and, so, we need to keep this thing moving forward. i understand, commissioner arce, that you have some kaiserious concerns. those are concerns that have nothing to do with the not to exceed rate. they have other program designs and we can continue to have this discussion. you doughthv need a resolution to have that continued discussion. simply ask the puc staff, i am 100% willing to bet with anyone that ken malcolm and anyone else with the puc would be willing to come back and have those discussions with you here or if you want to have more sit-down meetings one on one with any of you that have questions, we can do all of this. i think what you're about to do is going to seriously harm this program and i would encourage you to volt no on that resolution at this time. thank you. ~ vote >> thank you. next speaker. well, what a night. derek burks, san francisco green party, local grassroots organization in our city. so, i want to scare you a little bit and reassure you a lot. the scare you part is that

commissioner arce, you're absolutely right. they could set the not to exceed rate next week. they could move forward with a shell program and no other program, which as i said is only less than 4% of what we envision. so, but with that said, the reason that advocates have recently voted and said to the sfpuc and to lafco we would like them to proceed with these not to exceed rates is because they are now competitive with pg&e. especially if you compare it to a pg&e green rate. and what ms. malcolm proposed to us tonight are rates that will probably be even more competitive, even competitive with pg&e's brown power rate. the issue with the shell contract is that whether we like it or not, the local buildout that we all want is no longer tied to the small phase 1 part of the program. it's no longer tied to the

shell contract. so, the reality is now that the shell contract is going to have competitive rates if the sfpuc sets competitive rates next week, now that it's going to have competitive rates, the advocates are not concerned that there is going to be a large opt out of the program. after the shell contract is underway, as long as there's no large opt out, that's when we start building this next phase. when you get into phase ii and we do the buildout. and as commissioner wald rightly points out, that buildout is not going to happen unless we -- you as a commission, you as a department, we as advocates, make sure that the sfpuc and the board of supervisors does it. and under ab 117, the 2002 law passed for community insurance aggregation, i want to reassure you, and this can be done, if the sfpuc ends up not doing the

program we want, the board of supervisors is empowered by that law, ab 117, to get advice from the local agency formation commission on how to build out that buildout program regardless whether the sfpuc wants to do or not. and you the department of environment because you have been involved in a lot of energy efficiency buildout would be the natural vehicle for that. so, the reality is we all need to make this happen. and if we find that the sfpuc is not getting it together, we can make it happen ourselves. is that a risk? yes. will stopping the not to exceed rate vote next week change much? the answer is no. and as mr. freed said, if we get this not to exceed rate thing out of the way, we see how much money we've got to work with the buildout, then we can get this second phase rolling. so, i agree with your expressing the concerns you've expressed. i wouldn't make it so leveraged

on you better work with us or else. let's just express the concerns and express that you want the not to exceed rates to be competitive with pg&e. thanks. oh, and you can leave out the rec thing because if you insist that we do the local buildout that's envisioned by all the laws and resolution that the board passed, then that means we will get away from recs right away. so, you don't really need to get into that territory. >> thank you, mr. brookes. next speaker. hello, commissioners, judd holtz man again from 350 bay area. i won't take too much time just to point out that mr. brookes and the advocate coalition and lafco would be the two entities who have worked the longest and the hardest on making this program what i understand the commission also wants it to be. and i would urge the commission to look at the representative of lafco and the representative of the advocates and listen

very closely to what they are urging you to do as folk who didn't last check in on this in september, but have been doing this day in and day out. i also would just support commissioner wald's comments that it's all of our responsibilities as citizens, as advocacy organizations and certainly as the commission on the environment to make sure that this happens and that convincing ourselves that this could be a one-top check box everything is going to be okay and then we stop paying attention is both unrealistic and will probably result in negative program outcomes going forward. thanks. >> thank you. other speakers? [speaker not understood] for ibew1245. just a brief comment. we'll be supportive of the resolution. it would be an addition that

the program goals that tonight did not set -- the resolution be revised it does not meet all goals and does not comply with state's environmental laws. as was discussed earlier today. the decision on the rate structure will determine the scope of the program including its environmental impact. and the sfpuc was required to conduct environmental review before it makes a decision on the program in accordance with c-e-q-a. thank you. >> thank you. any other speakers? seeing none, public comment is closed. [gavel] >> commissioner king. >> call the question. >> the question has been called. and if we could perhaps get one final read with the amendment from commissioner josefowitz, if you would mind to do us the honor, commissioner wald, unless our director has a more succinct expression. >> do you have a better version? >> i don't know if i do. what do you have? >> okay. the program as we heard it

described tonight does not meet all -- that's your amendment, right -- goals. >> the original goals. >> oh, all the original goals. and we encourage the puc to work with the department of the environment to craft a program that is acceptable to the san francisco environment commission. is that what you got, ellen? >> the program as we heard it described tonight does not meet all of the original goals -- >> goals. i assume. >> i want to say commission. the program as we heard it described tonight does not meet

all of the commission's original goals and we encourage the sfpuc to work with the department of the environment to craft a program that is acceptable to the environment commission. [speaker not understood]. >> we can amend it now because we called the question, right? >> right. that's the question. all those in favor please say aye. actually, you want to do a roll call vote, may be easier at this point. he called the question, which -- >> do roll call. >> can we just have it read again? it was back and forth. >> the program as we heard it described tonight does not meet all of the commission's original goals, and we encourage the puc to work with the department of the environment to craft a program acceptable to the san francisco environment commission.

>> so, and the commission there is what, is us? it doesn't meet all our original goals? >> yes, that's what josh is saying. >> okay. so, we're not including the second bit that angelo said? i just want to under that. >> that's what it is. >> would you mind rescinding your motion to have a brief discussion, commissioner king? >> [speaker not understood]. >> you were calling my language which was your language. >> and this is to be conveyed in a letter to the puc or are you sending me in? >> [inaudible]. >> i don't think we need to decide how to deliver it till we decide what it is, if anything, we're delivering. >> right. >> [speaker not understood] he would really set us straight on this stuff.

proceed to roll call vote if we can, monica. >> [speaker not understood]? >> aye. >> commissioner king? >> aye. >> commissioner josefowitz? >> no. >> commissioner wald? >> no. >> commissioner wan? >> no. >> [speaker not understood]. >> aye. >> so, commissioner arce was aye. commissioner king was no. commissioner josefowitz was -- what was your vote, commissioner josefowitz? >> yes. >> aye, okay. commissioner wald was no. so, that's -- commissioner wan was aye. it doesn't pass. >> see you next week, vice president courtney. if we can call the next item before doing that. if we can, we've kept a lot of

folks. can we make our presentation to our labor folks? we have to stay here very briefly. >> i've got to go. [multiple voices] >> if we come at 4:00, we can have a quorum. >> [speaker not understood]. i don't know how many people you would have. i would like to say now that we've decided there is something we're going to deliver,

we are celebrating the glorious grand opening of the chinese rec center. ♪ 1951, 60 years ago, our first kids began to play in the chinese wrecks center -- rec center.

>> i was 10 years old at the time. i spent just about my whole life here. >> i came here to learn dancing. by we came -- >> we had a good time. made a lot of friends here. crisises part of the 2008 clean neighborhood park fund, and this is so important to our families. for many people who live in chinatown, this is their backyard. this is where many people come to congregate, and we are so happy to be able to deliver this project on time and under budget. >> a reason we all agreed to name this memorex center is because it is part of the history of i hear -- to name this rec center, is because it is part of the history of san francisco. >> they took off from logan

airport, and the call of duty was to alert american airlines that her plane was hijacked, and she stayed on the phone prior to the crash into the no. 9 world trade center. >> i would like to claim today the center and the naming of it. [applause] >> kmer i actually challenged me to a little bit of a ping pong -- the mayor actually challenge me to a little bit of a ping- pong, so i accept your challenge. ♪ >> it is an amazing spot. it is a state of the art center.

>> is beautiful. quarkrights i would like to come here and join them >> health service board is now in order. please stand for the pledge. i pledge allegiance to the flag of the united states of america, and to the republic for which it stands; one nation under god, indivisible, with liberty and justice for all. >> madam secretary, roll call, please. >> roll call. president breslin? >> here. >> vice president lim? >> present. >> supervisor farrell excused. commissioner fraser? >> here.

>> commissioner fraser excused. commissioner scott sf >> here. >> commissioner shlain? >> here. >> we have a quorum. >> thank you. ~ item number 1, please. >> item 1, action item, approval (with possible modifications) of the minutes of the meeting set forth below. regular meeting of june 13th, 2013 combined with rates and benefits committee. >> are there any corrections? no corrections. >> i move adoption of the minutes as distributed. >> i second. >> any public comment on this item? having none, all those in favor? >> aye. >> opposed? it's unanimous. >> item number 2. >> item 2, discussion item, president's report, president breslin. >> we are now on sfgov-tv, channel 26 and 78, i believe.

and we want to thank sean tai who prior to this has done the videos for the board meeting. and would you please come up to the podium? thank you. the health service board would like to thank sean tai the founder of zty media for his excellent service documenting health service board meeting since october 2010. we commend shane for his professional dedication and technical expertise. this creation of the hss youtube channel has provided meeting access to hss members, elected officials, news media, and others who could not attend in person. these recordings were also used to document requests and questions posed by the board and public comment. in addition to his work for hss, we would like to acknowledge sean's commitment to the oakland digital arts and literary center, a nonprofit

that empowers students and small businesses in undeserved communities to succeed in the digital economy. we encourage sean tai and zty media to be among the vendors that bid on other digital video services proposals issued by health service system. the members of the health service board wish sean tai the best of luck in his future and professional endeavors. thank you. >> thank you very much. >> thank you. (applause) >> also, as you know -- probably know by now, the board

of supervisors recently passed a resolution requesting that kaiser improve transparency on rates and rate setting. they also requested that our board and staff build upon their process of consulting with public employee unions and hss retirees. we do want transparency from all insurance providers. the resolution specifically requests kaiser to do so. the city charter gives the health service board exclusive negotiating rights and also states that we must supply benefits without special favor or privilege. the resolution [speaker not understood] retirees public employee unions. however, we are responsible to all members of the system. we are planning at our september meeting and then maybe october also to dedicate an agenda item for information and input from our members so that they can introduce and formulate objectives well in

advance of the rates and benefits deadline. so, encourage everyone to attend and to spread the word. and lisa will be talking more about this in her director's report. thank you. and that's all i have on this report. is there any public comment? seeing no public comment, item number 3. >> item 3, discussion item, director's report, lisa ghotbi. >> good afternoon. lisa ghotbi, acting director of the health service system. july was a busy month for us. i think i have just a few things to review. we are interviewing for the cfo position and we expect to fill this position by september. that's really good news for us. once again, we want to thank our interim cfo gregg sass who has not only helped us with the interview process, but has helped us get ready for the audit that's upcoming and will

help the new cfo who comes in with her -- his or her transition. we are also working on -- we just posted the wellness [speaker not understood] yesterday and we are working on posting other clients -- contracting compliance manager position within the next few days and we have a few other positions that we're in the process ofing. we have several new positions. it will be a busy fourth quarter hiring and bringing new folks up to speed. ~ posting in the operations department we've been quite busy with several activities, some of them in terms of focusing on 2014 open enrollment. the emerge, working with emerge consultants to rebuild the flux credit product for mea and executives and we are i think a good probably 70% of the way down the road for that. so, we should be fine for open enrollment. we also responded really within three hours of the supreme court ruling on doma to communicate on interpretation to our members. we were getting questions

immediately on that, and there is some report on that end. the operation powerpoint presentation will review same sex domestic partners to ensure any married couples in the system will now have the same benefit for pretext coverage for all other family members. we reviewed member files to determine if any same sex partnerships had previously submitted the marriage certificates to hss and if so we changed the family status from domestic partner to married effective the next available coverage period. so the staff was very proactive and we immediately began receiving marriage certificates from those who had not already submitted them to hss. we will also be moving to the third floor. there is a move and we've delayed that until december 1st until after open enrollment so we're looking forward to that and to also have a wellness center opening on the first floor of 1145 market.

and also wanted to point out that it was a very busy month for retirement in the health service system. we processed over 7 45 retirement applications between may and july 1st. so, significantly more than our average of about 40 a month. so, very busy for retirement and congratulations to all the city employees who retired. in the communications department, we've been very busy working on the benefit guides which will be going to print shortly. the theme for this year is partnership help and also we've completed a communication strategic plan which will be presented to the board at the next meeting and we'll be starting this rfp to help us fulfill that plan in the fourth quarter. our finance team has been working on building the rates and also preparing for the audit which will be starting next week.

and in rates and negotiations we wanted to let you know that many of the unions have accepted the city offer for the flat contribution model and that model is going to be 93, 93 83 which means that the employer contribution for an e only is 93% for the e plus 1 is 93%, and for the family is 83%. that was done by the deadline of july 31st, 2013. please note the typo, not 2012. that was done as of july 2013. so, those numbers and those unions will receive a subsidy for 2014 and hss had a lot of meetings with unions and to help explain exactly what that would mean for them and there is an attached memo that we prepared for the unions laying out the numbers for them to see that's attached in your binder. under wellness, also very busy time for wellness. we've been doing biometric screenings and had a very

successful one coordinated about a week and a half ago. 267 employees in the hall of justice participated in biometric screening. in addition, there was also a biometric screening at department of human resources, department of economic and work force development in may. that screened an additional 58. so, this is a very popular offering and we're looking to extend it and continue those in fourth quarter of this year and into next year. also, margaret has a very aggressive campaign for flu shot vaccinations. we have i think over 12 sites already set up for flu shots for the october and early november time frame. we have a new department in hss called the analytics and a new data analytics manager who has been on the job for about a little over a month, is very busy and working on -- she did most of the modeling on the contribution model work for the unions and has done some work on our wellness initiative as well.

meetings have very busy month for meetings with both kaiser on multiple occasions with director dodd participating and also with the board of supervisors meeting with them individually on multiple occasions. also attached is some news articles that have occurred in july around the kaiser rate renewal and the links to the committee meetings from the board of supervisors. so, if there are any questions. that concludes my report. >> any public comment on this item? come forward. thank you, president breslin. [speaker not understood], former member of your board and now representing the seiu retirees. my concern actually is one with regard to actives.

i think more than retire tire aloes, but the actives and early retirees, not so much the medicare retirees. ~ and that's the issue with the 93, 383. what i notice is that in that memo and the delineation of the rates that the plan 1 rates seem to be significant, especially by year 2015 where we go from $320 a month for employee only in 2014 to 925. if it was 9 to 10, but it goes from $4 in 2014 to 7.79 in 2015 which is a massive rate increase. and what we've noticed over the years when i sat on the board was that there was significant migration from plan 1 as those rates were no longer subsidized. there was a time when this board subsidized those rates because it is, in fact, the

plan that you own. and money in the trust fund was used because the trader gives the health service board money to go out and purchase plans. and if you get the money -- if you get the plan for less than the city's contribution in those days, that was money that you could spend for other plans. and we used to do it for plan 1. and my concern in seeing those rates is that i would like -- i would like this board to consider perhaps subsidizing at maybe 50% to be able to stabilize those rates across the board. there aren't all that many members that are active in early retirees in plan 1 remaining any more, and i think these rates will absolutely scuttle the plan. and it is your own self-insured and self-funded plan. it's what you own. it's what you need to keep competitive. and the last group of people

are clearly going to migrate out. and all of the other sf including the vast subsidizing of the risk factor for blue shield where again the trust fund is taking that risk is all aimed at preventing migration. and i think that it is something that you might consider because i think it is a great concern to see those rates go, especially from $4 to 7.79 from a thousand 78 to 1500 and from 2000 to over 2300. ~ so, thank you very much and i hope that you consider subsidizing. >> thank you. >> president breslin? >> yes. >> i wanted to acknowledge the importance of that question and to also state that plan 1 has been a plan for hss since hss has existed in the '40s and we are dedicated to bringing an alternative model to the board that will save that plan and actually help turn it into a healthy plan again. so, that will be coming forward

during the rates and benefits. actually in december so the board can give us direction on whether that is something to pursue for the rates and benefits. hello, my name is gail bloom and i'd like to talk about plan 1. i don't know if this is the right time. i have a problem with plan 1 and i'd be happy to hold the question till later in the agenda when it looks like you have open discussion about the different plans. >> up to you. well -- >> yeah, you can say something now about it. it's about plan 1. if you want to hear it now, i'd be happy to bring it up. >> maybe you could talk to the staff. i have talked to your staff. >> okay. and they told me to come to the commission meeting, to the board meeting. i'd be happy to hold the thought.