>> if i could just add one comment, chairman nolan, just to provide balance to the comments made by director heinicke with yes we'll have a central subway in the future, which will probably reduce a lot of the need for too much travel outside of a car. i do want to make sure just to provide a balance, that often times new transit systems or a new transit station from my perspective is going to generate more pedestrian and more bicycle trips to those stations. right now, it's just an absolute nightmare to get around on a bicycle or as a pedestrian. i'm actually looking very forward to doing whatever we can to prioritize the transit or the bicycling in that part of the city, specifically as access to getting to those future stations. so looking forward to the analyses in the future and seeing that it doesn't create an absolute disaster or what have you, but really looking forward to looking at the through-put and how it's going balance out the

project. >> thank you very much. thank you all. next item, miss boomer. >> mr. chairman, i don't see any member of the public. >> i don't either. >> item 15, presentation and discussion regarding sfmta's fiscal year 2012-2013 year-end financial audit. directors no members of the public have expressed an interest in addressing you on this matter. >> we also have a member who

has to leave at 5:00. >> it will only take a minute. sorry, directors. cfo, we're required to come before you every year to present the audit. this is the third year we're coming in front of you. i also want to present the partner from kpmg, who is going to present after me, nancy rose. just quickly we were able to complete the audit by the 1st, the earliest we have ever done it. we have no findings for the third year and so that is a good process. in terms of our revenues, we were $103 million over '11-12, the majority in the operating side, as well as significant contributions from our capital projects, mostly the central subway. our expenses were also higher by $67 million and the

difference from prior year, we added $36 million to change in net assets. in terms of balance sheet, our cash position is better and we had $76 million in capital assets that we put in the ground and total assets increase the $132 million, liabilities increased mostly in state grant prop b that we receiveded in advance of the actual work and then we had about $53 million increase in post employment benefits. so the overall picture is positive. let's me turn it over to miss rose. >> good afternoon. thank you for being with us. >> good afternoon and thank you for having me here today. my name is nancy rose and i'm an audit partner with kpmg and we were engaged for the

financial statement audit for the municipal transportation agency. we have completed that audit. as was mention we had did it earlier -- completed it earlier than we have in the past. the presentation i have, we just have some formal required communications to you to let you know that we did conduct the audit in accordance with auditing standards generally accepted in the united states. we did not do an audit of internal controls, but helped us plan our process. in addition, we have not completed yet, but we're in the process of doing the single auditor a-133 audit that does involve us getting an understanding of internal controls. for the financial statement audit we did get an understanding of internal controls to understand the process and as was mentioned we did not identity any

deficiencies in internal control. we also performed task work compliance with rules and regulations and did not note any instances of non-compliance. the objective of the audit is to issue an opinion on the financial statements to let you know that we have performed the audit; that there were no material misstatements and we get reasonable assurance, not absence assurance that the numbers were not misstated. we did not identify any audit adjustments. and so if we had, that would have led us to evaluating internal controls for that to be presented and we would have misstatement for that, too. we do look at the agency's significant accounting polices. there were some that were new for this year that are required for all governmental agencis this year.

and they primarily dealt with presentation and none that changed the method for how accounting was determined. so when you look at the financials, we do a risk-based approach, where we look at where are the significant accounting estimates and numbers that make up your financial statements? and probably the most significant one for you is the management's estimate of the accrued workers comp and accrued general liability with regard to any lawsuits or claims that might be out there. we looked at the -- with regard to those two items we did look at the analysiss that was prepared by your expert. we had our experts review it as well, to ensure that we felt comfortable with the amount that had been recorded in your financials and as again mentioned no adjustments. i think the other is that we

have to go through and have the responsibility to let you know, if i had any difficulties that i encountered while performing the audit, whether management had complied with providing us with the documentation, books and records and things of that sort; that we needed. we had no difficulty performing the audit and there were no issues where we went through and -- we always have healthy discussions over the proper way to do accounting, but we didn't have anything -- like kpmg, if don't agree with us, you are fired. [ laughter ] imnothing of that nature. if there was i would have a requirement to let you know, the only material written communications we have a contract with the city to engage us and at the conclusion of the audit, management presents a representation letter that says we provided

you the books and records and told you about any contracts significant to the financial statements and made this available to us and have told us about any non-compliance with laws, rules and regulations, et cetera. with that, that is my report. as we said, we conducted a successful, clean audit. and any questions that you may have on our process, findings, et cetera? >> thank you very much, miss rose, appreciate it. this is not an action item, this is informational, is that right? >> yes. >> thank you very much. >> great work. >> item 16, discussion and vote as to whether to conduct a closed session. >> motion. >> second. >> all those in favor, signify by saying aye? >> aye. >> director lee has to leave

with director heinicke and lee opposed, the board also discussed labor negotiation, but took no action and no discussion of anticipated litigation. directors it would be appropriate for a motion to disclose or not disclose. >> motion to not disclose. >> second. >> any further discussion? all those in favor, signify by saying aye? aye. >> the ayes have it. there is a reminder we're here next monday afternoon at 4:30 to meet with our friends from the small business commission. >> in this room. >> 13 people will be seated up there. >> yes, there will be different chairs. >> okay, thank you all.

>> the renovation of balboa park, the oldest in the city of san francisco, and now it is the newest part in the city of san francisco. through our partnership, and because of public investment from the two thousand eight fund, we are celebrating a renewal and an awakening of this park. we have it safer, happier, more joyous. >> 3, 2, 1, [laughter] =--[applause]

>> it is a great resource for families, to have fun in the city, recreation. >> this is an amazing park. we have not revitalized it without public and private investment. the critical piece of the process of this renovation was that it was all about the community. we reached out to everyone in this community. we love this park dearly and they all had thoughts and ideas and they wanted to bring their own creativity and their personality to bear on the design. what you see is what the community wanted. these ideas all came from the residents of this community. as a result, there is a sense of ownership, pride and responsibility that goes along with what is going to be an exciting park.

(clapping) let's start this evening with an announcement. nobody ever believed there's a free lunch but that truck is back there with free food. come forward a little bit that would be really nice. so we'll thank you all for coming tonight. in the an incredibly exciting day since my wedding and my wife is here to firm. i want to start by acknowledging johnson and john they're great to be working with. we're looking forward to work further with them. of course, the mayor would like

if johnson and johnson would most of their haubdz here. there are 3 people who have made in work my colleagues doug and brian. those two have made this happen to a round of applause for them (clapping.) but the third person who's been behind the screen pulling the strings that made this work on time we signed the leased in december of last year that's actually, the mayor of san francisco mayor ed lee. it's a delight to have him here and say a few words. mayor (clapping.) well rich thank you very much. i know you can't think of a better way to celebrate 10 years

of having this open up to companies like g.e. coming hero to provide a lot of great equipment for start ups. i had my exposure to some of the folks. apprehending you're going to be able to wear a patch that tells us everything that's going ♪ our body. there's a virnd e vending machine you can find golf things in. it's incredible. this is another center and i'm surprised but yet not shocking that would be in danger patch because we're trying to make a lot of things happen in danger patch well. this is a great incubator 25 companies it's filled already

with a lot of talent to match the talent i know that midgets by the way, is having with the qb laurdz or headquarters what talent like many folks that have joined some 25 people and administrators in uc st. all creating life changing inventions i think will be incredibly useful. this is the role of life science it is why years ago mayor replenishing and newsom and now i get it add my years of support to build this incredible innovation center the life science center we we call mission bay and a dog patch. i want to give a shout out to j

cross-examination morgan chase they'll given us a gift. that's incredibly wonderful (clapping.) and again, i think it nurtures the whole spirit of our city. this is the innovation capital of world. i keep saying that and every time i turn around there's another example that were this is the melting right here of what's been happening in mission bay it invites so much of our young talent to join the successful efforts of large and small companies the talent that uc provides. we only have a small role in the city we realize how important it is about timing. and when people need it our

staff comes through with it. i thank todd and others who are working with him because when the call comes in we need something it act fast to keep the most memory done they're there they take me out every tuesday for a new technology venture. but right here in our dog patch in mission bay a lot of things will happen. i will tell you it excites not only me but business ventures it exists the youth of our city. apprehending those laboratories will be occupied by people that will be collecting here and interning here because a they want to be next to people that are inventing new things.

we're going to continue the success of the city arnold thank you and dui i didn't for that private-publ private-public talent. i will be coming back to find other things to brag about across the country to other mayors. thank you (clapping.) one of the great things about being in san francisco it's such a fantastic community and sometimes unexpectedly things happen. and this is what happened we hadn't been thinking about disadvantaged youth and all of a sudden this came from jp morgan. it's wonderful to have alice

here to talk about what they're thinking. alice (clapping (clapping.) how about another shout out for doug and registration. job well done. i'm alice rodriguez i manage the banking team and on behalf of my colleagues again congratulations and welcome to everybody. you know, at that time when small businesses are important to the economic growth to the city and the country this is the kind of stuff we're provide to be participating at y public works morgan. we're trying to understand how we can help spur that economic growth. we're proud of the $250,000 gift it's going to support allow some

disadvantaged youth to come in and see the imperial spirit. we see our partnerships and wish you all the luck. thank you. (clapping) >> now we only have two people special guests we want to say a few words were this gentleman is from milwaukee to talk about his experience. explaining >> again, thank you for veil having me out and congratulations for a wonderful opening p i work to general electric. the relationship we've had with uc sf and san francisco is a

long time ago. we installed a horsepower company that helped with the electricity and perhaps one of the most things in the debt of the depression this man a thinking about forming a new company and e-mailed in his plantation who formed hewitt packard. we've got over the time we're a supplier to you. we like to buy our research and we partner on a bunch of projects. there was a project that was near impossible everybody said

it couldn't be done we brought it to san francisco from the engineering from berkley they came together and it criminal paper was published in august. san francisco general a a world leadership and then maybe we moved out of the steam age and went to electricity but we think in the room you can see a lot of our equipment. we're happy to be a partner with san francisco and california to bring this forward so thank you very much (clapping.) as those of you who have taken the tour the suppliers have helped to make this environment a successful

one. the last person is someone who's been with qb c has been a guide and it's a great pleasure to ask park evens and myers to come up broke >> so how many cities have a mayor that can name science. i don't think any other than san francisco it's amazing. but we're here to celebrate this combrart. i have been in incubators all over the world i've never seen one like this. it's done with care ease one thing we know about science it's all about teams. there's a special individual or a great idea but it's how teams win. the way it's put together in the

shared labs and the dynamic dow conceived the garage. how many of you have gotten a tour of the facilities. then you know they started in the q v b believe and had a desk and lab beverage and maybe if they progressed this was do you go brainchild to now so many applicants they've created 4 hundred jobs by all the companies they've started. 62 companies are in the garages down there and it's not like the affidavit packard or hewitt's those are good. and start up in a box to teach

scientists how to start a company should they start one and how they go about it one hundred and 40 teams have done that in this incubator. and loophole investors have put in $40 million to create future winners. but back to qb 3 it's the concept of intersection. a lot of great creativity month creativity happens at the intersection of disciplines and that's itself fundamental concept that registration and doug and all the people at u sf have grounding gone in with great attitudes. this is about entrepreneurs. it's about building companies but at the end of the day it's about the patients.

congratulations registration and doug and everybody involved with qb 3 (clapping.) so let me say to wrap up by saying? now the phase of an end for us now that the building is up and we're celebrating this part of it and now it's frowning it's not doug it's going to become the quality of the start ups. you brought in $150 million through the angel funding and start of box. that's an amazing contribution to the economy of san francisco. so start ups are starting to change. doug and i are going to make you guys be as successful as you can

guys be as successful as you can and have free food all right. guys be as successful as you can and have free food all right. tick. tick. tick. tick. tick. tick. tick. tick. heat waves. massive heat waves. tick. severe droughts. tick. tick. tick. tick. tick. tick. devastating... devastating hurricanes. tick. tick. tick. tick. tick! tick! tick! tick! tick! tick! our future... tick! tick! is up... to you. tick. go to fightglobalwarming.com while there's still time.

>> ready to convene? >> okay. roll call, commissioner woo ho? >> here. >> brandon. >> here >> adams. >> here. >> murphy. >> here. >> approval of the minutes for the october 22, 2013 meeting. >> so moved. >> second. >> all in favor? >> aye. >> pledge of allegiance.