Board Policy 3314 states the following: It shall be the practice of the administration to present the Board of Trustees with copies of all warrant registers for information and review at each regularly scheduled meeting of the Board of Trustees. As Policies 3100 (budget) and 3110 (transfer of funds) provide criteria for Board authorization of all expenditures, both personnel and non-personnel items, prior to the actual payment of the obligation, warrants will be distributed to the vendors and employees after audit by the County Superintendent of Schools.

Education Code Sections 42631-36 requires the Board of Trustees approve all expenditures made by the District.

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES APPROVE THE ATTACHED DISTRICT EXPENDITURES.

It was brought to the Administration's attention that some MDF and IDF rooms that hold the electronic equipment for the IT Department and schools do not have adequate heating, venting and air conditioning (HVAC) systems to protect the equipment.

Proposals were requested for four (4) schools needing the most immediate attention (i.e. Audubon Elementary, Brewer Island Elementary, Laurel Elementary, and LEAD Elementary).  After careful consideration and analysis of several proposals, the Administration recommends awarding the contract in the amount of $59,965 to Environmental Systems Inc. for the installation of HVAC equipment at these four schools.

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES APPROVE PERMANENT STATUS FOR CERTIFICATED STAFF. 

The San Mateo – Foster City School District wishes to install electronic signs at Laurel Elementary School and LEAD Elementary School, however; the current sign code ordinance for the City of San Mateo does not allow for electronic signs. 

Government Code section 53094 gives school districts the right to exempt educational facilities from local zoning ordinances through the adoption of a resolution approved by a minimum 2/3 vote of the Board of Trustees.  A resolution exempting the San Mateo – Foster City School District from the City of San Mateo sign code ordinance was brought to the Board of Trustees on June 4, 2015.  The resolution for exemption failed by a 3 to 2 vote.

During the 2015-2016 school year, staff from the San Mateo – Foster City School District have worked with staff from the City of San Mateo to engage the communities surrounding these schools in conversation about potentially changing the ordinance to allow electronic signage.  The City of San Mateo staff took information gathered in these community meetings and their own study of other city sign ordinances to a San Mateo City Council study session on September 19, 2016.  As this was a study session, no final decision was made and City of San Mateo staff were asked to bring further information to the Council members.

At the November 3, 2016 Board Meeting, trustees directed staff to bring forward a resolution exempting the San Mateo-Foster City School District from the City of San Mateo's sign code ordinance. The attached resolution incorporates community input regarding lighting intensity, hours of operation and frequency of the message.

Per discussion at the November 3, 2016 Board meeting, staff was directed to bring forth a resolution calling for the election to renew the levy of the Quality Education Renewal Measure to provide San Mateo and Foster City Schools stable local funding the State cannot take away in order to: 

--Attract and retain quality teachers and educational staff

--Protect reading, writing, math and science programs

--Maintain quality core academic programs including science, technology, engineering and math instruction;

--Keep school libraries open and accessible to students

--Support art, drama and music programs.

Subject to voter approval, the existing $209.92 (adjusted annually by the San Francisco-Oakland-San Jose Metropolitan Area Consumer Price Index) per parcel per year parcel tax which, will expire on June 30, 2017 would be renewed for nine years starting from July 1, 2017.

Senate Bill 415 will likely require many school districts to change when they elect board members. This new law effectively requires school districts currently holding elections in odd-numbered years to analyze their voter turnout rate as compared to statewide election voter turnout rate and, if a significant decrease in voter turnout rate is shown, to develop a plan by 2018 to change their elections to November of even-numbered years (which are defined as “statewide general election” dates pursuant to California Elections Code section 1200.)

Pursuant to the discussion of the Board at the November 3, 2016 Board Meeting, attached is a Resolution proposing to shorten trustee terms for the next elections (November 2017 and November 2019) to comply with SB 415. 

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES RECEIVE INFORMATION REGARDING THE SAN MATEO UNION HIGH SCHOOL DISTRICT'S WORKFORCE HOUSING PLAN.

The District is providing substantial professional development in the 2016-2017 school year. The Board presentation will describe the professional development offered to staff, objectives and levels of participation during the Fall of 2016.  Professional Development programs include:

• October 31 Professional Development Day for Certificated Staff
• Extended Wednesday Professional Development
• Ongoing Literacy Professional Development
• College Preparatory Math (CPM)

IT IS RECOMMENDED THE BOARD OF TRUSTEES RECEIVE INFORMATION REGARDING PROFESSIONAL DEVELOPMENT PROGRAMS OFFERED IN THE FALL OF 2016.

Local Control Accountability Plan (LCAP) Funding

STARTALK is a project funded by the Federal Government and administered by the National Foreign Language Center at the University of Maryland.  STARTALK’s mission is to increase the number of U.S. citizens learning, speaking, and teaching critical-need foreign languages. STARTALK offers students (K–16) and teachers of these languages creative and engaging summer experiences that strive to exemplify best practices in language education and in language teacher development. 

If awarded, the grant will provide a 2017 STARTALK Chinese DNA and Genetics Summer Academy, a three-week immersion program which integrates Science and Technology into daily lessons that facilitate student learning. The instructional program, entitled, “Exploring the wonders of DNA and genetics,” will be a new program created in partnership with the instructional staff at College Park Elementary School and a genetics professor at Stanford University. The program will offer sixty K-5 students a fun and innovative Chinese immersion experience.

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES RATIFY THE PARTICIPATION OF THE SAN MATEO-FOSTER CITY SCHOOL DISTRICT IN THE STARTALK GRANT.

If Awarded:  $64,403.00

The District provides services for individual Special Education students according to commitments made in the student’s Individualized Education Plan (IEP). When appropriate services are not able to be provided through District programs, the District contracts with a Non-Public School (NPS) or Non-Public Agency (NPA) for those services. Listed contracts are for the 2016-2017 school year (see attachment).

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES APPROVE THE NONPUBLIC AGENCY/NON PUBLIC SCHOOL (NPA/NPS) CONTRACTS IN THE AMOUNT OF $449,785.50

$449,785.50

Background 

The District must file two interim financial reports with the state each year. Attached is the draft general fund summary of the First Interim report for 2016-17. This report includes actual revenue and expenditure information from July 1, 2016 through October 31, 2016, and projections from November 1, 2016 through June 30, 2017. The District is submitting the First Interim Report with a positive certification, meaning it can meet its financial obligations for the current fiscal year and the two subsequent years. 

The purpose of this Draft report is to present the Board with a preliminary look at the status of the District's 2016-17 budget.  The final report will be presented to the Board at the December meeting for approval.

Revenue 

Local Control Funding Formula (LCFF)/Revenue Limit Sources includes: LCFF Base funding, LCFF Supplemental funding, State Special Education funding, and Education Protection Account (EPA) from Proposition 30.

Federal Revenue includes: Special Education funding for Individuals with Disabilities Education Act (IDEA), Title I, Title II, Title III allocations, and reimbursement for Medi-Cal billing. All Federal Revenue is legally restricted and subject to specific federal documentation and reporting requirements.

State Revenue includes: Lottery revenue, Mandated Block Grant reimbursement, After School Education and Safety (ASES), Tobacco Use Prevention and Education (TUPE), One-time discretionary funds for 2016/17, and the STRS On Behalf State Contribution (this is a paper only entry as STRS expenditures are increased by the same amount).

Local Revenue includes, but is not limited to: Parcel Tax revenue, Rental Income (includes leased site, field use and facility use fees), PTA donations, Safe Routes to School grant, and interest.

Carryover Balances

The changes presented at First Interim include adding expenditure carryover for district restricted programs. When the books are closed for the prior year, balances remaining in certain programs are eligible to be designated as restricted or deferred, and are carried over into the following year when they are reintroduced into the new budget at First Interim.

Expenditure accounts are increased with the addition of the carryover funds. The addition of these expenditures to the budget creates additional deficit spending at First Interim and throughout the year. The amount of the deficit will lessen when the books are closed and as actual expenditures are known.

Salaries

Certificated salaries vary from the original budget due to vacancies, leaves of absence, and staffing adjustments. Staffing changes were made between projected salaries and actual placement on the salary schedule for each new hire. The First Interim includes costs for salary schedule movement for years of experience and educational units (step and column) for certificated employees.

Classified salaries are also adjusted to reflect actual costs of step and column for 2016-17.

Benefits: STRS and PERS Rate Increases

Health and welfare changes include the STRS On Behalf contribution. This expenditure is offset by a corresponding increase to state revenue.

STRS retirement rates are budgeted at 12.58% for the current year and increasing by 1.85% each year thereafter. PERS rates are budgeted at 13.888% for 2016-17 and 15.5% the following year.

STRS and PERS rates are increasing over the next few years to address the unfunded pension liabilities of each retirement system.  For STRS, the rate increases are set in statute and distributed amongst the state, employee contributions, and employer contributions.  Employee contribution rates will have increased 2.25% from 2013-14 through 2020-21 (from 8.0% to 10.25%).  Employer contribution rates will increase 10.85% (from 8.25% to 19.10%) for the same period.

PERS rates are set by the PERS Board and are adjusted annually.  Employee contribution rates (for “classic” members) will remain at 7%.  Employer contribution rates are set to increase 8.358% through 2020-21 (from 11.442% to 19.8%).  The cost to the District of the combined STRS and PERS rate increases is approximately $1.6 million for 2016-17, and $1.8 million each year thereafter through 2020-21.

Basic Aid Fair Share Reduction

The Basic Aid Fair Share began as a reduction to state categorical funding for districts that were Basic Aid funded in 2013-14.  While the District was Basic Aid for a brief period, including 2013-14, the “Fair Share Reduction” is an ongoing annual reduction of revenue to the District in the amount of $1.74 million.

Upon Board approval of the First Interim Report, it is submitted to the County Office of Education for review and approval. Final submission is to the State.

As shown in the financial report

Board Policy 3290 requires the Superintendent to obtain final approval and acceptance for gifts donated to the school district.

Each year the Human Resources Department compiles an Annual Staffing report to inform the Board of staffing trends.

Information presented in this staffing report includes data on employees by classification, employee attrition, new hires, recruitment and hiring practices, unfilled positions and entrance and exit survey results.

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES RECEIVE FOR INFORMATION THE ANNUAL SAN MATEO-FOSTER CITY SCHOOL DISTRICT STAFFING REPORT.