DGS is the agency responsible for selling, buying and maintaining the State's real estate holdings. A recent bill introduced in the Assembly (AB 151) would allow the Board of Equalization (BOE) to move out of their current building at 504 N Street in Sacramento and into safe working quarters. The bill was pushed by the BOE Executive Director Ramon Hirsig. The building was purchased from CalPERS and has an outstanding $90.7 million in obligations (mortgage, interest, administrative expenses) against it.
The building has been problematic since 1993 (16 years.) Beginning in 1993, BOE employees complained about water coming in windows. The problem was exacerbated when windows would pop open and allow more water in. When walls get wet, mold can follow and in this case it did. To date, 75 workers compensation claims have been filed by BOE employees working in the building. One omnibus lawsuit and 40 civil litigation cases have also been filed.
During the hearing on the bill in the Business and Professions Committee on January 12, 2010, a representative from DGS stated that they had no recourse against either CalPERS (who sold the building) or the contractor because DGS released the parties from liability when the property was purchased.
DGS has been trying to hold BOE fiscally responsible for the repairs since they are the tenant. The bill introduced to give BOE new safe working conditions and eliminate their need to pay for the repairs. The bill has been referred to the Appropriations Committee of the Assembly for further approval.
Link to BOE website detailing their problems dealing with DGS and the Moldy Building http://www.boe.ca.gov/info/building_update.html
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