great improvement in our financial situation. two years ago i was here asking you approve a short line of credit for the station and since that time that can you see on the second page of the station to station report we went from zero to this and great improvement and puts in a position we're not in the hand to mouth mode and can think about the future which is very exciting, but beyond just the financial situation i really feel like in this past year we started to realize what to me is the potential of a local radio station which is not just be a community service but to be a community creative enterprise. i think having a public radio station based in this community in the bay area the resources available in terms of the

talents, the voices, the experience, the intelligence that we can draw from this community and make into radio that is compel to people here and around the world. now that we're online people listen from all over. i feel that we started to see in my mind what that could be. there are many things in the report. i want to go over three examples that show the potential of the community resource that we're fortunate to held on to for over 70 years at kalw. we had the biggest event and tavis smiley and cornell west and on a program we broadcast and said we're interested in coming to the bay area. they were talking about the importance of fighting priority a national this and we

made it open to the public. commissioner mendoza, a lot of other community leaders were there to hear that message and what was important to me about it not that we brought in the incredibly articulate voices. people want to come hear cornell west and hear what we has to say in person and beyond that we partnered with a dozen local groups doing anti-poverty and economic justice work in the grass roots in the bay area to be part of this and bring their people and spend the message to the folks, the more than 2,000 that came that night. that group of partners continues to be a great resource to the station as we report on local and national issues doing with poverty and economic inquality. that to me is what we that make happen together. second, every time i come here i want to tell you we're taking steps forward

working with students in the san francisco schools and every year we take small steps. this past summer we had three summer interns from burton high, three juniors going to senior year. two worked in the news room and a third that worked directly with me. we had two in the news room and ryan ramos worked with me directly. the program guide before the last one i talked how impressed i was with these students and what they brought to the station. that is to me where why i want to work with students and after the meeting i will forward you links to some of the stories that lupe hernandez reported for kalw news and what stean year olds can contribute to our understanding

through public radio. we are working with three students. we are taking steps forward. it's incremental and takes resources and we're committed to it because i want a great radio station and i think students have a role in that. finally i want to point to our story telling project and supported by the public corporation of broadcasting and we had a couple of producers and that built partners with organizations and we realized that public libraries were the best place to do this and community members could tell stories from their lives. we had themes and talking about food, work and let people talk about common experiences and the stories that we heard and the potential were just so exciting and actually the funding for this project is going to be wrapping up but right now we're seeking additional funding to continue

in the relationships with the public library and visitation valley which is down the hill from us at burton hill and east 81st avenue in oakland where we built a good relationship and just one quick story, a story out of east 81st avenue branch in oakland to give you a sense why radio can help with building brings so we a little girl that came with her family and they were talking about food and she talked about how she loved to cook. she talked about her first experience cooking an egg. they asked what is your dream? what would you like to do? "well, i would like to be a chef and a pharmacists" so on the nightly program we have a community story telling project and 10 year old in oakland. she tells the story and her voice.

we get a phone call from a dean at ussf and i am a pharmacist and a enthusiastic chef and i would like to meet the girl in the story. she went there and was shown around and they made a connection that is independent of kalw. i hope that's what we can be part of. they're small things but i think they're really powerful. i also have that sense for me i am excited about the developments at kalw it's a steady up swing of activity at the station and i invite you to come out -- just give me a day's notice and meet the people in the news room, meet the volunteers in it is station, get a sense how we workday to day and the welcome it and of course your ideas how

we could use this resource, but i feel like even though there is a lot going on we're starting to see what could happen and actually now that i feel we're in a stronger position financially to look forward we are what i call the planning stage for the strategic plan for the station and i don't know if there was one but i haven't heard about one and convening stakeholders in the station and out to say let's talk about the priorities of the station and the steps to build the resources for what we know can happen happen. i am fortunate to have so many creative and smart people drawn to the station and listener who is were amazing and when the station was in financial difficulty came through to make sure the station stayed strong but i want you to know we are thinking forward and as we get beyond the planning stage and get to planning i

definitely want to be consulting with you and make kalw more powerful as a district mission and a community resource and it goes beyond the district and that is what makes it valuable to the district. anyhow i am happy to take questions now, also later and i will send out links to these things so you can hear the sound and i want you to be able to hear those as well. >> commissioner murase. >> thank you very much for this report. i am just really amazed. your presentation was one of the first after i joined the board and to be honest you looked really tired. you looked really tired. >> it's the favorite night of the year. >> and i remember joe garcia lee arguing this was the right thing to do even though we were getting email messages that were angry from parents and

extending the credit to the radio station and i think we understood the significance of kalw and i have to hand it to you and in the discussion i remember talking about a close relationship with students and the close proximity of marshall and other schools and i remember your response was no way. it's just me. how am i going to manage overseeing interns but you really have come a long way and i think the experiences the students have with the station are going to change the way they think about themselves, their careers, and i want to push you a little bit. two years ago we talked about you convening an advisory board, a board that can help you do the fundraising. it shouldn't be 100% on your shoulders. they think having a strategic plan is very important step, and i would encourage you to reach out to local foundations and other community resources to

participate in that strategic plan because i think what you will find at the end you will find advisory board members that participated in that plan and even are more committed. i think it's difficult to invite people in. here's the plan. i need you to help implement it but if they're part of the planning process i think you will find greater success and i want to thank you. >> sure. just to let you know so at one time there were friends of mlkw and 501c that did some of the fundraising work that you're talking about and became defunct and it was a change of leadership when i took over. i was new to this gig. i came from producing radio and part of it was a learning curve in what to do with the organization. i had connection with the station from listeners who are people involved in

strategic planning processes and worked at leaders of nonprofits and management who i brought together as a working group around this and part of what they said to me was give us a clear sense of what your shining vision is from the people within your organization. then we can make the steps how a group like that would work but i think your point -- there are definitely community organizations that we are funded by or have connections to bring into that process so it's a great idea. >> anybody else? all right. seeing no other questions or comments from the board thank you again. i mean it is to echo commissioner murase it's so wonderful to see where you are financially to compared to where you were two years ago and i am sure that is a testament to your hard work and i am always happy to get this report every year and seems like you're doing great and thank you. >> thank you. >> thank you for sitting

through our long meetings. i was joking this might be your favorite night of the year or least favorite. >> it's more interesting in person than on the radio definitely. thank you very much. >> especially when the mic gets cut off then it's not interesting. >> thank you very much. >> thank you very much. have a good evening. okay. we are going now to move on to our last item under item m, the prop facility use fees. mr. superintendent, do you have a staff person? >> yes president norton i would like to ask michael davis to please come up and take us through this item. >> thank you. good evening superintendent, commissioners. my prior agreement i think deputy superintendent lee wanted to start. never mind. i will do it myself. what you have before you is an information item regarding pro rata share fees that we allowed to charge

our charter schools that receive property from us under prop 39. we've had the same fee of 95 cents per square foot for over five years. it was last reviewed in 2009-10 and we kept it at that same amount then. various groups from departments have reviewed the fees in line with the regulations in title v of the california code of regulations that stipulate how we can calculate the fee, so the basic framework is that we looked at the entire square footage of school facilities in the district inventory. we looked at the total

unrestricted fund cost applicable to those facilities and come up with a per square foot fee we could charge under the regulations so after doing that review we have determined that the fee should be $2.79 per square foot. in order to mitigate the immediate impact on the charter schools we thought it best to do the fee increase in two increments so we would go halfway next year to $1.87 and then to the 79 in the following year. also what we have done we notified all the charter schools attacked so they know what the rate would be so that is taken care of. then we thought we would bring it for this public airing as an information item. the next thing by the end of this week

we have to under the law provide the charter schools that have requested facilities with the preliminary offer of facilities for next year and in that offer we must say what the fee will be and outline our methodology for approving at that fee, so that's what we will do then, and the next thing that will come to you will be the facilities use agreement that accompanies each of those offer us and will be able to review and ratify those agreements sometime after may 1 whtd process is finished. >> i have one speaker card on this item. i'm not sure if she is still here. hillary harmsome. thank you. >> thank you so much for your time tonight. good evening president norton, superintendent and commissioners and district staff. i am hillary harmsome.

good pronunciation. i am with the charter school association and behalf to speak for the member schools and our concern about the proposed increase. as a professional organization for charterer public schools our role is help charters navigate their unique challenges. two challenges that come up again and again they receive less money than traditional schools and limited access to affordable quality facilities. they're public school students and observe equitable access to facilities and they're required to provide the facilities equal to other schools. historical sfusd has offered fair rates on to schools with facilities and

allowing them to have a healthy balance between these issues. this proposal in front of you today however would result in a 181% increase in facilities cost for charter schools in just two years. these increase expenses will have an significant and detrimental impact on all charter schools and facilities. for example a school with a 20,000 square foot facility would experience this much of a increase for expenses. schools would need to divert funds that are used for teachers and books and learning materials. the proposed increase to $2.79 would further widen the gap between traditional public schools and charter schools. while charter schools are publicly funded stpds show they're significant

lie under funded compared to traditional schools. in conclusion we respect that charter schools asking for facilities be provided with the legal rational for the 180 increase and we would greatly appreciate the opportunity to talk about the rational and impact of the increase. we understand there are numerous costs with facilities and maintenance and we look for that and the anticipate costs over the next few years. thank you very much. >> thank you. any questions or comments from board members? >> commissioner, this increase will eventually in the two years amount to how much money? >> in the current year we will collect exclusive of metro because they're not under prop 39 but we have a five year lease from them. we will collect

about $270,000 so in the following year we go to 550 and after that go to about 850. >> i'm sorry. i didn't understand that. 550 -- >> five $50,000. >> for metro. >> no total. >> >> i was looking for a per square foot figure from you so it was like what? so the per square foot is $2.79. >> it would be $2.79 in 14-15. >> my only question about this is apparently we had not raised the fee in five years or something; right? it was about five years, so is this something that school districts would normally do on an annual basis so it doesn't come in such a big walop or is it usual that a school district will

periodically do this. >> we're allowed to do it every time we make an effort because what we have to do when we make the offer is look at the prior year expenses so in this case we looked at 11-12 and do the calculation of the gross numbers and come up with the fee, and basically what we can charge is up to the amount that we have arrived at. i know that when i started last year it was right before this process began and it was 95-cents. we took a quick look. we couldn't do the calculations before february 1 and made sure we had it up-to-date moving forward. >> is there a reason if you know why we had not raised the fee or reevaluated the fee in five years?

>> well, i don't think it's quite the case that we hadn't looked at the numbers for five years, but what we did find when we were looking at examples of our methodology in certain respect it is compared to other districts we found that a close look at the regulations with respect to implementing prop 39's provisions did allow us under prop 39 to have a different application of the methodology than we had been using before, so for example if we were using as the denominator for the per square footage calculation the exterior space of the parcels, of all of the district property we could instead use the interior space for many of the purposes of

this calculation, and this became clear to us as we were looking at benchmarks and other methodologies i will thank general counsel davis for sharing the information that others use and the rate is $6 per square foot so seeing the differences prompted us to take a closely look at the application of the regulations and that was really more of the basis for us seeing that we could and in our opinion should have a different methodology for the rate. it's not that we didn't look at the actual cost for five years but it was a tweak in the methodology. >> okay. okay. i got it. thank you. any other questions from the board? commissioner mendoza. >> all right. thank you. so i am always support in finding revenue and i appreciate you guys have dug a little deeper on this. however, i am concerned

about the reaction to this from our charter schools and i imagine they're just getting the letter and i appreciate we're going to do this incrementally but i wanted to know if there was an initial reaction to this? it seems just on the surface in general it seems reasonable in terms of the price of space especially in our city, but just the impact it will have on just challenging budgets and going into it next year with a higher amount when fundraising happens. usually they're budgeting for the upcoming year like we often do, so i just worry they're not prepared to take on an extra amount at this time and i am wondering what the reaction has been. >> well, we wanted to let them know as early as possible, so

they could plan their budgets. we had planned to let them know in december but we weren't able to make that. i have actually personally reached out to every affected charter school and had the discussion. they do want to make sure that we have a firm legal basis for the amount we determined, and we will share that with them, and before that as far back as a year ago when we made the preliminary offers for this year we made it clear it was 95 cents, but we were going to recalculate it and we would let them know what it would be, and we have had several conversations over the year about the fact that would be coming. >> can i just ask one more question? how long have we had it at 95-cents? >> from what i have been able to

determine we had it at that rate for at least five years and as deputy superintendent lee said we looked at it as recently as 2010 but under the that methodology the way we looked at it then we still had it at 95-cents. >> so if it's at least five years i am curious what it went up to. did we go from 80 or 95 or what was it ought for the last 20 years. >> this would be in effect since prop 39 was approved and i'm not sure what year that took place. >> (inaudible). >> 2000. okay. so we have to look at the archives to see what the rates were at the time and 2007 time frame. i don't think we have that information

tonight. >>i started looking several days ago. i haven't found the answer yet. >> don't spend a lot of time on it. i am curious of what the jump has been. this is doubling and tripling and the preparation for that and again i am supportive of the increase. i feel like it's fair. i just worry about the short amount of time that folks have to adjust to that. okay. thank you very much. i'm sure we will be hearing more about this. we're going to move on to -- oh jill, sorry. >> okay. may i speak? >> yes please. >> thank you. >> i wanted to thank the staff. i wanted to be clear we have been i think we have been extremely generous with our charter schools which has been our habit whatever the

requirements are. that we have been very willing to be modest and not to seek whatever -- not to be as tough as we might have been, so i really -- and i think we also need to recognize that this is kind of just like we have done with our leases, not for charter schools, but for other purposes and a number of other things that we instructed the staff that one of the budget balancing strategies is maximize revenue from resources, our real estate assets, and so i appreciate this, and i also appreciate because i was going to ask that same question. the comment that was just made about having discussed this with our charters previous to this

official action and that really they have had time to plan and also really shouldn't and can't with prudence count on permanent under value of our properties, so i wanted to thank you and express my support. thank you. >> okay. thank you. and with that now we are finish with this topic. okay. we're going to move on to item n consent calendar items removed at the last meeting. there are none tonight. item o voting on the candidate which was moved and seconded. roll call. >> thank you. ms. fewer. >> yes.

>> mr. haney. >> yes. >> ms. maufas. ms. mendoza. >> yes except on k1. >> thank you. >> dr. murase. >> aye. >> ms. wynns. >> aye. >> ms. norton. >> yes. >> thank you. >> okay. now we have item p, consent calendar discussion severed for board action and discussion. we had three and listed at j, k, and l but they're 10, 11 and 12. >> thank you president norton my apologize for not listing them correctly so i just have a question. i know that the city has had difficulties in getting their own projects done based on the confusion of who will actually do the work so i wanted to know how we're addressing that in the contracts