said, she makes me happy. that's very simple but it goes a very long way. i would have goes a long way. i would have brought him here but i do not know how long these meetings go. she is a phenomenal teacher. i think there is no basis for her dismissal. i am here to say keep miss monica but you might want to consider firing the oprin cipal. >> good evening. the reason i am here tonight is to give support for his ms. monaco. please do not lay off a miss monica. she is a very talented person.

sorry my english is not very good. i hope all of you can understand. please do not let the next generation lose the talent person who teaches the young kids. the young kid sit very need one of the people to teach them. to help them grow up in the future. please do not cut the school budget anymore because the next

generation needs that. the american people need it. please no more cuts to use the school budget in the future. >> ladies and gentlemen, on behalf of the vietnam community , we come here to support, strongly support miss monica. i would like to recommend that miss monica be put back into her position.

she provides them with a challenging but fun learning opportunities. to make a long story short, thank you. >> i am a parent at the elementary school. i am here to show my support for monica schwarzlander. as a parent, and part of a community, i grew up and received education from san francisco. that is where i am right now. i am serving the community. i understand the importance of education. without it, i would not be standing here to bring support to one of our best teachers.

our support proves that the quality of education being delivered, our children is the future. we demand to have monica to continue to be an employee at the elementary school to continue her teaching career and to continue to bring the knowledge and education to our children. i believe she will bring her knowledge to prepare our children for the future. thank you very much. >> i am a parent of a first grader at the elementary school and a former student of ms. monaco. i am also a former director of the boys and girls club of san francisco which is a mile away from the elementary school.

i have worked with thousands of kids. i am also a resident of visitation valley. i know that teachers like miss monica are few and far between. it is hard to find a teacher who does not run at the door when the bell rings but tells the kids to come and visit her after-school. my daughter goes to her every day and tells her about her day. every time i see her on campus, she always has a smile on her face and takes time to talk. she means a lot to my family. she means a lot to that community. we need teachers like miss monocoque, teachers who will fight can i read this thing from my daughter? she wrote she is the best teacher because she is nice and cares about people. i will miss her because she

means a lot to me. i want her to stay. i love miss monocot. -- monica. >> i think that is the end of public speakers. the next item, k, appointments to the advisory committee by the board manners. f>> i would like to appoint a sm rodriguez to the community council. >> any others? item l. special order of business. motion and a second that the district, pursuant to the requirements of the california education code, dgs, acting on

behalf of san francisco state university. the property located at 700 -- boulevard. >> so moved. >> what is the status? >> we need a motion and a second. >> second. >> i would like to ask my colleague to please read. >> so this is on page 6 of the agenda. i will be the action. i would like to make a few comments. i will keep them brief considering it has been an intense meeting. the subject is that the

district, pursuant to the requirements of the california education code, offer for sale to the california of the general services acting on behalf of san francisco state university, the property located at 700 font boulevard in the city and county of san francisco. the recommendation is that pursuant to the requirements of the california education code, offer for sale of the california department of general services acting on behalf of san francisco state university, authorize the superintendent to sign all documents pertaining to the sale. the property will be sold this subject to the following conditions and procedures. the purchase price to be $11,100,000.20 paid at the time of closing to the district. the district will provide representations and warranties

as to its authority to consummate the transaction and pertaining to the goal and operational matters. at the time of escrow and from the proceeds of the cell, the marketing broker shall be compensated for% of the gross sale amount, less a credit back to the district of $107,000. negotiate such other terms and conditions to the benefit of the district. use the proceeds from the sale for the payment of the 1999 certificates of participation. that is the requested action. i will dispense with reading the background. i will address some of the background. i will paraphrase. as the commissioners are aware, this is a longstanding discussion that the district has held with seven francisco state university and -- san francisco

state university in the department of general services. i got an e-mail from the vice chancellor for business administration who is here tonight. miss hays pointed out that 10 years ago was what we believe is the first e-mail to initiating the conversation, april 10, 2002 was an e-mail from her predecessor to our real estate director, initiating a conversation about this property. it was not done intentionally. but maybe for comedic effect. we are recommending a transaction in the amount of $11.1 million that we sell to

the state to through thedgs and the public works board for the benefit of san francisco state university. if i may give a little bit of history, over those 10 years, there has been a significant number of conversations. there has been no fewer than seven and probably more than that, a different appraisals on the property. the market valuation has fluctuated a great deal. in 2006, the state passed a bond that provided at a critical funding source for the state to be able to acquire the property in question. that has been the case since 2006. it is about to no longer be the case. more recently, we have engaged in a vigorous round of

negotiations. our chief facility officer, don davis, our general counsel, they were also involved. it has been at team of folks from the district. we have had a very complicated set of discussions over the last two or three years. as i said, we have had strenuous, of vigorous negotiations. at different points we had a lot of difficulty imagining we would find a an agreeable price. we took that seriously to get the right value to offer the right value of for this

property. we have achieved an overlap and that has been substantiated by an appraisal we think is valid, we both think is valid. that is the key event taking place. in the very beginning of the meeting, as was mentioned, we have an excellent proposed use referenced in the requested action which is to pave the he debt obligation. it is $10.5 million outstanding on that obligation. what we would do is take the proceeds of the sale and buy out or pre-pay that obligation, which will have the benefit of almost $900,000 of avoided debt service expenditures each year

for the next 16. that will have a material and longstanding benefit to the school district. we can use it in the next couple of years where we are facing difficulty. it will also pay dividends for several years after that. should a the board approved this recommendation on the part of the staff, just to articulate the next steps, the department of general services would have the board of education's approval. they would put it through the state of's process. we understand that approval would be on may 11. there are some transactions and warranties referenced in the requested action. our general counsel's office and the counterparts would need to make sure that we dot the i's

and cross the t's on those terms. we should be able to have all of the approvals, knock on wood, before the funds expire at the end of june. that is the plan. hopefully the board will see fit to approve the recommendation. we would be happy to respond to any questions you might have. >> commissioner mendoza? commissioner mendoza: what is the current interest-rate repaid? -- we pay? >> 4.75%. this is a series of cop's issued in 1999. >> are we going to do a portion

of a time? >> we would pay it off in full. it happens to be enough to take the proceeds of this transaction and pre-pay all of the c.o.p.'s that are outstanding. >> is this the only large debt that we have or is there anything else that has a higher interest rate? >> this is the only debt outstanding for which we can use these proceeds. there is one other law obligation we have which was initiated in the 1990's to finance the energy monitoring systems. i am not sure what the amount on that is. i believe it is equivalent. it is outstanding for a while. we pay the service on that as well. this is a perfect fit for the use.

in that transaction cannot be defused. using the proceeds of this transaction. >> before i ask the other commissioners to make their comments, to you have anything to say? >> second probably retire now. >> what is an extra three hours away. thank you. commissioner wynns. commissioner wynns: thank you. ok. i am not -- i want to follow upon commissioner mendoza's questions. i understand if we cannot use it for that other purpose, it does not matter what the interest

rate is but i would like to know that. >> i do not recall off the top of my head. we can follow up. >> the reason is that i am stumped. it seems to me that was a capital purpose. was to invest in buildings. possibly you could figure that out later. i do not need an answer to that at the moment. however, i want to, pour the public bough, point out, i wanty congratulations. we have the requirement that if we're going to sell property, we offered to other public agencies. it has always seemed, since this is a cut out in the property,

that was the logical buyer. unfortunately, we almost consummated another deal. i am happy that one of our public partners is an educational business. i can add my support for this arrangement. the second thing, given our budget situation, made is important we figure out a way to message this so that people understand that there are restrictions on what we can do with the funds we get from selling property. the fact that we have this debt gives us the unusual opportunity to free up money in the general fund. this arrangement is to our

budget advantage, in a way. it is a good way to do this because when you sell property, and we were able to, and we try to get that legislated a few times. if we were able to spend the money, it would be gone. this would be the way to extend it overtime and to save us money and to have some benefit to our operating expenses. i am happy about that. it is important the public understand that we have restrictions but we also have an opportunity that will benefit the challenge that we are trying to address every day. those are my comments. i would like to know the issue and get those -- the answer to those original questions.

>> there is no public comment. vice president norton: if this is not a win-win, i do not know what is. it is really an eyesore. i know it will be, you will improve it and it will be an improvement to your campus and to our budget. that is good. thanks for your patience. i'm going to support the sale. commissioner murase: i want to thank all of the folks who have

been patient with us as we have worked through this. i want to recognize, i wanted to acknowledge the commissioner's leadership in trying to accrue even more savings to the district and for negotiating our real estate agent, saving the district an additional $50,000. >> we will put it on your tab. commissioner fewer: i am very pleased with this deal. i think this is great considering all of the students we are going to be sending your way. it is great that students will be in a facility that was once

owned by us. i am going to ask our deputy superintendent about our marketing broker. it is the largest real-estate company in the world. considering we are a nonprofit, nothing against it personally, i just think that we should maybe work with a non-profit that the as this type of work. if not, i was wondering, if we do not have our own the facility person, which we do not, perhaps the city does. we could contract out for the city to represent us. that is just a suggestion. i think that we are small potatoes compared to all of the

real estate in the world. i think that it is more socially conscious not to -- to investigate further about having a partnership of this nature with a nonprofit. that the public can also benefit from a sale like this. commissioner mendoza: i have been waiting for this moment to say and thank you to san francisco and david for his work around this. several of us were here when we got that bidding going on when we tried to sell the property several years ago. that was really fun to have the secret bidding going on. it was 20 pot -- plus million dollars we sold the property for originally. it has come full circle and deserves to go to the

university. this is about supporting our kids and making campuses for our students and to have this go to san francisco state, regardless of the pain and agony it has caused, we all have tough budgets. we figure out a way to get to a place where we were comfortable. i just want to acknowledge -- it is going to be a nursing school potentially. some other wonderful things. i want to think leroy who has been gracious in his conversations with us. i think this is a nice way for the president to have this as part of his legacy thank you to our staff for being supportive.

this was one of the things that we consistently talked about, whether it was selling it or opening it up for parking or making it a fully market. we had so many crazy things we wanted to do with it in the name of revenue. we are glad to see it go to a deserving institution like san francisco state where we can assure the property. we appreciate you will make it look beautiful. >> i will echo my colleagues. i think there is a sigh of relief from the students that they will not be moving back. i remember when my daughter was approved to go to the school yard, she decided not to go there for different reasons.

i see this is a win-win situation. we will benefit in many ways. in san francisco state university will benefit. we have some cash that will help us with our general fund. and beyond that, our students here, many of which will go to san francisco state, will benefit from having something built their for their use. i am glad. most of us are supportive of this motion. let's have a roll call. commissioner fewer: aye. commissioner maufas: aye. commissioner mendoza: aye. no. commission norton: aye.

president yee: aye. >> that is unanimous. >> let's hope the money is still at the state. >> don't say that. [laughter] let's move onto the next item. a motion and a second to the cost information to connect the sale and issuance of san francisco unified school district. the 2012 general obligation, refunding bonds and authorizing the submission of such actual information to the california debt and investment advisory committee. ok. a reading of the recommendation by a deputy superintendent. >> i would like to call on our

chief financial officer. >> thank you, sfpd -- deputy superintendent. it is a wonderful thing to have happen. a lot of savings per year. that goes into the general fund. it is wonderful. $875,000 a year. that is what we pay on the debt service. we have two resolutions. they have to do with the cost of issuance. one is for a the series a 2012. the other one is for refunding