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. >> well good morning, everyone and welcome.

i'm mike co- hill president of the west bay regular alienate. this event will kickoff the construction of two new state of the arc earthquake save hospitals in san francisco. one hospital here on this site in the center of san francisco and a second hospital at the caesar chavez in the growing neighborhoods of the southeast section of the city. today is a pivotal point in the history of the medical center and for the health care system in san francisco. for one hundred and 50 years cpmc has been providing citizens with the most advance mcavailable. with the construction of our two new hospitals we'll be in

positional to continue to serve the medical needs of the residents of san francisco for decades to come. we also have with us the president of the board of supervisors david chiu and supervisor mar farrell. both supervisors along with david campos were the 3 who helped new york state the final all the time to move this project forward. we appreciate the dedication of each of you to final approval. also, we can't precede without acknowledging one person who was vitality to the success of our project lou. he lead a series of very frank and positive productive discussion that helped to move forward this project and his help in this process and his service to the city of san

francisco is appreciated. jude i didn't say here. she would and bralthd this project and helped guide itself internal process thank you very much jude i didn't were i want to thank dr. warren your leadership and commitment kept driving us to build two new world-class hospitals in san francisco. thank you for keeping us on track. we're working very closely with city bills and the construction administration professional service academy to build hospital construction jobs. we're dedicated and committed to san francisco and look forward to working with all the trades to augment our construction crews and a begin those projects. member of our construction

management team. the construction of our two hospitals is led by our contractor herself restraining order and our architect is smith group. we'll be working with subcontractor and consultants to this project. about our construction schedule and we have one. the demolition of this exciting i existing building began in september that clears the way to bring down this structure so we're underway. the demolition starts in a couple of weeks. i'm sure everyone is looking forward to that the evacuation happened evidently months ago. the steep rising will be in june

and july. the construction at the city attorney luke's will begin in february of 2015. both hospitals are scheduled to be opened in 20019 or sooner. we look forward to a successful project on time and budget with worker safety being our focus. we have mayor ed lee and mike the san francisco trades council dr. mike and chief of staff at cpmc and mayor logan. mayor ed lee please step up to the podium (clapping.) thank you, very much for working with us again. this is a day we've looked forward to for quite some time.

i know our community partners have worked really hard with our board of supervisors with lou girard to come together with our health officials and make an agreement that is right inform san francisco. i know this is the first of two announcements that we look forward to. this compass invaluable in the center of where a lot of activity are will have at least a 3 hundred and 2 bed and we look forward to having a similar announcements on the st. luke's campus to create a service hospital there as well. i can't tell you you how excited we are and we'll reminder each other that the process has to be credited with the leadership that the board of supervisors had. i want to thank my colleagues there board president chiu and

mark farrell and david campos urging their personal time as well as their time on the broadway board to lead the effort along with our office and ken rich who's working and lou interrad continues to make sure the communications are open. your colleagues will labor unavailable in all reporters. as we're excited about getting the site going i want to make sure we signal as any other project that the workers safety also begins right now with the demolition and we want this site to be safe because it will be occupied by nurses and decreases working together while we build this we want every life to be safe. i want to signal to the

community and i know good friends like randy are here because we saw the connection with had this very close commit community. we've gotten the first check under sutter that represents a healthy investment. housing, transportation, pedestrian safety, and, of course, the thousands of medical lives and a medi-cal and hospital patient lives that will be improved because of the commitments that sutter and cpmc have made par you'll pause and maybe ask how did he do it all? we'll also remembered as complicated as it was every persevered whether it was sideboard lou our community

leaders argue housing advocates our people next door and in the tenderloin or the people who are health experts. they all worked closely together with the sutter leadership to form an agreement an agreement as complicated as that was as a high commitment that unsaturate had to make it was a great investment it was sensitive and strong. we have ever promise here this reflects all the values our city has put together and the process as complicated as it was it persevered. on behalf of everyone that's worked hard to get here. i want to thank again mark and warren and cpmc's leadership but

everyone who sees the benefits into the future. in years to come you'll see a very good campus of mill professions serving us and take care of so many challenges. remember this was a combination of a lot of good efforts by everybody. i'm so lucky to be the mayor here. thanks so much to everyone (clapping.) >> i'll introduce myself i'm michael with the trades council. we're happy this day has arrived.

we have worked on this project forever. it would have about good a couple of years ago. what it means now is a real opportunity to bring san francisco into our trades and give them an reduction in those trades in a complicated project. hospital projects are more demanding. the mechanic and electricity systems because hi critical. the structural systems that have to be hopeful sound have to withstand more in a hospital and the inspection is higher. we in the trades are exactly the folks to do this work. we have the volume on display everyday. we train our folks with a my

competition. we're grateful to the city family mayor ed lee and supervisor farrell are supervisor campos and chu and cpmc in delivering us this project to build. i want to embarrass the guy in the crane this is vincent heel do a good job. i want to have a round of plays for the workers who do this work (clapping.). thanks a lot >> good morning my name is michael. i'm the current chief of staff of the medical staff at cpmc.

to mr. mayor and all invited guests. this is indeed a most men tuesday occasion. no one can deny the planning process has been ashus and they can't deny the outcome will be well worth the weight. i've been with the staff for nearly 40 years. from the initial years from stanford hospital to pacific medical center to the combining of children's hospital pmc davis i didn't see and st. luke's we've kept to observe mission of providing the highest medical care in a compassion at manner to all citizens of this city.

soon, we'll have not of providing such care inside a world-class institution that mergers the modern technology in putting the patient first. at the same time we'll meet the legislature mandatory to meet the service sound hospitals that will be ready to serve the bay area xhusht should such a disaster happen. thank you for the opportunity to say thanks to a st. luke's in their rebuild project. they clearly understood the project for o who have dreamed of the hospital facilities they and their i patients deserve. as a chief of the staff and most

probably in the future today is a wonderful day for me, my fell staff members and most importantly all the patients who will be cared for in your new and beautiful care centers. thank you (clapping.) good morning mayor ed lee dr. browner and mr. co- hill and distinguished guests. i'm marilyn logan i'm the nurse manager of the medical unit at the st. luke's campus. it's truly an honor to be here and i'm very k350i69d we're moving forward with our project to build 20/20 hospitals in 0 san francisco.

for the past 5 years i've worked at the pacific campus and at the st. luke's campus. our nurses are proud of the care we provide for appear patients think about how much more we'll be able to chaff with the new facilities with the new technology. our state and federal staff is looking forward to the completion of this project because those hospitals will create a great environment for us. it will create a level of pride in the work we do. most importantly for our patients the new hospitals will bring a more pleasant healing environment and an improved experience of care. for our patients family we'll have a great assurance that

their loved ones are receiving the best care possible for for our community the new hospital represents community pride. in my current position at st. luke's it will be uplifting for the community. st. luke's has long been held the center of healing with the long history of deep roots. dr. i want to let you know we're proud to be that center of healing for the community and proud to be a member of the st. luke's. lastly to all involved in the cpmc project on behalf of all the nurses i wanted to extend our senility thanks for making this possible. thank you and have a wonderful

day (clapping.) good morning. i'm warren brown the ceo of cpmc pr i honestly say there were many times i never thought i'd see this. and as i was driving here i was reminder of a little boy who banked his head against a wall and he said it feels good when i stop. let me begin to thank the board of trustees who stuck with us through a lot of times when i would get up and explain why it was that things were just taking

so long so bob we owe you a special gratitude (clapping.) i see many supporters who showed up at the hearings and committee meetings and testified about why we needed those hospitals. i want to thank you ail again. and want to thank grant dave i didn't see who's our vice president at cpmc when the times would get tough and i would go to the fellows office and he'd encourage me. it's a great feeling to be here today (clapping) and i want to say and we intentionally had everyone he sitting in those chairs because the one thing that was never at

issue was no one got up and said this is a buff building that needs to be preserved. i remember moving here and driving by this building so we won't miss you hotel or video only or whatever was around. we look forward and some of you said it will be pretty eras a construction site as what was was right now. i thank you to everyone to my friend mike co- hill and the 2 amigos david chiu and campos and farrell and, of course, the staff for emancipation proclamation e helping us get to this day. you've ail visited back in 5 years to cut the ribbon. that's why we're here.

thank you all for coming. thank you all for supporting - >> all right. (clapping.). yeah.