that's why it's really, really important if we only focused on the people that are overweight and obese that's too late it's about metabolic health and especially chinese with at higher risk. open this up for public comment. now colleagues and i know we have a number of parents so if the parents could speak first. we have and i'll read all the cards (calling names) if there's other parents please come forward if people can come forward and maybe line up on that side of the room. >> good morning. i'm chinese. my parents and uncles and grptsz

they all have type 23 diabetes and only one is over weight. there are reasons but one contributing factor is that he was really addicted to coca-cola and catch that ketchup when he had at every meal he is now on dialyses and suffers from health disease and is at risk of losing several toes so it wasn't until recently and my career in public health that i understand that chinese have the risk of bmi. it's important to look at the efforts to change the environment and make the healthy

choice the easy choice we're completely saturated with sugar such as organizations like the american cancer association and dental association and the american academy of pedestrian rick's all support reducing the sugar to reduce the chronic diseases. i wanted to add a comment to the dr. cheung's rakers about the targeting marketing and the recent executive said they're going to double theory soft drinks by $3 billion a day by 2020 they're to see the most growth among chinese.

and 3 hundred and 87 people in mexico are being targeted. it's going to be more aggressive >> that came from a top level executive if coca-cola. >> yes. and the asian population is at risk. >> thank you. we also have allen lou from the staff and others. >> next speaker. >> good morning supervisors i'm allen with the commission staff. the commissioners are in school and can't give comments on the regular school meeting the youth commission unanimously voted to support the tax on sugary

products they discussed the health burdens faced by the low income community by the dental issues caused by the sugary beverages they explored other things and they also felt those drinks need to also be discussed. and those drinks are popular among the asian communities. the sugary disadvantage is having consequences like diabetes and the youth commission fully supports the tax that curves the consumption of sugary beverages and helps with the food innovation program in schools.

as set forth for healthy beverages >> thank you, mr. lou. >> next speaker

>> (speaking foreign language.) >> thank you. i've been in san francisco in america for the past 10 years i'm a parent and resident in the city i'm in support of the soda taxi think that the sugary beverage tax will bring in revenue will help are recreational revenue and for education for health.

several points mentioned includes the complications of health issues due to diabetes and the work and the measure can help reduce that and with the cost of medical bills in the state of california and san francisco it's important to educate that we need to reduce the consumption of sugary drinks i'm in support of this and hope you pass it >> thank you. next speaker, please. >> if there's anyone else that wants to any public comment? that hadn't filed out a card please come forward and i'll be able to speak >> (speaking foreign language.) >> mr. lynn can you please

pull the microphone closer. thank you >> (speaking foreign language.) >> thank you. >> so i'm also a san francisco resident i'm also in support of the sugar beverage tax right now a lot of people are obese due to sugary consumption in the city and in their diet. and it is important that the children and the citizens of san francisco understand that their ways of improving their health

and also to gain revenue for the public education and recreational purposes for those who oppose the sugary beverage do you understand the importance of the next generation please take the time to see why you're opposing this. i believe that it's important to share any compassion and care especially for the care of the next generation i urge you to support this tax >> thank you very much. next speaker.

>> (speaking foreign language.) >> thank you. >> i'm a resident of san francisco i've been here for the past year my have a child in mission school through his friends their consuming a lot of

sugar and high sugar content. i see that a lot of them are obese hence i'm in support of the sugary beverage tax this b can bring in the revenue of 31 mile and the revenue can be used for education and improving school lunches and for physical education and the rec and park department. and i want to ask that folks that are opposing this understand the good cause of this law and ordinance. i have a child here i wish that you can care for the generations and future generations of san francisco >> next speaker if anyone else wants to speak please come forward we're going to close public comment soon.

>> (speaking foreign language.) >> thank you.

i'm kevin i have a child attending high school. and i've been here in american for the past 17 years. i really occur about the children's health and education. i also often bring up the issue of health with my children and the importance of a healthy lifestyle i urge that others practice having a healthy lifestyle for their children. currently, the public education system needs for choices in improving the health and lives of our children and the healthy children is a good for healthy future so i hope you can safe our future and he approve of this tax >> seeing no other public comments can we close it. >> public comment is closed.

>> i wanted to thank all the community folks and health experts today. i want to reiterate there's a weight of knowing not only from health association but the asian pacific islander i want to thank those people for their health work based on in asian pacific islander and diabetes and obesity and also our san francisco api council as well and the many organization within that. and seattle's asian pacific islander prevention alliance and more efforts in san francisco u nightly for asian pacific islander impacts and like other communities of color and as dr. pointed out the joslyn

asian-american initiative and other i want to thank our health officer and paula jones our head of food systems and the doctor in the medical center. the human stories we've heard help us to shattered the midgets that 5i789s are not impacted by the targeting of mixed soda and the unhthd lifestyles and the offer consumption of sugary sweetened befrngz and the do or say have mentioned i'm sure you're all aware of we refuse to let ourselves be the canaries in the coal mine and not let big sodas impact our community and as was mentioned often it's

silence or unseen the horrible impacts of the harmful foods within the asian-americans communities and within those presentations and public testimony has preponderance of the evidence helped us to understand the impacts on the asian-americans community. so mr. chair i'd ask if we could file this hearing >> thank you very much i want to thank supervisor mar so far his leadership on this important issue and thank all the members of the public who came out to speak on 2, 3, 4 important item and the drs. for the presentation and, of course, paula jones. with that we have a motion to file working class. again it up for being here. mr. clerk any other business before the committee >> no other business. >> thank you very much the meeting is adjourned.

thank you very

>> good afternoon everyone. i am joined by supervisor

avalos, breed, wiener. i want to thank the members of sfgtv. do we have any announcements? >> yes mr. chair, submitted to the clerk. items after the date will appear on the may 6, 2014 board of supervisors agenda unless otherwise stated. >> thank you. can you call item number one please? >> item number one, hearing to receive update on the budget for fiscal years 2014, '15 and fiscal year 2015, '16. this is >> this is a first of two herings we have today. i want to thank you for being here and all the [inaudible] thank you for being here. you can take it away.

>> thank you. good afternoon chair farrell and supervisor avalos, breed and wiener. my name is har long kelly and i'm the general manager of the san francisco public utilities commission. this is my first two year budget and i am posing as a general manager so supervisor farrell asked for me to give a brief high level presentation today and then on may 21 we will go a deeper presentation on our two year budget proposal. today's presentation is organized in the following ing manner. first i'd like to give a p bird's eye view of our bud jed and a year ago at this committee and also give you updates on our capital programs, rate sending process,

the ring fire and the draught response. finally i will close with the big picture of key updates and challenges that are in our bud get. so the p and c is guided by three core principles and priorities. one, to provide high quality services of water power and sewer, maybe tan critical enfra structure to ensure our assets are in a state of good repair. we are constantly working to balance these priorities. so how are we moving forward on these core priorities. as far as water enterprise, we are over 80 percent complete with our water system rebuild and we're on track to replace

15 miles of water mane every year. with the power enterprise we are focusing on our ageing assets. my priority is investing in our street lights to promote public safety. as far as a waste water enterprise we are on track to replace 145 place 15 miles of sewer every year and rebuild. the key is to rebuild the southeast treatment plant. there are a number of ways that we are working to preserve rate pair affordability while making capital improvements. we will see these reflected in our current two year budget, as well as up coming proposed for the next two years.

first we have nearly a flat staffing so we minimize the increase of staff. we also -- we proposing a relatively flat operating budget with just the costs of inflation adjustments. our finance team has also been successful and lacking in some of the lowest bond financing costs since the 1960's. . finally we are consistently considering how the time and phase our projects so we can make these improvements in a way that has the least impact to our rate payers. and i will talk more about in more depth of how this translates to the rates. it's about a 7 to $10 increase in the monthly bill for the proposed rate increases that our commission is considering. here's a snapshot of our budget.

the main take away here is that we're up about $140 million and the question is what is that? the break down that we show here is that the major investment is really driven by critical capital investments, whether we're investing in projects or paying the debt on these projects once we built them. the big picture or reason for this proposed budget increase is related to our capital needs. there are additional elect ricity costs that we will incur. these are based on the transmission and distribution costs that we are paying pg ande and we also will see our personnel and operating costs increasing ing rough ly by 2 percent, which is roughly about the cost of inflation. now i wanted to give a brief review, some updates from the

pnc since the last time i made my budget recommendation. this includes our rate setting process, as well as the fire and draught. thankfully there's no locusts yet, but the year's not over. april marks the ten year an niversary of the first project in the water system improvement program going into construction. we are now about 80 percent complete with the program. we had a wonderful ceremony monday at [inaudible] reservoir with supervisor yee. i'd like to thank the board of supervisors. you also see some of the key numbers related to the water system rebuild. we are very proud of this program and how it's progressing. we have critical projects that

are still underway, including [inaudible] dam, and the bay tunnel. we project that this program will be completed by 2019. on the sewer side -- san francisco is really fortunate to have a sewer system that's been serving the city for over 100 years, but the system is old, is ageing and is in need of an upgrade. in august 2012 our commission acknowledged the need to invest nearly $7 million to ib invest in our sewer system to bring it to a state of good repair. 2 billion of this is invested in the out east treatment plant for the digesters who receive

80 percent of the city waste. a key update since i presented to the commission last year is that we are move ing forward with the plan of the tie jesters. digesters. another big priority over the he past year is we've gone through the rate setting process. it goes for both water and waste water because customers receive a combined bill. this has been a yearlong process. the charter requires we do an independent rate study. our staff has been developing a four year rate proposal that was considered by our commission last week. i'm extremely proud of the work of our external fair and

finance bureau and finance team jointly presented over 100 committee meeting, civic groups, participating in many events and reached approximately 10,000 people. all our materials were developed in multiple languages. in fact, 20 percent of our presentations were done in spanish, cantonese and mandarin. in addition to our in depth outreach and education effort, we also set over 200,000 prop 218 notices, which are legally required, summarized what the rate proposal will be. we received about less than 100 protest letters . take away from all the outreach, is that customers

need further rate increase to implement or rate infrastructure, but no one likes the rate increase. so the question is, what does the rate proposal look like? it's a four year span. the average annual increase is 7 to $10 a month on the average single father mily household bill and what it supports is our 7 day, 24 hour maintenance for replacement of water manes and sewer pipes each year. and also the planning and early implementation of the sewer system improvement program. the rate fairness board was very involved. that had ou