tenant relocations that are regulated by the board that allow for different tiers of tenant relocation and return period. i don't want to speak on behalf of the rent board related to that process, but related to the mandatory seismic program, that is a component of that. we may want to have them speak in detail about their full project and the scope of that project. >> do you mind just clarifying what has been offered and if it, in fact, is in writing or not to the tenants? >> you kind of bullet pointed, but, if you can, to the best of our knowledge and to the best of your knowledge. >> so i think there were a couple of questions. the first question was whether or not we're paying up in the relocation expenses.

we'll pay for the relocation services. we're committed to doing that. we're hoping that it could be less than that. if it does extend beyond that time, we're happy to extend the relocation payments also. >> and when you're completed, the construction of the remodel is completed, this is really not a demo. they will be able to move in at the same rent they're paying now? >> absolutely, without question. >> is that in writing with each of the tenants at the moment? >> to our understanding, that is the law, so we haven't put that

in writing, but we're happy to put that in writing. that's what we were planning. >> do you know more about this? >> yeah. the tenants would be able to come back at their original rents. seismic work normally doesn't require tenants to move out. you're supposed to do it within 90 days and a temporary relocation and you get a sum of money. if it goes beyond 90 days there's no additional monies, unless there's something worked out with the tenants. this is the first time i'm hearing that, but we need it in writi writing. it would be great to have

someone who's an expert in the field to be able to opine or at least give us an opinion letter based on the details of that particular project. i'm just throwing that out. while i want to support this project, because i think it adds more in the end. in that time, i would like to see the project sponsor get into contract with each of the individual tenants so everybody understands what your rights are and what you're offering. >> thanks. can i ask a question? is it feiber or fiber? >> feiber.

>> so the parking. you asked the question, did we err on the side of parking or housing. i think what is causing this problem is the fourth floor. i think the seismic retrofit of this building, like you said, could happen on the ground floor. i don't think it needs to go up above the second floor. you could spruce up this building, add units on the ground floor, and i think we would have a decent project. but the issue of parking gets in the way of that. the rent ordinance, give us a quick snapshot in the law. if you have parking in your lease, and you have parking. the legislation doesn't allow an owner to take that parking and build a unit. >> no. it's considered part of your unit. you can give it up voluntarily, but you can be bought out. you can't be forced to do it.

in order to fight it, you have to get an attorney. the rent board can't get involved. >> what do you mean in order to fight it? so my landlord came tomorrow and said, i'm taking your parking, a portion of your lease, you do down and file -- >> you would file a wrongful eviction from that space. >> and what happens? >> they could determine that was correct and lower your rent. that's all, but they can't stop the own for doing it. if you have a private attorney, they can go to court and stop it. >> so the rent board's remedy is to reduce the rent, but you can't take a portion of your unit. is parking a different animal, that you can take some parking. if they came in and wanted to take my kitchen, would the rent board say, will we just reduce your rent? >> no. it's part of your unit. >> that's where i kind of get confused. the rent ordinance --

>> when they voluntarily move their car out, that's where the problem arises. once they vacate, you've given up your rights. so the only thing to do is stay there and get a lawyer and say, you're not taking my garage. >> from a seismic retrofit, you need to take the parking away. it's 90 days. so you brought up the issues of adus causing evictions, i mean, the intent was they were supposed to be in areas they used. if it's a parking garage, there's a process we have to make sure, first, that the rent board has made whatever determination of that parking. the parking is no longer part of somebody's lease and can be used. i mean, i don't support this

project, but i think the problem is not the adus. i think the problem is the fourth floor. that's what's causing all this additional work, as we go up, sprinklers and everything that's causing people to vacate. if people didn't have the parking under their lease or they agreed to it, i think you can put two units in there, retrofit the building, seismically upgrade it. that's what they were intent on doing, but i think they' taken this now and added this component of it. that throws this into a whole different building code. you've got sprinklers, other exits, people are being evicted. that doesn't work for me. i think commissioner richard said, it's kind of pitting new housing versus displacement, but i don't think the housing is causing it. it's the addition of the fourth floor. >> can i say one thing about adu? >> sure. >> i think you guys should talk to tenant attorneys because

these are pretty easy cases for them. the garage issue, it's part of their unit. i totally understand, butitis conflict. >> we need to make sure that garage is not under -- when there's an negotiated agreement between the owner of the building -- i've seen it happen. it happened around the block from me where there were five park spaces in a ground floor. the owner did a nice job converting the back of that into a unit. they were under a lease. a lot of people don't like them under rent control, so they enter a separate lease for parking and they're able to put in a unit and get rid of the parking. i think that's fine as long as it's not within somebody's lease. i appreciate that classificatioclassificatiorific. i can't support it, as it is. i think that top floor is causing problems. a total renovation of this

building wasn't the intent of the adu for the seismic retrofit legislation. >> commissioner moore? >> i would like to take what you said further, if i may. can you please explain to us. i do not see how this particular building is getting a retrofit, but the structural improvements is only adding a fourth floor. the building itself, why you make improvements voluntarily is not under the city's et trow fit program. correct? >> the building itself is under the retrofit program. generally, it refers to the ground floor only. commissioner hillis is correct that the extension of the shared walls up through the building is under the code and it becomes required if they're adding the additional load on the top

floor. so the approach was to look at the retrofit. >> but it's fair to say if if you do an upgrade, you would not have to move or interfere with any of the tenants, is that correct? >> i can't speak to the sequencing and construction. [overlapping speakers] >> what is the foundation now? you need sheer walls -- the garage opening, clearly you have a soft story problem. >> correct. that the garage opening -- >> what is the foundation? >> it's a large concrete retaining wall on the east side. >> on the non-garage side. >> on the non-garage side and there's cap walls that are doing something at the moment. >> the seismic retrofit, it would be adding -- >> they would probably be doing some sort of steel frames. >> just a moment frame on the

front. >> a moment frame on the front and sheer walls on the short direction of the building. [overlapping speakers] >> or even if the garages were not going to stay. >> either way, that's true. >> i don't think it would involve the upper parts of the building, other than voluntary improvements you would be making. that's just the way it reads. >> what is the height of the ground floor? >> the height of the ground floor is 7'67'6". >> it would be down steps to 8' 8'6"? >> but tenants would not have to move out, if you did that? >> that's true. well, i don't want to say, but my opinion is they might not. >> commission richards? >> so a couple of other things, soft story retrofits are happening all over the city. drive down the street, and you can see a building being retrofitted. we don't have a massive displacement problem because of it because tenants do stay in

the building while it's happening. there's 1 on scott street right near golden gate. take a look. the building is on stilts, but there are still people living in the building. this is exactly like 505 grandview. it's the additional -- i don't want to call it amenity because from the report, the tenants are going to be forced to move into the adus? that was the first plan. okay. so you need to retrofit the building, absolutely, but you don't need to do it at the expense of the people that live in the building by needing them to move. so i can support a soft-story retrofit, which is what we're trying to do here for safety and some cosmetic improvements, and the tenants need to -- >> >> it's the law. >> it's the law. the tenants have needs with regard to taking a portion of

their unit. we need a legislative change, or you can sue us. and i welcome that because i hate sitting up here having to go through this all the time. i make a motion to approve the soft-story retrofit -- [overlapping speakers] >> i think we have a couple of choices, it sounds to me. i need to just chime in, considering the housing accountability at this part of the equation, but you can continue it with more information or you can -- if you continue it or not, the direction that i hear you giving is that the fourth -- the work on the building that would affect the existing tenants is what you're most concerned about. it sounds like the fourth floor. what i also hear you saying is, of course, you should do the retrofit. but i'm not hearing you should put units on the floor -- [overlapping speakers] >> how many are under leases?

two. under a lease that's associated with a lease upstairs, not with someone around the corner. there's two. how many spaces are there? [off microphone] >> can you speak into the mic? >> but if you're talking about an outside person, there's no right to that. [off microphone] >> so there's two that potentially -- so, yeah, i think we continue it. you're not going to get a fourth story on this building because it causes too much displacement. you may get some adu units to help with the seismic retrofit, but i think you've got to figure out what the existing residents -- especially those that have the units, those parking spaces, whether they're willing to work with you to give them up or not. >> we had one of these over -- i think it was in russia where we started to take parts of the lobby, and we said, no, you can't do that. >> it was on clay street. >> it was on clay street.

at what point does the adu stop confiscating units? it's the way things are being done in the renovations. it says you cannot take existing living space or living service space for the unit, but what people are choosing to do is go beyond the basic adus. they're doing more than that. [overlapping speakers] >> i wouldn't throw the baby out with the bath water. >> it's a wrongful eviction under the rent law. >> the adu that's causing it, it's other people doing things beyond that. >> i guess the housing accountability act. we have to confiscate a portion of somebody's unit to build a unit. i don't agree with that. >> you don't have to, under this case. >> they were going to. >> right. it's because of the fourth quarter unit, the fourth floor. >> commissioner fong? >> let me clarify, for myself.

so there's no loss of unit. if at least going to be an adu unit. >> two of the six are currently not bundled. >> are bundled. [overlapping speakers] >> you have to convert four garages. >> while you're tearing things up to to do seismic retrofit, you can add -- >> and if people are willing to give up parking spaces -- >> i think we're feeling the fourth floor is too much at the moment and obviously displacing temporarily tenants is not worthwhile. i don't know if we want to approve that or offer a continuance for them to redraw

everything. take moving the fourth floor as a continuance and if there's going to be displacement, have that in writing with the tenants. >> commissioner melgar? >> i'm not ready to vote on this, other than to say no. i would vote for a continuance because i think there's too many things that are still not settled. >> i second that. >> to the point about the drawings, i couldn't really understand what i had. so maybe it was just me. back to the issue of the housing accessibility act and the adus, i would like a crisp, clear guidance from the city attorney about this issue. comment spaces or garages are part of a lease, and we say no, are we in violation of the housing accessibility act? >> no. >> and so, you know, this is

what we're going to see. so if no is the case, if we can get away with saying no, this is not buildable space, then we need to have that in the process. we need to have a planner look at the records and the rent board and say, yeah, these folks, you know, gave these up. they got some money for it, whatever. and then we proceed because otherwise, you know, it just opens us up to an abuse of folks who may not quite know their righ rights, you know, getting their common areas, their lobbies, their laundromats, their garages being taken away because the monetary incentive is so powerful to do this. so i do support the adus. i support having housing units rather than garages, but i want to be very careful about the process because it is not right

to take the value that is bundled with somebody's tenancy for your own without having to go through the proper process and, you know, monetizing it and making the tenants whole. >> agreed. move to continue. >> second. >> i believe that's a motion. [overlapping speakers] >> we need a date first. >> i would go fairly far out. you're going to need a couple of months. >> i would like to add a little more subtlety to what we're talk about right now. there are two issues here. one is the whole legal issue about what can you take from tenants with leases on garages, et cetera, and two is a plan that reflects all the things you can do and not the things which could legally potentially get us into problems, as commissioner melgar just summarized. it's a two-step process here. i think we need to make sure that the applicant and the

architect fully understand the requests we're making here. on the other hand, for this size building, i think the soft-story retrofit has a very, very tight timeline. i'm surprised that the structural engineer is not here. that's way under process. i spent two and a half years going through the plans on a similar building size. so these people, if they're already in process are a little bit on the time pressure side, we need to be sensitive to that because we do not want this building not to meet its time line. >> i think we're okay on timing. i think the plans have to be approved, but i think as far as timing on doing the work, they're okay. i'm pretty sure. that's fine. we give them a couple of months. i want to make sure we don't associate adus -- a lot of

what's happening with adus, it's good. we're building units, yeah, there may be laundry. like it was said, you can take the laundry away. you have to compensate, but you have to pull laundry out of a building. there's a reduction in service, but you can do it. should we encourage that? no, not necessarily. we should encourage people to work it out. if tenants don't need their parking and are willing to be compensated for the removal of parking, and we can build two units or one, that's good. >> if i may, there are a couple of things. one, the issue -- the housing accountability act, as i understand it, and i'm no expert, if it's a code compliant project, then you need to allow for the maximum number of units, right? it's a code compliant project. that's the question here. if it's not a code compliant project, this issue is not addressed of parking and all that kind of stuff.

that's a whole different issue addressed in the city's code. what's called a housing service that's attached to the unit, such as a laundry room or whatever. i think the problem -- the current problem we have with access to date is the rent board doesn't currently have leases. you can't just go to the rent board and see if that lease says this parking space is attached to that unit. that's not -- they don't have that unless the landlord voluntarily gives that up. we cannot require them to divulge that information ahead of time. >> right. >> i think what we're trying to do, and we've been talking to staff about this issue because it's come up now several times, is figure out a way to address that up front when a project like this comes to us where there are -- whether it's parking spaces or a laundry room, whether there's housing services to know in advance that the tenant is being -- has been notified. if we can't necessarily require

an agreement, we want to know if they've been notified >> and we don't currently have that. if you go into this building and do an adu, you will get the normal notification for construction, but not necessarily your rights as a tenant because services are being removed or something is happening to the unit. i mean, that would be a good, at least, first step in the process. >> i think the other thing is -- we talked about this in terms of being able to have these projects pass the sniff test. this is the second or third, i don't know, of these, but when you're adding another story, it's going to kick you into a higher level of seismic upgrade when the adus are on the ground floor. we should start recognizing these patterns, i think, that we're not adding housing on the upper floor, we're expanding units, but we're adding housing underneath, which doesn't require the higher level of seismic upgrade, which would result in displacement.

>> can i ask one question, please, just within this group, or the commission. if this i would bei-- if this building were 100% vacant and sold 100% vacant, would we have opposition to this floor is this >> no. >> no. >> no. >> i agree. >> commissioners, if there's nothing further, there's a motion and second to continue this matter to june 21st. on that motion, commissioner fong? >> aye. [voting] >> so moved, commissioners, the motion passes. >> all right. the meeting is adjourned? >> if you say so.

francisco. >> my name is fwlend hope i would say on at large-scale what all passionate about is peace in the world. >> it never outdoor 0 me that

note everyone will think that is a good i know to be a paefrt. >> one man said i'll upsetting the order of universe i want to do since a good idea not the order of universe but his offered of the universe but the ministry sgan in the room chairing sha harry and grew to be 5 we wanted to preach and teach and act god's love 40 years later i retired having been in the tenderloin most of that 7, 8, 9 some have god drew us into the someplace we became the network ministries for homeless women escaping

prostitution if the months period before i performed memorial services store produced women that were murdered on the streets of san francisco so i went back to the board and said we say to do something the number one be a safe place for them to live while he worked on changing 4 months later we were given the building in january of 1998 we opened it as a safe house for women escaping prostitution i've seen those counselors women find their strength and their beauty and their wisdom and come to be able to affirmative as the daughters of god and they accepted me and made me, be a part of the their lives. >> special things to the women that offered me a chance safe

house will forever be a part of the who i've become and you made that possible life didn't get any better than that. >> who've would know this look of this girl grown up in atlanta will be working with produced women in san francisco part of the system that has abused and expedited and obtain identified and degraded women for century around the world and still do at the embody the spirits of women that just know they deserve respect and intend to get it. >> i don't want to just so women younger women become a part of the the current system we need to change the system we don't need to go up the ladder we need to change the

corporations we need more women like that and they're out there. >> we get have to get to help them. >> our regular board

meeting of the board of education for san francisco unified school district. the date is april 24th, and this meeting is now called to order. roll call, miss reiskin. [ roll call. ] >> thank you. if you would, please join me for the pledge of allegiance. [ pledge of allegiance ]

>> thank you. section a is accessibility rules for the public. item 3 is the approval of the me go minuting froms board meeting of march 26, 2018. i need a motion and a second. >> motion. >> second. >> thank you. any corrections? thank you. i need a roll call vote, please. [ roll call. ] >> five ayes. >> great. thank you. as has been announced the past few meetings, members of the public are advised if they wish to address the board of education an individual can complete a speaker card that looks like this and they're located outside in the foyer

right outside this door. prior to the item being called about our clerk, according to the board rules and policies and procedures, speaker cards will not be especially for an item already before the board, so if you have any plans on speaking on any item on our agenda this evening, please complete one of these cards and give it to miss casco prior to my calling the item. thank you. item 2 is the superintendent's report. dr. matthews. >> thank you, president mendoza mcdonald. thank you, everyone. good evening, everyone. i'll try that again. good evening, everyone. i'd like to start this evening by acknowledging that tomorrow is administrative professionals day, and by saying thank you to all of our hard working administrative professionals at our school sites and central offices. you are the lifeline of our organization and administrative professionals day is celebrated to say thank you as you are the ones that make our schools and offices run like a family. let's give our administrative

professionals a big round of applause. [applause]. >> it's that time of year again. it is frisco day. those of us born and raised in san francisco know that frisco does not stand for san francisco. it actually stands for friday, the first three letters, f-r-i, successful college opportunities. this'll be hosted at city college, the ocean campus on friday, may 4, 2018, from 9:00 to 2:30. we are expecting to host approximately 1,000 seniors. the goal of frisco day is to connect san francisco unified school district seniors to resources for their post high school transition. during the day, staff and faculty from our district and from city college help the students navigate the college enrollment process and connect them with college and career resources.

what students can expect on frisco day? on the spot register station, and you'll get your city college i.d. you're able to sign up for summer bridge, you can complete your steps to enroll in college. the city college resource fair will be there. financial aid and transfer info session. there will be a free lunch, there'll be a raffle, and gave away. this year is the 30th anniversary for the ad ventures in music program, aims. this is a partnership with the san francisco similymphony tha brings music into the lives of our school children. one of the foundational goals of the aim program is that had reflects the diversity and heritage of san francisco's student population. it provides a variety of music,

including jazz, latin, chinese folk music, and many more. you can see mariachi bands, african dance, dalballet, and variety of different musical types of variety. every student in every san francisco unified school district elementary school experiences the program and receives the same opportunity. this morning, i had the pleasure of attending sanchez elementary se recelebrator concert. this summer, our district is offering a 6-week intensive geometry course for our district 9th graders who are

completing ccs's algebra ii in their freshman year and would like to take algebra ii plus in the up coming year. the course will be held at gal gal galileo high school from 8:00 a.m. to 2:0036789 p.m. enrollment can be completed at sfusdmath.org. once again if you're interested in enrolling in this course, you can enroll at sfusdmath.org. applications must be submitted by april 30th. students will be notified on monday, may 7th about their enrollment. finally, as you know, election day is umm canning up -- coming

up on june 5th. this ballot will include a measure that will have significant implications on our district. that measure is proposition g. let me give you some factual information. prop g will establish a $298 parcel tax to raise $50 million each year beginning next year. if approved, project g would increase salaries of teachers and paraeducators and other school employees. salaries of ucsf employees will increase by an additional 7% on top of the already scheduled raises that are included in our collective bar anning agreement. if passed, teachers salaries why our district would move into the top quarter -- quartile in our district in 2020. thank you, president mendoza.

that concludes my remarks for this evening. >> thank you, dr. matthews. at this time i'd like to call on doctor merase for some quick remarks? >> yes. it's bitter sweet that we say good-bye to our long time spanish interpreter, lorenza, and so we have a card and some flowers. this will be her final meeting for us, and so we just want to acknowledge her work. [applause]. >> lorenza, why don't you come on up, please, for just a moment. you don't have to translate this for us. thank you. [applause]. >> interpretation for many of our families wouldn't have been

possible without your incredible support, lorenza. it's been a great being a parent with you and raising our kids together. we wish you the best in napa. does anybody else have anything else? commissioner? >> justs.a.c. meeting will

be may 24th. if you would like to attend make a presentation or have a copy of our up and coming agenda, please contact our supervisor, mr. salvador lopez ibarra. >> how long will the day be up. >> as of now we haven't set a date, but we hope to gather student input until a date that we don't know as of yet as of now. >> all right. just make sure it's before you

all graduate. item four is recognitions and resolutions of commendation. dr. matthews, you have a commendation this evening? >> yes, we do. tonight, we are recognizing the association of california school administrators award over 300 san francisco unified school district members are members of the california school district associators region five, which also includes san mateo county administrators. we are excited to honor the incredible association of california school administrators region five administrator of the year award. these conscientious committed and deserving professionals are nominated by their peers for this prestigious award. they will be honored at the annual region five dinner on may 1st. i'd like to call in the president of uasf, who will

announce the awardies. >> good evening, commissioners. superintendent matthews, i am proud to be -- to represent -- i'm the interim president of the united administrators of san francisco. i also serve as the vice president at san francisco charter, and past president of afsa region five including san francisco and san mateo counties, and i'd like to acknowledge linda wells, president of sf charter and michael davis is the current region five president. so it is our great honor to -- to acknowledge and thank you for acknowledging our hard working administrators who do so much work every day on behalf of students and their families and staff. so our first award winner for our classified employee is michael davis. [applause]. >> our next stratofficentral o

administrator of the year is bill sanderson. very well deserved. long time supporter. and our elementary principal administrator of the year, wendy chong of the chinese emergent school. and wendy was my -- one of my son's second grade teacher at jefferson high school many years ago. and a good friend and colleague. the secondary coadministrator of the year, erin lynch, assistant principal, washington high school. thank you.

[applause]. >> i'd like to add one more thing. since these award winners are nominated by their peers, it's like the academy awards. >> congratulations. >> all right. congratulations, and thank you. our next item is item five. it's a recognition of our -- of all valuable employees, our rave awards, and dr. matthews, you have a recognition for this item, as well. >> yes. tonight's recipient is rachel spilliard. she's a science teacher and department head at washington high school, and tonight, presenting the award will be washington high school

principal, susan saunders. >> thank you. it's my pleasure to introduce this month's rave award recipient, rachel spilliard. her co-workers did not nominate her solely for her deep involvement in our school community. she was nominated because of her dedication to all students, her equity centered leadership and her efforts toic ma sure that our science department is at the forefront of sfusd's planning skpi planning and implementation. rachel is able to find teachable moments in every aspect of her work, and understands a connection between building community and learning. please help me congratulate this month's rave distinguished service award recipient, miss

rachel spilliard. [applause]. >> i didn't really prepare anything, but i -- i just wanted to say that i -- i was so floored when i got a copy of the nomination in my e-mail box

a couple weeks ago. i was just, like, weeping openly at my desk reading what people had written about me. i wanted to be a teacher since i was about ten years old, and i was very fortunate after i got my credential. i did my student teaching at washington. it's the only place i've ever worked, and i've been very lucky to find a place that i can call home, and i love science, and i love robotics, and i love my kids. my kids came, and my colleagues are also wonderful. and i just -- i'm very, very thankful, so thank you. [applause]. >> congratulations, and thank you for your incredible work in our schools. oh, sure, of course. commissioner merase? >> i just wanted to congratulate miss spilliard. i had an opportunity to meet her at the robotics competition, and she had the louder voice in the eagles section of the gym, so i wanted

to congratulate her tonight. >> thank you. item six is our advisory committee reports, and appointments to advisory committees by the board members. director matthews, you want to introduce the designee who will be reporting on this? >> this evening, i'd like to call on the director of policy and planning to introduce the item. >> so this is item one, the quality teacher and education act, qta, annual report. >> thank you, drrks matthews, and thank you, president mendoza mcdonald.

i am the staff liaison to the over sight committee for the quality teacher and education act, more commonly known as qtea for short. this ballot measure which will celebrate its ten year anniversary this june including key components to ensure that these funds are being used in a manner consistent with the will of the voters. this includes both an annual audit as well as a atens oversight committee and report to this board. this evening, i'm joined by mr. nathan edelman of etg who will present on the audit, as well as our cochairs, miss rachel shaw and chris wright. i want to acknowledge the hard work of this committee who have given up their time and their dedication and their energy and thoughtfulness to review and analyze this measure throughout the year, not to mention those who volunteered for the impact

and innovation awards, and i want to sincere rethank all our members, not only the coshares, but the members in good standing -- cochairs, but the members in good standing. additionally, i want to thank keith's staff who have supported and made sure that the work of this measure is tracked and reported on. this includes our qtea budget manager, our director of budget services, and our chief financial officer. at this time, i would like to now hand it over to mr. edelman to present his report. >> thank you. my name is nathan edelman with dtv. i am the independent external auditor for the school district. so what you have -- there's two reports. one is a set of financial statements for qtea for the fiscal year ending june 30, 2017, and the second report is

our compliance report which says whether or not the district used the funds appropriately. so the scope of the financial audit is to validate that the accounting records, 100%, so they fully account for their revenues and expenditures of the qtea dollars throughout the fiscal year. the other thing, the other item within the scope of the audit is to validate that the expenditures that ran through the qtea program were spent in accordance with the parcel tax, and there are a number of bullet points about what is an eligible activity for the qtea funds. and so the results of the audit are one that the qtea dollars for the fiscal year ending june 30, 2017 are fully accounted for. we can account for every single dollar that has ran through the qtea resource board for the year and validate that the funds are spent correctly. the other item, the other

result of the audit is that as i said, the dollars were spent appropriately. and so actually, on page four of the financial report, there's an income statement. and it shows the funds that came in for the year, $40 million, and it shows the funds that came out, 42$42.5 million. there's a deficit, $2.5 million, and that is to use up some of the beginning fund balance. it shows a cutoff point, june 30, 2017, there is an ending billion of $1.7 million which remains for the district to use in subsequent years on other eligible qtea activities, which i believe they have budgeted a plan for that. that's the audit. again, the scope is to valid date that these things that you're looking at here are fairly stated and they were spent appropriately for the qtea, which i guess they were. so i guess what i'd like to do is just open it up for any

questions from the commissioners regarding the audit, the scope of the audit, and what we do, how we form these conconclusiolusions or a else. >> any questions from commissioners? commissioner merase? >> thank you. i just wanted to know what has been our track record. i'm very pleased to see no findings, but in terms of previous years, have there been findings and what was that? >> from the inception of qtea to date, all of the accounting records have been fully intact. if i recall, there were some findings in some of the earlier years regarding findings in how transactions were coded in the back end. they were all relatively minor, and they've all been subsequently corrected. and i can't recall offhand what years those were, but the qtea began in 2008, but they occurred annually every year.

the district has a process in place to account for these dollars. they have a -- they plan to spend them well in advance, and it has resulted in, you know, a fairly routine straightforward audit process, so there really shouldn't be any findings, that they're going to continue to do what they have been doing, i would surprised if we came in and it turns out money's not accounted for, or spending's not planned for or it's not intended, so it's a clean process. >> thank you, and i want to thank you for ensuring that these public dollars are spent wisely. >> sure. >> thank you, nathan. at this time, i would like to hand the floor over to cochair for the over sight committee, who will present. >> good evening. first i want to thank my colleagues, chris and our

communi committee members. i have a very intimate relationship with this parcel tax. i am a parent of a student. my child's in school. i am fortunate enough to pay the parcel tax, and my job as chief investment -- chief treasurer for the city and county of san francisco, so i invest these funds for sfusd on a daily level, as well. and then finally, i volunteer on qtea making sure it's consistent and well spent, so i am focus and a bit crazy. so let me just say a little bit about the parcel tax that you have ahead of you. it has been growing steadily as you have seen on the bar chart in front of you. that is primarily due to cpi. we are a population of property owners that are ageing, so the majority growth factor that you have head -- heard of.

about 71% of the funds that come in through the negotiated mou with the united educators of frisk and the remaining 29% of the revenue supports outside of that mou portion. the 2008 ballot measure covers a list of areas primarily obviously are salaries for our teachers and our staff as well as professional development, technology, and recognition of schools. the parcel tax is $244 perparcel, and as i said earlier, indexed towards inflation or cpi, and we have accepted nathan's audit findings and appreciate that there are no findings this

fiscal. last year you may or may not recall one of the big items that we had ahead of us was the spending of the parcel tax was not at the clip that one way have desired. there was a significant amount of carry forward. we brought that to your attention as your staff godid,s well. we're happy to report the spending has quickened, so there is more spending happened. the revenue come nz and it's generally split to that 71% towards salary and 29%. it's important to note that the revenue that comes in every year does not cover the totality of costs that are budgeted for qtea. in other words, you need the savings from the prior year to cover for your salary increases, or the other things that you want, and we'll talk a little bit about that if you choose. primarily then, then, we have

some recommendations in certain areas on those prior years, and we'll talk about how those have come forward. the percentage that is covered by the uesf mou has been spent obviously at a fairly good clip, covering your salary expenditures and as well as educational development, and i think i would -- and then technology represents about 58 percent perce58% of the total nonuesf portions. so the 29% of that 29%, 58% of it goes towards technology. some other key things we talked about, obviously, the most important thing that has come from this parcel tax and the other one that will be before the voters is supporting our teachers salaries and our raises. qtea supports the 1.5% increase. it's about $31.8 million in total compensation. it also supports the laptops

that we have for our educators. over the course of the time, all educators have been offered laptops. 4500 have been issued, and it supports the impact and innovation awards that are available to all of the schools in sfus 2k. a -- sfusd. and as i said, our pace of spending has increased, something that we are pleased about. so the impact and innovation award is something that's been one of the strongholds of the qta. it was written into the ballot measure as well. it was really intended to do two critical things. one is really do school wide have brought impact areas for schools, as well as help innovate initiatives at various schools around the city. the critical thing