very difficult position, whether it's formula re-taylor bmr minimums and not helped by the cost of construction and labor right now. just a little bit of -- as one speaker mentioned, this used to be ron greenspan's volkswagen service department there. generally, i am in favor of small business and support small business. i think san francisco has long been successful and the unique thing we like about san francisco are all the different small unique businesses. to me, the real question is are we doing enough on this site? and for folks in this room that aren't here for other hearings, i hope you can understand the pressures that san francisco has and that we receive here and the department receives for trying to build more housing on all different levels. and so are we doing enough with this site? is the developer doing enough with this site?

i wish we were here and actually quite frankly looking at a mixed use project. i don't think there would be very much opposition. i think to some degree, there would be a best of both worlds. we would probably be in favor unanimously with formula retail, and then also some units above or some other type of use. so is it really being wringed out and squeezed enough. interesting, i have no idea who created this, but it does look at a mixed use scenario, and i realize we're talking about a formula retail decision here, but with 48,000 square feet of resi and 30,000 square feet of grocery store, so a mixed use potentially is possible. as far as demolition, you're right. i don't think you should demolish things that you shouldn't have to, but we're not displacing any existing business. we're not displacing any particular folks living there.

it is a strange opportunity that -- that is in front of us to potentially agree to demolition, and i guess, you know, we haven't gotten anywhere close to a motion. i'm not sure that one is, but i would consider potentially a continuance, although i don't like continuances to give the project sponsor an opportunity to study other variations of this site and see if by chance, i don't know what the numbers turn out to be but if there's an opportunity for a grocery use and something else above. >> president hillis: commissioner johnson? >> commissioner johnson: so i just want to echo and thank the community for coming out and sharing your perspective. it's really important to this process to hear your voices and perspective. i actually spend at least once a week in this corridor, passing by all of the lovely local businesses in the area, including my favorite, bob's doughnuts. and i also -- hey, bob.

and i also pass by this site, and i'm always, why isn't there something there? the city needs this space? we need to activate this space. so i really understand the concerns from both sides, from the merchants and then from the folks that are living in this neighborhood. and you know, personally, for me, i wish we weren't forced into this choice between what the city desperately needs, which is high -- the highest use for this space to believe and activating this space with retail. and so, you know, i'm just going to echo what my fellow commissioner said, that i would just like to see this project continued and for the project sponsor to work more closely with the planning did he want and others in the community to come back with a proposal that both meets the needs of the

city and also and also, yeah, gives the neighbors something that they would like. i do think it's possible. >> president hillis: commissioner moore? >> commissioner moore: thank you for everybody speaking for or against. the more you say here, the more difficult it gets to stay grounded in what we need to do. as planning commissioners, i think we need to look at land use, and since land use inte e intensefication looks at rezoning of certain neighborhoods, we also need to look at layered uses and manners of coexisting that make mixed use possible. polk street is mixed use as many small neighborhood corridors are in the city, and i do have to agree with the rather disturbing story, listening to commissioner

koppel as it somewhat mirrors my own experiences. it was -- it was with great enthusiasm quite a few years ago in this chamber that whole foods came to ask for formula retail approval on california and franklin. it was a vibrant company with great ideas, proactive rolling up their sleeves, and it was an exciting process to listen and spend thoughtful time considering to support or not to support them. and in the end, i supported them because i believed they were on a mission that proved itself to be very true and very exciting for a number of years. however, there has been a game changer, and my experience on a different occasion than what commissioner koppel described is almost identical, except in a different context. whole foods on california and franklin, which i walk to,.9 miles from my house, two ways,

1.8 miles, which i love to do just because it is easier to get there by foot than circling around the block to get in the garage started as a very different store. it started in a very subtle way, not that i disapprove of same brand items appearing on the shelves, all of a sudden from the yogurt to the this and that, it more and more became 365. i tried 365. it is not my way to shop. i don't like it. however what happened is the choices whole foods provided slowly disappeared, and so did the spirit in the store. at this moment, it is almost impossible to not stand in waiting lines that go over the entire lengths of the depths of the store because the number of checkers who used to attend on all check out stands, half of them are filling orders that come in -- that come in on the

computer and the customer that's basically disappeared to be important. that's the same thing with ordering specialty items, which they were always glad to do, were able to achieve in a few days. they don't do that anymore. the items have disappeared, and it's in that kind of changing environment, particularly now under a new mission of being an amazon, where i do not have any trust that what they are still delivering as a whole foods or what they will be delivering at a 365 is transparent enough for me to continue supporting it as a formula retail spot for the polk street. i have to be honest, if it would be different, this would be a people focused store where i feel i know my checkers, and i used to know everybody. they recognized us. they spoke about their lives, they spoke about how things

were going. it was a welcome gesture. that has all disappeared. it has been a tight, difficult store to shop in, and i have been more or less ceased to do so. and for that reason, it was more or less for lack of trust you are asking for, i will not be fully supporting of what we are being asked to do so today. >> president hillis: commissioner richards. >> commissioner richards: so on my google feed, what popped up is puppet hill whole foods closed, amazon takes over. this is in the san diego union tribune. every whole foods has -- i go down on potrero, and i get a nice hamburger and things. they say they're using it as a staging area for their two hour delivery, and that they make frequent updates to stores.

i read this, and i think, hearing what commissioner moore and commissioner koppel said, is this going to turn into a warehouse distribution center for amazon prime? i had a disconcerting moment in my whole foods twice recently. once, i went to buy vegetables, and i swear, i was like hurricane harvey had gone through. there were no vegetables. the shelves were bare. there was nothing to buy, and i was like i've never seen that in a whole foods. the second thing is looking at apples or appears, apears, and an alexa in the middle of the store. i just don't like the way that this is all going, so i'm still not supportive. i guess the question i have for director rahaim, is should we not approve this today, could they come back with a housing

development right away? >> commissioners, i think i just need to clarify is the way the zoning currently works on polk street, if the building was demolished, a use size no more than 4,000 square feet could go in for retail richard richards -- >> commissioner richards: so effectively, a whole foods or large grocery store could not go in. one of the things we did recently at the lucky penny site, there was an s.u.d. that was created that bent the rules, that allowed high density and things in exchange for the developer gave back to us. so maybe the numbers don't work now as is which is a straight project, but i think i'd urge you to go work with the supervisors office to go explore an s.u.d. or something that can actually make everything fit together nice and work better, including a use size larger than 4,000 square feet which could allow a

grocery store to go in. that would be my recommendation. so i guess i'll make a motion -- so what you did say was they cannot come back within a year or they can? >> well, in their current form -- nick, you can correct me, but if you deny a conditional use, you cannot come back with essentially the same proposal in a year. >> commissioner richards: this would take more than a year to figure out. >> well, it would, but they can't come back with the same proposal within a year. >> commissioner richards: i'll make a motion with an intent to disapprove. >> commissioner moore: second. >> president hillis: in -- so director rahaim, just so we're clear, if this building were demolished, and a mixed use building -- it's not with the c.u., you can't do a -- >> no, poling street as an absolute cap of 4,000 square

feet. >> article seven was just updated a few weeks ago. in the polk street neighborhood commercial district, you could go principlely permitted up to 4,000 square feet, and over that triggers a c.u. it's a pretty large amount of change for the control table. if the building were taken down by fire, calamity of god, so on and so forth, the project could be rebuild, but if it was voluntarily razed, it could not be rebuilt. >> president hillis: i'm just going to vote against the motion. i want to kind of be consistent in how i've treated formula retail and defer to those who have lived there over the years. there's problems with the code that maybe we can't get that, but i think the support in the neighborhood is fairly overwhelming that people want a

grocery store here. again, i think whole foods has not been detrimental. it's been positive in other neighborhoods it's gone into. i would definitely like to explore some -- i think you're under utilizing the upper floor of that building. i think you could possibly add a second, third floor penthouse of that building. i would support commissioner fong a continuance to look at the addition of housing into this proposal to make it a mixed use. i know there's lease issues to deal with, but i think you've got a pretty big floor plan in a big building, bigger than what you have in other spots. i'd like to see some housing incorporated into this project, potentially save the building, add onto it a bit, but we'd get a whole foods relatively quickly. you know, maybe in less time than we would get one know if we approved it. i'm supportive of a whole foods. it wouldn't take a year, but just wanted to say that.

commissioner fong? >> commissioner fong: yeah. i just wanted to say i won't support the current motion. i do support a continuance rather keep the project alive than definitely make it a vacant site for another year. and i think there's movement for additional height on this site, and i think the neighbors might take a little bit more height. i don't think we're talking in our minds about putting a huge number of units above. even if it were a few, a handful, a few would probably be better than none, so i'd like to keep this and give the project sponsor a very short amount of but enough time to at least explore the opportunity, and if it comes back no, that's a no and we try again, but i don't want to kill it. >> president hillis: director koppel? >> commissioner koppel: could you clarify the tifs between a continuance and intent fwo disapprove. if we were to motion and vote on an intent to disapprove, that still means that the project comes back, it doesn't mean it is going to get disapproved necessarily.

could maybe just someone clarify that. >> as a practical matter, it may not be that much different. the intent inform disapprove was just simply a statement by the commission that that would be your intent. if the project came back to you in a different form when you actually take the motion of "ay" or nay, then you wouldn't have to reconsider it. as a practical matter, it's not that much different. >> commissioner koppel: procedurally, you've done this in the past where you've adopted a motion to disapprove where it's come fwak to yback with where you've made some modifications and then rescinded and taken that new vote. >> president hillis: there is that motion on the table with the second, jonas. >> clerk: we should find --

>> commissioner richards: i leave it up to the project sponsor, if you were serious about coming back with a project that had housing with an exploration of additional density, you know, or just that's it. you know, we're just going to run with this and forget it. i leave that up to you, 'cause i understand where commissioner koppel's going with this. we can make a motion with intent two disapprove, but grant a continuance with enough time for somebody to explore a different project. >> president hillis: if that's what you want to do, why don't you make a motion to continue and have him explore -- again, i'm going to vote against the motion to disapprove. this is different than a starbucks or chipotle. we've been trying to get grocery stores in neighborhoods, and there's neighborhood support for this. i'd like to see housing incorporated into this, and i'd like to give you time for that.

do you want to make a comment, mr. reuben? >> i'm speaking now solely for the owner. 90 days, and i'll tell you whether it's an intent to disapprove or continuance. we prefer a continuance. it just feels better, but having said that, we need time to work with whole foods. they now have a lease for the whole building. if there's going to be housing, we need to get those people to the ground. that means some of their space goes away. this is not going to be an easy conversation. so that's aspect number one. aspect number two, can we do it at all? this doesn't make money. we may leave here with being able to do a project, but we need to see if it's feasible. there's windows that need to be created on that floor, that means there's issues created with engineering and shear. >> president hillis: i think

we've seen whole foods, they've gone into neighborhoods. >> we'll take a serious look at it, but it's going to take sometime. if we can't do it, then we'd come back in the 90 days and you'll disapprove the project, based on what i'm hearing. >> president hillis: all right. thank you. >> yeah. >> president hillis: commissioner richards? >> commissioner richards: i'd like to have when when he coe in 90 days, a motion to approve or motion to disapprove, rather than having to come back with an intent. >> if the project does include some other component, whether it's housing or whatever, you won't have that in front of you to approve. there won't be enough time because we'll have to redo the ceqa analysis, so it's highly unlikely that a project includes other uses would actually be fully baked in 90 days. >> commissioner richards: i think i'm just hedging my bets that if it didn't work, we'd have a clear one way or the

other. >> i'm just -- yeah, you wouldn't be able to approve a different project in 90 days, i don't think. that's my only point, so you could say yes or no to the current project in front of you, but then, that other project would probably require some more time. >> commissioner richards: of course. that's all i'm saying. >> president hillis: commissioner fong? >> commissioner fong: yeah, just for the neighbors, i want to be clear. i'm hardy an obstructionist and understand that street, and the darkness and safety of that street. my dentist was murdered there right in front of laombardis about eight years ago, so i'm going to make a motion to continue, but i'd ask that we expedite this as quickly as possible, but also ask the property owner to keep the property lit and in best condition during this time. so i'm going to make a motion to continue with 90 days, come back in 90 days.

>> second. >> president hillis: commissioner koppel? >> commissioner koppel: just for clarification, what is the 90 day? >> president hillis: well, i think it's to explore the possibility of intensifying the housing. again, if it's in the footprint of the building or in addition to the building, that may need some additional entitlements or additional work, but at least we'll have some indication whether it's phasibfeasible an can move onto do that. commissioner moore? >> commissioner moore: i think i heard you say we cannot just add housing and make that an option to come back within 90 days. >> to clarify, if the building is maintained, if the grocery store could go in under current zoning, if it had additional housing on the top. what could not happen is the building would be demolished and then put a new store in.

that could not happen because of the size limit. so the question is whether they could develop the scheme in time for us to do environmental review with housing in 90 days. that would be pretty unlikely, but we're willing to look at it. >> president hillis: commissioner richards? >> commissioner richards: so i wish georgia schuttish were here because they just have to leave a stick, and it wouldn't be demolition. seriously. we get this all the time on m 'em -- homes. you see this all the time. it's not a demolition because they had a permit. be creative. don't worry about the definition of demolition. it's fluid right now, and it's going to be tightened up later, and go with the definition of maximum housing. >> president hillis: commissioner moore? >> commissioner moore: i think there are a whole bunch of other issues which a structural engineer can solve, including

giving us a full breakdown about the existing health of this building. this building is not easily adaptable to anything. it was a rather inefficient floor plate given it had this huge atrium middle floor space. there was a lot of circulation, leaving light on the ground floor. not trying to speak here as an expert, but i'm not because i don't know the building structure well enough, but this building i think would require a major redo by somebody who was in the economy of buildings, versus let's just tear this down and do something else. >> president hillis: commissioner medic commissioner johnson? >> commissioner johnson: i think it is worth taking the time to explore. >> president hillis: i think there's -- you take the parking

lot up on hyde street in russian hill where it was converted to the retail on the ground floor and housing above. i think it's worth it. i think this is fairly an easy building and it could have a floor or two added on, where it could get close to the amount of housing you would get by demoing it and kind of satisfy the needs of the neighbors to get a grocery store here. i think it's worth it. it's trying to get at both these issues in moving them forward instead of kind of denying this and getting nowhere. >> clerk: commissioners. you have two motions that both have been seconded. the motion for pure continuance will take precedent and putting us three months out would be a continuance to july 26th. on that motion -- [ roll call. ] >> clerk: so moved, commissioners. that motion passes 4-2, with

commissioners moore and richards voting against. for the benefit of the public, the d.r. has been withdrawn and leaving us no additional business. >> president hillis: all right. thank you all for coming here today. [ inaudible ]

in this san francisco office, there are about 1400 employees. and they're working in roughly 400,000 square feet. we were especially pleased that cleanpowersf offers the super green 100% clean energy, not only for commercial entities like ours, but also for residents of the city of san francisco. we were pleased with the package of services they offered and we're now encouraging our employees who have residence in san francisco to sign on as well. we didn't have any interruption of service or any problems with the switch over to cleanpowersf. this clean power opportunity reflects that. i would encourage any large

business in san francisco to seriously consider converting and upgrading to the cleanpowersf service. it's good for the environment, it's good for business and it's good for the community. our reg

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