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 modernization and digitization to allow us to

be able to get a new phone system to have greater ability to answer all the calls that are coming in and we wouldn't be dropping as many calls during the periods of time when it's open enrollment or when we send out letters and we get this huge amount of calls and we have to balance our call volume by people that don't normally deal with these things. there is a lot of capability that we need to get and will also allow to do a lot more monitoring of our call volume and reporting. in the past we asked for funding to actually do this project from beginning to end and we weren't successful. they like the idea but they didn't want to give us all that money. now we are asking for i believe $50,000 to do the planning, the review, get somebody from

the outside and somebody from the inside who know about phones and works with our department of technology and plan so that we go back to request money from the general fund that we'll have a better idea and they will be more apt to fund it. the section one is about reviewing the plan and file room. this is the same project that we had requested the committee liked but couldn't get funded but it was too big and the planning the really honing in on exactly what we need to do and how we would do it would be the first phase that we would requested and more likelihood of getting it funded. the third is a placeholder to replace our pc's. we are really well positioned from last year's purchases but in the next two

years we are going to have to get additional funding. the next steps upon your approval we have to submit the budget to the mayor's office on february 21st it's a charter mandate. at which time of becomes under the mayor's domain. we are going to do negotiations on whatever the mayor is going to propose for the budget. as you know we start pretty in depth talks about it to make sure our needs are fully recognized and put into their priority of how to use the general fund. then on june 1 st or whatever working day is close to june first, the mayor will submit his budget to the board of supervisors. we will as we are able and it's appropriate advise you on what changes have been made to the budget because it does go through a lot of different reviews.

>> okay. commissioners, any questions on this item? >> doctor? >> i just wanted to make a comment and i know i'm speaking to the choir but the health services system is 10 years old at the department. it was evident to director and i that as we walked into the department it was severely under staffed for the work we do and at that time we were under severe recession. we tried to hold on to the staff we have. we are asking for the bare bones to do the work and currently the staff that's handling the job at the department are really stretched to the end of what they can do. this business has gotten so complicated even more than five years ago, so complicated by paco obamacare and changes in the system and the regulations that we are

now having to comply with, the additional reporting requirements. it's really incredible. this is a budget just to barely get the work done and keep the staff. the workers comp claims we are seeing originally is for the ergo nomadic carpal tunnel issues and we have your support and in a year we hope to be staffed up to do this job. >> thank you. >> i would like to entertain a motion? >> i move we adopt the budget as presented and we invite the staff to involve this board publically or privately as you are going through the other steps of the process. >> i second the motion. >> any public comment on this

item? >> i will just take a quick moment to say we have traditionally been short staffed. we have a staff that traditionally has served far more people than any case load in any other city department and i think it's important that we continue to lobby hard to get the appropriate staffing that we need. we are not like retirement. we can't self fund out of our trust fund. the city must understand that the services we provide benefit all employees including the mayor, including the board of supervisors. i applaud you and thank you commissioner scott for asking that all commissioners be involved because we have to be. i just urge you all and the staff to continue to work hard with the mayor's office and the board of supervisors and the analyst. it's going to be tough to stand up to them, but we really need to fight

hard for this budget and to go forward. thank you very much. >> herbert weiner, retiree. while this is a bare bones budget, i don't want to walk in corks. we want to have the health services budget be as robust as possible. this is a very good system and works very hard and probably the envy of every joining county and we want to keep it as healthy as well as the beneficiaries active and retired. >> thank you. any other public comment? the motion is to approve a proposed budget. all in favor say, "aye". >> aye. >> opposed? item no. 13. kreshg --

city clerk: initiation of rfp blackout period for fsa cobra administrator. >> the necessary that we notice the board and that we reframe from any communication with the vendors involved in the rfp and the vendors refrain from conversation with the board members. this agenda item is to notice the board of the rfp which will begin on march 17th for a cobra and flexible spending account administrator. we have as you may recall we had fbmc which is the name of the company that did our cobra and fsa for many years and purchased by wage worked about 2 years ago. wage works has been the company administering these

benefits. it has not gone out forbid in some time. it's time to go out for -- bid. we are starting that in march. >> any comments? i entertain a motion. >> i move to adopt the recommendation to observe the blackout period for this rfp for cobra administration. >> second the motion. >> is there any additional public comment? seeing none, public comment is closed. >> all in favor say, "aye". >> aye. >> opposed? there are no oppositions. item 14. >> city clerk: initiation of rfp blackout period for all pair claims data base. >> we began to work the rfp

for an all payer database. information will be protected at a personnel level but analyze and understand what the clinical issues that our members need are facing and what we can do to help with their benefit structure and also where the cost are, what's driving the cost. so we are very excited about this rfp and to get going with this and it will mean that all of our payers who do business with it. it's a notice of the rfp which will begin march 3rd for this one. >> any questions? >> i move that we adopt the blackout period for the purpose of the request for proposal for all new payer

data base. >> i second the motion. >> any further comments? all in favor say, "aye". >> aye. >> opposed? none. >> action item 15. approval of recommendeded health care sustain ability budget plan. >> gave the board to dissemination to members regarding plan benefits and cost and per prop c and 20 11 that was expanded to include actuarial expenses to reduce health care cost. with the passing of prop c, the traditional $1.04 charge was

increased to $2.05 effective january 1, 2013. the expenses for against this account for 2013 include about $800,000 on going expenses annual expenses mostly related to open enrollment materials every year. the preparation of the guides, enrollment application and additional videography and other on going services that we have in addition to the salaries for communications manager and our wellness coordinator. $806,000 are essentially on going expenses to do open enrollment each year. if we look at the funds that are available for 2014, we have -- i'm going to start at the bottom first. carried forward we have every year we

use a little bit more than a dollar or less, over all we have a carry forward of $400,000 for the prior years and 2013 you can see the increase went in but it took us time to hire everyone. we have a surplus from 2013 and the $700,000 annual revenue. we have a total of $2.6 million. the recommendation for 2014 is to continue the building that we are doing for the health service system against using these funds to meet the charter requirements for the data analytics state and wellness efforts and initiatives. the on going, this rfp for this data base and the analytics $500,000

and analytics $500,000 and to go into a little bit more detail on the data analytics the data base implementation is expect to cost $175,000 of software licensing 250 and consulting services. this is a 1 year bill expense and the on going expense is close to $250,000 a year so we'll be back down to what will be supportable by the 205 annually once we do this initial build. that's similar to the neck the -- next page which is the communication and a lot of it is building and we are doing a lot of building to ensure that when we move to e benefits people are able to have the information available to make

the decisions without talking to our staff. right now we talk to a lot of our members move to e benefits where people are actually enrolling online and doesn't take away from our obligation to ensure people are informed. we have to work to ensure that they are getting the information they need as they are choosing their health plan and making decision for their family. that's what this bill is about is a lot of reengineering and building up our video library and website design. on the wellness activities where we are also doing more expansion. i'm very excited to say we'll be opening up the wellness center this month and opening and expanding here on wellness promotion and that's also a building effort around wellness. so that's the plan for 2014 budget for the 205.

we appreciate your consideration. >> any questions? i need a motion for item no. 15. >> i move the sustainability budget plan. >> second. >> public comment? no public comment. all in favor say, "aye". >> aye. opposed? no opposed. it's unanimous. in the interest of time, are we able to do the closed session without a quorum? >> you can do the closed session without the quorum, there is two issues, you would not be able to make any substantive decisions that is discussed in the closed session. there is a requirement to vote on whether to disclose what's in the

closed session at the end, but since this is an issue of confidentiality covered by hippa, i don't believe you would be able to even disclose it even if you wanted to. it makes that vote rather moot. it's fine not having a quorum. you go and have your discussion and postpone any action item. >> we can go into closed session because we have to vote on that? >> it's not required to go into closed session unless it's in your rules. >> it is in our rules, right? >> it isn't an administrative vote. arguably you can still go into closed session. >> we have a quorum right now. >> i think we might be able to get through rest very

quickly. >> i think we'll leave these other items after. they are just discussion items. >> since you have a quorum you can now vote to go into closed session. >> we can go into closed session and discuss the other items later. this is what we plan to do. we have anna peels and plan to go into closed session. we'll lose our quorum for about 15 minutes. >> i move that we convene in closed session to hear any and allah peels with the understanding that we could not take formal action on those items and we want to assure that those who have prepared to present appeals are heard whether or not we have a full quorum. >> i second the motion. >> any public comment on this item? >> if this is a 15-minute exercise, we will have a

quorum to make decisions. if it goes longer we will lose our quorum because i have a critical call to make at 3:30. okay. any public

>> we are now in open session again. we will not be able to vote on anything today because we have deferred this action item to the next meeting for further information and because we do not have a quorum. so with that we can go back to our regular items. which was item no. 10. city clerk: item 10. directors report. >> i will make this short. we have the database and the budget report. i did want to highlight the fact that we

are actually moving and we are quite excited about it and able to tour the facilities and the paint color is up. what's special is the private rooms for consultation with members. it's really long over due and i'm excited about where people have to sit down with themselves with their spouse or family members and end up having a conversation with the benefit analyst. the move is set for february 20th. the wellness center is open on the 28. we haven't advertised it yet. we hope to get it set up and have a grand opening in april or may and the staff will open in march so there is a little bit of a staggering of it and we are preparing and the boxes are starting to appear all over the count

tops. other than that, january was a reasonable average month for the call center and the vendor management team is on track of all executing all the contracts and finalizing everything. and i think the wellness report is the other big news. it's completed. it's under final review and you guys, i think will see it, i'm sorry, this board will see it at the next meeting. any questions? >> any public comment on this item? >> claire -- representing city retirees. i'm pleased we are moving into better spaces. and you talked about the private hearing rooms, are those available for the eap staff as well? >> yes, we have three offices

now private offices set up. a big waiting room and three private offices one which will be used for the eap staff. >> one of the reasons i stayed was to find out more about the expanding ear and looking forward to the wellness report. >> eap assistance program is moving to the wellness center. they now have their own private offices in the wellness center. eap is an important part of the wellness team and they will be expanding their services as a result of the expansion of the wellness program. ebs will have one of the three offices will be ebs and they have the cafeteria plan for our members. i apologize for the

confusion. >> so they will be able to interview privately in our offices while eap will be downstairs first floor easy access. will they have the easy access for confidentiality that people going in and out don't run into each other just with any kind of critical therapy along those lines they need the confidentiality protection? >> yes. the doors to go into wellness center, you go into the door into right into another door to go to the eap offices to the left. it's the same door into wellness center but you take different routes from that point and they are separated. we also have in all of these areas we have noise canceling facilities put into ceilings so there won't be any ability to hear voices outside of the office even if those

voices are raised. >> will they be able to exit with some anonymity? >> there is probably a risk that someone might see you walk in and out of that door. there are two doors to the wellness center but there is one at the back of the building as well. but you still have to walk through wellness center to get there. i think it's not completely private, but it's much better than what it is today. >> okay. thank you very much. >> thank you. any other public comment? seeing none. item no. 11. >> discussion item. update on financial reporting as of december 31, 2013. pamela levine. >> deputy director chief financial officer of service system. i too will make this very quick. we've gone

through six 6 months of the year and we are projecting for the trust to have a 23 to increase our fund balance by $23.1 million. this is $4.5 million greater than what we reported in our last meeting. we have tied up all of our money and we are in a really good financial position based on the policies that you have approved today. right now the $23 .1 million is comprised of $11.3 million in state plan net assets. $5.9 million in favorable claim experience in the blue shield flex plan. 5.3 increase in estimated favorable claims experiences in the dental plan. reduction of a