>> good morning. quick adjustment here. thank you all for coming this beautiful morning in san francisco. we are honored to have mayor ed lee with us today. senator yi and supervisor cohen

is on the way and a special guest marisa churchill from the top chef from the food network. i have been with the company for over 35 years and you can probably tell by my hair color. i have seen lots of changes off that time period. lots of innovative things. this is one of the most exciting that we've been involved with as a company. we are aligning our initiative -- is that better? i have been with the company over 35 years and i had the privilege of witnessing many initiatives. as the needs of our customers and patients have changes over time. one of the newest initiatives is the food oasis. it is an expanded offering of fresh and healthy foods in communities that are convenient. we are not always the only offering but here near public transportation in the neighborhood a lot of folks who are home bound don't have access and we are trying to change the

offerings that we offer so people can come in and get fresh fruits and vegetables. one we would go and clean up in the community,.

love is to the upload them. we have given lots of time and money. -- we are very committed to the program. everyone is aware, the citizens are basing a lot of chronic diseases, specifically i.t., a childhood obesity, high blood pressure. we have been trying to figure out ways along with our prescription business, what we sell to help people leave a healthy lifestyle. this is our first one in northern california. a lot of places are underserved. hopefully this will serve the community well and give the folks in the area the ability to buy healthy foods.

with that, i will turn it over to the mayor. >> thank you very much. i'm here because i support a lot of the things, especially in the supervisor's district. we're interested in being healthy. we approach it in a different way. i approach it by trying to eat healthy foods. you can ask him what he is running for. anyway, the management, i would like to thank you for creating the very first oasis right here

because it is important. bayview for many years has been very hard to get choices. the choice of good and fresh foods in your community. so, this surprised me. so the people associate with walgreen's said that we will open up the very first and increase in expand our operation in the city. food choices and healthy choices are needed. we need this year and we need it back over the city. we have already 16 stores and our city is employing some 1500 people. having seen them in partnership, as they said that there have

been the cleanest stores and very respectful of every neighborhood in the city. we have great corporate partners and it did not surprise me that they would also say that we can expand our choices. i've never seen walgreen's that has never been known as a drug store. they have been known as the neighborhood store. we have good neighborhood partners. in addition, offering foods, whether it is healthy sandwiches or fresh produce and at a location already established. it will make that to be very important. i am here to support that. i am here to celebrate that. i am here to suggest that every

store can do the same thing. it is not as about this announcements, also about helping us take two strokes back so it does not cost the patrons any more money and we have a safe place to take them. there also contributing to getting rid of graffiti. and they employ people. when you open up an oasis store, this is not just added produce, someone will have to handle that. they include another five or 10 employees. that is a great way to employ more people. with all of those good things, i would like to welcome the supervisor. she has taught me for six months about the need to have healthy choices in the menu.

she has the heart to really express our support because you cannot really do anything. you cannot appreciate anything without your help. my wife tells me every day that i had better eat healthier. she cares about our community here. i joined her in this open and she is one of the healthiest people on the board of supervisors. she knows how it is helpful to everyone in this city. he is keeping the other side with a safe community. she is working really hard. all of the other members. i want to say i am here. we're working really closely.

he is expanding that choice. that is the perfect situation. we understand that they are donating to the bayview foundation. that is an and their indication of how this is not just another store. muhammed and i were here when the store opened. we were here helping to make a landscaping was done well and keeping this area from being here as well. this is a great time to celebrate. congratulations to you and your

wonderful management for not only having a great handle but a store that does everything so well. >> i would like to introduce the senator. they have been 8 walgreen supporter for some time. i really appreciate that. >> let me knowledge why my good friend is great. he knows everyone here and he says everything that we all want to say. on and no personal thing, one of the things that has been believed is that all of us need to understand that we have to be a lot more healthy. the statistics are just daunting for all of us not only here in california but

throughout the world. our lifestyle has to change, our eating habits have to change. we will look at how much we will spend to do with the negative effect of an unhealthy lifestyle. whether or not this is about how you deal with your sedentary lifestyle or the food that you eat or whenever you consume. you have to understand that you have to have a lot more healthy choices. what walgreen has done and i am absolutely amazed about what is going on in walgreen's. they are really turning this store and these stores into an oasis of healthy lifestyles. you have individuals who can get all kinds of different products.

and you cannot have any corporate entity in america for anything better than that. this is a one stop shop for all of your needs and more importantly, those needs that you want to take care of. there will be healthy answers for you. as i look at this, i hope that walgreen's will set the standard that any store in a community should have with they have. any store that will be in our community, they will have to demand that. you have to not only be a partner. i want to congratulate walgreen's for all of their work. if you do not own stocks in walgreen's, you should own stock in walgreen's. i will tell you that they will make a bundle of dollars.

at the end of the day, that is because they care about our community. more people will come and buy their stuff. it is because of that economy of scale that they will make a lot of money. i hope that you'll join me in doing whatever you can. on behalf of the california state senate, we really want you to take this example and spread

it not in just some neighborhoods but all neighborhoods in the state of california. >> now i would like to introduce the supervisor for this area. >> good morning, everyone. i am actually battling a cold. that is why my heart is filled with so much joy because as we continue to grow and transition, you will see more vibrant opportunity's not just here in walgreen's but allover the corridor.

we need partners that will be coming down on third street and supporting many of the nonprofits that are supporting our community members. we would like to support them for being an anchor tenant when other companies would not. thank you. i also want to congratulate my good friends over at hunters point. i am very proud of you. thank you for your hard work and your leadership. i love you. thank you so much. >> now, we would like to present the hunters point family. that is $59.

>> i would like to thank everyone for it knowledge in the hard work. everyone in the hunters point family. this is healthy food and hunters point. these were some of our young people who have been working every day. people have been working here -- we would like to thank the supervisors at the garden for the last about six or seven years. almost every young person has lived in this. probably about four to 500 young people.

>> i would be remiss if i did not recognize the hard work and dedication of all of the walgreen folks that have been here. thank you for your hard work and dedication in addition to the people from the corporate office. i am sure that would be a

successful venture. thank you.

mayor lee: thank you, everybody, for coming. i have asked for the roundtable because oftentimes, information about what we're doing this not get expressed in much detail for a lot of the emerging news outlets, so i wanted a special

time with the asian roundtable press just to make sure you can get your questions answered about what we're doing and in particular, i wanted to talk about our pension reform, which is one of the most important things that i think i can contribute to the city as the mayor, and of course, what we're putting on the ballot in addition to that this november would be the street repaving bond. i will begin with the pension reform first and then talk about the bond and attempt to answer any questions you have about things we're doing throughout my administration. in january, as you recall, i announced five high priorities, and pension reform was one of them. at the time, we looked at the numbers, how the cost of the city employees' pension was

impacting our city fund. the to over $225 million a year had to be set aside just to pay for the increase in cost of pensions, and the tensions had to do with both the pension costs as well as the health care costs, and none of the health care costs have any coverage at all in our current budget. so i had to go to work on that very hard. we knew that it was going to take months and months of discussions, but we approached it in a way learning from what had happened last year in proposition b, as you recall, it was a proposition that mr. adachi had proposed. it went to the november ballot and got defeated in a very sound way. as a city employee for 21 years, i observed very closely what happened, and he, of course, and bird so many san francisco

employees -- angered so many send francisco employees. janitors, street cleaners, fire, police -- they all in very large voices resoundingly helped to defeat the proposal because they felt it was done in a way in which they were never included in that discussion. it was their lives, their pension that they feel that they earned in the city that they love, so they asked us, that they were willing to cut and support a pension reform that would increase their contributions, if it was done the right way. we asked what the right way is, and they said the right way was to include all the unions and make sure it is something that they can pay attention to, that they understand and will participate in, so we did that in a very different way. we met with all the unions and discovered that the unions were very willing to give up more, to

pay more into the pension program, so that the burden on the city's general fund would not be as great. we went about telling them what we had to do, and we created a pension reform measure that was flexible, that whenever the increase in cost went up because the investments were not as good, their cost of contribution would go up simultaneously. but they would also -- and this is a very important point -- when times are good and our investments do good, we pay less as a city into the fund. they pay less into the city, so they enjoy the good times, but they also share in the bad times. that flexibility is called the flow -- float in our charter, and that is a big distinction with the alternative proposal

that is still being marketed by mr. adachi. it is important for you to know that. that distinction called vested rights. many cities across the country -- when they have not considered the employees' pension has a vested right, they get into legal trouble very quickly. that is why you see litigation around the country sponsored by employee groups who have never been consulted with, being demanded that they pay more into the pension, but there is no consideration of their vested rights. that concept is embedded in our measure were in good and bad times, we share, so they get something out of this reform. because they get something out of it, they are vested in it. the unions continue to view, as i do, that the alternative

proposal being sponsored by mr. adachi does not consider vested rights and therefore will be litigated. in that litigation, there is a great chance in my opinion that the proposal will lose. i am not the city attorney, but if you ask the city attorney, as we have -- and we have that assurance -- that if you do not consider the vested rights, there will be potentially successful litigation against it, so i wanted you to know that. that is a point i continue to make. it takes a little time to understand the, but it is one where if you understand the world of public pension improvement reform, and that is why we have such heated debates in oakland and in san jose. very heated. the first thing the unions say is they will sue if we tried to

logos on us without consideration, and now, everything is being settled. if you go into the details of the settlements, you will so i am speaking to in my lawyer had on. i also think our proposal is important to consider because we have employees agreeing to pay into their health-care trust fund for the first time. they have a date certain to pay andin, so that is another contribution being made. the employee making under $50,000, they would not a book to -- they would not be required to pay the increase. but as they increase their wages, then we have two more

level where they contribute more and more, as the year's increase. that helps us in the millions of dollars with this. our proposal will increase the contributions to the pension by between $800 million and $1 billion. it is comprehensive in that it ends pension spiking, increases the retirement age, both for public safety as well as miscellaneous. i am part of that miscellaneous category. so i have to work more years now to earn the full pension, which i do not mind. it also covers all employee classifications. apparently, mr. apachch