>> madam secretary? >> item no. 9. are we reordering the agenda? >> yes. discussion item, president's report. >> first i want to say that we are going to change our terms around today and hear the action items because i'm afraid we are going to lose our quorum. if there is no objection, we would hear item 13, 14 and 156789 15. there

will not be an election because commission frino and i were uno opposed. i want to commend lisa for her hard work in leadership when she's holding down two jobs and the whole staff who were really thinking of the members first. i think it would have been a very tough job to fill in. thank you very much. public comment on this item? now we'll go to item no. 12. >> approval of administrative budget of fiscal year

2014-2015. >> chief financial officer. i extracted some information from the report that went out in your binder on the budget. and put copies of the powerpoint on your desk and i would like to use that so we are all looking at the same thing. there is no new material. it's just put on powerpoint. the first thing i wanted us to do in doing budgets there is a really good reason to start with looking at why are we here, what are we doing? what are we providing? so i wanted to just look at quickly the

health services system mission to improve sustain able quality benefits for employees and their families. i would like to keep in mind that that is our top priority and the budget is how we actually fund doing our priorities and our mission. i wanted to start and a detailed discussion was where are we now, what did we request last year for this fiscal year and what kinds of things do we still need to do? so i put a chart on approved staffing levels and fte's. when we were looking at the budget requesting it for 2013-2014. we requested to have approximatelly 8 fte's, remember those are not

necessarily heads. it's the full time equivalent. when you ask for a new position it's always at.77. that's how you get partial fte aechlz we asked for 799 new positions and asked to be able to fill new positions. that's why it looks funny because we said we want to have the ability to fill two more positions. what was actually approved when you look at the administration and the wellness together was 7.73 new positions and the ability to fill one position. the way attrition works if you were to say i have 10 positions, each of them earn $10 and i have $100 and that's what i go out and spend. the way the budget works is we don't fund all those positions. that's why, so and it's a fairly

arbitrary number that reduces your budget and it constraints you. the request when i got here the request had been let's ask for money so we can actually fill positions. when you look at this purely by numbers, you can say we did really well which we did but there is still significant need in the near future with our needs to get to where we are going. that's where i wanted to focus on us being thankful to where we are now but keeping our eye on the future and saying we need additional resources. as i mentioned last time, the mayor had instructed us to take some reductions. the reduction targets is 14 1/2 of our general fund is $42,000.

our proposal to use to fund this. this is the discussion before about carrying forward up to $500 in balances and 15 the mayor also instructed us to balance with cutting the additional suggested fund and that's almost $69,000 and we chose to use the foefrt. the 6-month report was release d by the controller and we were better than $60 million for

the general fund. so what, they may not take the contingency. remember when i met with you last time i wanted to let you know that there are times in which the balance and the general fund is reevaluated. this is one of the times and it was to the positive. we still have to put in 1 percent and we really propose that since we can cut our budget we are not funding what we need to go forward that we use forfeitures and not a fund. it doesn't affect the premium, but this will let us have the ability to not have to cut. we are very lucky this year that we are in a position to do that. we also looked at what if we need to do to augment our budget. we looked at what our priorities are but we first started with the mayor's priorities which were stated

as government efficiency, affordability of services and programs and government innovations. it says that we were supposed to, if we were going to propose anything, we needed to have data ann will -- analytics behind this request. staff took that seriously. we looked at, everybody looked at what they had and how what we've been working towards. in the future we all made proposals and prioritized them and would like to come forward with these proposals. generally they hit the five priorities. enhancing emerge requirements implementation of online and benefit enrollment and increasing efficiency level

and using an will it -- analyticals to provide health services. identifying and complying with changes in federal and local act including affordable care act and proceed actively and strategically rather than reactively. and the hsf wellness center and actively working with other departments to develop their wellness program. finally to increase fiscal control and oversight to ensure vendors comply with contractual obligations. those are the things we wanted to put together. then we put in to funding packages. i will go through this very quickly, a great deal of specifics that were provided to you in terms of write ups and numbers when

we introduced the board deck. i will take any questions you have but i'm not spending a lot of time on any of these. streaming the benefits emerge for e benefits. essentially as you heard our existing benefits administration module of people saw needs quit a bit of work to make it ready to go forward to e benefits. e benefits is i believe 2015. question want to implement it around that period of time some time around 2015. there is a significant amount of work for this. this is a limited duration position because it has a beginning and an end and would include training. the second is to optimize the system performance through analytics. this is to build among other

things an internal data where we can use for our analytics and controllers office is interested in what we are doing. it would also allow us to bring a lot of the dashboard work in-house and us to be able to automate reporting. again, a limited duration position because we feel that we can put a beginning and an end to it. i failed to mention that one of the things when we were putting the packages together we felt that what makes sense for the department in order to be compliant with what the mayor's office and others would like us to do in trying to fund some of the things ourselves and ask for the other. the upgrading the benefits is clearly a major

proposal that the city needs to get around and is involved with and that's why that would go to the general fund. optimizing the health system performance through an alyticals, we would look to other revenues to cover that. and comply with state and local legislation. that is really to allow us to as i said get pro actively track changes in federal state and local stages in our work that would have collecting analyzing and presentation in health data and would help the directors in terms of being able to provide outreach so

that the city can be more of a player region wise and there is an education component to that. that is one position. the next page is the next group of funding packages. the next one is implementing the strategic wellness plan and this is to go to the general fund. we are at somewhat off. it syncs because we have to put our charter mandate before february 21st. you are going to hear the wellness plan and march. we've heard from the other response aureus -- response sponsors and the

wellness plan and operating expenditures for the wellness, the work that's done through the wellness center. one of the positions, the major part of the two positions is to help focus on other departments and help them with their wellness activities that includes not just reaching out and helping their coordinators but it also includes providing training, wellness training and increasing our eap capabilities and help on an outside basis. there are training and lots of classes providing that now. the next one is increasing fiscal controls. what we would like to do is have our department participate in intern program that brings us

new talent that the intern program actually trains accountants. that's really the only way to get into city in through that intern program. he's a mentor and supervisor for the interns. they come in and stay 6 months. it's an 18-month program. we get two of them and we may -- two of them for six 6 months and the rest of the year maybe the same person. it's a really good way for us to increase our control and look at how we are doing our financials, how we are working with the contracts and really beef up and make sure that we are doing everything we need to do fiscally. the other ones are rather minor but very

important. we are seeing a lot of workers comp claims and over expending at this time and putting more funds in order to handle that and would like to fund specialized legal services. this would be an augmentation to what is being done now by the city attorneys office. we'll work closely with the manager attorney over staffing and the city attorney himself to see how we define our roles to ensure all our needs are met in a legal standpoint for legal support. we have done a minor amount of reclassifying staff as we have always done to reflect what they are doing now and minor changes in the number of

years. what happens for some reason, the budgeted for the elections the work order for the election department for 14-15 they stripped it out of the budget and they said we needed it back in the phase. we are also asking for general fund for other projects. it goes to the media and information technology and goes to a lot of city leaders who evaluate and make recommendations to the mayor and controllers office on what kinds of it projects to fund. we ask from funding to review and plan for