YOU FOR THE
QUESTION THAT'S ACTUALLY GREAT
SEGUE TO THE PROPOSAL THAT WILL
BE TALKING ABOUT NEXT BY TO
ANSWER THAT DIRECTLY.
YOU KNOW.
WE HAVE BEEN TRANSITIONING FROM
EXTERNALLY MANAGED PORTFOLIO
SENSE.
I'M ROUGHLY SINCE TWO THOUSAND
ELEVEN REGULARLY EVERY YEAR
MOVING MORE AND MORE ASSETS TO
INTERNALLY MANAGED. AS OPPOSED
TO EXTERNALLY MANAGED.
AND THERE ARE MANY BODIES OF
KNOWLEDGE OUT THERE WITH REGARDS
TO THAT THAT THE BENEFITS OF
DOING THAT I WOULD JUST KIND OF
HIGHLIGHT ONE WHICH IS THE C. E.
AND BENCHMARKING.
FIRM THAT PROVIDES ON DATA.
REALLY ACT GLOBALLY FOR PUBLIC
PENSION SYSTEMS AND. YOU KNOW
ONE OF THE NOTABLE.
FINDINGS FROM THEIR WORK AND UP
SURROUNDING THIS IS THAT.
ON AVERAGE.
AND INTERNALLY MANAGED PASSIVE.
IT IS IS MUCH MUCH CHEAPER AND
STILL IN IN THE PASSIVE
ENVIRONMENT CAN STILL ACHIEVE
SAME RETURN.
SO IT RANGES FROM ASSET STRATEGY
TO INVESTMENT TYPE BY IT COSTS
ANYWHERE FROM THREE TIMES.
YOU TEN TIMES THE AMOUNT TO
OUTSOURCE ASSETS FOR. INVESTMENT
MANAGEMENT.
SO IF YOU LOOK AT. AT A HAVING
ADDITIONAL SPACE FOR ADDITIONAL
INVESTMENT OFFICERS.
THERE'S COST AVOIDANCE IS BY
BRINGING THOSE ASSETS IN HOUSE
THAT.
THAT MORE THAN WHAT WOULD COVER
THE COST OF THAT ADDITIONAL
SPACE.
FOR JUST A KIND OF A VERY.
KIND OF SIMPLIFIED EXAMPLE WE
TOOK SOME DATA FROM C. E. AND
THAT. BASICALLY SAID THAT IT'S
ABOUT TWENTY ONE BASIS POINTS TO
EXTERNALLY MANAGE.
ASSETS
IF YOU DO IT AND HOW MUCH YOU
CAN DO IT FOR ABOUT FOUR BASIS
POINTS AND WHEN YOU DO THE MATH
ON. THE SIZE OF THE FUND WE HAVE
IT'S
HUNDREDS OF MILLIONS OF DOLLARS
THAT IT ACTUALLY.
SAVES TO TO DO THIS WORK IN
HOUSE AND. NOT EVERY ASSET
STRATEGY AND NOT EVERY PORTFOLIO
CAN BE MANAGED INTERNALLY BUT
THE ONES THAT WE CAN AND ONCE WE
KNOW THAT WERE. GONNA BE GREAT
OUT THOSE ARE THE ONES THAT WERE
THAT WERE PURSUING.
BEFORE YOU GET ONE A PLUS FOR
SECOND GOT A QUORUM HERE IS
GOING TAKE ROLE PLEASE. COOPER
HERE ALLEN CABALLERO CHIU.
CHOI HERE.
SO YOU ARE SAYING BASICALLY BY
THREE TIMES SO.
COSTING MORE FOR CONTRACTING
NOT EXTERNALLY. THAT'S CORRECT
IN A VERY CONSERVATIVE.
EXTERNAL MANAGER WOULD BE.
ABOUT AT A MINIMUM THREE TIMES
MORE OF THE COST THAN INTERNALLY
MANAGED.
SO INCLUDING VIA INITIAL NOT
EXPANSION OF FOR CONSTRUCTION
AND THEN ALSO A LONG TERM FULL
TIME EMPLOYEES OUT EX NUMBER
WHAT PEOPLE. AND THAT THE A
BENEFITS OF FOREVER HUNDRED
YEARS ESTILO.
IT ACOSTA LAST OF FOR INTERNAL
MANAGEMENT.
THE EXAMPLE I'M REFERRING TO.
BASICALLY LOOKED AT THE SCOPE
OF THE.
PROPOSAL THAT WE'RE GOING TO BE
TALKING ABOUT SHORTLY BUT IT.
BASICALLY LOOKED AT A FIVE TYPE
TIME HORIZON BUT.
EVEN LOOKING OUTWARDS FOR THE
LONG TERM.
A CIVIL SERVICE EMPLOYEES
SALARY.
INCLUDING WITH ON BENEFITS AND
PENSION AND HEALTH CARE. AND
THEN THE INDIRECT COSTS THAT
THEY WOULD ALSO BE CHARGED WITH
FOR HAVING OF A BUILDING IN
RESOURCES AND THAT AND THAT AND
ALL OF THE TECHNOLOGY THAT WOULD
NEED. IS STILL SIGNIFICANTLY
LESS EXPENSIVE THAN SENDING
THESE ASSETS TO A THIRD PARTY
FIRM TO MANAGE ITS ORIGIN DID
NOT AND NEVER TO SWING. PULL
BACK ON THAT I WANNA GO BACK TO
THE FACT OF THE THE EXTINCTION
LAST YOU GUYS CAME FOR US. US TO
PUSH UP TO NINETEEN.
NOT AGREE ESTAS BRING A BACKLESS
SHIRT EIGHTEEN AND THE ISSUES
THAT COMES BACK OCTOBER. WAS
LEGISLATURE'S ISSUER CHANGES IN
THE NEXT MONTH THE GOES BACK TO
THE BOARD.
SO HOW LONG TIME THERE SO THAT'S
REALLY THE ISSUE ELDRITCH SHARON
REQUEST
TO BRING IT BACK TILL THEM TO
EXCUSE ME TO PUSH LOT NINETEEN.
AND I WANNA BRING IT BACK SO I'M
REALLY CONFUSED.
WHY THAT WAS?
SO ORIGINALLY WE WERE CONCERNED
ABOUT THE TIMELINE FOR BRINGING
ON THE ACTUAL CONSTRUCTION
MANAGEMENT FIRM AND THE
ARCHITECT AND WE HAVE BEEN ABLE
TO SPEED THAT UP SO THAT'S
YOU'RE ABSOLUTELY CORRECT.
RICHARD COOPER THAT.
ORIGINALLY THAT THE LANGUAGE AS
PRESENTED WAS FOR EIGHTEEN WE
ASK BECAUSE WE WERE CONCERNED
ABOUT THE ABILITY OF US TO GET
THROUGH ALL THE PROCESSES TO
ACQUIRE THE CONSTRUCTION
MANAGEMENT EXPERTISE TO DO THE
ESTIMATES.
WE HAVE BEEN ABLE TO ACCELERATE
THAT PROCESS AND NOW WE'RE BACK
AT THE ORIGINAL REQUEST.
IT WAS FREELY ILLEGALS OFFICE DO
YOU THE COMMENTS.
RYAN MILLER FROM THE ILIO I WE
WE DON'T HAVE ANY SPECIFIC
COMMENTS ON ON THE BUILDING BUT
I I GUESS WE WOULD JUST NOTE
THAT. IT CERTAINLY IS
APPROPRIATE FOR THE LEGISLATURE
TO BE CONCERNED ABOUT.
BUT TIMELINE OF THE BUILDING IN
PARTICULAR.
IF THE REPORT COMES IN IN THE
FALL THE LEGISLATURE MAY NOT
HAVE MUCH UP PERTINENT A TO. TO
IT YOU KNOW GIVEN SNOW SESSION
DATES AND THINGS LIKE THAT MAY
NOT REALLY HAVE OPPORTUNITY TO
SCRUTINIZE.
THE REPORT SO.
YEAH I BET MAYBE BEEN MAY BE
ADVANTAGEOUS FOR THE COMMITTEE
TO WORK WITH CAL STIRS AND SEE
IF YOU KNOW THERE'S A KIND OF
ALTERNATIVE TIMELINE THAT CAN BE
HASHED OUT. THAT SOMEONE RIGHT
NOW AS A CHAIR THIS COMMITTEE A
TIMELESS LOOKING OVER NICKELBACK
AND IN FIGURE SOMETHING ELSE OUT
BUT. TO GIVE SUCH SHORT TIME
LINE IN CASE SOMETHING DOES COME
UP.
THAT'S NOT ACCEPTABLE SO RULED
WORK WITH CASTERS ON THAT BOAT.
AND WE NEED FIGURE SOMETHING
ELSE OUT.
RIGHT SO WE'RE PREPARED TO
ANSWER BUTTONS THAT QUESTIONS
EXCEPT FOR A AND B. BY JULY SO
THAT'S YOU KNOW. THE IT'S JUST
THE ISSUES RELATED TO THE ACTUAL
FINAL COST ESTIMATES THAT WERE
CONCERNED THAT WE WOULDN'T HAVE.
SO WHAT WE COULD DO IS PROVIDE.
.
NOT TO EXCEED AMOUNTS
SO THAT'S A POSSIBILITY.
BUT ALSO WE WORK WITH STAFF ON
THAT MEASURE FIGURE SOMETHING
OUT BUT RIGHT NOW.
I DO WANT EXPRESSED MY CONCERNS
ABOUT THAT. HOME SO GLAD ONE
ITEM NUMBER TWO.
THIS INFORMATION ONLY.
THANK YOU MISTER CHAIR OF THE
PROPOSAL BEFORE YOU INTERNAL
ASSET MANAGEMENT.
THE REQUEST IS FIFTEEN POINT
FOUR MILLION DOLLARS.
IN FIFTY EIGHT POSITIONS OVER A
FIVE YEAR TIME HORIZON.
OF THAT AMOUNT WE ARE REQUESTING
THREE POINT FOUR MILLION AND
FOURTEEN POSITIONS IN THE BUDGET
YEAR.
THE RATE REMAINING AMOUNT OF
THAT'S REQUESTED AND IT'S
PROPOSAL WOULD BE DRAWN DOWN.
AS MARKET OPPORTUNITIES
ARE IDENTIFIED.
AND AT THAT POINT.
CAL STIRS STAFF WOULD.
HAVE A A THE PUBLIC AGENDA
NOTICE WITH FEE CASTERS FORWARD
AND REQUEST THOSE.
AND SHORTLY AFTER WE WOULD BE
SENDING.
A JUSTIFICATION LETTER TO THE
DEPARTMENT OF FINANCE AND ALSO.
AT JAIL BE SEEN NOTIFICATION
LETTER.
REGARDING TRYING DOWN
ADDITIONAL ASSETS.
THERE ARE A NUMBER OF BENEFITS
AS WE WERE BRIEFLY DISCUSSING A
MOMENT AGO ABOUT BRINGING ASSETS
IN HOUSE.
THE OBVIOUS ONE THAT WE'VE
DISCUSSED IS COST AVOIDANCE IS
THERE'S ALSO ADDITIONAL
TRANSPARENCIES.
ARM AND THERE'S.
WHAT'S NOT REALLY TALK ABOUT A
LOT IS THE INCREASED LIQUIDITY
OPPORTUNITIES THAT A LARGE
ORGANIZATION LIKE.
I'M CALAVERAS I REALLY VALUES.
.
SO I THOUGHT I WOULD OPEN IT UP
FOR ANY QUESTIONS SINCE WE'VE
TALKED ABOUT IT A LITTLE BIT
EARLIER SHIRKING GO AHEAD AND
JUST THE QUESTIONS IN THE AGENDA
PLEASE ABSOLUTELY.
AREN'T SO WITH REGARDS TO
INCREASE INVESTMENT TRANSPARENCY
THIS IS REALLY FROM CAL STIRS
PERSPECTIVE.
ARMED WHEN YOU HAVE DIRECT
VISIBILITY INTO AN ASSET YOU
KNOW WHAT'S BEING INVESTED AND
YOU CAN CAN'T MEDICAID DIRECTLY
WITH THE PORTFOLIO MANAGER.
AND NOW YOU COMPARE THAT TO AN
EXTERNALLY MANAGED STRUCTURE
LET'S USE THAT PARTNERSHIP FOR
EXAMPLE.
MORE ONE LIMITED PARTNER HAN
AMONGST THE MANY WERE ALL OF THE
DECISIONS ARE PRIMARILY MADE BY
THE GENERAL PARTNERS SO.
FINANCIAL INFORMATION ISN'T AS
REAL TIME AS WE CAN GET IF WE
MANAGE IT AND HOUSE.
MOVING ON TO QUESTION NUMBER
TWO.
I'M HOW WHAT THE PROPOSAL
MAINTAIN OVERSIGHT.
.
AS BRIEFLY DESCRIBED.
SO THERE WOULD BE A PUBLIC.
AGENDA ITEM IN WHICH WE WOULD
ASK.
MCALISTER'S BOARD TO DRAW DOWN
AND NATIONAL ADDITIONAL ASSETS
FROM THIS PROPOSAL.
IF THEY WERE TO APPROVE THAT WE
WOULD.
SEND A NOTIFICATION TO THE
DEPARTMENT OF FINANCE.
JUSTIFYING THE NEED TO DRAW
DOWN FROM THOSE ASSETS IN THAT
WOULD TRIGGER A THIRTY DAY JAIL
PC NOTIFICATION AS WELL.
MOVING ONTO THREE HOW WOULD
CALPERS COMMUNICATE WAS
STAKEHOLDERS ABOUT THE DECISION
MAKING.
BOB SAID IS REALLY TWO VENUES
FOR THIS AND THE FIRST IS WE DO
REGULAR STAKEHOLDER ENGAGEMENT
PRIOR TO ANY PUBLIC BOARD
MEETING SO WE WOULD MEET WITH.
OUR STAKEHOLDERS AND DISCUSS THE
TOPICS IN THE AGENDAS AND.
HEAR THEIR CONCERNS AND
COMMENTS.
AND THEN OF COURSE AT THE ACTUAL
AGENDA OR EXCUSE ME AT THE
ACTUAL.
BOARD MEETING THERE IS ALWAYS AN
OPPORTUNITY FOR STAKEHOLDERS TO.
HAVE PUBLIC COMMENT ABOUT ANY
OF THE ACTIONS OR ITEMS THAT WE
ARE HEARING.
.
SO HOW THE STAFF RELATES TO HOW
THIS ADDITIONAL STAFF RELATES TO
THE CAPACITY OF OUR CURRENT
BUILDING SO.
SO ABSENT
ABSENT ANY POSITIONS WE ARE
ALREADY FORECASTING THAT BY JULY
ONE NINETEEN WE ARE GOING TO
HAVE TO FIND.
SHORT TERM LEASE BECAUSE WE'RE
REACHING CAPACITY IN OUR CURRENT
STRUCTURE.
SO BECAUSE.
WE COULD WE COULD.
ABSORB SOMEWHERE BETWEEN.
THIRTY TO FIFTY POSITIONS RIGHT
NOW IN OUR CURRENT STRUCTURE AND
AFTER THAT IT WOULD HAPPEN WE
WOULD NEED AGAIN. SHORT TERM
LEASE CAPACITY.
YES YES YES IN REVOLUTIONS FIFTY
THREE FIFTY EIGHT I THINK IS SO
THAT YES THE TOTAL LAST IS FIFTY
EIGHT OF THAT WE ARE ASKING FOR
FOURTEEN IN THE BUDGET YEAR.
YOU CAN YOU CAN ABSORB HOW MANY
IN EXCESS OF FIFTY RIGHT NOW.
IT SOMEWHERE IN THE NEIGHBORHOOD
OF THIRTY TO FIFTY WE HAVE A
NUMBER OF CONTRACTORS THAT ARE
ON SITE AS WELL SO THAT AND AND
THEN WHEN YOU COMPOUND THAT
WITH.
ON REGULAR ATTRITION AND
TURNOVER ON IT YOU KNOW BETWEEN
THIRTY AND FIFTY POSITIONS AS OF
RIGHT NOW.
OKAY.
ILLEGAL.
I WILL.
WE WOULD NOTE THAT THIS PROPOSAL
IS.
ANOTHER EFFORT.
THE CULTURE'S BEEN MAKING FOR
MULTIPLE YEARS NOW TO BRING MORE
OF THEIR INVESTMENT SERVICES IN
HOUSE.
SO REGARDING THE PROPOSAL ITSELF
WE DON'T HAVE CONCERNS
BUT OF COURSE THERE IS THIS
RELATIONSHIP BETWEEN THIS BCP
AND. THE ITEM ONE CONCERNING THE
BUILDING. AND SO.
WE WOULD NOT THE STAFF
RECOMMENDATION TO HOLD THE ITEM
OPEN SEEMS REASONABLE BECAUSE I
AS YOU CONTINUE TO WORK WITH CAL
STIRS ON THE ON THE ON THE
BUILDING ISSUE.
YOU KNOW THIS PCP MAY MADE A
CHANGE IN THE FUTURE DEPENDING
ON HOW THAT PLAYS OUT THINGY
FINANCE.
AND EVERYTHING TOWARD PUBLIC
FINANCE WERE SUPPORTIVE OF THE
PROPOSAL AND HAVE NO OBJECTIONS
TO THE RECOMMENDATION.
OKAY HIM QUESTIONS IN THE
COMMITTEE.
REPETITION IS ALSO ITEM OPEN SO
WILL THE OPEN.
LET'S MOVE ON TO ITEM NUMBER
THREE THANK YOU THANK YOU
INFRASTRUCTURE SUPPORT
SUSTAINABILITY
.
AFTERNOON.
GOOD AFTERNOON CHAIR AND MEMBERS
OF THE COMMITTEE.
I'M A BECKY GRAYSCALE WITH THE
STATE TREASURER'S OFFICE
AND WITH ME TODAY I HAVE.
GENEROSA DEPUTY TREASURER FOR
INNOVATION AND TECHNOLOGY WITH
THE TREASURER'S OFFICE.
TO I THINK WE'LL START WITH A
BRIEF OVERVIEW OF THE REQUEST
AND THEN WE'LL PROCEED TO ANSWER
THE QUESTIONS IDENTIFIED IN THE.
.
AGENDA BY THE COUNCIL
BUDGET.
HELLO MEMBERS AS CHAIR THANK YOU
FOR HEARING US TODAY I'M HERE
WITH A FUNDING REQUEST
FOR THE STATE TREASURER'S
OFFICE.
FOR FOUR HUNDRED AND FIFTY
THOUSAND DOLLARS FOR REQUESTING
GENERAL FUND. OF FOUR HUNDRED
THOUSAND DOLLARS WOULD BE FOR
THIS CURRENT AND BUDGET YEAR AND
INTO PERPETUITY FIFTY THOUSAND
WOULD BE ONE TIME. THE
AUGMENTATION IS NECESSARY TO
SUPPORT THE. EXPANSION IN THE
INFRASTRUCTURE AT S. TEO WE
HAVEN'T HAD A DEDICATED FUNDING
SOURCE FOR THIS INFRASTRUCTURE
FOR THE ONGOING. HARDWARE AND
SOFTWARE LICENSES PREDOMINANTLY.
FOR.
ENABLING TECHNOLOGIES SUCH AS
MOVING HARDWARE TO VIRTUAL
PLATFORMS REDUCING AND OUR POWER
CONSUMPTION THROUGH TECHNICAL
TECHNOLOGICAL EFFICIENCIES
MITIGATING VULNERABILITIES
MEETING CUSTOMER EXPECTATIONS
WITH MORE ADVANCED TECHNOLOGY
SERVICES.
FORMERLY THIS HAS BEEN PAID FOR
THROUGH.
AND SPENT YEAR AND FUNDS AND WE
FIND THAT TO BE AN UNSUSTAINABLE
AND AN UNCERTAIN AND AN
UNRELIABLE FUNDING STRATEGY. SO
THIS REQUEST IS HERE TO ADDRESS
THAT SO WE CAN REDUCE THOSE
UNCERTAINTIES AND
VULNERABILITIES. WE HAVE
REQUESTED TO BE SEE PEACE IN THE
FIRST TWO YEARS OF THE CHIANG
ADMINISTRATION ONE IN FIFTEEN
SIXTEEN AND ONE SIXTEEN
SEVENTEEN AND THIS IS OUR THIRD.
THE FIRST ONE WAS FOR ELEVEN
POSITIONS TO TRUE AT THE AMOUNT
OF STAFF THAT SUPPORTED THE IT
COMPUTING SERVICES FOR THE S. T.
O. THE BOARDS COMMISSIONS AND
AUTHORITIES CHAIRED BY THE
TREASURER.
THE SECONDS FOR CYBERSECURITY
THIS ONE DOES NOT INCLUDE P.
WISE IT IS JUST FOR THE ON GOING
LICENSING AND PROVISIONING OF
HARDWARE AND SOFTWARE. IN
ADDITION TO SOME TRAINING VERY
SMALL AMOUNT OF TRAINING AND
TRAVEL.
OKAY ONE TO TANGO QUESTION BY
TRICIA BOUQUET. A WHAT
OPERATIONAL PRIORITIES HAS THE
SCO UNFUNDED IN ORDER TO ENSURE
COMPLIANCE AND SUSTAINABILITY OF
ITS IT SERVICES.
TYPICAL OF OF MOST DEPARTMENTS
WE HAVE USED YOUR IN SAVINGS FOR
IT INFRASTRUCTURE PURCHASES US
SAVINGS FROM SALARY SAVINGS
OPERATIONAL SPENT EXPENSES IN
OUR OTHER DIVISIONS. AND HARPER
THE COST OF OPERATING IS
INCREASING FOR EXAMPLE RANTS
COST OF GOODS AND THERE'S.
BUCKLEY NO AUGMENTATION FOR
THOSE INCREASED COST IN THE US
DEALERS FLEXIBILITY IN ABSORBING
THESE COST IS DECLINING.
QUE PAT SECOND QUESTION WHERE
HAVE COST INCREASE FOR THE IT
SERVICES IN THE PAST.
GOOD AFTERNOON MY NAME IS BUILD
UP I'M THE MANAGER OF TECHNICAL
SUPPORT AT THE OUR TREASURES
OFFICE.
HOME MY COMMENTS ON COSTS ARE IN
SUPPORT OF THE TABLE ON PAGE SIX
OF THE OF THE. THE CP WHICH.
SCRIBES HOW ARE INFRASTRUCTURE
HAS GROWN OVER THE PAST TEN
YEARS.
THIS INFRASTRUCTURE IT'S AN
ENTERPRISE INFRASTRUCTURE IN
SUPPORT OF THE S. TEO ITS PORTS
COMMISSIONS AND AUTHORITIES.
BUT THERE'S TO COST ELECTED
PRESENT IT OUGHT TO OFFER A WE
HAD INCREASES IN OUR CAPITAL
COSTS ARE AGGREGATE CAPITAL
COSTS OVER THAT TEN YEAR PERIOD.
AND IT ALSO THESE ADDITIONAL
COSTS HAVE IMPACTED OUR
OPERATING. COSTS ARE ANNUAL
OPERATING COSTS.
BETWEEN TWO THOUSAND SEVEN TWO
THOUSAND SEVENTEEN YES TO A
SPENT.
A TWO POINT SEVEN IN EXCESS OF
TWO POINT SEVEN MILLION DOLLARS
ON INFRASTRUCTURE.
UPGRADES OR INFRASTRUCTURE COSTS
NEITHER ESSENTIALLY NEW HARDWARE
NEW SOFTWARE.
THIS IS NOT A.
COMPLETE BECAUSE THIS IS THE
MAJOR ITEMS TERRACE MOTHER. THE
DISH WILL BUT THESE ARE THE THE
BIG HITTERS.
AND IN ADDITION AND AND MAKING
THOSE PURCHASES IT IS ALSO
IMPACTED OUR OPERATING EXPENSES
TO
TUNE OF.
SIX HUNDRED AND SIXTY THOUSAND
DOLLARS ANNUALLY.
SO THESE ARE.
IT WILL COST EXPENDITURES ARE
CLASSICS MENTORS AND ADDITIONAL
COSTS TO BE INCURRED AS WE
GROUND INFRASTRUCTURE OVER THE
PAST TEN YEARS.
TIME OR OTHER DEPARTMENTS
OFFICES IT FUNDED FROM THE
GENERAL FUND.
DUMB* DEPARTMENT OF FINANCE
GENERALLY SPEAKING HOW
DEPARTMENTS THAT RECEIVE FUNDING
FROM THE GENERAL FUND USE A
PORSCHE THAT FOR THEIR IT CHO.
THE BCAAS NASTY ó GET BENEFITS
FROM THE PROPOSED ACTIVITIES AND
IF SO WHY WOULD THEY NOT HELP
FUND THIS PROPOSAL.
SAID YESTERDAY ON THE BCAAS
CURRENTLY FUND APPROXIMATELY
NINETY SIX PERCENT OF THE I. T.
DIVISION COST.
OF THAT EIGHTY SEVEN PERCENT IS
REIMBURSEMENTS GENERAL FUND IS
ONLY EIGHT PERCENT AND THE
CENTRAL SERVICE COST RECOVERY
FUND IS FIVE PERCENT.
FOR COMPARISON PURPOSES B. SCO'S
DEPARTMENT WIDE FUNDING SPLIT
FOR FISCAL YEAR TWO THOUSAND
EIGHTEEN NINETEEN IS SEVENTY
FIVE PERCENT REIMBURSEMENT
SIXTEEN PERCENT GENERAL FUND AND
NINE PERCENT. CENTRAL SERVICE
COST RECOVERY FINE.
TO GIVE A LITTLE BACKGROUND AT
FOUR YEARS AGO THE IT DIVISION
ESSENTIALLY MIRRORED THE SDO
SPENDING SPLIT AS THEY WERE
SEVENTY EIGHT PERCENT
REIMBURSEMENT FOURTEEN PERCENT
GENERAL FUND ANY PERCENT US
CENTRAL SERVICE COSTS BUT.
SINCE IT TIME THE IT DIVISION
SUBMITTED BCP'S AN AUGMENTED ITS
BUDGET THAT THAT JAN JUST
EXPLAINED PRIMARILY THROUGH
REIMBURSEMENTS FROM THE BCAAS
THIS HAS RESULTED IN A CURRENT
FUNDING SPLIT OF EIGHTY SEVEN
PERCENT REIMBURSEMENTS EIGHT
PERCENT GENERAL FUND AND FIVE
PERCENT. CUT CENTRAL COSTS
SERVICE COST COVERED BY. THIS
REQUEST FOR GENERAL FUND IS TO
ASSIST THE SDO AND BRINGING IT
DEFUNDING BACK INTO REALIGNMENT
WITH THE REST OF THE DEPARTMENT.
WE ARE NOT REQUESTING ADDITIONAL
REIMBURSEMENTS FROM THE BOARDS
COMMISSIONS AND AUTHORITIES AS
THEY HAVE ALREADY EXPERIENCED A
THREE HUNDRED PERCENT INCREASE
IN IT COST OVER THE PAST FEW
YEARS. WHILE THEY ARE DRIVING
SOME BENEFIT FROM THIS
AUGMENTATION THE BULK OF THIS
AUGMENTATION IS DRIVEN BY THE
TREASURES INITIATIVES.
WE NEED THE AUGMENTATION
KEEPING.
UP WITH THE INCREASING IT DE
INFRASTRUCTURE COSTS BUT OUR
RELIANCE ON REIMBURSEMENTS IS
THAT ITS CAPACITY.
IN THE NEXT COUPLE YEARS WE'RE
GOING TO BE LOSING AND WEAK
REIMBURSEMENTS WHICH ARE. FOUR
MILLION DOLLARS AND AND.
TEN YEARS AGO WE WERE UP THIRTY
EIGHT PERCENT GENERAL FUND SO
WE'VE HAD QUITE A DECREASE IN
THAT WAS. PRIMARILY DUE TO
SHIFTING FUNDS DUE TO STATE
FISCAL STRASSER WERE REALLY JUST
TRYING TO REALIGN OURSELVES OR
ACTUALLY. GOING TO ENTER INTO A
STUDY TO LOOK AT OUR COSTS
VERSES ARE AT. FUNDING TO SEE IF
WERE APPROPRIATELY ALIGNED SO WE
JUST FEEL THIS AD GENERAL FUND
IS A.
APPROPRIATE REQUEST.
TO MEET THESE INFRASTRUCTURE
COST.
THANK YOU LL.
HOWLING CURSING AT THE
LEGISLATIVE ANALYST'S OFFICE SO
OUR RECOMMENDATION IS TO MODIFY
THE PROPOSAL TO FUND THIS
AUGMENTATION AND FROM THE BOARDS
COMMISSIONS AND AUTHORITIES FROM
THERE. AS WELL AS SCO FROM THEIR
VARIOUS FUNDS THAT SUPPORT THOSE
ENTITIES RATHER THAN FROM THE
GENERAL FUND. EXCLUSIVELY ON WE
KNOW THAT BASED ON OUR
CONVERSATIONS WITH S. T. O. AYE
IT DOES APPEAR THAT PORTS
MISSIONS AND AUTHORITIES AS WELL
AS THE TREASURER'S OFFICE WILL
BENEFIT FROM THESE. ACTIVITIES
ARE BASICALLY ON TO FOR THAT AS
WAS DESCRIBED SOME OF THEM ARE
REALLY JUST KIND OF CORE IT
OPERATIONS THERE THINGS LIKE
HARDWARE SOFTWARE.
TO TRAVEL AND TRAINING FOR THE
IT STAFF AND THOSE IT STAFF
SUPPORT NOT ONLY. THE
TREASURER'S OFFICE ITSELF BUT
ALSO THE BOARDS COMMISSIONS AND
AUTHORITIES. AND THERE'S ALSO
SOME FUNDING OF FOR THE SOFTWARE
THAT SUPPORTS THE TREASURER'S
INITIATIVES RELATED TO
TRANSPARENCY AND THEY'RE. ON THE
TREASURES OFFICE HAS INDICATED
THAT THOSE ARE BENEFIT ALL OF
THOSE ENTITIES AND SO WE THINK
IT'S APPROPRIATE THAT THEY ALL
HELP FUND THOSE ACTIVITIES. ON
AND THAT'S CONSISTENT WITH THE
APPROACH THAT'S BEEN DONE IN THE
PAST WHEN THERE IS THAT PROPOSAL
FOR EXAMPLE.
TO FUND THE DATA AND GOVERNMENT
TRANSPARENCY POSITIONS ON THE
IDEA BEHIND FAT ON WAS TO HAVE
THE PORTS MISSIONS AND
AUTHORITIES FUND THEM SO THAT IT
WOULD. KIND OF CREATE THIS
BALANCE AND THAT I'M ESSENTIALLY
IN GENERAL I HISTORICALLY THE
IDEA HAS BEEN ALL OF THOSE AND
IF ENTITIES THAT BENEFIT. OUR
FROM ITS IT SERVICES WOULD HELP
PAY FOR THEM.
FINANCE.
WE SUPPORT THIS PROPOSAL AS WE
RECOGNIZE THAT IT'S.
PROVIDING MORE BALANCE
FOR IT THEY HAVE FIOS IT
STRUCTURE.
ANY QUESTIONS THE COMMITTEE.
THE RECOMMENDATIONS OF THE
SADDAM OPEN.
MISSILE MELINDA BEFORE.
CALIFORNIA SECURE CHOICE
RETIREMENT SAVINGS INVESTMENT
BOARD.
GOOD AFTERNOON CHAIR COOPER OF
MEMBERS OF THE COMMITTEE I'M
KATIE SILENCE HIM THE EXECUTIVE
DIRECTOR OF CAL SAVERS FORMERLY
SECURE TREISMAN JOINS.
BY OUR DEPUTY DIRECTOR BRIAN
GHOULS AND.
THANK YOU FOR THIS OPPORTUNITY
TO COME AND AND UPDATE YOU ON
OUR PROGRESS TOWARD
IMPLEMENTATION AND.
ANSWER ANY QUESTIONS YOU HAVE
ABOUT OUR LOAN REQUESTS TODAY
ABOUT WAY OF REMINDER CAO
SIEVERS IS THE STATE'S NEW
RETIREMENT SAVINGS VEHICLE FOR
WORKERS IN THE PRIVATE SECTOR
WHO DON'T HAVE ACCESS TO.
I RETIREMENT SAVINGS AT WORK.
SO THE HIGH LEVEL OF DATA THAT
WE'RE WORKING VERY HARD TO BUILD
THE TEAM INFRASTRUCTURE TO.
LAUNCH THE PROGRAM IN A PILOT
PHASE
IN THE FALL OF TWENTY EIGHTEEN
AND A FULL STATEWIDE LAUNCH IN
EARLY TWENTY NINETEEN. AND THAT
WOULD BEGIN THE THREE YEAR PHASE
ROLLOUT BY EMPLOYER SIZE.
AND SO WE'VE WORKED HARD TO
ENGAGE WITH STAKEHOLDERS IN THE
BOARD TO DESIGN THE PROGRAM AND
AND RIGHT REGULATIONS IN THE
LAST YEAR. SO JUST LAST WEEK THE
BOARD APPROVE REGULATIONS THAT
WE'LL BE SUBMITTED TO THE OFFICE
OF ADMINISTRATIVE LAW NEXT WEEK.
AND HE EXACT TIMING OF THE
PILOT AND FULL STATEWIDE LAUNCH
WILL DEPEND HEAVILY ON OUR
ABILITY TO ENTER INTO A CONTRACT
WITH THE. PRIVATE SECTOR FIRM
WHICH WILL RUN THE ACCOUNTS AND
INVEST THE.
MONIES ON ON BEHALF OF OUR
SABERS.
AND IN TERMS OF OUR BUDGET
REQUEST TODAY I'VE FOR THAT AT
EIGHTEEN NINETEEN FISCAL YEAR
REQUIRE WE ARE REQUESTING TWO
POINT FIVE.
MILLION DOLLARS IN LOAN FUNDING
A TO AUGMENT THE SAVINGS THAT WE
HAVE FROM THE CURRENT.
CURRENT YEAR'S BUDGET OF
ROUGHLY THIRTEEN MILLION
DOLLARS.
I AM IN THE CURRENT YEAR WE'VE.
UTILIZE APPROXIMATELY SEVEN
HUNDRED THOUSAND DOLLARS OF
THAT.
AUTHORIZE LOAN FUNDING TO DATE.
AND SO FOR THIS TWO POINT FIVE
MILLION DOLLAR REQUEST THAT
INCLUDES.
APPROXIMATELY ONE POINT ONE
MILLION FOR STAFF AND ANOTHER
ONE POINT FOUR MILLION FOUR.
CONSULTANTS AND MARKETING
MATERIALS OTHER EXPENSES.
I MEAN I'D BE HAPPY TO ANSWER
ANY QUESTIONS YOU HAVE ABOUT
THIS CURRENT YEAR SPENDING
LEVELS OR THE PLAN SPENDING. A
MUCH ALSO NOTE THAT THIS LOAN
REQUEST DOES ALLOW. AFTER A
SCENARIO IN WHICH THE BOARD MAY
DECIDE TO. AND ESSENTIALLY
SPREAD OUT SOME OF THE START UP
COSTS FOR ON FOR THE EARLY
PARTICIPANTS TO KEEP FEES LOW
FOR FOR THEM ACROSS THE BOARD.
WITHOUT A BE HAPPY TO ANSWER
ANY QUESTIONS THAT. NEVER GOTTEN
DON'T MISS COVERAGE HONEST
LITTLE BIT AGO SO I'M SORRY.
ELLIOTT.
WE HAVE NO CONCERNS FINANCE.
THAT WAS PART OF HIS PROPOSAL
HAVE NO CONCERNS
ANY QUESTIONS NUMBER.
OKAY HAVE BEEN VERY SUPPORTIVE
THIS PROGRAM IS IT'S MADE ITS
WAY TO THE LEGISLATIVE PROCESS
NICOTINE SUPPORT THE PROGRAM.
LAST YEAR THOSE CONCERNED ABOUT
IT ACTION TO THE FEDERAL LEVEL.
CAN STEP PROVIDE AN UPDATE
ABOUT WHETHER THEY'RE IN HIM
CONCERNS IN THE FEDERAL LEVEL
BUT THIS PROGRAM MOVING FORWARD.
THANK YOU FOR THE QUESTION OUT
WE DON'T HAVE ANY CONCERNS SINCE
THE REPEAL OF THE A OBAMA ERA
DEPARTMENT OF LABOR RULE THAT
WOULD HAVE HELPED MAKE THINGS A
LITTLE BIT EASIER FOR US.
THERE'S BEEN NO FURTHER FEDERAL
ACTION AND AS YOU MAY RECALL
LAST YEAR IMMEDIATELY FOLLOWING
THAT.
IT THAT REPEAL BY CONGRESS AND.
WE.
WE ENGAGE IN ILLEGAL ANNOUNCES
WITH INTERNAL COUNSEL EXTERNAL
COUNSEL AND.
WERE.
.
I FELT CONFIDENT THAT WE STILL
REMAIN TO FEEL CONFIDENT THAT WE
ARE ON STRONG LEGAL GROUND HERE.
THE NINETEEN SEVENTY FIVE SAFE
HARBOR FROM A RECESS REMAINS AND
I IN ADDITION TO ALL THAT LEGAL
ANALYSIS THAT'S BEEN DONE WE
HAVE THE EXPERIENCE NOW OF
WATCHING OUR SISTER PROGRAM IN
OREGON. WHICH IS.
SEVERAL MONTHS INTO ITS
EXISTENCE IT HAS ONE POINT TWO
MILLION DOLLARS.
AND IT'S FUN WITH PARTICIPANTS
SAVINGS SO WE ARE WE ARE VERY
CONFIDENT THAT RUN ST STRONG
LEGAL FOOTING AND WE DON'T HAVE
CONCERNS.
RICK.
ANY FURTHER QUESTIONS.
OKAY THANK YOU RECOMMENDATIONS
OVERSIGHT OF OPEN.
THE NEXT MOVE ON TO ITEM NUMBER
FIVE AND A CALIFORNIA
ALTERNATIVE ENERGY. INVESTOR
STATION FINANCING AUTHORITY
.
VETERAN. GOOD AFTERNOON CHAIR
MEMBERS MY NAME IS TINA CARILLO
AND I'M THE EXECUTIVE DIRECTOR
OF KEEP FIVE.
.
KEEP IS REQUESTING REIMBURSEMENT
EXPENDITURE AUTHORITY IN THE
AMOUNT OF HEAT POINT TWO MILLION
FOR FISCAL YEAR EIGHTEEN
NINETEEN. EVER TO BE MADE
AVAILABLE FOR THROUGH FISCAL
YEAR TWENTY TWENTY ONE. BREAST
APPROPRIATELY CARRY OUT OUR
FUNCTIONS UNDER THE CALIFORNIA
HUB FOR ENERGY EFFICIENCY
FINANCING AT OUR LAST PRE
HEARING WE ARE ASKED TO PROVIDE
AN UPDATE ON THE PROGRAM. I'M
FOR THE MEMBERS TODAY INSIDE US
MERRIAM JOCKEY BLOCK TO DO THAT
WE PROVIDED A QUICK PRESENTATION
FOR YOU.
I'D LOVE TO OKAY GREAT THEN YOU
GOOD MORNING OR AFTERNOON.
.
BMW BLOCK WITH KATE FIVE.
THINK YOU.
SO YOU HAVE THE.
I PRESENTE SCHATTEN SO ALL JUST
I'M GO THROUGH VERY BRIEFLY HOW
THE FIRST SLIDE JUST.
.
REITERATES I REQUEST AND JUST.
REMINDS THE COMMITTEE THAT THE.
CALIFORNIA HARPER ENERGY
EFFICIENCY FINANCING PILOTS ARE
FLOODED WITH UTILITY RATE PAYER
FUNDS.
I'M SO WE ARE NOT ASKING FOR ANY
EXPENDITURE OF STATE FUNDS JUST
AUTHORITY.
I'M SITE NUMBER THREE ADDRESS
SAYS WHY WE'RE DOING THESE.
PILOTS IN THE FIRST PLACE THERE
IS JUST SIMPLY NOT ENOUGH
PUBLIC.
I DOLLARS OR EVEN RATE PAYER
DOLLARS TO ADDRESS THE
CHALLENGES OF BUILDING ENERGY
EFFICIENCY RETROFITS AND IF WE
WANT TO RETURN VICIOUS
GREENHOUSE GAS REDUCTION GOALS
WE MUST BRING MORE PRIVATE
CAPITAL INTO THE ENERGY
EFFICIENCY FINANCING SPACE.
THE GOAL OF THESE PROGRAMS IS TO
USE A SMALL AMOUNT OF RATE PAYER
DOLLARS AND TO REALLY LEVERAGE
PRIVATE CAPITAL.
AN INCREASE PRIVATE CAPITAL
FINANCING FOR.
ENERGY EFFICIENCY PROJECTS IN
THE RESIDENTIAL SMALL BUSINESS
AND LARGE COMMERCIAL AFFORDABLE
MULTI FAMILY SECTORS.
TIME SLIDE NUMBER FOUR.
OUTLINES THE GOALS OF THE
FINANCING PILOTS WHICH IS TO
DEVELOP A SCALABLE AND LEVERAGED
PRODUCTS.
AND TO TEST WHETHER OR NOT THESE
PILOTS CAN THEN BE SELF
SUSTAINABLE WITHOUT THE REPAIR
FINDS THERE'S SOME BASICS OF OUR
PROGRAM HERE WHICH I'VE COVERED.
WERE ALSO WHILE WE'RE RIGHT NOW
AND I'MBUILDING THE PROGRAM AND
I OWE YOU INVESTOR OWNED UTILITY
TERRITORY WE'RE BUILDING A
PLATFORM THAT COULD BE LEVERAGED
FOR A FULL STATEWIDE PROGRAM.
AND INCLUDING THE AYE MUNICIPAL
AND COOPERATIVE UTILITY.
I JURISDICTIONS IN THE FUTURE
WERE ALSO BUILDING THE FIRST
OPEN MARKET ON BILL REPAYMENT
PROGRAM IN THE COUNTRY.
IT'S PARTLY WHY WE HAVE A LITTLE
BIT OF A DELAY AND THAT ROLLOUT
IS WE DON'T HAVE A MODEL FROM
ANOTHER STATE TO FOLLOW WHERE.
TRYING TO.
AND DO THIS WALL MANY OTHER
STATES ARE ALSO TRYING TO DO IT.
AND THEN SLIDE NUMBER FIVE GIVES
YOU.
AN OVERVIEW OF THE STATUS OF THE
FEATURES OF THE DIFFERENT
PILOTS.
BOB BETWEEN THE RESIDENTIAL
AFFORDABLE MULTI FAMILY SMALL
BUSINESS AND LARGE COMMERCIAL.
I AND SLIDE NUMBER SIX TALKS A
LITTLE BIT ABOUT OUR RESIDENTIAL
PROGRAM CALLED REAL WHICH
LAUNCHED IN THE SUMMER OF TWENTY
SIXTEEN. AND WE ARE PROVIDING
FINANCING TO HOMEOWNERS THAT
THEY OTHERWISE WOULD NOT BE ABLE
TO OBTAIN.
SO MANY OTHER FOLKS ARE FAMILIAR
WITH THE AYE PACE FINANCING
WHICH HAS A SUCCESSFUL MODEL IN
MANY WAYS BUT THERE ARE MANY
HOMEOWNERS WHO DO NOT WANT TO
PUT A LIEN ON THEIR PROPERTY OR
SIMPLY DO NOT HAVE THE EQUITY IN
THEIR HOME TO DO SO. AND THEY'RE
JUST NOT A LOT OF UNSECURED
FINANCING PRODUCTS ON THE
MARKET.
THAT ARE OFFERED AT THE ON THE
LENGTH OF.
AT THE DURATION THAT CUSTOMERS
NEED TO IN ORDER TO I'M HOW
ABOUT A LARGE PROJECT LIKE IN
EACH BLOCK UPGRADE OR AT THE
INTEREST RATE THAT THEY CAN
AFFORD AT THE AMOUNT THEY WOULD
NEED TO. BORROW TO DO THOSE
PROJECTS
SO THIS SLIDE SHOWS THE
EFFECTIVENESS OF A CREDIT
ENHANCEMENT. AND WHAT WE CAN DO
WITH THE CREDIT HAS BEEN IN
ORDER TO GET MORE ATTRACTIVE
FINANCING FOR.
REGULAR HOMEOWNERS SO FOR
EXAMPLE A TEN THOUSAND DOLLAR
PROJECT ON FIVE YEAR TERMS.
FOR A HOMEOWNER USING OUR
PROGRAM THEY COULD SAVE THIRTY
SIX HUNDRED DOLLARS IN INTEREST
OVER THE LIFE OF THE PROJECT.
AND.
FLY NUMBER SEVEN SHOWS YOU ARE
LOANS TO DATE WE JUST YOU I'M
HAVE HIT TWO POINT FOUR MILLION.
IN RESIDENTIAL PROJECTS AND THIS
IS ALL I AM.
TWO POINT FOUR MILLION THAT IS
BEING SPENT BY HOMEOWNERS ON
PROJECTS THAT ARE REALLY BEING
DONE BY VERY HYPER LOCAL
RESIDENTIAL BUILDING CONTRACTING
FIRMS.
TO THE RESIDENTIAL ENERGY
UPGRADE MARKET IS VERY
DECENTRALIZED IS A LOT OF MOM
AND POP SMALL BUSINESSES. SO LOT
OF THAT MONEY IS GETTING AYE
REPLENISHED INTO THE LOCAL
ECONOMY SUPPORTING GREEN JOBS
WHILE HELPING HOMEOWNERS SAVE
ENERGY AND MONEY.
I'M SO WE FEEL GOOD ABOUT THE
UPTAKE OF OUR PROGRAM WE'VE
GROWN A LOT SINCE LAUNCH WITH A
LONG WAY TO GO. I'M THAT WE'RE
GENERATING.
LOT OF INCREASED INTEREST
YOU CAN SEE OUR LOANS ACROSS THE
STATE THE AVERAGE INTEREST RATE
SO FAR.
IT'S ABOUT SIX POINT EIGHT FOUR
PERCENT.
AND.
.
AND WE'VE GOT ABOUT HUNDRED
EIGHTY FIVE CONTRACTORS ENROLLED
IN THE PROGRAM.
AND JUST TO REINFORCE THAT THAN
UNSECURED PRODUCT
SO TYPICALLY IF INTEREST RATES
WOULD BE MUCH HIGHER. THINKING.
OZ SLIDE NUMBER EIGHT SHOWS THAT
I AM ARE PLANNED FOR A GUY
POSSIBLE BUSINESS AND AFFORDABLE
MULTI FAMILY PROGRAMS THAT ARE
YET TO LAUNCH.
TO FILL SIMILAR GAPS IN THE
MARKET TO COMPLEMENT OTHER
EXISTING PROGRAMS.
AND WE'LL BE HAPPY TO ANSWER ANY
QUESTIONS THAT YOU HAVE THANK
YOU LL.
HOW INCREASING AT THE
LEGISLATIVE ANALYST'S OFFICE
WERE RECOMMENDING MODIFYING THE
PROPOSAL SO INSTEAD OF PROVIDING
ALL OF THE FUNDING IN EIGHTEEN
NINETEEN THE FUNDING WOULD BE
PROVIDED OVER A THREE YEAR
PERIOD? A THREE POINT SIX
MILLION EIGHTEEN NINETEEN THREE
MILLION IN NINETEEN TWENTY AND
ONE POINT SIX MILLION AND TWENTY
TWENTY ONE. AND THE THREATS ARE
CONSISTENT WITH OUR
UNDERSTANDING OF THE AMOUNTS OF
SPENDING THAT KEEP A ESTIMATES
IT WILL NEED IN THE UPCOMING
THREE YEARS. WE THINK TAKING
THIS APPROACH IS CONSISTENT WITH
THE STATE'S TYPICAL BUDGETING
APPROACH TO.
BUDGET OVER A MULTI YEAR
REQUEST.
AND IT ALSO ALLOWS THE
LEGISLATURE OF A BIT MORE
FLEXIBILITY IN TERMS OF
ADJUSTING SPENDING LEVELS IN
FUTURE YEARS SHOULD THAT BE NEED
HEAD. OF FOR EXAMPLE IF THERE
ARE CHANGES TO THESE PILOT
PROGRAMS. AND WE WOULD KNOW THAT
WERE ALSO RECOMMENDING BUDGET
BILL LANGUAGE WHICH WOULD GIVE
THE DEPARTMENT OF FINANCE THE
AUTHORITY TO MAKE MODIFICATIONS
TO THESE PROPOSED FUNDING
AMOUNTS IN THE THREE YEARS NOT
TO EXCEED THAT THE TOTAL. AMOUNT
CURRENTLY REQUESTED.
WITH A JAIL BE SEEN NOTICE AND
WE THINK THIS WILL PROVIDE
FLEXIBILITY TO KATE FOR AS ITS
IMPLEMENTING THESE PROGRAMS
WHILE STILL. MAINTAINING
LEGISLATIVE OVERSIGHT AND.
SO ALLOWING THE LEGISLATURE A
LITTLE BIT MORE CONTROL OVER
THESE FUNDS.
FINANCE.
THANK YOU MISTER CHAIRPERSON WE
KINDA DEPARTMENT OF FINANCE WE
HAVE NO CONCERNS WITH A LOW'S
RECOMMENDATION.
A QUESTION MEMBERS.
S. CARRIER.
I JUST WANNA UNDERSTAND I'M
EXACTLY WHAT YOU DO IT SOUNDS TO
ME LIKE YOU'RE YOU'RE ACTUALLY
DOING THE LOANS WHEN I READ IT I
THOUGHT IT IF YOU WERE MORE LIKE
A THIRD PARTY HAVING. HOPE.
HOPING BUT HOPING TO.
FACILITATE CORRECT YOUR CORRECT
OKAY WE ARE AYE AND SO ARE OUR
PROGRAMS TO DATE HAS
PORTED TWO POINT FOUR MILLION
DOLLARS IN FINANCING THROUGH FOR
CREDIT UNION LENDERS SO PRIVATE
LENDERS THAT WE ARE TRYING TO
ATTRACT PRIVATE CAPITAL. AND
FACILITATE THE PROGRAM OKAY AND
THE WAY WE DO THAT IS THROUGH A
CREDIT ENHANCEMENT TO HELP LOWER
THE COST SO AS AND LENDERS IN
ROLE WE PROVIDE A CREDIT
ENHANCEMENT BEHIND THE LOAN.
TO HELP THEM LOWER COSTS AND
EXPAND ACCESS WERE ALSO
PROVIDING A STANDARDIZED
PLATFORM.
IN RELATIONSHIP WITH THE STATE
ON THIS PROGRAM THE CONTRACTOR.
ENGAGEMENT AND WILL BE BUILDING
AND ON THE OVER PAYMENT
INFRASTRUCTURE ADD AS MARY
MENTIONED IT'S THE FIRST OF ITS
KIND.
TO TEST WHETHER ON THE OVER
PAYMENT INCREASES THE SECURITY
AND ACCESS THE FINANCING FOR
ENERGY EFFICIENCY RETROFITS.
IT'S GREAT WORK YOU'RE DAMN JUST
TRYING TO MAKE SURE I UNDERSTAND
WHAT YOU'RE EXACTLY WHAT YOU'RE
DOING BUT WHEN YOU SEE CREDIT
ENHANCEMENT YOU'RE TALKING ABOUT
IT LOAN GUARANTEE.
TO A CERTAIN EXTENT IT'S A
FINITE POOL SO FOR ANY EVERY
ENROLLED LOAN WILL PUT A
PERCENTAGE OF THE LOAN INTO AN
ACCOUNT IT.
WE DO TRY TO TARGET LOW MOD
INCOME.
ORG PROVIDE A HAVE YOUR
INCENTIVE TO GET A BROADER
ACCESS AND WE'RE EXPANDING THAT
ALSO TO.
CREDIT CHALLENGED SO WE
UNDERSTAND THAT CREDIT SCORES
THAT ALWAYS REFLECT INCOME SO
EXPANDING ACCESS BOTH TO THOSE
WITH LOWER CREDIT SCORES AS WELL
AS TO LO MEIN INCOME SO.
THE LENDER WILL THEN BE ABLE TO
RELY ON THAT FUND SO IF THEY DO
CHARGE OFF A LONER FOR THOSE
LOANS THAT GOES BAD.
THEY CAN BE MADE PARTIALLY HOLE.
WE HAVE DESIGNED IT SO THAT
LETTER ALSO A SKIN IN THE GAME.
SO WE DON'T COVER THE FULL LOS.
AND THAT SITE NUMBER SIX WITH
THE TABLE THERE SHOWS YOU THE
COMPARISON BETWEEN THE LENDER
STANDARD PRODUCT AND WHAT
THEY'RE ABLE TO OFFER TO
BORROWERS. I'M IF THEY HAVE WHEN
THEY HAVE ACCESS TO OUR CREDIT
ENHANCEMENT.
AND IN ONE FINAL QUESTION ON.
IT IS THE ARE YOU ARE YOU ALSO
FACILITATING PASTE LOANS ARE
INVOLVED IN PACE LOANS AS WELL.
SO THAT THAT CALIFORNIA HAVE FOR
ENERGY EFFICIENCY FINANCING OR
THE CHIEF WHICH IS THE SUBJECT
FOR THIS PCP DOES NOT ADDRESS
PAYS FINANCING. I'M KATE FATAH.
UNDER GOVERNOR BROWN.
WHO IT AUTHORIZED A FUNDING DID
PROVIDE US FUNDING TO PUT TO
DEVELOP A RISK MITIGATION
PROGRAM FOR PACE MELONES ON THE
RESIDENTIAL SOCKED SECTOR HERE
IN CALIFORNIA?
I'M SO TODAY KATE BUT DOES HOW
DOES A TEN MILLION DOLLAR LOSS
RESERVE AS A BACKSTOP FOR
RESIDENTIAL PACE IN CALIFORNIA
BUT NOT SPECIFICALLY SUBJECT TO
THIS BCP OKAY. SO WHAT WHAT'S
HAPPENING IT IF YOU CAN.
SAY WITH THE PACE.
ON LOANS IN THE FIRE.
REGION WHERE THE HOUSES BURNED
DOWN AND OTHERS NOT NOT ONLY IS
THE PACE LOAN DUE AND PAYABLE
DESPITE THE FACT THAT THERE'S
NO.
INFRASTRUCTURE AND THEN HOUSES
GONE AS WELL YEAH SO THAT'S A
REALLY GOOD QUESTION I'M CINEMA
COUNTY IS ONE OF THE MOST ACTIVE
LOCAL LIKE TRUE LOCAL PACED
PROGRAMS HERE IN THE STATE.
.
WE THEY DID DO AN INVENTORY
AFTER THE FIRES AND SOME OF
THOSE PROPERTIES DID INCLUDE
PACE ASSESSMENTS AT THIS POINT
THEY'RE WAITING FOR THE THE.
HOMEOWNERS JUST LIKE EVERYWHERE
ELSE TO FIGURE OUT IF THEY CAN
PAY OFF THOSE LOANS.
THROUGH THEIR INSURANCE
PRODUCTS.
.
BECAUSE THEN AND I SENSED THAT
THE PACE ASSESSMENT IS SIZE TO
THE VALUE OF THE HOME. SO
DEPENDING ON THE HOMEOWNERS
MORTGAGE INSURANCE.
WOOLSEY I THINK.
IT'S STILL A LITTLE TOO SOON TO
TELL. AND SO I WILL GET SOME
MORE INFORMATION OVER THE NEXT
SIX MONTHS TO A YEAR ON THIS
BASIS ASSESSMENTS ON THAT PAYS
LAS RESERVE IT'S A TEN MILLION
DOLLAR FUND THAT'S CURRENTLY
SUPPORTING TWO POINT EIGHT
BILLION DOLLARS. IN PACE
ASSESSMENTS AND NOT IS DATA AS
OF.
LAST JUNE.
I'M OUR NEXT REPORTING IS MAR IS
IN MARCH AND I'LL COVERED DATA
THROUGH DECEMBER.
I'M HAPPY TO PROVIDE OTHER
INFORMATION AND IF IF NECESSARY
FROM OUR OFFICE IN THAT WOULD BE
GREAT I THINK WE'RE GONNA NEED
TO KNOW A LITTLE BIT MORE ABOUT
WHAT. WHAT THE STATUS IS OF
THOSE NAM IF IF I KNOW?
MOST HOMEOWNERS DON'T REASSESS
AFTER THEY DO THOSE KINDS OF
IMPROVEMENTS AND SO. THE
INSURANCE COMPANIES MAY ACTUALLY
COME IN AND SAY WE GAVE YOU THIS
INSURANCE.
BASED ON THE VALUE OF YOUR HOUSE
NOT ON ANY ADDITIONAL BUT AGAIN
THAT IT'LL BE INTERESTING TO SEE
WHAT HAPPENS. YEAH IT WOULD BE
HELPFUL FOR US TO KNOW I THINK
HOW MUCH THAT TEN MILLION HAS
BEEN EXPENDED ALREADY. SO THE
FULL TEN MILLION DOLLARS IS
ENCUMBERED NONE OF IT HAS BEEN
DRAWN DOWN SO KATE FIVE HAS NOT
RECEIVED A CLAIM TO DATE.
ON THAT RESERVE NOW JUST TO
CLARIFY IN THIS INFORMATION OF
THE THE PRESENTATION IN FRONT OF
YOU.
THE RESERVE WAS DEVELOPED TO
PUT FIRST MORTGAGE POSSESS MY
FIRST MORTGAGE HOLDERS IN THE
SAME POSITION THEY WOULD HAVE
BEEN WITH OR WITHOUT A PACE
ASSESSMENT. AND SO IT'S.
IT SO IT'S IT'S A REPLENISH
BANK OF AMERICA YOU KNOW OR.
FIRST MORTGAGE.
IT ISN'T FOR THE HOMEOWNER
THEMSELVES.
WERE CURRENTLY DOING A RISK
ASSESSMENT AROUND THAT TEN
MILLION DOLLARS AS IT WAS FIRST
ASSESSED IT WAS.
ESTABLISHES A FIRST COME FIRST
SERVE FIRST SERVE FUND.
SINCE IT HASN'T BEEN TAPPED
TODAY AND GIVEN THE GROWING
VOLUME OF PACE.
WERE REASSESSING OUT AND
WORKING TO GET A CONSULTANT ON
BOARD ASSIST US BUT THAT.
CHAIRMAN OF THE PUBLIC COMMENT
MUNITIONS SPEAK.
THIS ITEM.
YOU CAN AYE REINFORCE ONE POINT
WERE SPECIFIC TO THIS BCP WHICH
IS THAT YOU KNOW THE CHIEF
PILOTS PROVIDE AN UNSECURED
PRODUCT THERE'S NO LEAN. THERE'S
NO EXTRA FEES.
WERE WORKING WITH LOCAL CREDIT
UNIONS THAT ARE INVESTED IN
THEIR LOCAL COMMUNITIES WITH
LOCAL CONTRACTORS SO IT'S.
WILL PIECES DONE SOME AMAZING
THINGS FOR ENERGY EFFICIENCY
RETROFITS AS FAR AS THE GROWTH
IN THE MARKET THIS IS A VERY
DIFFERENT FINANCIAL STRUCTURE
WORKING WITH.
INSURED LENDING INSTITUTIONS.
BETTER REGULATE AND.
SECRETIVE GRAY PROGRAM.
BUT WE APPRECIATE YOUR SUPPORT.
FILLER NATION AS A WHOLE THIS
ITEM OPEN.
SO ONE OF OUR NEXT ITEM.
A NUMBER SIX THE STATE
COMPTROLLER'S OFFICE
.
OKAY SECOND FLOORS OFFICE THE
SIX BUDGET CHANGE PROPOSALS
PLEASE WHAT THE COMMITTEE
THROUGH YOUR PROPOSALS.
GOOD AFTERNOON MR CHAIR MEMBERS
MY NAME IS JENNIFER URBAN I'M
THE. BUDGET OFFICER FOR THE
STATE COMPTROLLER'S OFFICE.
WE THANK YOU FOR THE OPPORTUNITY
TO DISCUSS OUR EIGHTEEN NINETEEN
BUDGET CHANGE PROPOSALS WHICH
REPRESENT SCO FUNCTIONS ABOUT
THE CONTROLLER HAS FOUND ON
CRITICAL NEED. A SUFFICIENT
RESOURCES TO SUPPORT SERVICES
PROVIDED TO A STATE AND LOCAL
GOVERNMENT AGENCIES AND
TAXPAYERS.
OVER THE PAST SEVERAL YEARS AS
HERE HAS SEEN ITS QUALITY AND
TIMELINESS OF ITS PAYROLL
RELATED SERVICES ERODE. AS
CHANGES WERE MADE TO FEDERAL AND
STATE LAWS AS WELL AS BARGAINING
UNIT AGREEMENTS.
AS YOU TOOK THE LAST FEW YEARS
TO QUANTIFY THE IMPACT OF THE
CHANGES AND OUR ABILITY TO
ADDRESS THEM. AND DETERMINED
THAT A GAP EXISTS.
THEREFORE S. USE REQUESTING
INCREASED RESOURCES TO IMPROVE
THE STATE'S PERSONNEL AND
PAYROLL SERVICES OPERATIONS.
THE POSITIONS WILL PROVIDE OUR
WILL ADDRESS HISTORICAL ONGOING
UNDER STAFFING OF HER TEAM.
PRODUCTION WORK WERE NEARLY TEN
PERCENT OF INCOMING WORK IS
BACKLOGGED.
SUPPORT THE DEVELOPMENT OF
AUTOMATION TO IMPROVE EFFICIENCY
AND ACCURACY.
ENSURE THE STATE IS COMPLIANT
WITH LEGISLATIVE CHANGES RELATED
TO THE PORTABLE CARE ACT
IN THE PUBLIC EMPLOYEES PENSION
REFORM ACT.
AND ALLOWS THE SCO TO CONTINUE
SYSTEM AUTOMATION EFFORTS FOR
ACCURATELY CALCULATING OTHER
POST EMPLOYEE BENEFITS.
THAT WOULD HELP ELLIOTT.
S. MADONNA'S WITH THE
LEGISLATIVE ANALYST'S OFFICE WE
HAVE NO CONCERNS REGARDING THIS
PROPOSAL.
FINANCE.
THEY TURN IT IN HER WITH A
PARTNER FINANCE WE HAVE NO
CONCERNS WITH THIS REQUEST
A CRISIS IN THE RIVERS.
GOING UP AND UP PUBLIC COMMENT
EMOTIONS BECAUSE SADDAM.
OKAY I'LL CLOSE PUBLIC COMMENT.
THAT QUESTION WILL THE NEW
PAYROLL SYSTEM BE UNDER WAY.
GOOD AFTERNOON CHAIRMAN COOPER
MY NAME IS CHRIS MAYO AND I'M
THE PROJECT DIRECTOR FOR THE
CALIFORNIA STATE PAYROLL SYSTEMS
PROJECT.
THE PROJECT IS ALREADY UNDER WAY
WE BEGAN WORK LAST SUMMER.
WITH OUR BASELINE BUSINESS
PROCESS DOCUMENTATION.
WE IDENTIFIED ABOUT FORTY FOUR
INDIVIDUAL BUSINESS PROCESSES
AND WE DOCUMENTED ABOUT HALF OF
THEM AS OF TODAY.
WE HAVE A LONG RUNWAY THOUGH YOU
KNOW WE HAVE.
FIRST REALLY GO THROUGH THIS
BUSINESS PROCESS DOCUMENTATION
THEM GOING TO BE LOOKING AT
BUSINESS PROCESS RE ENGINEERING.
CHANGING THE WAY WE DO BUSINESS
AND THEN WE START WRITING
REQUIREMENTS FOR THE NEW SYSTEM.
SO WE REALLY DON'T ANTICIPATE
HAVING A NEW SYSTEM IN PLACE FOR
SEVERAL YEARS.
ANY QUESTIONS FROM COMMITTEE.
INSTEAD WE ARE.
JUST SO I UNDERSTAND THIS IS A
TOTALLY NEW SYSTEM IS THAT
CORRECT.
I'M I DON'T KNOW YET WE HAVE
ABOUT.
SEVEN DIFFERENT ALTERNATIVES
THAT WE'RE GOING TO ANALYZE ONE
OF THEM IS.
.
ESSENTIALLY USING THE SAME
MAINFRAME BASED SYSTEM WE HAVE
TODAY BUT CREATING MODERN
INTERFACES TO IT FOR THE
EMPLOYEES AND THE.
YOUR OTHER DEPARTMENTS THAT WE
INTERFACE WITH.
BUT I I DON'T KNOW THAT ANSWER
YET I PROBABLY WON'T FOR ABOUT
TWO YEARS THAT THAT'S WHEN WE'LL
FINISH ARE ALTERNATIVES ANALYSIS
AND WILL HAVE A AN IDEA OF WHAT
DIRECTION WE WILL TAKE. IT VERY
WELL COULD BE A COMPLETELY NEW
SYSTEM.
IT COULD BE AN OFF THE SHELF
SYSTEM IT COULD BE A CUSTOM
DEVELOPED SYSTEM.
WE JUST DON'T KNOW TODAY.
HAVING SOME EXPERIENCE WITH.
THE CHALLENGES OF.
BRINGING IN A NEW IT SYSTEM.
USING.
STATE PROCESSES I'M IS THIS A
NEW.
AB PROCESS EXIST THEN NEW
PROCESS THAT HAS BEEN DEVELOPED
FOR. DETERMINING WHAT THE NEEDS
ARE AB DAY.
OF THE SCO. YEAH AND I AND I'M
I'M I'M SOMEWHERE IN THE BACK OF
MY MIND I REMEMBER AND NUMBER
HAVE ITERATIONS OF A PROJECT
THAT DIDN'T GO ANYWHERE AND I'M
ASSUMING THAT THAT'S KIND OF
BEEN SHELVED AND THAT THIS IS
SOMETHING NEW.
I'M.
YES OR NO.
.
WELL IT IS ESSENTIALLY THE SAME
KIND OF PROJECT WE ARE LOOKING
AT REPLACING ARE YOU PAYROLL
SYSTEM. WE ARE TAKING A NEW
APPROACH.
USING THE DEPARTMENT
TECHNOLOGIES PROJECT APPROVAL
LIFECYCLE MIX WE STARTED WITH
STAGE ONE AND WE'RE WORKING OUR
WAY THROUGH FROM THERE WE DIDN'T
TRY TO PICK UP WHERE THE LAST
PROJECT LEFT OFF THAT WAS MY
QUESTION YOU SAID IT MUCH BETTER
THAN I. WHITEST BUT WHAT ONE OF
THE BIG BIG LESSONS LEARNED WAS
WHAT WE REALLY NEED TO DOCUMENT
OUR PROCESSES.
AND LOOK AT WAYS TO.
STANDARDIZE AND SIMPLIFY PAYROLL
FOR CALIFORNIA BEFORE WE MOVE
INTO FIGURING OUT WHAT TO BUY.
TO TO SOLVE THAT PROBLEM IS
GREAT AND THEN.
ARE THERE ANY OTHER EXAMPLES IN
OTHER STATES OR OTHER ENTITIES
THAT HAVE AS BEACON OF AN
ORGANIZATION OR AS COMPLEX SEVEN
ORGANIZATION IT PAYROLL WEISS.
I'M I'VE BEEN FOLLOWING THE.
ACTUALLY THE CANADIAN PAYROLL
SYSTEM NAME PHOENIX.
THEY ARE NEARLY EQUIVALENT TO
S.
AND THEY HAVE A NUMBER OF
LESSONS LEARNED FROM THERE.
ATTEMPT.
THEY HAVE JUST AS COMPLEX A.
STRUCTURE A BARGAINING UNIT
AGREEMENTS ON LAWS JUST LIKE WE
DO.
MIGHT ALSO BEEN LOOKING AT
OTHER COUNTRIES LIKE NEW ZEALAND
WHO ALSO HAVE YOU KNOW SIMILAR
LESSONS AND CHALLENGES THAT
CALIFORNIA FACED.
AND WE BRING ALL THOSE TO THE
TABLE YOU KNOW WHERE GREATER
LOOKING AROUND NOT JUST OTHER
STATES BECAUSE.
NOBODY COMPARES TO CALIFORNIA
RIGHT ARE OURS IS BY FAR THE
SINGLE LARGEST AND MOST COMPLEX.
GOOD THAT'S GREAT AND I'M GLAD
TO HEAR THAT ON.
THAT YOU'RE LOOKING AT OTHER
MODELS AND THAT WE'VE KIND OF
SCRAPPED THE OLD AND MOVED
FORWARD WITH A NEW. ABUSING THE
NEW.
.
PROPOSED CHANGES THAT HAVE THAT
HAVE COME OUT OF.
THAT.
TECHNOLOGY.
AND DEPARTMENT IT'S NINE AGENCY
ANYMORE SO THANK YOU FOR THAT I
APPRECIATED.
ANY ADDITIONAL QUESTIONS.
ALTHOUGH NOBODY PUBLIC COMMENT
WE WISH TO SPEAK ON THIS ITEM.
CAL CLOSE PUBLIC COMMENT.
THE RECOMMENDATION IS OVERSIGHT
OF OPEN.
YEAH.
A MISSILE WAS UNDER SEVEN.
FISCAL IMPLEMENTATION.
THE AS HEROES REQUESTING
INCREASE RESOURCES TO SUPPORT
THE SUCCESSFUL IMPLEMENTATION OF
THE S. USE CONTROL AGENCY
FUNCTIONALITY WITHIN THE FISCAL
SYSTEM.
THE RESOURCES WILL ALLOW THE SCO
TO MEET ITS OBLIGATIONS AS
OUTLINED WITHIN THE RECENTLY
RELEASED S. P. R. SEVEN.
FOR LIKE TO BE AND TO RESPOND TO
THE COMMENTS OUTLINED IN TODAY'S
AGENDA.
BOB SCO SUPPORTS THE LEN
RECOMMENDATION THAT DISCOUNT
CONTINUE TO COUNT ALL COSTS
RELATED TO COMPLETING THE
ORIGINAL SCOPE OF THE PROJECT.
INCLUDING BRINGING ON ALL
REMAINING DEPARTMENTS AND THE
SCO SCO CONTROL FUNCTIONALITY.
THAT SAID WE BELIEVE THAT THIS
CAN BE DONE WITH US YOU KNOW
PERTAINING DIRECT FUNDING AND
REPORTING OUR PROJECT COST
VISCO.
FOR INCLUSION IN ANNUAL REPORTS
TO THE LEGISLATURE.
WE WOULD LIKE TO ALSO ASSERT
THAT ANNUAL FUNDING OF SCO WORK
DOES HAVE A DETRIMENTAL AFFECTS.
SUCH AS WORKLOAD INVOLVED IN
PREPARING AND PRESENTING ANNUAL
BCP'S.
POSITION CONTROL WORKLOAD. AND
POTENTIAL TURNOVER AND HARD TO
HIGHER POSITIONS.
AYE AND THIS TO BE DUE TO THE
UNCERTAINTY OF THE FUNDING.
SCO PREFERS FUNDING AS REQUESTED
AND WILL HAPPILY COMPLY WITH ANY
AND ALL REPORTING AT THAT MAY BE
DESIRED BY THE LEGISLATURE.
WHICH CAN BE ACCOMPLISHED VIA
SUPPLEMENTAL REPORTING LANGUAGE.
FINALLY WE NOTE THAT THIS BCP
INCLUDES FUNDING TO SUPPORT TWO
DISTINCT FUNCTIONS.
THE BCP SUPPORTS BUT THE
INTEGRATED SOLUTION WHICH IS
HIGHLIGHTED WITHIN THE LA GOES
RECENTLY RELEASED.
OR REPORT WHICH IS ON FRIDAY.
AND THE SCO VENDOR MANAGEMENT
GROUP. WHICH IS AN EXISTING AND
ONGOING MAINTENANCE AND
OPERATIONS COST OF THE FISCAL
SYSTEM.
IT IS OUR UNDERSTANDING AND
THEY'LL KNOW IF YOU CAN CUT ME
IF I'M WRONG.
THAT THERE ARE NO CONCERNS
RAISED IN THE SUPPORT OF THE
ONGOING RESOURCES FOR THE VENDOR
MANAGEMENT GROUP.
THEREFORE IT THE ULTIMATE
DECISION IS TO FUND THE
INTEGRATED SOLUTION ON A YEAR TO
YEAR BASIS
WE RESPECTFUL RESPECTFULLY
REQUEST THAT THE VENDOR
MANAGEMENT PORTION OF THE B. C.
P.. P. EVALUATED SEPARATELY AND
FOR APPROVAL IN ITS ENTIRETY.
HERE WITH ME TODAY IS KATHIE LEE
OUT PARTNER BUSINESS EXECUTIVE
AND IF YOU'D YOU CAN PROVIDE THE
STATUS OF THE FISCAL PROJECT AND
PROVIDE FURTHER INFORMATION ON
THE INTEGRATED SOLUTION.
OKAY JUST SO YOU OF
TRANSFORMATION OR LIGHTLY SO BE.
MORE LIKELY FALL INTO A LARGER
AS I I SO QUICK QUESTION ABOUT
SAMIR HARD HIGHER POSITIONS WHAT
ARE SOME OF THOSE.
SO IF THE POSITIONSIF WE
RECEIVE ANNUAL FUNDING.
AT YOU KNOW.
TO HIRE ALL THE POSITIONS.
A IT MAY BE HARD TO TO HIRE
THEM BECAUSE THE FUNDING WON'T
BE ONGOING. SO THEY MADE IT YOU
KNOW FOLKS MAY NOT.
BE WILLING TO.
TOP FILL IN.
.
ATTEMPT AT THE YEAH.
MR TO.
THANK YOU MISTER CHAIR OF FOR SO
DECIDED COLLEAGUES. I THINK WE
ALL KNOW THIS IS HAS BEEN.
I THINK TO SAY KILEY A BIT OF A
DISASTER I KNOW WE'RE GONNA HAVE
A FUTURE HEARING ON IT BUT I
JUST HAVE A COUPLE OF HIGH LEVEL
QUESTIONS.
START THE CONVERSATION.
A THIS PROJECT STARTED IN TWO
THOUSAND FIVE.
IT'S NOW TWO THOUSAND EIGHTEEN
THIRTEEN YEARS LATER WHAT'S THE
TIME FRAME AT THIS POINT FOR
WHEN IT'S GOING TO BE COMPLETED.
CURRENTLY THE INTEGRATED
SOLUTION PORTION IS EXPECTED TO
BE FULLY ALIVE BY JULY TWENTY
NINETEEN.
THAT IS OUT THERE LOWER SCOPE
THEM WHAT'S ORIGINALLY PLANNED
WITH SO COMPLETELY ON FISCAL.
THE GOAL FOR SCO TO BE
COMPLETELY ENTRE SCOWL WOULD BE
JULY TWENTY NINE TWENTY TWENTY
ONE TWENTY TWENTY ONE AND HOW
MUCH CERTAINTY FEEL THAT THAT
DATE IS SET. THAT'S A GOOD SOLID
PRODUCTIVITY.
SO.
SIXTEEN YEARS LATER.
WE READ WITH A VENDOR CAME
ONBOARD IN JULY TWENTY TWELVE SO
FROM THE TIME THAT NICKNAME BUT
YES CORRECT FROM A. FROM A
DISCOVERY PERSPECTIVE THE RATE
THE WRITING IN THE U.
REQUIREMENTS YES IT'S TAKEN NOT
LONG BEEN AGAIN I MINOR CENTERS
ON A YOU FEW COME FOR ALL TO THE
LATER IN THE PROCESS I JOIN.
THAT THE SCOUT TEAM FROM SCO'S
PERSPECTIVE IN JULY TWENTY TEN.
SO I'VE BEEN HERE TWENTY
CONCEIVED EVERY OKAY.
BOB LET ME ASK JUST BIG PICTURE
ON THE BUDGET SO.
THOUGH I THINK LAST YEAR THE
STATE AUDITOR SAID THAT THIS
PROJECT WAS A QUARTER BILLION
DOLLARS.
UNDER BUDGET SO WE HAD TO PUT
MORE MONEY INTO IT WHERE'S THE
BUDGET AT THIS POINT IN WHAT
YOU'RE EXPECTING.
BETWEEN NOW AND TWENTY TWENTY
ONE.
SO.
WHY WE SHOULD DEFER THOSE TO
FISK OUT AND FINANCE BUT AS IN
LIEU OF THAT?
AND ELLIE OWES REPORT THEY WANT
TO MAKE SURE THAT WE CAPTURE ALL
OF OUR COSTS FROM SCO AND OUR
AND OUR EFFORT OR IN THE FISCAL
INTEGRATED SOLUTION AND TECH
COUNT PROBLEMS. SO WE COULD HAVE
A GOOD PICTURE AT THE END.
OKAY TO EVEN ANSWER THIS POINT
FROM FINANCE AND WHAT THE
BUDGETS GONNA LOOK LIKE HOW MUCH
AND WE SPENT SO FAR WOULD YOU
PROTECTING.
COURTESY OF THE DEPARTMENT OF
FINANCE WE WOULD HAVE TO DEFER
DRIVE OUR FOLKS ON THE FISCAL
ASSIGNMENT SO WE CAN GET BACK TO
YOU WITH THE.
AND THEY'RE NOT HERE.
OKAY. CAN WE GET THAT AS SOON AS
POSSIBLE BECAUSE WE ARE WE DO
HAVE A HEARING ON THIS
TODAY SELL BE GREAT AND OTHERS.
I THINK I THINK ONE OF THE IT
INSIDE YOU HAVE SOMETHING
TO ADD TO THIS.
SELECT
ANALYSTS ON
THERE WAS A NEW SPECIAL.
NOW
IT MUM.
MIND IT WAS MINOR ADJUSTMENTS TO
THE TOTAL PROJECT COST THAT
BROUGHT IT TO NINE HUNDRED AND
EIGHTEEN MILLION DOLLARS FOR THE
SCOTT PROJECT.
AS WAS NOTED THE LEGISLATIVE
ANALYST'S OFFICE RECENTLY
RELEASED A REPORT ON IT ONE OF
OUR CONCERNS WHERE THAT.
SIGNIFICANT COST RELATED THE
FISCAL PROJECT WERE ACTUALLY
PLACED OUTSIDE OF THAT MOST
NOTABLY BEING THE COST AT THE
STATE COMPTROLLER'S OFFICE
RELATED TO THE INTEGRATED
SOLUTION. AS WITH NOTED WE DON'T
HAVE CONCERNS WITH THE VENDOR
MANAGEMENT PIECE OF THE PCP
THAT'S SORT OF WHAT WE SEE IS
UNRELATED. BUT FOR THE
INTEGRATED SOLUTION WITH THE
ABOUT TWENTY FIVE MILLION
DOLLARS IN COST THAT WE THINK
SHOULD ACTUALLY BE ATTRIBUTED.
TO THE FISCAL PROJECT THAT
CURRENTLY ARE NOT AND THERE'S
OTHER COSTS THAT WE RAISED IN
OUR REPORT THAT ARE ALSO SORT
OF.
PUSHED OUTSIDE THE PROJECT AND
OUR RECOMMENDATIONS ALLOW FOR
THE LEGISLATURE TO HAVE A
COMPLETE AND ACCURATE ACCOUNTING
OF ALL OF THE COSTS RELATED TO
THE FISCAL PROJECT OKAY BUT THAT
HASN'T HAPPENED YET EVEN THE IT
DOES YOU DON'T YOU SAID YOU DONT
THERE'S BEEN A SEVEN THOUGHT ON
THIS. BUT THAT STILL HASN'T COME
TOGETHER. AS REFLECTED IN THE S.
P. ARE THE TOTAL COST IS NINE
HUNDRED AND EIGHTEEN MILLION
DOLLARS.
WHAT HAS NOT BEEN ACCOUNTED FOR
IS THE COST OF THESE OTHER
PIECES? THAT UNDER THE SPR WOULD
COME LATER.
OKAY I YOU KNOW I JUST NOTE FOR
FOR COLLEAGUES OF MY GUESSES
EACH RIVER INDIVIDUAL IMPACTS ON
THIS BUDGET COMMITTEE IS
PROBABLY LESS EVERY YEAR THAN
THE COST DIFFERENCE IN THIS
PROJECT AND SO THIS IS IN PART
WHY. I CONTINUE TO ASK QUESTIONS
IN THIS AREA.
.
I KNOW THAT.
OBVIOUSLY DALY OWES MADE SOME
RECOMMENDATIONS OF HOW WE HANDLE
THIS AND
SCO BELIEVES THAT THAT MIGHT
SLOW THINGS DOWN LIKE A YOU KNOW
FOR MY PERSPECTIVE I WANT THIS
PROJECT ON. AS QUICKLY AS
POSSIBLE ON BUDGET AYE AND I'M
HEARING THAT IF WE. APPLY MORE
FINANCIAL ACCOUNTABILITY AND
WHAT HAPPENS IT WILL SLOW THE
PROJECT DOWN IS THAT TRULY.
THE CHOICE THAT WE'RE FACED WITH
OR IS THERE WAY FOR US TO FIGURE
OUT HOW TO GET THIS PROJECT DONE
ON TIME. WITH THE ACCOUNTABILITY
THAT WE NEED TO MAKE US FEEL
COMFORTABLE THAT WE'RE SPENDING
MONEY CORRECTLY.
YEAH.
ARE LUIS ALEJO AB ONE OF OUR
CONCERNS WITH THE PROPOSAL IS
ENSURING THAT THE STATE
COMPTROLLER'S OFFICE. EVENTUALLY
FULLY TRANSITIONS TO THE FISCAL
PROJECT OF IMAGE AND UNDER THE
S. P. ARE THERE IS A FINITE
CONCLUSION DAY OF JULY OF TWENTY
NINETEEN HASN'T EXPLAINED GIVEN
THE TIMELINE FOR THE SPLIT EP
THE FULL TRANSITION OF AT THE ON
TO FIFTH CAL. I WILL HAPPEN
OUTSIDE OF THE SCOPE OF THE
PROJECT I'M AS CERTAIN THAT WE
FEEL AN ACCOUNTABILITY MECHANISM
INCLUDED IN THE PROJECT ITS
BUDGET BILL LANGUAGE THAT WOULD
REQUIRE. THIS DEPARTMENT FINANCE
EXCUSE ME TO VALLEY ON A
QUARTERLY BASIS.
POWELL SCO'S MAKING PROGRESS ON
COMPLETING THOSE ASPECTS OF
CAL I'M ONE OF OUR CONCERNS IS
THAT THAT QUARTERLY AND
REPORTING TO THE DEPARTMENT OF
FINANCE. MAYBE TOO ONEROUS AND
PERHAPS MAY DELEGATE TOO MUCH
CONTROL TO DEPARTMENT OF FINANCE
AND SO AS A RESPONSE TO THAT WE
WOULD RECOMMEND THAT THAT
LANGUAGE BE. I'M STRICKEN AND IN
FACT BOAT THE STATE
COMPTROLLER'S OFFICE TO COME
BACK ON ANNUAL BASIS AND THAT
WOULD PROVIDE THE ACCOUNTABILITY
MECHANISM TO THE LEGISLATURE TO
MOVE FORWARD INTO. OUR INTENT IS
NOT TO DISRUPT THE PROCESS AT
ALL BUT TO PROVIDE ENHANCED
OVERSIGHT ON FROM THE
LEGISLATURE'S PERSPECTIVE. UP
INTO THE CHAIR WINNER WE
EXPECTED TO DO A FULLER DIVE
INTO.
THIS FISCAL PROJECT.
SOMETIME IN APRIL OKAY SO I I
GUESS MY QUESTION NOW YOU IS.
YOU'RE SEEING HOW THEY'RE A CEO
REPORT BACK YEARLY AT THAT.
THAT ENOUGH FOR MANY YEARS
LONGTIME WERE.
PARTY SO FAR INTO THIS SO.
THAT ARE BUILDING MY CONCERN IS
HEARING THAT NOW.
OUR RECOMMENDATION IS RELATED TO
BUT THE FUNDING CAN OF THE
FUNDING IS THAT'S AN EXCELLENT
TOOL FOR THE LEGISLATURE TO.
OUR SITES OVERSIGHT OVER THE
PROJECT
FOR LARA LARGE PROJECTS IT'S NOT
UNUSUAL FOR THE LEGISLATURE TO
EVEN REQUIRE THE PROJECT TO
REPORT BACK MORE FREQUENTLY THAT
PERHAPS ON A QUARTERLY BASIS ON
A MORE. KIND OF INFORMAL NOTE IN
TERMS THAT I'M BUT STOPPED LEVEL
THAT'S NOT NOT SOMETHING THAT
HAS BEEN REQUIRED.
OF THE FIFTH UP PROJECT OR
SOMETHING WE RECOMMENDED BUT IT
IS AN EXAMPLE OF SOMETHING THE
LEGISLATURE COULD IMPLEMENT IF
IT WISHES BOOK ASSUME THE COST
OVERRUNS IN THE TRACK RECORD OF
THIS PROJECT.
OBVIOUSLY IT MAYBE IT DOES
CONSIDER.
MORE ATTENTION.
THEN JUST THAT.
AND THE FOR DEPARTMENT OF
FINANCE WE SUPPORT THE THE MULTI
YEAR FUNDING FOR THE PROJECT
WITH THE PROVISIONAL LANGUAGE
THAT DOES REQUIRE THE ONGOING
DISCUSSIONS AND THAT QUARTERLY
VERIFICATION OF PROGRESS.
ARM BEFORE THE NEXT YEAR IF I
CAN REQUEST GOING TO GET A COPY
OF THE SEVEN
ON ITS IT YOU'VE DONE.
SO I COULD.
SEE WHAT HAS HAPPENED OVER THE
YEARS NOW I. THIS IS AN EXAMPLE
WHERE I THINK FOR THOSE OF US
THAT ARE SUPPOSED TO BE PART OF
OVERSIGHT.
IT CLEARLY OVER SIXTEEN YEARS
THERE'S NOT BEEN ENOUGH
AND.
FROM ADMINISTRATION TO
ADMINISTRATION REGARDLESS OF WHO
THE GOVERNOR'S BENNETT WHO THE
CONTROLLERS SPENT.
THIS IS A PROJECT THAT HAS NOT
BEEN ABLE TO.
GOVERNMENT IS NOT ABLE TO GET A
HANDLE ON AND NOW WE'RE TALKING
ABOUT ALMOST A BILLION DOLLAR
COST.
A SO I AT LOVE TO LOVE TO SEE
THOSE AUDITS AND AND
I'D LIKE TO BE BRIEFED HOPEFULLY
BEFORE HAND OF OF WHAT THE PLAN
IS TO. GIVE US SOME CERTAINTY
THAT.
WE ARE USING THE TAXPAYER
DOLLARS WELL.
BRITNEY THEM WEEKLY FOR THE
ENTIRE COMMITTEE YEAH I'LL BE
HONEST IN LIGHT OF WHAT'S GOING
ON IS THE LENGTH OF TIME.
IS FORCING APPEARS BUDGETS HIM
BEING ON THE COMMITTEE SINCE.
TWO THOUSAND FOURTEEN THIS IS
PROBABLY THE.
MORE THE LONGER PROJECTS THAT IT
HAS GONE ON SO. I DO THINK IT
REQUIRES A LITTLE BIT MORE
ATTENTION.
IT ACCOUNTABILITY.
TO SHUT OFF ACCOUNTABLE JUST.
NO WRITING A BLANK CHECK AND
YOU'RE SAYING TWENTY TWENTY ONE
CORRECT. FOR FULL OF THE FOR
FULL IMPLEMENTATION BUT. THEY'RE
THEY'RE NO GUARANTEES
YOU KNOW SO THAT'S THE ISSUE
THAT THAT.
IN LIGHT OF MY COLLEAGUES
COMMENTS THAT I.
DOES RAISE SOME CONCERNS
IS COVERAGE OF A QUESTION.
WELL I WAS JUST TRYING TO
UNDERSTAND THIS IS.
REQUEST FOR POSITIONS AND.
SEVENTEEN EIGHTEEN ITS EIGHT
AND THEN IT GOES UP TO THIRTY
AND THEN IT'S ALMOST FIFTY AND
I'M TRYING TO FIGURE OUT WHETHER
THIS IS ON A DATA INPUT.
ISSUE OR IS THIS THE DEVELOPMENT
OF THE SYSTEMS ISSUE BECAUSE MY
UNDERSTANDING IS THE SYSTEM IS
ALREADY DEVELOPED. SEVEN JUST
TRYING TO UNDERSTAND OF WHAT THE
REQUEST IS TO GET BACK TO SOME
OF THE QUESTIONS THAT WERE ASKED
BEFORE.
YES SO YOU ARE CORRECT ARE A
REQUEST FOR IT.
ADDITIONAL STOPPING IS DUE TO
THE INTEGRATED SOLUTION AND THE
NATURE OF THE WORK THAT IS
CAUSED BY THE INJURY TO
SOLUTION.
UP AS HE STATED OF S. A WILL NOT
BE FULLY IMPLEMENTED INTO FIFTH
GALA UNTIL TWENTY TWENTY ONE.
JULY TWENTY NINETEEN INTRODUCES
PARALLEL PROCESSING WITH ONE
POINT OF ENTRY SO YOU ENTER THE
DEPARTMENTS THE DEPARTMENTS
OFFICE GUY WILL CONTINUE TO
UTILIZE FOR SCOTT AS THEIR MAIN
SYSTEM. AN S. YOU'LL CONTINUE
UTILIZE THE LEGACY SYSTEM AS
THEIR MAIN SYSTEM WITH BOTH.
EMPLOYERS BEAT INTERFACE TO THE
OTHER AND THAT CREATES A LOT OF
RECONCILIATIONS BY MAKING SURE
ALL THE TRANSACTIONS ARE POSTING
ON A REGULAR BASIS THE NORMAL
WORKLOAD IS STILL THERE BUT
SOMEONE NOW HAS TO RECONCILE
THAT THE TRANSACTIONS. AND THE
LEDGER ACTUALLY BALANCE SO WE
CAN HAVE A STATE Y. LEDGER OUT
OF THIS GAL TO BILL TO MAKE SURE
THAT THE SYSTEM IS IS BEHAVING
IN THE WAY IT'S SUPPOSED TO
BEFORE WE ACTUALLY CUT OVER THE
TRUE BOOK OF RECORD INTO FISCAL.
RIGHT
SO SO IT IT MAY BE I THINK THAT
THE IDEA BEHIND FISCAL IS THAT
IT WAS SUPPOSED TO UPDATE.
THAT THE SYSTEM SO THAT.
.
EVERYBODY IS USING THE SAME
SYSTEM IN INPUTTING THE DATA IN
THE SAME AYE SO. I'M ASSUMING
THESE ARE TEMPORARY POSITIONS AT
SOME POINT YEAH.
BECAUSE IT'S SUPPOSED TO CREATE
EFFICIENCIES NOT CREATE MORE
WORK FOR READY TO DO IT I JUST
WANT TO MAKE SURE THAT
ULTIMATELY THAT'S WHAT WE'RE
MOVING TOWARDS.
RATHER THAN HAVING DIFFERENT
SYSTEMS THAT HAVE BEEN OPERATING
IN THE PAST.
YES THERE IS I'M THERE SOME
LIMITED TERM BUT THERE'S ALSO
SOME.
PERMANENT RESOURCES THAT WILL
YOU KNOW BE NEEDED.
AND THE PERMANENT RESOURCES ARE
NEEDED BECAUSE THE SYSTEM IS
MUCH MORE COMPLICATED I'M JUST
TRYING TO. TO UNDERSTAND HOW IT
IS THAT YOU GO FROM EIGHT HOW
YOU CREATE EFFICIENCIES THROUGH
A NEW PLATFORM AND THEN END UP
HAVING TO HIRE MORE PEOPLE.
AND MAYBE THIS IS THE SUBJECT
FOR THE LONGER HEARING BUT IT
JUST SEEMS TO ME THAT IT AT SOME
POINT. YEAR IN THE IDEAS YOU'RE
CREATING THE EFFICIENCIES.
GOT IT PAY FOR ONE OF FOUR
PARTNERS.
IT'S ALREADY BEEN.
AUTHORITIES ARE FOR YOU.
YEAH.
HARLEM.
BEING A PART.
OPERATE. HAVEN'T GOTTEN.
FULL.
WHEN YOU LOOK AT MOST OF THE
DEPARTMENTS THAT HAVE.
AND THEN HAVE HIM. CONTROLS. FOR
TRYING TO BUILD THOSE TWO
TOGETHER.
A FACT THAT WE DIDN'T GO. FIRST
QUICKLY CONTROL FUNCTIONALITY
THAT ARE OPEN RECORD MAKES IT
DIFFICULT FOR HER TO GET ON.
WHEN WHEN TRAINS ALREADY YEAH
GO.
TO ANOTHER QUESTION YOU'RE
ASKING THAT PROJECT. SHOULD BE.
SLX DIFFICULT AWARE TUNING
INFORMATION NOW SCO. IMPRINT
INFORMATION RIGHT NOW.
WHAT WE PROVIDING? IN PUTTING IT
AND.
FOR.
WELL BECAUSE YOU LIKE HAVE TO
KILL. HALF PART OF THIS.
AND.
THE PART THAT HAVE ARE PEOPLE
FROM.
WHAT WE'VE BEEN TRYING?
BILL.
EVERYTHING THAT'S WHAT
CLEVELAND'S ROLLING UP BUT ONLY
TO A POINT.
IT'S NOT TO THE POINT WHERE WE
CAN TAKE THAT IN FOR.
ROLL IT INTO OUR.
FOR.
IF I MAY FOR.
MISTER CHAIRMAN I PROVIDE
ADDITIONAL CONTACTS PRESSURE.
THE ORIGINAL INTENT REGARDING
THE ACCOUNTING AND CONTROL
FUNCTIONS WITH TO REALLY BRING
THEM ONLINE ALL AT ONCE.
SUPPOSED TO BE ONLINE IN TWENTY
FIFTEEN HOWEVER THERE WAS
PERSISTENT CHALLENGES RELATED TO
THE DEVELOPMENT IN THE TESTING
OF THESE FUNCTIONS. AS A RESULT
OF THOSE CHALLENGES S. P. ARE
SUMMONED HIM THE LATEST PLAN IF
YOU DO INTRODUCES A NEW APPROACH
FOR THAT RATHER THAN COMING
ONLINE. IN WHOLE KIND OF ON A
SINGLE DAY INTEGRATED SOLUTION
BUILD INTERFACES BETWEEN BOTH I
FEEL THE LEGACY SYSTEMS AND
FIFTH OUT. AND THIS IS IN
RESPONSE TO CONCERNS THE STATE
COMPTROLLER'S OFFICE HAS FACED
IN THE PAST REGARDING THE
PERFORMANCE AND ACCURACY OF THE
SCALE. THIS IS REALLY AN
INTRODUCTION FOR THE BALLOT IN
THE SYSTEM THE INTENT MEAN WHEN
SCO WITH COMPETENT IN THE
PERFORMANCE THE FIFTH OUT THEN
THEY WOULD TRANSITION OVER. OUR
CONCERN IS THAT THERE'S NO.
IN THE FDR THERE'S NO SPECIFIC
DATE FOR WHEN. YOU KNOW WHAT
WHAT WILL ACCOUNT FOR THOSE
ASSURANCES AND WHEN I FEEL FULLY
TRANSITIONS OVER TO THE AFGHAN.
AS WITH THE ORIGINAL VISION BUT
WELL IN READING THIS IN TWENTY
TWENTY FOUR TWENTY FIVE. THEY'RE
UP FORTY ONE ONGOING POSITION
SOSUS.
YEAH YOU READ ALL THE REQUEST
AND HIS MIND NUMBING.
IT'S A LOT OF MONEY AND RIGHT
NOW THE TRACK RECORD IS NOT THAT
GOOD.
SO SO SO WHAT POINT DO WE JUST.
STOP WRITTEN.
IN CHANGECOURSE BECAUSE WE'RE
DOING RIGHT NOW IS NOT WORKING
FOR SAID APPEARING GO AND
APPROVED IS MAKING SENSE.
OUR RECOMMENDATION IS FOR THAT
CAN HEREBY HERE APPROVALS THAT
THE LEGISLATURE
TRACK HOW IT'S MOVING FORWARD
AND WHETHER ANY ONGOING
POSITIONS ARE VALLEY THAT WE CAN
IN THE FUTURE DECISION BASED ON
BUT EVEN RECORD EVEN OVER PRIOR
YEARS IT DOES COME BACK EVERY
YEAR SO. THERE HAS BEEN THAT IN
EFFECT.
A YEAR BY YEAR APPROVAL RIGHT
NOW IS NAY ONGOING ALL THIS
TIME.
IN A STILL HASN'T CORRECTED WITH
THE ISSUES.
SO WHY WILL WE CONTINUE GOING
YEAR BY YEAR THE COMES BACK. TO
LEGISLATURE EVERY YEAR SO.
WHY WE LOVE THAT TO CONTINUE I
DON'T I REALLY HAD A GOOD
REASON?
FOR ALLOWING THAT.
ACTUALLY.
THE LOGISTICS.
PROVEN
HE ARE
AND SO THOSE ARE THE PROJECT
PLAN THAT HISTORICALLY THE
LEGISLATURE HAS APPROVED THE
PLAN AND NOT REQUIRED FIFTH OUT
TO COME BACK AND LAST THERE'S A
CHANGE AND SO. THE.
.
USUALLY IT'S BEEN CUT OF A FEW
YEARS THE LAST TIME THE FIST CAO
KY BEFORE THE LEGISLATURE WITHIN
TWENTY SEVENTEEN EIGHTEEN.
IF I COULD JUST WOULD SUGGEST
HOW LUDICROUS IT SILENCED US
BECAUSE WE'RE APPROVING.
HUNDREDS OF MILLIONS OF DOLLARS
WITHOUT ACCOUNTABILITY IN YOU'RE
SAYING WELL WE HAVE AND YOU HAVE
AN HAD COME BACK TO US AND YET
WE'RE NOT GETTING THE RESULTS
THAT WE WANT. AND MY GUESS IS IF
THE START OF THE TWO THOUSAND
FIFTEEN THE TECHNOLOGIES PEARLY
OUTDATED AT THIS POINT RIGHT TWO
THOUSAND EIGHTEEN TWO THOUSAND
TWENTY ONE.
.
IT'S IT'S IT'S IT'S PRETTY MIND
BOGGLING.
SO I GUESS WE'RE GONNA TALK A
LOT ABOUT THIS.
BUT OBVIOUSLY WE TALKED EARLIER
ABOUT PUTTING THIS IN THE
LARGER.
IT'S GOT THIS QUESTION OGLE AND
OPEN TO PUBLIC COMMENT. ANY WISH
TO SPEAK ON THIS ITEM.
OKAY I'LL CLOSE PUBLIC COMMENT
ON THIS.
AND WILL THE ITEM OPEN THIS
RECOMMENDATION IF I COULD JUST
MAKE ONE FINAL COMMENT ANOTHER
LOT OF DEPARTMENTS THAT ARE
INVOLVED IN THIS.
CEO IS ONE OF THEM AT THE END
THE DAY I'M LOOKING TO FINANCE
OR SOMEONE WITHIN THE
ADMINISTRATION TO SAY WHO. SORT
OF WHO'S IN CHARGE WHO'S
RESPONSIBLE WHO'S ULTIMATELY
ACCOUNTABLE FOR WHAT HAPPENS HOW
ARE WE AS LEGISLATORS SUPPOSED
TO PRY PROVIDE APPROPRIATE.
OVERSIGHT RIGHT THE DEFINITION
OF INSANITY IS DOING THE SAME
THING OVER AND OVER AGAIN AND
NOW THEY WERE ALMOST A BILLION
DOLLARS IN THIS PROJECT.
FEELS A LITTLE INSANE TO ME SO
SORRY THAT MY LANGUAGE IS
PROBABLY A LITTLE STRONGER THAN.
I TYPICALLY DISCUSSING SEEN THIS
COMMITTEE BUT BUT FROM OUR
STANDPOINT IT'S JUST.
DIFFICULT FOR US TO HAVE TO GET
OUR ARMS AROUND THIS.
I THINK EXCUSE ME KNITTING HARD
PARTNER FINANCE I WOULD LIKE TO
BE ABLE TO FOLLOW UP ON THAT ON
THE. ADMINISTRATION'S SUPPORTIVE
OF THE.
ANY AUGMENTATION DOES HAVE DOT
PROVISIONAL BRIAN WHICH
REQUIRING THE QUARTERLY
VERIFICATION OF SATISFACTORY
PROGRESS TOWARDS PREDETERMINED
MILESTONES AS SPELLED OUT IN S.
B. R. SEVEN. ABOUT THAT COULD
GIVE YOU SOME OF THAT I
CONFIDENCE IN REGARDS TO BEING
ABLE TO HAVE THAT APPROPRIATE
FOR PROGRESS. AND IN REGARDS TO
THE.
.
THE DELEGATED AUTHORITY ONLY
UNDER THE DEPARTMENT FINANCE AND
THE CONCERNS THAT LEO RAISED. A
FINANCE AND CONTROLLER HAVE
AGREED TO REVISIONS TO THE
PROFESSIONAL LANGUAGE ADDING
THAT THE DEPARTMENT TECHNOLOGY
WILL BE INCLUDED IN THIS
QUARTERLY VERIFICATION PROGRESS.
THAT INFORMATION WAS SHARED
WITH THE LEGISLATIVE STAFF
REALLY ARE IN FEBRUARY.
AND THAT'S JUST HAPPENING RIGHT
NOW.
BUT.
OKAY.
SO AGAIN FOR THE FIRST TIME IN
THIRTEEN YEARS FINALLY
DEPARTMENT TECHNOLOGIES AND IS
INVOLVED.
I JUST ASKING THE QUESTION IT'S
IT'S AGAIN IT'S MIND BOGGLING
THAT THAT THIS HAS I BELIEVE
THEY HAVE BEEN IN FAULT I THINK
IT'S MORE OF.
IN IN OUR PROPOSAL WHERE ARE
INCLUDING THEM IN PART OF THOSE
ONGOING DISCUSSIONS SO. IF THE
INTENT WAS ALWAYS THIS ONGOING
DISCUSSION WITH. QUARTERLY
VERIFICATION OF SATISFACTORY
PROGRESS.
WELL LOOKING FORWARD TO THE NEXT
DISCUSSION ON THE.
WE DO.
YOU'RE ONE OF NEXT ITEM.
MISTRUST Y. MISTER CHOI.
YEAH I JUST TUR WALKED IN AND.
JUST LISTENING TAILEND OF IT AS
SAW HUGE UNDERTAKING IS LIKE
EXPRESSION MINDBOGGLING.
STILL.
ARE AYE OUT WOULD LIKE TO HAVE
SOME CLARIFICATION IS SESSA. THE
FISCAL SYSTEM IS THAT IT CUSTOM
OFF THE SHELF FOR ENTERPRISE SO
WE SOCIAL PLANNING.
IS THIS A CUSTOMIZED TO ADD JUST
A PHONE OUR STATE DON'T WASH OFF
THE SHELF WAS JUST OF
IMPLEMENTING.
NOW.
I DON'T UNDERSTAND THAT THE
LANGUAGE OF WHICH IS THE CASE
HERE.
CUSTOMIZED APPROACH WHERE AM.
A NEWLY DEVELOPED DEVELOPED ó
OFF THE SHELF WAS SOMEBODY HAS
ALREADY TESTED.
LOUIS MY LOOK AT THE LEGISLATIVE
ANALYST'S OFFICE OUR
UNDERSTANDING IS THAT IT IS AN
EXISTING.
EXISTING TECHNOLOGY THAT'S BEEN
MODIFIED TO FIT CALIFORNIA'S
REQUIREMENTS FOR FINANCIAL
MANAGEMENT DO YOU KNOW WHAT A
AGENCIES SO AND AT THE STATE OF
MIND OF USED TO THE. SYSTEM THAT
THE WE ARE. NOT TRYING TO
MODIFIED TO FIT THAT ONE NEEDS
I'M NOT SURE WHAT OTHER STATES
AREN'T YOU HAVE IMPLEMENTED THE
TECHNOLOGY BUT MY UNDERSTANDING
IS THAT IT'S AN ORACLE PLATFORM
THAT HAS BEEN USED SUCCESSFULLY
BY OTHERS YEAH I'M I'M SURE YOUR
YOUR.
.
THE STAFF MEMBERS A TECHNICIAN
SO WOULD MAKE SURE THAT.
SO SUCH A HUGE UNDERTAKING
SYSTEM OR REPEAT RELEASED
SATURDAY THE AND. TESTED DUG UP
WOOD WORKER.
LET THEM BEFORE IT CREATES A ANY
POTENTIAL DISASTER SO ARE.
HE BECAUSE OF THE YEAR VIDEO.
SIZE AND THE SCOPE OF THE
PROGRAM I JUST WANT TO MAKE SURE
W. AND THE TROOPERS CHECK A THAT
THE SYSTEM.
THE DOUBLE OWE YOUR BE UP
PROPOSING YOU ARE PROPOSING TO
TRANSITION OVER.
I AM DISARM ANY YEARS.
WESTOVER TWENTY YEARS ALFA
TRANSITIONAL.
I'M SURE IN WHAT IT WHO WORK ARE
PASSED ON TO MAKE SURE THAT THE
SYSTEM HAS WORKED UP PROVEN. NOW
SOFTWARE TECHNOLOGY.
IT WILL BE DOING DEEP DEEPER
DIVE ON THIS.
WELL.
OKAY WILL THIS ITEM OPEN MOVE ON
TO OUR NEXT ITEM. NATION RATE.
.
CALIFORNIA IDEA MESS LICENSING.
THAT ISSUE IS REQUESTING FIVE
MILLION DOLLARS TO CONTINUE
FUNDING THE STATE'S COMPUTER
ASSOCIATES INTEGRATED DATABASE
MANAGEMENT SYSTEM OR IDEA MASS
MAINTENANCE CONTRACT
IN ADDITION SIX HUNDRED EIGHTY
SIX THOUSAND DOLLARS IS
REQUESTED TO FUND FOR PERMANENT
AND ONE LIMITED TERM RESOURCE.
WHO WILL BEGIN TO MIGRATE THE
SCO LEGACY SYSTEMS OFF OF THE IT
MUST TECHNOLOGY?
WELL.
AND WE UNDERSTAND THAT SCO WILL
CONTINUE TO BE RESPONSIBLE FOR
THE IDEA MATH COSTS UNTIL IT CAN
TRANSITION ALL FOURTEEN OF ITS
PLATFORMS OFF THE
STONE. COVERS FOR THAT REASON WE
HAVE NO CONCEPTUAL CONCERNS OF
THE PROPOSAL THAT WE DO HAVE TWO
COMMENTS ONE IS JUST TO
HIGHLIGHT THE SCO WELL AND
CONTINUE TO BE RESPONSIBLE FOR
THE COSTS FOR A LONG TIME FOR
THAT. THEY WILL BE ABLE TO
TRANSITION OFTEN TELL THE STATE
PAYROLL SYSTEM IF COMPLETED AS
WAS NOTED THERE'S NO KIND OF
COMPLETION DATE KNOWN AT THIS
TIME. AND SECONDLY WE CONCUR
WITH THE STAFF RECOMMENDATION.
AS IT'LL ALLOW SCO TO ACCEPT
A CONTRACT AND IF THEY ARE ABLE
TO EXECUTE THE CONTRACT AND IN
THIS BY THE SPRING IS
ANTICIPATED THEN THE PROVISIONAL
LANGUAGE WOULD NOT BE NECESSARY
INSTEAD THE LEGISLATURE COULD
JUST ALLOCATE BUFF FUN STUFF
NECESSITATED BY THE CONTRACT.
COOK YOU FINANCE.
I NEW THE HARDWARE DEFIANCE WE
HAVE NO CONCERN FOR THE PROPOSAL
AND WE LOOK FORWARD TO AT THIS
OF CONTINUING WORK ON MIGRATING
OFF DIED IN A SYSTEM. ANY
QUESTIONS THE COMMITTEE.
OKAY THE OCEAN SPEAKING FROM THE
PUBLIC
OKAY.
WHEN I WAS A LOT OF OPEN.
LET'S MOVE ON TO ITEM NUMBER
NINE PERIL ON ITS.
BUT AS HE REQUEST LIMITED TERM
RESOURCES TO PERFORM AUDITS
APPAREL CONTROLS AND PAYROLL
RECORDS
THE SCO CURRENTLY HAS
PROPOSITIONS A PURSUANT TO
GOVERNMENT CODE SECTION. TWELVE
FOUR SEVEN SIX SINCE TWO
THOUSAND THIRTEEN HAS PERFORMED
AUDITS AT THE DEPARTMENT LEVEL
TO ENSURE COMPLIANCE WITH SCO'S
DECENTRALIZED LEGACY PAYROLL
SYSTEM.
I'M THESE AUDITS OVER THE PAST
FIVE YEARS HAVE PROVEN TO
IDENTIFY AND CORRECT WEAKNESSES
AND LACK OF INTERNAL CONTROL AT
THE DEPARTMENT LEVEL.
THE COST OF THIS PROPOSAL IS SIX
HUNDRED EIGHTY TWO THOUSAND
DOLLARS AND EIGHTEEN NINETEEN
AND S. HERO ANTICIPATES AN
ANNUAL AVERAGE OF MORE THAN
THREE A THIRTY SEVEN MILLION
DOLLARS IN AUDIT FINDINGS AS A
RESULT OF THE DISH AUDITS THE
COMPUTER. PERFORMED.
OIL. WE HAVE NO CONCERN. FINANCE
WE KNOW CONCERNS.
A IT WAS TO SPEAK FROM THE
PUBLIC ON THIS ITEM.
ANY QUESTIONS FROM THE.
MEMBERS.
GET RECOGNITION SOLIS ITEM OPEN
SCHOOL WOULD OPEN.
NEXT ITEM NUMBER TEN LOCAL
PARCHMENTS WORKLOAD INCREASED
PRINT INCREASES.
THAT'S HIS WORKLOAD FOR
MONITORING REVIEWING IT NEW AND
PROPOSED LEGISLATION AND MAKING
APPORTIONMENT PAYMENTS TO LOCAL
COUNTIES CITIES AND SCHOOLS HAS
INCREASED OVER THE YEARS.
OVERTIME DUE TO THESE
INCREMENTAL INCREASES IN WORK.
THE S. USE LOCAL GOVERNMENT
PROGRAMS AND SERVICES DIVISION
HAS BECOME UNDERSTAFFED
THEREFORE THE S. HERE REQUEST
ADDITIONAL RESOURCES TO AND
ADDRESS INCREASED WORKLOAD
RELATED TO THE MANDATED
APPORTIONMENT. PAYMENTS TO LOCAL
GOVERNMENTS AND SCHOOLS.
FINANCE.
NO CONCERNS
LL.
INCOMES IN THE PUBLIC.
KRIS LOVES ME HELD OPEN.
MOVE ON TO OUR LAST AUTUMN.
ISSUE ELEVEN ROAD MAINTENANCE
AND REHABILITATION PROGRAMS.
THE SCO REQUESTS INCREASE
RESOURCES TO FILL ITS NEW DUTIES
PURSUANT TO STREETS AND HIGHWAYS
CODE SECTION TWENTY THIRTY SIX
RELATED TO THE ROAD MAINTENANCE
AND REHABILITATION PROGRAM.
SENATE BILL ONE CHAPTER FIVE
STATUES OF TWENTY SEVENTEEN WAS
PASSED ON APRIL TWENTY EIGHTH
TWO THOUSAND SEVENTEEN AND
CREATED THE ROAD MAINTENANCE AND
REHABILITATION PROGRAM. TOOK
JUST DEFERRED MAINTENANCE ON
STATE HIGHWAYS AND LOCAL STREETS
AND ROAD SYSTEMS.
THAT'S HIS ROLE IS TO ENSURE
LOCAL AGENCIES ARE SPENDING
FUNDS ON STREET ROAD AND HIGHWAY
PURPOSES PURSUANT TO LAW.
AND APPROPRIATELY ALLOCATE THE
OUR AND OUR A MONIES TO
APPROXIMATELY FIVE HUNDRED AND
THIRTY NINE CITIES AND COUNTIES.
OIL.
FINANCE YOU KNOW CONCERNS OF
THIS REQUEST ANY QUESTIONS
LITERARY.
OBVIOUSLY THOSE RESOURCES
NECESSARY FOR US TO IMPLEMENT
OTHER PROVISIONS UNDER SP ONE.
.
THING THAT'S MENTAL ASYLUM OPEN.
THANK YOU ALL FOR JOINING US
TODAY THAT CONCLUDES OUR HEARING
WE BACK NEXT WEEK