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    State office building racks up $60 million in ongoing repairs Page 1 of 3 — BCA Buttenin > Q State State office bui racks up $60 million in ongoing repairs July 6, 2014 6:33 p.m. SACRAMENTO (AP) — During her final years working for the state tax board, Peggy Robinson went to ‘work afraid of the building mold that she says left her with constant coughing, headaches and skin rashes. She also recalls water problems culminating in burst pipes flooding floors and forcing employees to relocate, And that's not to mention the near-daily annoyances for nearly 2,000 workers at the Board of Equalization headquarters, where Robinson worked from its 1993 opening until her retirement two years ago. ‘A malfunctioning heating system forced workers to wear jackets at their desks. Water dripped onto their desks. Elevators stalled mid-fight. ‘Some of the building's persistent problems even pose a danger to the public. Outside the 24-story office building about five blocks from the state Capitol, scaffolding protects pedestrians from glass panes that have popped out and shattered on the sidewalk. “It was definitely not conducive to getting your work done on time,” Robinson said of being an employee inside the Board of Equalization building. "They made a choice: It was either having to keep paying for the building or let the employees suffer. | believe they let the employees suffer.” With repair bills mounting, the state Legislature is now considering how to resolve the long-festering problem and get the employees into a healthier office environment. State taxpayers so far have shelled out about $60 million for building repairs and $2.3 million to pay workers’ compensation claims and settle lawsuits from fed-up workers. ‘AB1656 by Assemblyman Roger Dickinson, D-Sacramento, requires that the state find a new building to house the agency, which collects about $50 billion in tax revenue each year. “Any other landlord would be categorized as a slum lord and forced to fix this problem," said Jerome Horton, the elected chairman of the Board of Equalization. But advocates for the move say Gov. Jerry Brown’s administration has been resistant and is delaying action. Legislative staff have estimated that planning, designing and building a new headquarters could cost up to $500 million, with an additional $300 million to $400 milion in interest payments. ‘AB1656 would give the Department of General Services, which oversees state government buildings, the authorization to move the tax agency but does not guarantee future funding to do so. http:/www.mantecabulletin,com/m/archives/109830/ 2/25/2015 State office building racks up $60 million in ongoing repairs Page 2 of 3 Dickinson and Board of Equalization officials say the governor's office would rather wait until a larger assessment of Sacramento-area government buildings finishes before deciding what to do with a single site. That review could take up to five years. Jim Evans, a spokesman for the governor, referred questions to the Department of General Services, which says officials are not indifferent to the concerns but face hurdles. For one, the state still owes $77 million to pay off the high-rise, and terms of the bond require the building to be occupied. The state settled a lawsuit against the building's contractor in 2000, but the statute of limitations for suing over defects ran out more than a decade ago. Meanwhile, the repair costs keep mounting and legal challenges keep coming. “What they've done is periodically plug the leaks to the dam instead of rebuilding the dam,” said Anthony Perez, an attorney who filed a lawsuit over the mold issue on behalf of 31 employees in 2008, with the state eventually settling it. Brian Ferguson, a spokesman for the Department of General Services, says employees are not exposed to mold and would be evacuated if that was the case. “it's probably the most tested building in all of the state for air quality,” he said. Perez disputes that and filed a $50 million claim last week, alleging that workers continue to fall ill from ‘mold despite false assurances from management. The agency declined to comment on the claim filed on Wednesday. Ata recent meeting with Board of Equalization employees about AB1656, Dickinson acknowledged it would take another five years for relocation even under the best case scenario. Frowns and sighs spread through the audience of more than 70 employees. While they wait, the problems persist. ‘One employee recently found brown water oozing from around a tollet seat cover dispenser as corroding pipes compromise the wastewater system. A state worker has been walking up and down the building checking for smoke because the fire-control system is broken Board of Equalization officials say the constant problems damage morale and undermine productivity. “Its like someone running through the room screaming,” said Liz Houser, the deputy director of administration tasked with handling building problems, Other State Top Stories Most Read Used cars often sold with unfixed defects, despite recalls Reddit, Google crack down on posting nude pics, videos hitp://www.mantecabulletin.com/m/archives/109830/ 2/25/2015 aes oppo mec ot ne saystBoy Aumoy eBu0I0 OM, :SMON AV eke tua HOS amuisrnore metre sen uennaaeeny At 95016 ‘anucze ice ve 8 Ec 0 Pm Oe 2 ned OS AON papayas Ha OPED ot ‘pos srek Camel oh eAEroUD 100 ARENDS ces op a spon mg oe Bap oe ae aspen eee IR oS g]] “cr ssvam poms upon Bra onan apse =e ep sot vogo 08D soley an ps sea BUDOON 2 ao apenas oped sen op Oe OHS “me ge swerve agro enn ge mirc oe | resteipoean meaner "Btoa poem Sen pnd duang— (ah tro CANNONS supe aN NEF suyedes + ur suoyjpu dn syoes Bulpying eouyo 8723S ww samvces yeo's re ‘enn ope | snow abseRs | snmng | S009 se | WORE ‘Sos |e | esurena [poem's Leone [sopee do) Sea parposry oa was aon State building defects will take years to repair, officials say | The Sacramento Bee The Sa... Page 1 of 3 The State Worker SUBSCRIBE 2 The State Worker THE SACRAMENTO BEE Stay Connected » Sacbee.com Facebook —Twiter_~—smail (_|moShare| Share State building defects will take years to repair, officials say BY JON ORTIZ - JORTIZ@SACBEE.COM (06/30/2014 1:45 PM | Updated: 06/30/2014 1:46 PM. The Board of Equalization headquarters in downtown Sacramento. THE SACRAMENTO BEE Massive defects so riddle a state office tower in downtown Sacramento that it will take five years before they're fixed, according to a new government estimate. http://www. sacbee,com/news/polities-government/the-state-worker/article2602585,html 2/25/2015 State building defects will take years to repair, officials say | The Sacramento Bee The Sa... Page 2 of 3 The paperwork for rehabilitating the Board of Equalization’s headquarters will take two years to complete, the agency said last week. Then tack on three years to get the work done. The state has figured the fixes and employee relocation during reconstruction will cost up to $115 million, plus lost productivity from disrupting the tax-collecting agency's operations. Deputy Director Edna Murphy said during a board meeting last week that video and lab tests confirmed wastewater-pipe corrosion first identified a year ago on three floors actually runs throughout the 24-story high rise. Meanwhile, the replacement of some 2,000 suspect glass panels on the building's exterior still needs to be done. ‘Taxpayers have already spent more than $60 million to repair the skyline-shaping tower at 450 N St. The state has thrown money into fixing leaky windows, removing toxic mold and repairing erratic elevators. The agency spends about $1 million per year monitoring air quality in the building, where trace amounts of toxic chemical substances have been found. Some employees have blamed illnesses on the sick structure. The latest twist came last month when officials found a pump that directs water for the building's fire-sprinkler system was defective. The state fire marshal put the building under a “fire watch” until the pump could be repaired. The order forced the state to assign staff who do nothing but walk the building looking for potential fire hazards, Lawmakers are considering a measure (http: //leginfo.legislature.ca.gov/faces/billNavClient.xhtml? Dill_id=201320140AB1656&search_keywords=) that would earmark money for the state to explore moving the 2,200 employees out of the tower into a new facility. | Murphy's report prompted a round of fuming by board members who were angry at the state's inability to find a lasting solution for a building that has been defective since its opening 22 years ago. “Biven though my lawyers told me not to say this,” said board chairman Jerome Horton, “I don’t think it’s safe.” http:/Avww.sacbee.com/news/politics-government/the-state-worker/article2602585.html 2/25/2015 State building defects will take years to repair, officials say | The Sacramento Bee The Sa... Page 3 of 3 Board member George Runner said the building represents “the great hypocrisy of the state,” noting that the danger a glass panel might again fall forced officials to ring the tower with scaffolds. “If this building was owned by a private entity, the city would not allow it to be standing there with scaffolding around it,” Runner said, “They'd insist it be fixed. But since this building is owned by the state, they can't.” RELATED: Column Extra VIDEO: The California Board of Equalization HQ saga (http://www.sacbee.com/2014/05/15/6408889/column-extra-video-the- california.html) New problem for Board of Equalization building in Sacramento (http: //blogs.sacbee.com/the_state_worker/2012/06/new-problem-for-board-of- equalization-headquarters-in-sacramento.html) Comments (#tabs-b0710947-1-tabPane-2) Facebook Twiter mat (]moShare) share hitp://www.sacbee.com/news/politics-government/the-state-worker/article2602585.html 2/25/2015 (> stare oF cxurortun @ ‘STATE BOARD OF EQUALIZATION 450 STREET, SACRAMENTO, CALFORNA oan Sarees 0 80x 042478, SACRAVENTO, CALFORNIA @¥ZE-00T3 mirc iesby-tores Fax oiesze 2868 wir.b02,ca09 _zrowe nto orn aie Largs jenn FLOOR ALERT ae a Ra To: Members of the Assembly A, From: Ramon J. Hirsig, Executive Director if RE; AB 181 (Jones and Runner, as amended January 27, 2010) Boatd of Equalization Sponsored Date: January 28, 2010 The Board of Equalization) (BOE) is the sponsor of Assembly Bill 151. This measure represents the first step in beginning the process of moving the BOE out of the 450 N Street building and potentially resolving the long term financial issues surrounding the building. ‘The Board Members believe that itis time for the State to take @ step back and have a thorough independent economic arialysis performed to determine the most cost beneficial manner for the State to address the 450 N Street building. Continuing to spend millions of taxpayer dollars per year into a Host of building Issues does not adequately address the long-term building problems for the Slate. ‘The current approach continues to drain the State's budget without any assuranoe thet it will stop, This is an opportunity to make a strategic determination as to what is in the best financial interest for the State, especially during this current fiscal crisis, An economic development/econemic analysis would provide the Stats with the following high-level benefits: «A thorough review of the remaining repairs needed at the 450 N Street building and the costs associated with those repairs. «Suggestions for addressing the debt service on the building and the repair costs. «Opportunities fo partner with private sector developers to address the short and long-term use of the building, + Opportunities to sell the building or locate a back-fil tenant behind BOE. Options to meet BOE's Headquarters’ space needs with a facility of the appropriate size. +2. January 28, 2010 Purchase of and Repairs to the Building In 1993, the State, through the Department of General Services (DGS), entered into & lease/purchase agreement with CalPERS for the 450 N Street bullding. In 2006, the State exercised its option to purchase the bullding. A loan of $61,001,600 was approved from the Pooled Money Investment Account effective in 2007. As of November 20, 2008, the State has an outstanding balance of $90,783,037 for the loan payments, accrued interest and administrative fees. In 2005, repairs to the building were estimated at $15.5 million. After several assessments of the building, including water intrusion and infrastructure studies, the current estimate for all building repairs is approximately $68 million, including $24.6 inilion spent to date, and steadily rising, This is a $52.5 million increase from the origitval estimate. Issues and Challenges Tenant Rights {As a tenant with no ownership interest, BOE should not be responsible for paying for the extensive repairs needed for the State's 450 N Street building. However, since 2005, BOE has been responsible for requesting additional funding from the Department of Finance or redirecting funds away from both its operating budget and BOE’s mission tritical work to fund the building repairs. Moreover, BOE has continued to pay full rent for the building, including space unavailable due to water intrusion and other infrastructure problems. On-going Problems BOE moved into the 450 N Street building in 1993 and immediately experienced water intrusion during the first season of heavy rains. DGS has attempted to repair the building, but the problems continue, . Another major problem was the curtain wall window system failure, which was identified in 1998, where windows leaked and fall to the street below and onto the surface of the attached parking garage (7 windows fell between 1999 and 2005), ‘This necessitated a $15.5 inillion repair project that was funded by the Budget ltem 9840 funds for contingencies/emergencies and through BOE’s operating budget. As the curtain wall project was nearing completion in 2007, mold growth due to ongoing water intrusion was discovered on the top floors (22, 23 and 24) of the building, resulting in the closure of those floors and implementation of a mold remediation project. Approximately 200+ employees were required to. be relocated outside of the building based on the mold and resultant floor closures.“The discovery of mold growth on the top floors and continued water intrusion events necessitated an inspection of the entire 480 N Street building. These inspections led to the discovery of mold growth on evety floot of the building, YDGS's consultants reeommended the remediation of this mold and DGS's current estimate for the remediation project is $32.0 million January 28, 2010 Qperating Systems ‘As the building is approximately 17 - 18 years old, DGS commissioned an infrastructure study fo determine the useful life remaining in the 450 N Street building mechanical systems (i.2., HVAC, water pumps, and elevators). Based on the study's findings, recommendations for additional work include: * Elevator modemization/infrastructure with an estimated §2.5 million cost. + Various infrastructure repairs with an estimated $18.0 million cost. Iffunding can be identified, these additional repair projects would continue over the next five years. Mold Remediation Plan it appears as though the DGS mold remediation plan calls for the remediation of mold growth in the occupied areas and work spaces.”’Mold inside wall cavities or in other inaccessible areas will not be remediated.~After completion of the project, mold will remain in the interstitial spaces (spaces where staff have no access) of the building. When the work is complete, the State will have spent a projected $32 million for repairs related to water damage and mold and end up with a building that requires special management protocols. ‘These cost estimates assume no new problems arise. Unfortunately, the State will stil have a building with encapsulated mold growth which will require special protocols for ‘on-going air quality monitoring by industrial hygienists fo ensure the health and safety of the occupants. Although DGS and its consultants assure us that the mold growth in the interstitial spaces will not pose a health risk to the building occupants, many BOE ‘employees and their unions believe that the presenos of mold growth in the bullding Is adversely impacting thelr health, These perceptions will also continue after the projected $32 million repair effort. Loss of Productivity and Revenue ‘Al of the remediation work is being performed in the building while ocoupled by BOE employees. This requires moves of staff from their floors to a ‘swing space’ while their fioor is being remediated. Once remediation is complete, staff must then move back to their original floors. This approach has created huge disruptions in the workplace and Joss of employee productivity. As BOE is responsible for generating one-third of the State's revenues, loss of productivity equals lost revenue for the State. Based on the ‘swing space’ approach, BOE is estimating a loss of productivity of 111 personnel years at @ cost of $8,325,000 in personnel costs during the planned 18-month remediation period. As many of these positions are revenue generating, BOE also estimates a revenue loss to the State of California of $22.0 million due to the workload disruptions, When taken in total, the estimated price-tag for the State of California is $98.0 million, including the costs of remediation of the 450 N Street building, lost productivity, and revenue loss, January 28, 2010 Meeting the Business Needs Lastly, the 450 N Street building no longer meets BOE's business operation needs, The Headquarters operation has grown from approximately 2200 to approximately 2900 employees, However, the 450 N Street building was designed to accommodate a maximum of 2200 employees. We realize this is a very complex and expensive Issue to address. However, the impact to the State is immense, which is reflected in the projected costs of the current remediation plan, We stand ready to work with the Legislature and the Governor's office to develop a comprehensive plan for the resolution of the issues related to the 450 N Street building. In the Interim, the ideal resoluition for both BOE employees and the California taxpayers Is to permit BOE to move out of the 450 N Street building and relocate to other premises without incurring the continuing cost of rent on the vacated space. ‘The Board of Equalization respectfully requests your “AYE” vote on AB 151, -5- January 28, 2010 : Honorable Betty T. Yee, Chairwoman, MIC: 71 Honorable Jerome =. Horton, Vice Chair, MIC: 72 Honorable Bill Leonard, MIC: 78 Honorable Michelle Steel, MIC: 77 Honorable John Chiang Ms, Marcy Jo Mancel Honorable Arnold Schwarzenegger Mr, Craig Comett, President Pro Tempore Office Mr. Pedro Reyes, Speaker's Office Ms. Therese Twomey, Senate Republican Caucus Ms, Julia King, Assembly Republican Caucus Mr. Brian Annis, Senate Budget and Fiscal Review Committee \Mr. Adam Dondrs, Assembly Budget Committee Mr, Joe Shinstock, Senate Republican Fiscal Office Mr. Anthony Archie, Assembly Republican Fiscal Office Mr. Chris. Shultz, Assembly Dave Jones Office Ms, Ana Matosaintos, Department of Finance Ms, Miriam Ingenito, Department of Finance Mr. Mark Hill, Department of Finance Ms, Karen Finn, Department of Finance Mr, John Lloyd, Department of Finanoe Mr. Chris Hill, Department of Finance Mr, Paul Warren, Legislative Analyst's Office Ms. Lori Hsu, Legislative Analyst's Office Ms, Hellan Roth Dowden, HR Dowden and Associates Ms. Michele Pielsticker, CalTax Ms. Liz Houser, MIC: 69 Ms. kristine Cazadd, MIC: 83 Mr. Bob Lambert, MIC; 83 Ms. Margaret S. Shedd 7 SOELEGAL ( PAGE 02/05 e1/es/2008 @8:43 91631 Listing of locations within 450 N Street, Board of Equalization; suggested inspection from the history of current and past water intrusion/leaking 1" Floor Historical Room Conference Rooms Cafeteria Hallway by Cafeteria Hallway by Child Care (going toward exit) This floor experience flooding (large quantities of water) 3" Moor Conference Rooms 303 and 325 This floor experience flooding (atge quantities of water) 4" Rloor ‘This floor experience flooding (large quantities of water) 11" Floor Cubicte #61 All North East Corner Southside by Reception This floor experience flooding (lage quantitcs of water) 22" Floor ‘This is a Mechanical Floor Building built with Louvres upside down so all water/tin eatne into the ‘building straight to floors below, 17" Bloor (Bice 1706 Gaspect above ceiling tes, pictur suplid to Anthony of vent dove with some ‘ype of dust and sticky substance, “greensh-black color”) 18" Floor Column N-18 and Column K-18 19" Floor Cubicle #1 (past nin 1/4/08 ~ water intrusion within the wall eavity thet caused bubbling of Paint, was repainted recently.) A few cubicles over there was Water coming fom a light fixte, K-18 Column 20" Floor Southside hallway wet ceiling tile spotted Column N-18 by window Cubicle #123 Cubicle #2 by window K-18 Column windows { Et PAGE 83/85 exves/2eee ea:ts sisazel 7 sores ( 21" Floor Southeast Comer Whole Floor has smelled of a strong moldy odor (similar to old wet towels or shoes) Office #2103 K-18 Column, 22" Floor South/Bast side has smelled of a stroug moldy odor (similar to old wet towels or shoes) ‘Law Library ~4 cubicles in library - #1701, 1702, #2, #2 Offices opposite side of Library: Office #2214 Office #2215 Cubicles #93, #97 (inspect above ceiling tle, pictures supplied to Anthony of ceiling tiles off ‘with some type of growth aud/or rust on metal structure - May/07, Also pictures were supplied of plastic that was stuffed up into the ceiling tiles to deter lel into a garbage can), #78 Southeast Side: Ciibicles #84, #85, #86 Office #2206 Rast Side: Office #2237 Office #2238 Office #2239 Conference Rooms: #2221 and #2036 Northeast comer offices (Legislative Offices) 23" Floor — Board Proceedings Southside of building Cubicles: Near Column #K-21 #52, #83, 134... All oflices against windows (water leaked in onto the carpets) Mold! growth (‘Black mold”) found growing on that wall under windows M5, Yee's Office (‘Black Mola” found, wall opposite BPD) Conference Rooms" #2317 and 2304 Northeast comer Office Ms. Steels Office ‘Mold found in that office 24° Floor Law Library Southside Offices Per Dr. Yip (Gsiser ~ Occupational Medicine), all files and necessary paperwork that wes transferred to the Franchise Tax Board office should be Hepa Vacwumed andlor treated before being sent to that office. ‘The inspection done was visually inspected only!!! ‘We feel dat it necessary fo roview that process of files being transfered, There are employees that have beea relocated that are experiencing similar reactions (rashes, sinusitis and asthma) to bones that are being opened and files that are being handled. May be necessay to have esting dons on flee now located at the Franchise Tax Board in Rancho Cordova, W. eat (Saw Ever) Pig fd re ee | ce Lif Mhedetabicles | S| dod el ode eal Report from Facilitated Group Sessions March 26, 2008 State Board of Equalization Sacramento, CA Final Report Prepared by MHN Session Facilitator Karen Mindt Howell, MFT, MBA. April 24, 2008 Page 14 of 29 BCP No. XX EXHIBIT II (Page 4 of 6) BCP No. Xx EXHIBIT I (Pago 2 of 5) Assessment Summary This report reflects participant feedback from facilitated group sessions conducted March 26, 2008, Four sessions were held at two locations: Franchise Tax Board, 9646 Butterfield Way, Sacramento; and Board of Equalization, 450 N Street, Sacramento, | These sessions were Conducted to provide a review of concerns about the mold/health issues in the building at 450 N Street, Sacramento, CA. The employees specifically requested that this report be given to the Executive Director and the Board Members. Additionally, they requested that a copy of this report be made available to them. According to the sign in sheets, a total of 164 employees were present, The following is a summary of the concerns and possible solutions shared during those meetings ‘Summary of Concerns Health and Wellness Concerns It was the general consensus of the attending employees that a health risk is present in the building at 450 N Street. In 3 of the 4 sessions approximately 75% of the employees reported that they had or were having health problems, which they believed could be attributed to something in the building, ‘Specific symptoms sited by the employees included: Headaches Difficutty in thinking and concentration Itchy eyes Sinus congestion or infection Asthma Sneezing Rashes Staph infections (skin lesions) Neurological problems High blood pressure Vertigo Fatigue Lung problems Coughing Pneumonia ‘One case of meningitis, One case of cancer There was a general sense among employees that these healthimedical symptoms were attributed to molds in the building. Employees expressed that the symptoms improved or were completely alleviated when they were out of the building, either over the weekends, or when the employees were moved to another location. Symptoms seemed to increase and escalate with longer exposure, after re-entering the building. Some employees spoke of needing to get fresh air during breaks in order to be able to continue working through the day. When files moved from the exposed floors (22 23, 24) were reopened at the FTB location, some employees reported the retum of physical symptoms. Page 15 of 29 BCP No. XX EXHIBIT II (Page 3 of 5) Employees raised concems that they may be carrying moldipathogens home on their clothing or Personal items and exposing family members or contaminating their own home, Special Concerns were raised over potentially exposing persons with compromised immune systems Concerns were also raised that the pathogen causing the lines may be something other than mold and the question was raised regarding what else is being tested. For instance, Participants speculated as fo whether Legionnaires Disease was being considered. 'n additional to physical ailments, employees overwhelmingly reported feeling. = Angry * Stressed * Depressed "Frightened ‘They also stated that the situation has had an impact on morale and productivity on the job. Employees at the Butterfield site indicated that being offsite, away from co-workers and nocessary documents, having inadequate equipment and unprofessional working conditions, and longer commute times makes it impossible for them to perform their job. However, employees indicated that deadlines and expectations have remained the same. Overall, employees indi adequately at this time. ited a lack of confidence that the problem is being addressed Lack of Trust Employees repeatedly raised the issue of mistrust regarding what they have been told and what 's being done about the problem they feel is occurring in the building. Generally. concer was expressed that they are not getting accurate and timely information about the problem or about what is being done to correct it. Employees in each group expressed: * Speculation that there might be @ cover-up of the problem and that their health was being put at risk "Frustration that accurate and timely information was not being given; that the website where information is posted is difficult to access * A perception of an indirect message to leave, if they did not like their working environment, after reporting to Executive Director Ray Hirsig in December 2008 that people were ill and there was a problem * Distrust in not receiving accurate information from my summary report; concern that the information would be modified * A perception that employee health and wellbeing were being sacrificed for money; that “no one cared about them” * Retaliation was also a concem for employees, if they raised or pursued this issue relating to the mold. it was stated that employees who had filed either a lawsuit or a Workers Comp claim had been retaliated against, including promotions promised but not given. * Fear of being labeled a ‘trouble maker’ if they spoke up or filed a Workers Comp ctaim and that this had been their experience in the past "Fear of being retaliated against by attending the EAP sessions. Page 16 of 29 BCP No. Xx EXHIBIT II (Page 4 of 5) Concern that they had to go to doctors for medical evaluations that they belioved may be biased toward their employer. Discussions tock place regarding the filing of Workers Comp claims being denied because ilinesses could not be directly attributed to molds/iritants in the building, and that such claims had been made prior to the lawsuit. ‘A-sense that the mold problem was denied until after a lawsuit was filed Belief that the truth will not be told because it would jeopardize BOE's position in the current lawsuit Frustration that the mold problem was known in 2004 but was not addressed Some former managers indicated that they were directed not to use the °M" word (mold) and that the problem was known but avoided Concer that while people are moved off effected floors that others are being moved conto those same floors Concern about being moved back onto the upper floors in August without the problem being effectively alleviated. Concer that email inquiries related to illnesses/building issues were not responded to. Valid Tests for Molds All groups questioned the validity of the testing for molds and other pathogens. Employees had the following concerns: Testing was done in the air, not when molds were ‘disturbed’ Testing was not being done winere the molds most likely existed ~ in the walls and ceilings and in specific locations on particularly effected floors Room temperatures were dropped for the testing, leading employees to question why tests were being done in atypical conditions Tests were conducted on some floors but not others ‘Concerns expressed that testing is being done only to defend the current lawsuit {mn general, a perception exists that a comprehensive approach is not being taken to assess the Problem. Questions were also raised about whether the Department of General Services ig expert enough to handle the problem and if the Issue should be taken to the EPA at the Federal level Water Leakage Employees discussed their perceptions that water leakage was an ongoing problem, since the building had been built. "Employees indicated that the floors most often reported to have water leakage were 11, 17, 22, 23, 24; and also to a lesser degree floors 3, 10, 20 and 21 The employees gave the following examples: Water pouring out of the ceiling “lke a fire hydrant” Employees being required to put on hard hats and rain coats and continue working, Employees had to place plastic sheets on desks and fle cabinets at the end of the day Standing water on carpets Refusal to replace damaged carpeting, due to water damage Use of large funnels to direct running water into large bins Page 17 of 28 BCP No. XX EXHIBIT I (Page 5 of 8) Blackened ceiling tiles New ceiling tiles were placed over old ceiling tles which contained “growing hairy mold Ceelling tiles falling on and within close proximity to desks Opened ceilings Black substances visible on the sprinkler system and light fixtures Janitorial services were consistently substandard; specifically, rugs were not replaced or shampooed after being soaked with water and they were not regularly vacuumed. The ventilation system was also identified as an area of concem. There was a fear expressed that mold on some floors might travel to the rest of the floors through the ventilation system and. the elevators, or that mold could get trapped between the walls; downstream from the water leakage. It was also reported that elevators frequently malfunction and the question was raised about how water damage may have impacted elevator functioning and safety. General concerns were also raised regarding water leakage through bad seals in the windows. Suggested Solutions ‘At the conclusion of each session, employees were asked what they would like to see as a solution to this problem. The following reflects the solutions they recommended: * Give employees honest, factual, timely and regularly scheduled reports on air qualty testing and how the problem is being or will be addressed ‘+ Select a point person within the organization who can be contacted for all matters relating to the problem in the building. Employees are not clear about how to get the most current information, how to file a Workman's Comp claim, or how to request a move to another location + Develop a comprehensive plan for the testing and resolution of the problem, as well as a contingency plan to protect the health of employees, This master plan would include identification and resolution of the problem as well as managing the current requisite moves of people, floors and files (ie., 11° floor move) + Move all employees off site (preferably close to headquarters) until the problem is identitied and remedied * Move employees to a location where they are able to work with their work group and have adequate equipment and space Allow employees to telecommute who are able to do so Get employees settled in a permanent location as soon as possible Improve janitorial services to include regular cleaning of carpeting and workspace Have the Board and Executive Director address, the employees directly to answer questions and present information + Have the executive team review the overwhelming evidence that many people are sick and this may be more than just allergies + Provide a safe environment for employees to speak up without fear of retaliation * Allow the health of the exposed employees to be evaluateditested with independent. doctors (not representatives of BOE) + Relmburse employees for parking costs they are incurring while not using the parking lots, vacation and sick leave taken due to building-related ilinesses + Take the investigation of the problem up to the Federal level Page 18 of 29 FINAN EE reer SEES || OCT 2.5 corr DETERMINATION OF STATE EMERGENCY Board of Equalization Headquarters Building ‘Government Code section 14973 WHEREAS, on October 15,,2007,Will Bush, Director of the Department of General Services declared that a state emergency py a ‘Goverment Code section 14970 et seq. as a resull of the circumstances that precipitated the evacuation of the 22%, 23%, and 24” floors of ‘the Board of Equalization headquarters building focated at 450 N Street, Sacramento, California; and WHEREAS, pursuant to Goverment Code section 14972, the Direttor of the Department of General Services transmitted this declaration to the Director of Finance with the. ‘tecommendation that the Director of Finance make a similar finding of emergency and allocate. ‘to the Board of Equalization such funds as currently exist, or which may be appropriated by the Legislature, to meet the emergency; NOW, THEREFORE, |, Michael C. Genest, Director of the Department of Finance, pursuant to Goverment Code section 14973, concur in the declaration of Director Bush and determine that a state emergency exists and hereby authorize the Board of Equalization to expend funds based on estimates provided by the Department of General Services for immediate assessment ‘end repair activitles to resolve the circumstances that precipitated the evacuation of the ‘eforementioned floors at the Board of Equalization headquarters building. Middl GK, Michaet C. Genest, Director October 19, 2007 Department of Finance | i ‘ WILSON, ELSER, MOSKOWITZ, EDELMAN & DICKER LLP (655 West Broadway, Suite 900, Son Diego, California 92101-8484 Tek; (619)321-6200 Fax: (619) 321-6201 Alo Bivar Danan» Cig Das Gren Cy eos as Vins Landon oe dagen ‘Mint ert oY» Oes#Piatex on Dogs o Sea ecie «nrdsMishngon Dest iska ‘Ale Be» Chg Frat tte yh oP srenaontecae, December 6, 2007 2 VIA E-MAIL AND U.S, MAIL Chtistopher J. Workman, Esq. LEWIS BRISBOIS BISGAARD & SMITH 550 West C Street, Suite 800 San Diego, CA 82101 workman@Ibbslaw.com Re: Schroeder, et al, v. California Board of Equalization, et al. California Government Tort Claim _ OurFile No, 10680.1 _ Deer Mr. Workman: At the time of car oi meeting with BOE and DGS staff on December 3, 2007, we ware advised for the first time by your Industrial hygiene consultant, Brian P, Daly, “GH, re, eek air sampling performed in the day care center (Discovery Tree ‘eating School). Franky, both | and the DGS staff were quite concerned that additional alr ‘sampling had been performed in the day care center without advance notice to us and an opportunity for us to ettend the inspection, As you know, we have had an ongoing ‘agreement that the BOE Is free to do whatever testing it feels Is appropriate Inthe building. Our only qualifications are that we are provided advancad notice of testing so {het wre may decide i we wil attend and be provided test data 2s soon as itbecomes available, did not occur in this case. On December 4, 2007 we received an email cony ‘of HyGenTech’s report conceming this air testing dated November 28, 2007, A review of the report indicates that the air sampling was actually performed on October 19, 2007, over 6 weeks ago. ‘This does not represent a timely exchange of information in our view, Burin reunDecerber eee ‘Mi, Daly ékpressed oncec- over the toat: fell wey bea rs of meld Ieeivehg ot at ie stool grec oe cormengee a center edlately to the day-care > .genter (Discovery Tree Leaming Center), Mr:Daly's‘comments are:In-shet sts tothe results of curowrinspection, historcindoortesting Inthe:day care center over ; ently any causo or origin Issues for the staine Christopher J. Workman, Esq. December 5, 2007 Page 2 the last six months and also are in sharp contrast to the 6 week detay'in providing us with the test results, —_= We are concemed that communicating these test results to the day care center before they have been confirmed and additional {esting has been done to determine the cause and origin of the mold found would unnecessarily cause concem among the ‘occupants of that faclity and be deemed Inappropriate tisk assessment. In fect, | point ‘out that on page 2 of Mr. Daly's report he states ‘Note, however, that the recorded data do not represent conditions that are expected to pose a health hazard to occupants hove thal posed by the outside envrcnment where exposures to alrbome and eurface bome fungi are known fo exist.” Certainly, additional investigation of the day care center is appropriate and we would appreciate receiving from Mr. Daly a written protocol cutie ‘what additional steps he suggests be taken. | again remind you that the day care facillyisel, including the toddler room, Is a large open erea in which bathroom stalis that are not Segre yated by a dividing wall, The toddler room alsa contains a fish aquarium, two live animal jes. contahiing live rodents, two glass tanks containing live insects and reptiles, as 28 riumerous plants. This is not to mention the open food ltams such ag children's Juniches which routinely exist in this area. With all of these other contributing factors, sultant is fsping:to-thezcondlusion that his. water Intrusion of mold growth With regard to the stained celing tiles, the report makes no mention of any investigative efforts to determina the source of those stains. DGS consultants noticed: those tains themselves and dismissed them-efterliting celing:tles:end-being unable to discover anyweterintusionsouree. nerestnaly, your consulants rapor fal to identify am ceiling tles. Again, had we been pdviced of this Inepection and had an opportunty tobe present, Gur consultants coud have discussed these Issues on site and probably avoided much of the confusion and uncertainty we are now faced with, ‘Asc result of our prior oral agreements that our consultants should be allowed to speak to each other without the necessity of passing those communications through our respective offices, | have asked Dan Baxter to contact Mr. Daly today fo discuss what additional investigation or testing he believes would be seproeticts, ‘DGS is full agrepable ‘to conducting that testing but we need to be gu led by Mr. Daly poloco, since he appears to be concemed about the test data. Given the urgency of the situation expressed by Mr. Daly, we would like him to select the areas for additional testing, and if he wishes to rm the tests himself we are agreeable to that as well. | do not want to get into writing written protocols from our expe is to be transmitted to ee ae ich will further delay our attempts to resolve this issue by another two to. ree we 1563988.1 Christopher J. Workman, Esq. December 5, 2007 Page 3 In closing, we would appreciate reclvn ‘copies of any photographs taken by HyGenTech at the time ofits inspection. In addition, i there is any additional testing you have done or wl be performing, rovide that data to us Immediately and Provide advance notice of any addifional testing, Very truly yours, WILSON, ELSER, MOSKOWITZ, EDELMAN & DICKER LLP Lane E. Webb, Esq. LEW} cc: Linda A, Cabatic, Esq, (via e-mall) Danie! Rios, Esq, (via e-mail) Peter J. Burfening, Jr., Esq, (via e-mail) 1563988.1 S MEMORANDUM Date: November 2, 2000 To: Dave Bulmer, Building Manager II 450 N Street Board of Equalization Sacramento, CA. 94279-0024 From: Lance Lister, Associate Industrial Hygienist Department of General Services- Real Estate'Services Division Building and Property Management Branch Environmental, Safety and Health Operations Program (ESHOP) 1304 O Street, Suite 300, Sacramento, CA 95814 Subject: INDOOR AIR SAMPLING FOR THE BOARD OF EQUALIZATION BUILDING In October 2000, stationary area indoor airbome aerosol samples were taken in the Board of Equalization (BOE) building located at 450 N Street Sacramento, California in response to indoor air quality concerns. Results of the samples show mold levels are within acceptable parameters. ‘This report will detail background information, the results of the samples taken for mold spores and recommendations. Background In October 2000, 2 srhall amount of mold growth was discovered on the 23 floor in chibicle #33. Upon the discovery of the mold, BPM Health and Safety was contacted. itwas recommended that the source of the water intrusion should be. corrected and the mold'is immediately sealed with plastic and duct tape to prevent employee exposure. It Was lso recommenced that the section of wall containing the mold be removed. A contractor was hired dind the section of the wall that contained mold was removed, The Souroe of the water intrusion was also addressed by installing metal flashing in the area of concer along with an uncured neoprene membrane undemeath a liquid membrane. A material called “Blue Devil" was also applied between the grout and tle to prevent any further water intrusion, PListerlBOEmeé22rdfoorcibe8S doo Page 4 of 4 Air Sampling Results ‘U6 to the potential that susperidéd particles coild cause idversé health effects, air sampling was performed on the 23" floor, cubicle 33 to characterize the presence of airborne particles within the area of concern. Itis important to note that standards for the indoor airborne aerosol contaminants that were analyzed for do not currently exist. ‘The results are used to identify “potential” problems and are not compared to any legislated criteria Air samples were taken both before the mold was removed and afer the mold was Temoved. Results taken while the mold was sill present indicate relatively typical and normal constituents of suspended particles, The most abundant particles are human skin cell fragments and opaque particles (appearing.as small soil particles). Low levels ‘of mold spores were observed in the cubicle. As a general rule, total indoor airborne spore concentrations in a ‘typical’ clean HVAC supplied building are typically less than outside concentrations. The indoor levels in cubicle 33 were well below the levels found outdoors. Please see Table One for detailed results. ‘Similar:to the first set of samples, the second set of air samples; taken after the mold ‘was removed; indicate relatively typical and normal constituents of suspended particles with human skin cell fragments being most abundant. It-should be noted that 20 counts of stachybotrys were discovered in the post-removal sampling but it does not indicate a health hazard. See Table Two for detailed results of the sampling taken after the mold was removed. Conclusions/recommendations No unusual findings were made with regards to all sampling. The aerosol particles ‘samples indicate satisfactory conditions exist in cubicle 33 of the 23" floor. The relatively low mold spores levels found are consistent with what is normally observed in modern occupied buildings. However, due to the small amount of stachybotrys found, itis recommended that the area be thoroughly vacuumed and all surfaces (baseboards, work surfaces, partitions, wall, etc.) wet wiped. No further sampling needs to-be completed. Additionally, the source of the water intrusion has already been addressed by the installation of the metal flashing, neoprene membrane, liquid membrane and the Blue Devil. Please call me at (916) 327-0882 if you have any questions or need additional information. Ce: Vince Paul, BPM Environmental, Safety and Health Operations Program Manager Attachments (2) PiUistertBOEmalézardteoreubes3 600 Page 2 of 4 Piette, Thomas ees From: Boyer, Timothy [Timothy.Boyer@boe.ca.gov] Sent: Friday, May 14, 2004 4:02 PM To: Powers, Dade; Zentner, Raye; Hirsig, Ramon; Gau, David; Orendt, Freda Ce: Larsen, Sherilyn "Sher 'Pietle, Tom’ Subject: RE: Press Contact ‘Why don't we tell the employees the facts right now before the story comes out with a twist that is distasteful? > —-Original Message— >From: Powers, Dade >Sent: Friday, May 14, 2004 >To: Zentner, Raye; Hirsig, Ramon; Boyer, Timothy; Gau, David; Orendt, | > Freda > Co: Larsen, Sherilyn "Sher > Subject: RE: Press Contact > Piette, Tom’ | > We had better be ready to refute the report of a toxic building at > first light tomorrow. ‘The finance letter written by DGS states, and | > quote, "there is a significant risk that the building could develop > the "sick building syndrome", even in the absence of any reported > toxic mold growth. Ifthe building occupants perceive a potential > risk, absenteeism and potential claims may ensue, Worst case, the > building could be rendered uninhabitable until extensive clean-up and > repairs are completed. Disruption to the operation s of BOE would be significant". > > We have discovered no mold of any kind, much less toxic mold, There is > no reason for alarm, however depending on how this story airs and > whether the reporter chooses to sensationalize the issue for ratings, > will the reaction of employees come moming. Good luck to us all. d > —Original Message-— From: Zentner, Raye Sent: Friday, May 14, 2004 3:47 PM To: Dade Powers; Jodi Traversaro; Lisa Fien; Louise Perez-Solorio; Marcia Davey; Michelle Maciel Subject: ' FW: Press Contact FYI Original Message—- From: Larsen, Sherilyn "Sheri" Sent: Friday, May 14, 2004 3:42 PM To: Noda, Audrey; Jones, Kimberly; Reslock, Eric; Powers, Dade; > Hirsig, Ramon; Zentner, Raye; 'coamjm@atigloal.net’; Topper, Kenneth; > Allen, Darlene; Dale, Jerri > Cc: Hammond, Kari; Seavers, Dean; Harvill, Mai; Corcoran, John >Subject’ RE: Press Contact > vvvvvvvvvVVVY wee Fiwvereyie 7¢ Pa Page i |i BEFORE THE CALIFORNIA STATE ROARD OF EQUALIZATION i 450 N STREET SACRAMENTO, CALIFORNIA REPORTER'S TRANSCRIPT JUNE 1, 2007 ITEM 3 DEPUTY DIRECTOR'S REPORT TTEM P3.3 ADMINISTRATION ITEM a BOE Headquarters Construction Update } Reported by: Juli Price Jackson No. CSR 5214 eUU/1UZDT UBT ID A BUE yioseecoly >> Pear I Page 15} MR. HIRSIG: The tests -- and I would defer to the D. G. $., but mold is everywhere, I'm told, outside, inside the building, so, it is a common element of life, The degree of mold and the amount of that mold is important, And the system within our headquarters ame ww building has routinely been shown to be of better {7 quality than the air outside. ‘There has never been, to 8 my knowledge, any discovery of any of those black molds 9 or any of those things that are equated with serious 10 illnesses. 1 And again D. G. S., as our caretaker here, has 12 routinely run those kind of tests. And I believe 13. they've even had third parties come in so it wasn't just 14 the State doing it. 15 MS. YEE: Okay. Could you address this? } 16 =-~oo--= } 17 VINCENT PAUL | 18 ~=000--- i | 1g MR, PAUL: Yes, Vincent Paul. i | 20 ‘Thank you, Madam Chairwoman and Board Members. 21 As Executive Director Hirsig had stated, the results 22 were all and have all been normal, that is, as compared 23 to the.outside to the inside. 24 The outside levels are greater than the inside, 25 which is the situation with air quality as it relates to 26 mold spores. 27 In the State of California there are no 28 standards established or regulations promulgated for Page 1 of 2 RE: 22nd Floor Restroom Clearances AM. Pacific Standard Time Michael, HygleneTech’s previous recommendation stands 2s is. Please alow me to explain two ve here for your beneft and perhaps mostly forthe benefit of others who are not industrial hyg profession. ry Important pnts ists by Firstly, you downplay the single: ChaétGiilum|spote detested ‘others in the past. itmay not sound like mich initially, but plea “representative samples. There is simply no realistic or cost-effective way to sample all surfaces within a (en's Restroom Is approximately 20° by 30°, which would mean an ‘approximate total horizontal surface area of 600 square feet or 88,400 square inches, Each surface sample is collected from-an effective surface area that's approximately one square inch: Now if you consider the two ‘surface clearance samples to be representative of the containment, even If only half of the horizontal surface ‘contained one Chaetomium spore, that would be 43,200 spores. Would you consider that acceptable? ‘Secondly, | have already Indicated In my previous email that we had collected surface samples from building ‘material surface exhibiting suspect fungal growth during the remediation process end that one particular ‘sample showed massive quantity of Chaetomlum spores. ‘This reservoir of Chaetomium, and perhaps others, ‘was disturbed (due fo remediation) end aerosolized (became airborne), as expected. What the surface

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