halls there so what goes on down here at city hall. you all? this is unacceptable and i have come up here in plenty of times and i ain't got time for errors no more, if you want to sit down and see how we can move forward and what we call the community reform so that you can report back to jerry, jerry been around twice so that he can report and say that you did it with the community. how in the hel are you going to move on and keep using fillmore or whatever and the way that the agency and the prior agency done to us? okay. bottom line, i am jumping and praying, immediately, that i could sit down and talk with the president and the executive director and the people who are in charge. to find out how we are going to move forward in a way that we can work collectively. because this is not going to continue no more. i am on this case. they are doing this 27 years, and i am not a lawyer, but i

have got so much documents to say what you are all doing is not what you are telling the governor. it is not your fault. but if you continue on, you are going to be put in that category as either one are two that i am filing on and conspiracy? now, i am talking for real, and just like joe hinesfield and if you don't do the right thing and sit down at the table and talk about the fillmore situation, and immediately. you cannot continue on, i volunteer to see everything thatvy been involved before you all were involved with the jefferson put together what they called the mass lease and you are all spreading millions of dollars from there to now, there are obligations that you all owe us, and the community. and if not the community, sure enough on me. you know what this calls sweat equity and i have been doing this for 20-something years. now, these obligations that you are talking about is that you

want to assent and sacramento and you need to sit down with the community and not only in this side, but the bay view side and i just lift up the document that say what you did in the bay view was put together for years ago. and this is the first federal agency in this country, and you would not know if the last director? ace washington. and so, i am taking that and flipping and flopping it and calling community reform. because everything that is doing good right now is called community driven and anything that under mind it, i am going to recognize it and you call it the point system. and got in the is and the dots and so i am hoping and praying that when i make the phone call next week we can sit down and talk because this can't go on like this. >> thank you. >> do we have any other cards? >> no. >> thank you very much. >> okay. i am going to again, a poll

apologize, i am going to step out in a couple of minutes. >> first is, i understand that the little bit of tricky because of the long range plan due in november and the timing issue there and do we anticipate any changes to rops 13, 14, b from the long range property management plan, for example, you know, our disposition of south beach harbor and would that impact any money that we would need in the first half of 2014? i mean, we have been talking about could there possibly be disposition costs? not knowing the timing of how long they will be taking to approve it? >> yeah. >> yes, it is possible. and we have not come up with any hard numbers now that will be that we have put on yet. and i don't think that we have

talked through specifically the south beach harbor and we have been talking about appraisals or other things that we need to move forward with any dispositions. >> right >> so i guess that is what i am getting and i through that out as an example. but i can see how the long range property manager plans would either increase the costs in the form of meeting and appraisals and other consultants or whatnot or decrease the costs from potentially having to dispose of or otherwise, do something with the property that you had planned to spend the tax increments on the bonds. so i guess that the reason that i asked the question, is i am just trying to get a sense of whether or not dof would sort of delay, rops. b. because, they see something in the long range property management plan that does not jiv with what they are seeing in terms of the signatures on rops b. and i mean anything is possible with dof and our past experience with them is that

they have had to tend to sort of divide and conquer when they had reviews and sometimes the two parts don't necessarily communicate between each other. and so we found that with the rops and due diligence review process that there were two separate teams working on them. but that is a good question to think about. and see if there is anything that we might want to include. and we do have an administrative budget that some of these things could be captured, but, we have not heard anything to date that would indicate that they might, you know, delay, a rops approval because of the long range property management plan and okay, thank you. >> going over questions? >> mr. ellington? >> yes, turn your mic o >> so the different funding sources here. >> and i know that the bond

proceeds and are connected to certain items on the rops, but what are the are there any restrictions on the reserved funds and what the reserved funds can be used for? and what are the other funds and what are categorized as other funds? >> and so there are restrictions on those reserves depending on where they originated from. the prior tax increment and balances from say mission bay, are restricted from the agreement, or etc. and there are, depending on where it came from, there are restrictions, and then, the other is or has a variety of sources and so, i would say, it is a lot of developer payments, and so, for instance, in the shipyard, you know, the depositers and reimbursing or in transbay, the developer is making the payments that will be used for the affordable housing through a payment, from them verses using the property tax and that is what in that category as well as the state and federal

grants as well. >> they are just lumped altogether. anything that is not prompt property tax is not reserved in the bonds. >> okay. >> thank you. >> okay. >> i mean, this is a pretty thorough and i know that the over site board will have the more specific questions because they are going to go line by line. nothing jumped out to me and i definitely bring it up to somebody if it does and does anyone have any? >> i don't have a question, but, i again, i am intrigued to see or perhaps understand and maybe this is not the point, where we talk about this, but there are a couple of items related to the western addition, outstanding loans. by, yosi, with josi, and with

the resoles and the (inaudible) long and 1300 fillmore and i understand why they are on this schedule. and just so that the folks are not confused and members of the public are not confused as to why the matters might appear here, perhaps we should have some explanation. >> so, tracy ren olds or real estate director will come up and address that question. >> commissioners, i'm the manager of the real estate group. the loans, yes, the loans are on the rops and you can see that we put them on, and they don't involve any payments out because they are loans, and but, those agreements along with the other development agreements that don't involve the payments we made a decision many months ago to put every obligation that we can think of on the rops even if it doesn't involve a cash flow out and so

those, that is why they are on there and that is why there is no, and there is zero, on there. >> but those loans are continuing to be active. and monitoring them and a couple of them, should be amended soon. and so i am planning to bring an amendment two of them before you. and for your consideration on two of them. the rop loan went through a bankruptcy process and came out at the other end with a different structure which is being followed at the moment. and so the loan continues, the yosi one is tied up in the bankruptcy proceeding. and then, the other two sheba and 1300, there is a couple of loans, associated with those, entities. and 1300, they are both making payments, but slightly

different than what their loan agreement actually says, which is why those are the two that i will be bringing and amendments to you as soon as i can, probably after the property management plan. but we will see, as fast as possible. >> great, thank you. okay. >> thank you, very much. >> and there is not an action item. so i think that we can move on to the next item. >> the next order of business is item 7, report of the chair. >> oh, that is me. >> i do not have a report this week. >> the next order of business is item 8, report of the executive director madam director? >> thank you. madam secretary. commissioners, just wanted to draw your attention to the fact that we are having a meeting on the 17th of september, and it is our regular meeting day. and but we have a special meeting time as our secretary indicated at 4:00 p.m., in the

community and it will be considering a number of items that are actually related to urbabeuena and transbay. and that cons includes my report. >> the next order of business, questions and matters, madam chair? >> okay. >> anyone on the questions or matters that we can see sfgovtv is here until further notice. taping all of our meetings and i hope that we will get the people to tune in. >> okay. thank you very much. >> next item is item 10, closed session. >> 10 a. under the california government code, section, 54956.9 and confers with the legal council for the existing litigation and the 765 market street and residential owners association, et al verses all persons interested in the matter of the

validity of the resolution on the community investment and infrainstruct stur and of the success and agency of the redevelopment agency of the city and council of san francisco and two, resolution, 8, 13 of the over side board to the redevelopment agency of san francisco. et al superior court. >> i guess that we will go into recess, sorry. to the public comment? >> yeah. >> okay. before we do that, do we have any public comment? generally for you? do we not have no? >> no. okay. >> and thank you. >> okay. so i believe that we do stop taping. i see, that. perfect. >> and i am going to go into the closed session. and thank you very much.

>> and so the question is complete and we are ajournd at 3:12. >> 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. okay, i'm here because i'm an early retiree in plan 1 and i'm actually not getting any of the service that i had contracted for, particularly for my out of network payments or out of network coverage. i have a -- i am covered by medicare. and what i understand is irrespective of the medicare coverage, for my out of network payments or coverage -- excuse me, i'm really nervous. it should be at the 50% of the

ucl rates. is that correct? as i'm understanding it? yes, okay. what united is telling me now is they will only cover 50% of what a medicare physician would cover if i were seeing a medicare physician. but i am not seeing medicare physicians and, so, for example -- excuse me -- i see a doctor who charges $225 for a visit. so, rather than paying me 50% of $225, united is now paying me $37. which, if that continues, i can no longer see my physician and i would like to be -- change policies or out of the open enrollment period if i can no longer see my physician. and paying $1700 a month for the privilege of seeing an