about our wastewater system and the work that we do to make sure that that water is treated in a safe -- before it's discharged into the bay and ocean. so, one water one system is really a theme that guides our education efforts. so, some of the ways that we have been just helping to educate san franciscans about where their water comes from and why our water -- why we're lucky to have such a clean pristine water source. a couple of years ago, the puc received a water quality grant from the u.s. epa, it was about an $8 million grant and really the purpose of the grant was to help monitor potential contaminants in the water supply, but there was also a public education component to the grant. and, so, what we did is launched a education program that was really about what people should do if they were concerned about the water,

concerned about water quality issues, is to call 311. but it also began to be a vehicle to talk about where, you know, our pristine hetch hetchy water. it was a really successful -- a successful education program. we saw the signs on muni bus station, you saw them on tv. and what actually happened as one outcome of that is anecdotally, people told us that they started to drink more water once they understood where it comes from. but also as people had water quality concerns, some of the concerns that christina alluded to in her presentation, people started calling 311 more. so, we had a 10% increase in water quality concerns and that again became another vehicle to talk to people about where their water came from to test to make sure the water was safe and assure them that, you know, in fact it was safe to drink. we also do tours of our water system. so, community residents and organization has an opportunity to go up to hetch hetchy to see the water system at work.

supervisor cohen has been a big supporter of the youth internship program we do in the summer for around the sewer system. so, actually right now we have a number of young people from the bayview hunters point who participated this summer at hetch hetchy right now. so, it was a great end to their summer. and then our communications team [speaker not understood] regional event from, you know, sunday streets, chinese new year, pride, the [speaker not understood] where they're offering free drinking water to folks at that festival, wherever we can, and also handing out water bottles and letting people know where their water comes from. at the puc we also believe it's be enough to just let people know that the benefits of tap water and that their tap water is of high quality. we also have a commitment to promote access to clean drinking water. and this is really part of our commission and our staff

commitment to community benefits and environmental justice. i know there's a lot -- you have a big agenda for [speaker not understood] to interpret our sis [speaker not understood] community benefits and how we're doing community arts work, urban agriculture work, et cetera. another piece of that community benefits work is really around education and access and we really have a broad portfolio of work that we're doing, but wanted to particularly lift up the drink tap component. so, in 2010 we started this city-wide global tap initiative. christina mentioned the bottled water filling station in the airport. we have them in the zoo. we have them in a number of places throughout the city that we have installed so that, again, tap water is publicly available in places where it might not be so easy if you're at the marina green, at a park, things like that.

we have also begun to participate in a national partnership called tap it where businesses sign up to be a "tap it" partner and they offer free bottle -- free refills of water for anybody that wants it. we have about 100 businesses participating here in san francisco. one thing that we've done at the puc is both on our website and through our mobile app that you can download, you can see where is the nearest "tap it" station. we're pretty excited. we only have it on the iphone now, but we are the communications team is planning on helping create that app for other platforms. so, coming soon if you're not an iphone user. >> i just wanted to say i think it's great that there is the expansion, but it sure seems like nowhere near enough. but i could see the map and it sure seems like there's a lot of areas that are tremendous gaps. i know the national park

service looks out and some places have implemented specialized drinking fountain stations and filling stations, but i know there is a cost involved, too. but i see the progress, but it sure seems like we need to do a lot more. >> absolutely. we completely agree with you, supervisor. and i should have also -- thanked the board for earlier this year passing the drink tap ordinance. so, at least through that ordinance what we can do is as new buildings are constructed, those buildings will include these drink tap stations wherever they would normally be required to have a water fountain. but that's certainly not enough and it would be happy to think with you about other ways to expand it because you're right, that that map shows us how much more work we have to do. we have also had a special focus on youth as we have been doing our drink tap work. and christina mentioned the two -- there was both federal and state legislation in 2010.

that was essentially an unfunded mandate where it really required that schools provide drinking water near where children ate. and, so, what we did here in san francisco is that the puc, the school districts, the public health department and foundations came together and partnered to say what can we do about this, how can we actually meet this mandate and really help our youth have access to water during school time. we began with a pilot in 2011 where we put filling stations in five schools. it was tremendously successful. and, so, we're now in the process of expanding that program to 36 schools. and the way that we picked those 36 schools are that these are 36 schools that currently have no drinking fountain either inside the cafeteria or in the hallway near the cafeteria or in some instances wherever the children might be eating because as we know with school facilities, sometimes kids aren't even eating in

cafeterias. but we've also been trying to figure out that as we install these drink tap station, how do we layer in other things that help us maximize the benefits of this investment. and, so, we have a partnership -- >> excuse me for a second. i want to acknowledge people that are standing on the sides of the room and in the back. we've got an overflow room that's in the chamber which is just across the hall. i may have to ask, if you don't have a seat, that you go to the overflow room. [inaudible]. >> because it's a fire hazard to stand in the aisles in the chamber. [inaudible]. >> i can have the sheriff explain to you the rules if you need. sure, we'll get them up here. they're on the way. >> and, so, we have a partnership with tech 21 where high school students that participate in that program actually shadow the contractors who are installing these stations. so, again, trying to bring in a work force component.

and then finally, we have curriculum to help educate students about where their water is coming from. so, in addition to the tap stations, have the curriculum and school presentations, school assemblies where the youth who are in the schools are learning about where their water comes from. and this just gives you -- this is a map of when we get to 2015, the spread of where the schools that will be getting the drink tap stations are. and then many other schools will actually also be getting the drink tap stations if they're on the prop a school bonds. i just wanted to close, again, the theme of one water one system. wanted to just quickly touch upon in addition to the work that we're doing to promote people understanding where their water comes from, and then promoting access to drinking water. that on the wastewater side, that once that water leaves the tap, leaves your body, where does it go.

we have a whole body of work that is focused on helping people understand about the system and the water sheds that they live in. so, since 2009 we've distributed over a million dollars in grant programs and partnerships with school to support really helping people understand the wastewater system, understand the watershed that they live in, and to help them understand the small actions that they can take to help reduce stormwater that enters our system. and, so, we have a range of things from sidewalk gardens to rainwater harvesting programs. and again, it's a partnership with many schools as well as community based organizations like the friends of the urban forest, the surf riders and many, many more. so, here is just a quick map that shows some of the school sites and some of the watershed stewardship grants where they are located throughout the city.

just in closing, you know, as supervisors we all know the puc is in the process of beginning a rebuild of its sewer system, the sewer system improvement program and we just see this as a tremendous opportunity to continue -- continue our education work about our system, about our one water. and, so, you know, actually this evening supervisor tang is going to be joining us at one of these clean infrastructure planning projects in her district. we have watershed tours, bike tours, tours of our wastewater system to help, again, educate the public about their system. so, thank you very much for the opportunity and happy to answer any questions you might have. >> great, thank you very much. supervisor mar? >> i was just going to thank the presenters. i know we may have a couple of public comment speakers. >> okay, good. we're going to move to public comment. just also want to again announce that the overflow room is in 250. so, if you don't have a seat, please feel free to make your

way over to the overflow room. are there any members of the public that would look to speak on this item? please come up. please, thank you. hi, supervisors. my name is dennis moskofian, i'm a native san franciscan. i have a couple other thoughts about this. i'm actually 100% in support of anything that can put water available for people on the streets of san francisco. ever since i was a kid, i was always struck by how hard it was to find a clean working water fountain, even in the school when i was at groton elementary school. sometimes the fountains didn't work, sometimes they were dirty. it didn't make any sense to me. and we had custodians. but in san francisco when i was a runner, i used to notice that the fountains in golden gate park where i ran a lot didn't often work. and to this day they're not maintained. and it doesn't make any sense to me. there's something else. water filling stations require

bottles, but if bottles mean people have to purchase them privately and are going to continue to purchase plastic bottles whether it's bap or bpa free or not, it still means continuing the bottle -- bottled water business which is actually the means by which water companies are continually privatizing water sources. so, this is a much bigger issue. there needs to be water fountains throughout san francisco. there's water under every one of our streets and most of our parks have available water pipes right there. it's a plumbing job. they talked about unfunded mandate. that doesn't make any sense. there was no funded mandate for america's cup, but there is an unfunded mandate when it comes to water. i think what we need to really be clear is what our priorities are. and if we're concerned about water drinking which, of course, we should be, i think it's elementary that most people know that water is really important. what they don't know is how to find it. and when i was a single parent

and my kids were small and i'd be walking, i'd have to go into restaurants and ask, can i get some water for my kids? because we didn't want to buy soda. we're not soda drinking folks. we learned early to stop that. we need to be thinking much, much better about this. thank you. and i do support what you've done. (applause) >> thank you. are there any other members of the public that would like to speak on this item? please come up. hi, thank you, supervisors. my name is anisha and i'm a pediatrician at university of san francisco [speaker not understood]. in my position there i researched strategies for preventing obesity in children and adolescents and i provide clinical care for patients at the pediatric general [speaker not understood]. when i'm in clinic i'm always struck by the numbers of children ho come in to checkup with preventable chronic diseases such as obesity. we are increasingly seeing children presenting at younger ages as christina mentioned with obesity related conditions seen mostly in adults such as

fatty liver, high cholesterol and adult onset type 2 diabetes. it is projectedth the current generation of parents will live shortver lives than their parents. in addition to obesity we see children with dental carries that could have been prevented with hygiene and nutrition habits. one common link between obesity and cavities is sugar drinks. if adolescents drink water instead of drinks with added sugar this could lead to a number of health consequences. drink the water instead of sugar beverages can help children and teens consume 200 fewer calories per day. this suggest providing water at home or in school settings can lead to a decrease among overweight in children. drinking fluoridated tap water can lead to a decrease in cavities in children and teens. drinking water can improve children's cognitive

functioning in tests. hydration, encouraging water in school may improve students performance in school. because tap water is high quality and low cost, it is encourage today take tap water instead of individual use bottled water. african-american and latino and low-income populations are drinking bottled water than higher rates than white populations. money spent on bottled water could be used on other health or educational needs. most bottled water on the market doesn't contain fluoride, hence bottled water intake may not be as productive against dental carries of fluoridated tap water. in order to increase ip take of tap water in san francisco it is important to number one increase access to appealing tap water sources and promote tap water as the drink of choice. in previous studies we have conducted in california, one in four schools still do not have free tap water in school cafeterias where children eat meals. furthermore, even if tap water is provided via drinking found tans, the majority of students

don't drink the tap water because they worry about the safety of the water because the found tans aren't clean and there are no cups to drink from. when we observe 24 bay area school cafeterias -- >> i'm sorry, that bell means your time is up. >> i just wanted to thank ucsf for bringing together great health experts and doctors and officials like you with community-based groups and linking action-based research with community needs as well. but thank you for the great work. sure, no problem. and i do support this and really applaud the work that san francisco department of public health does make an impact on children's health. >> next speaker? are there any more speakers? hi, good morning. good morning, supervisors, commissioners. my name is hector vargas and i'm here representing [speaker not understood] bayview hunters

point and we're doing work to improve opportunities for accessing good nutrition, healthy foods. we are working to transform corner stores where we're working to increase access to physical activity in schools and out in the community, et cetera. and i really am happy that you all are taking up this issue today and looking at how we can improve access to healthy drinking water. there are some statistics that i'd like to share. currently in san francisco, 74.3% of latino are obese or overweight, and 73.4% of african americans are obese or overweight. those are alarming numbers, right? and we know given the science that about 40% of calories consumed per day by folks who are obese or overweight are

calories that come from sugar sweetened beverages. it is important we have access to clean drinking water. i saw the map of the tap water stations and i'm concerned i didn't see any in the southeast sector, right. and we know that's where plenty of african-american and latino folks live. we also know that it's important for us to be out reaching to immigrant communities so that they have the benefits of the [speaker not understood] basin as folks mentioned. also we notice chill green adolescents in san francisco are drinking 2 or more sweetened beverages per day. in latino community it's a third of children. in the api community it's a quarter of those children. two or more sweetened beverages per day resulted in obesity, heart disease, diabetes, et cetera, given what we know about the science behind that type of consumption. i really encourage you all to look at making sure we get tap water stations in the bayview and the mission, chinatown, and other communities that are experiencing disparities with

regards to obesity and overweight. thank you. >> thank you. are there any other members of the public that would like to speak on this item? all right. i'd like to bring up radika fox real quick, just wanted to talk about tap water stations and how the locations were determined. >> so, i'm actually going to ask my colleague laura page who is -- coordinates our tap drink program to answer that question. >> thank you. >> can we put that up -- >> the map? >> the map again? thanks. >> we're asking specifically about the tap stations in schools or tap stations outdoors, so both. >> so, for outdoors, tap stations were determined based on use by the public. so, they're in large public open spaces such as golden gate park and yerba buena center for the arts as well as the airport. just because of the congregation of people that go there.

e schools were determined by [speaker not understood] not going to be receiving prop a bond fund from the 2006 or 2011 bond schedule. so, 2003 bond schools, some of them went through all their renovation and didn't receive a new drinking water fountain in the place where, you know, they're served or eaten. so, that list of schools contained about 50 schools and then we went in and determined what the short list was of schools that also didn't have a drinking water fountain in the hallway directly outside the cafeteria. so, it was really based on the need to meet the mandate that came down from the state law. >> i'd like to just call your attention that mclaren park, second-largest park in san francisco and also the southeast side and definitely i believe warrants consideration for a tap station. >> great.

we'll keep it in mind. we do have plans to install a couple of additional tap station over the next few years. the funding mechanism has yet to be determined. i'm working on that. i'm actually the person managing that project. >> supervisor campos. >> thank you. i would -- i don't think that we can emphasize this enough. i think that you have to think about the equitable distribution of these locations. if you go back to the map for the water fountains -- >> the schools or -- >> not the schools, the parks. you can see that the southeastern quadrant is just -- i mean -- and i would actually think that the public policy analysis would be the opposite. where people are drinking less, that's where you would want to

make the water found tans available. >> something to take in consideration the high obesity rate. ~ fountains >> in the latino, african-american communities, that's probably where you also want to make it more easily available. and i also hope that it's not a matter of years in terms of adding these new locations. >> i think that's an excellent point that's well taken. so, we will kind of take that back and see how we can start to expand it to the southeast and other areas of need. so, thank you for that. >> all right, thank you very much. are there any other members of the public that would like to speak on this item? okay. supervisor campos -- let me just close public comment first. [gavel] >> public comment is closed. supervisor campos. >> i also want to say that, you know, i think it would be really important to also engage more of these community-based organizations.

i think that to the issue of water consumption and hydration, i think that a lot of the community-based organizations that work with youth, they should be, i think, you know, involved in this -- in this effort. you know, the great thing about puc is they have a very robust community engagement history and practice. so, i know that they're among the best in terms of doing that. but i think that you have a real opportunity, a lot of groups out there that can be allies in this effort. >> thank you. supervisor mar. >> yeah, i think that's a perfect segue because i think roberto vargas and dr. ba tell -- roberto coordinates a really great coalition of community-based groups that hopefully can be a great partner with our puc rec and park and other departments. i did want to say that public utilities commission, radika mentioned, there is a strong

focus on equity and social justice as a lens on how to look at implementation of projects. and i think this is -- this may be a perfect example to make sure that neighborhoods like the southeast neighborhoods from the mission to the bayview hunters point and other vis valley have strong drink tap stations. i also wanted to say on big themes, the issue of privatization of water was brought up, i think that's a really good one, whether it's the soda corporations or the bottled water companies, the advertising and marketing kind of from that end to even the lack of access to drink tap stations i think is a really important issue. on equity and maintenance of the drink tap stations and the existing water fountains, i think that's a rec/park and a puc issue. if people are fearful that it will be dirty or they won't work, i think they will not use them. so, broad community outreach and education about where the

new stations are, where existing ones are, and clear focus on maintenance and cleanliness, especially in the lowest income neighborhoods, too, i wanted to say that president chiu has important legislation that some of us are supporting as well. i think we should be advocating for and more funding for more equitable access for drink tap stations as they're implemented through our city. the last thing i just wanted to say was i think new technology and app are being use ford all kinds of purposes. often you can't find the stations and maybe having -- use the technology to know where drink tap stations are might be a helpful advance as well. and lastly, i think the cultural change that was brought up by christina and others, it's an education process. so, i'm really glad that it's starting early with the child care centers and in the k-12 system and teachers are using great curriculum as provided by dph and puc as well.

~ grade curriculum this has been a wonderful hearing, but i'm hoping it's just the beginning as we look at equity and social justice and the privatization of water and making san francisco a leader in this area so that we have a healthier san francisco and communities for everyone. but thanks for giving us so much time as well for this issue. i know there are many others before us. i'd like to urge us to continue this item to the call of the chair. >> okay, thank you very much. all right, colleagues, you've heard the request. supervisor mar would like to continue this to the call of the chair. >> so moved. >> moved by supervisor campos and a second by supervisor katy tang. the motion has been moved and accepted by all to the call of the chair. [gavel] >> madam clerk, could you please call item number 3? >> item number 3, hearing for the city's external auditors to present the comprehensive audit financial report, single audit, and management letters related to city audits for the fiscal year ending june 30, 2012, and audit plans for fiscal year 2012-2013. >> all right, thank you. i think we have a presentation from ms. [speaker not understood] who is with the controller's office here to present on this item. thank you for being with us.

>> yes, thank you for having me and the external auditors. good morning, supervisors. i'm here to introduce the city's two external audit firms, kpmg and [speaker not understood]. they have a short presentation for their audit plans as well audit and results of their last audit. there are only a total of five findings. we're going to have kpmg present first and [speaker not understood] will be the presenter. and those are the last two items in your packet if you want to follow along. >> all right. [speaker not understood]. >> all right, thank you. so, [speaker not understood]. >> good morning, everyone. my name is [speaker not understood] with kpmg, i'm here to present as carmen mentioned the [speaker not understood] with respect to the year-ended june 30th, 2013. >> can you speak into the microphone a little bit or pull it down closer? >> is that better?

>> thank you. >> great. if i could please refer you to page 3 of the presentation, which i believe is in your packages. this slide really just highlights our engagement team which is led by the engagement partner nancy rose and the individual managers that are serving the engagement with respect to hsf, mta, [speaker not understood], they're highlighted on this slide. slide 5 really highlights the objective of the audit. and i just wanted to emphasize here that the objective is really to enable the auditors to express an opinion about whether or not the financial statements have been prepared by management are presented fairly and [speaker not understood] in conformity with generally accepted accounting principles in addition to standards applicable to gaap. slide number 7 highlights management's responsibility in addition to the committee's responsibility. and i just wanted to highlight

on this slide here that the audit of the financial statements does not relieve management or the audit committee of their responsibility. slide number 8 highlights kpmg's responsibilities and i just wanted to highlight a few points on this slide. specifically, our responsibility is to form and express an opinion about whether or not the financial statements have been prepared by management are presented fairly in all material respects as i mentioned before. i also wanted to highlight that the audit does not attain absolute assurance, but rather we attain reasonable assurance as to whether or not the financial statements are free of misstatement, whether due to fraud or error. we do have a responsibility to communicate with the committee and management in a significant findings, deficiencies, or anything of that nature. ~ any so, i wanted to highlight that as well. slides 11 and 12 really emphasize the audit approach, and i'm not going to spend too

much time on these slides as we -- it is consistent with what we have presented in the past. our audit methodology and approach is consistent, like i mentioned. if i may refer you to slide 14, this is really highlights the scope of our work. and just in summary, we will be performing financial statement audits as year-ended june 30th for hsf, mta, puc, sfo. we'll also be performing a single audit for mta and various agreed upon procedures as listed on the slide here. we will also be performing a single audit over sfo. and the audit will be performed in accordance with u.s. gaap, u.s. gas and u.s. government auditing standards. slide 15 highlights the report that we will be issuing in accordance with this audit plan. as i mentioned before, we will be issuing audit reports