requirements and no additions. we pulled out four area we're asking for additional funding for and not anticipated in your packet. it says what they are and we can go through them but i think the finish committee spent enough time and i think you're good. >> mr. chair just open this up to questions and we had a great deliberation not only with this board but the other board in the future. >> all right. are there questions from the board? >> i will repeat what i said and i would like to see paying for the governance committee and a consultant in the future and we had a lot of work to do this past year and don't want it to slide again for years. that's all i have. >> duly noted. all right.

other board comments? this is an action item. >> item 10 is a discussion item. >> discussion item. public comment? hearing no public comment item 11. >> item 11 presentation of fiscal year 2015-16 and 2016-17 health care sustainability fund $2.05 budget. pamela levin. >> our chief financial officer is looking a little puzzled. >> >> i apologize. >> that's all right. we're in regular order and looking at the budget. >> mr. chairman and if i may

and ms. levin thank you and may i suggest we open it up to questions and comment focus we have them opposed to a full blown presentation like earlier today. >> all right. any questions or comments from the board? i would note there is an item in this budget that provides for board and executive staff education. it is our intent that once this is reviewed and discussed by our committee that we will talk about what we will be doing specifically around that issue going forward. we will be conferring with the governance committee to try to detail what might be a board education process or items for consideration, and obviously those will have to go back to be reviewed by our city attorney to be sure that they fit within the

guidance of which this budget is created, so we're looking forward to future discussions on that, so with that is there public comment on this item? >> i also wanted to say that dr. dodd mentioned earlier this is the first time we spelled out exactly what these items to be used for so i thought it was great. for 205 we never did this before and anybody that has the material there is a lot of work by the staff here so thank you. >> and i would add my complements to pam and her team and director dodd in assembling this information in such a clear manner so we can indeed explain where does that $2.05 go? what is it used for? how did we do that? is there any public comment? >> thank you. claire

[inaudible] and actually speaking for myself and i want to add my complements to the staff and to pamela levin for putting this together and i am actually quite relieved to hear that there will be now more education and opportunities for the board to go forward. there has been a long, long gap between the old days whether we regularly attended a lot of the seminars that helped keep us actually ahead of the game and we also felt as board members that many more of the staff should have been able to avail themselves of those educational opportunities and during tough budget years it's been hard to do, but actually the trust fund can in fact sustain those kinds of expenses because they impact the entire system, and they are for the good of the s.s they just don't impact one particular group over another so i am relieved to see this and my complements to all. thank you.

>> thank you. so we're now down to item -- the next item. >> regular board meeting items. item 12. we did that already. >> please. >> item 13. election of vice board president, president scott. >> as you know with the departure of the prior president i was elevated and elected and confirmed by my peers to be the president of the board thus creating a vacancy for the vice presidency of this board. happily commissioner lim has been reelected to this board. as you know we went through a whole process of authorizing an amount that was a handsome sum

of nearly $35,000 if we had to conduct an election. he has saved that money and i think we should thank him for that because he was unopposed in his election happily so please join me in congratulating him on his term. >> [applause] his term expires in 2020. it's hard to believe that where will we be? so with that election we now come to some full strength. we still have a cacan'tacy, a replacement for commissioner fraiser and we hope that the mayor's good offices will work their will soon to complete now so we're now at a time of the election of the vice president of the board and i am more than willing to entertain a nomination. >> i will nominate commissioner lim for vice president. >> is there a second? it's been properly moved and

seconded. any discussion or comments from the board? that means everybody but commissioner lim. he can't say anything. any comment at this point? hearing none is there any public comment or any of that at this point? no. so all in favor signify by saying aye. >> aye. >> all those opposed? now, commissioner lim do you care to make any comments as vice president of this board. >> thank you. it's an honor to serve for the next five years. >> thank you. all right. >> item 14 discussion item director's report. director dodd. >> before you begin director dodd. this particular document is very extensive. okay. very extensive and a lot of detail. a lot of work by the team has gone into it. it covers a great deal of information and we're not going to go through every

item in detail today. catherine and i reviewed this and she's going to highlight and make specific references. i think this is a very useful document again to the general public to track the proceedings and where we are and where we're trying to get to and a wide variety of service to the membership that we serve particularly in the areas of wellness and others, so director dodd. >> thank you president scott. catherine dodd director. first i wanted to highlight in the handouts and in your packet the recent data breech that occurred for anthem blue shield blue cross in country and we expect to hear from them in the reports and as far as we know blue

shield of california is separately incorporated company and there was no data cross over unless some was data traveling and have a file in another state but blue shield of california is a separate company and separate from the anthem blue shield. i wanted to start out with that. i will highlight some of the things and 34 increase in member visits and 22% increase in calls over january so we don't know why that is. we think that both of them were probably related in terms of anecdotally collecting data to the blue shield sutter issue. the advertisements in the newspaper, et cetera. there was a lot of concern from

people. the other major thing that operations worked with communications on as well as data analytics on was identifying all of our part time employees, the affordable care act requires that employees working 30 more hours a week be given benefits so our systems weren't set up to do that. the human resources department decided to a lot benefits to people working 20 or greater hours per week, not 30, because currently that is who is eligible but these are temporary exempt employees that wouldn't have gotten them so there were 700 people identified and mailed information. we still probably have one more mailing to go out so i think the significant

thing is we're likely -- a lot of these people already have benefits someplace else and why they work part time. we haven't had a huge influx but it's clear from the ones that have come in that our membership data, which you will see later on in the demographics will easily top 112,000 members for this year rather than just the 111,000 members, so it's adding to our membership. these were rush mailings that had to go out. everybody worked really well together to get them out. our privacy officer, marina coolridge rolled out a department ride security awareness training called secure the human, and we all be taking those over the course of the year, and urging other departments that deal with phi to do the same. we had an all

day kick off for the all claims data base so that is moving along. i want to draw your attention. it's been a year and a month actually since we launched the wellness program so of all the packets that are in here i want you to take note of a couple pages in the wellness packet on page three the most important thing that we have to highlight is that we created not just a foundation but we created an infrastructure for wellness in less than a year for close to 63000 employees which is unheard of. that's like -- when you think of a large employer is over a thousand people we have done an incredible job and identified 150 wellness champions that are getting information to use in their departments every month. we

partnered with kaiser permanente and blue shield of california. kaiser did a lot of on site activities. blue shield as you know did the well being assessment which the data was presented on last month. we also partnered with rec and park and that allowed us to offer wellness classes at city hall and at the wellness city for free which was an interdepartmental effort. we opened a wellness center and continued the programs and expanding them this next year. we expanded flu shots and we got a 20% response rate on our well being assessment. more and more are moved to doing a well being assessment rather than a risk health assessment and a important distinction to make and the literature is citing

that health is by someone's sense of well being versus how much they exercise. it's really about a sense of well being and that drives their ability to eat right and move enough, so stephanie, the wellness manager's annual report is in your packet as the annual report as the aep annual report which are worth being proud of. the next -- the other activities that i want to highlight is i did meet either by phone or in person with blue shield daily during the blue shield sutter issue. pam and i -- the cfo met with every person and the managers and to put the budget together and it's been thoroughly prepared and we have met several times -- i know you

approved the strategic plan but we have met and you have the worksheet in front you that has the timelines and outcomes and we were overwhelm ded by how much we agreed to do and i drafted a letter to the department of managed care regarding the sutter blue shield it's not in here -- >> yes, it is. >> okay, great. >> it's behind the well wellness -- >> it's at the end of the report. >> it's at the end of the wellness report. >> thank you. one of the issues that came up that our communications manager identified -- rosemary identified is that the information that has to go out by law to all of the hmo members when a contract isn't renewed in a managed care setting meets the litmus test of compliance for

legally what needs to be in there but it's very confusing for the actual member so i drafted a letter urging them to make readability one of the issues that the letters have to be understandable just as our health literacy information has to be understandable, so with your approval we will send that out. i think blue shield did their best but they were contained by the law, and i have in the packet through different pieces of legislation which i actually took to the state legislative committee yesterday. the first is sb -- all by senator hernandez. the first is sb137 and this bill requires that health plans maintain a current directory and it include whether or not practices have openings so that you won't sign

up for a health plan and they say "i'm sorry. we're not taking new patients." they need to be updated weekly. i recommended that we take a support if amend position and the amendment would be that we add in urgent care centers. i will be working with supervisor farrell's staff who is on the state legislative committee because there were some other suggested amendments, but this would certainly solve a lot of our problems in terms making access easier for our members. on the other two bills in the packet sb26 is similar to the leno bill from last year and hailed as accountability and transparency and quality bill. i recommended a watch on it at this time until we have a chance to work with the author and get a sense of exactly what's in it,

and again on sb125. it's unclear whether this applies -- this bill changes the open enrollment periods, unclear whether it applies only to covered california or to all employers. it shortens the time -- it lengthens the open enrollment period but shortens the processing time to two weeks in terms of entering all that data and having people eligible january 1 so we will be again clarifying that with the author and making sure there is adequate time. i am sure other employers will be up in arms as well so i had to present these at the legislative committee because it was prior to this board meeting, and i will continue to attend that meeting and follow the progress of these bills, but i would like your approval of those positions at this point. >> are you finished with your report? >> and that concludes my report. >> all right. are there

questions to director dodd on any aspects of her report? >> i had a suggestion about the wellness report in the future when you have something this thick it would be nice to have it in a separate binder or something if possible and it wouldn't have to be in here. it was very difficult to put together. >> okay. >> okay. any other comments on the director's reports? the director has made a recommendation regarding some legislative -- i'm sorry. >> two recommendations. one for the department of managed care. >> one the department of managerred care letter and the draft is in the materials and secondly regarding bill number 137 -- >> 137 and watch position. >> and watch positions on the

other two bills, 26 and 125. >> 125. >> so is there any recommendation or action by the board? she's asked for an endorsement. >> this is not an action item. >> i understand. this is an discussion item. is anyone going to raise an objection if she does these things? i don't hear objections by the board members. is there any public comment? oh there is public comment. >> good afternoon. nice to see you. i wanted to make a couple of comments on the legislative session. i was too at the legislative committee yesterday and complete understand the current watch position on sb26. i am hopeful and anticipating that we will do everything possible to move that

bill to a place where we can move to a support position because it begins to get at all of the things that we spent so much time struggling with around having data that we could use to make good decisions, having the kind of transparency we needed to be able to guide our members in their own best interests, and also to move into an accountability model for health care which of course requires understanding what is happening, so i pledged yesterday and i will pledge again that we want to work with whom ever and on this we feel it's that important and the great thing is we're not -- right at the moment there is no gun to our heads. we're not in the middle of bargaining. we don't have a sutter blue shield disaster looming right this moment. kaiser seems to be calm for the time being so i am hopeful that some of these thing

tas are important but sometimes don't get the attention because nobody has the capacity, and along those lines i would just like to ask whether this board would also be willing to take a look at the united food and commercial workers lawsuit against sutter right now? that lawsuit begins to again look at the anti-competitive practices, many of which we're bound by through our contracts with blue shield and their contracts with sutter have no position on it particularly, but there are people taking up some of the questions, the very questions we have asked here and seems to me that we might want to get more information about what possible synergy there might be in joining together in those efforts, so thank you for your time and your continued effort. >> thank you for your comments. is there any other

public comment? >> claire again speaking for myself. traditionally this board never took positions with regard to any legislation and so i see this as very helpful, and a positive step, but i also hope we're working with the city's representatives in sacramento who represent the city and county and that this is much more than just health service going with regard to these bills but it impacts the bigger picture of the city and i am hope thrg is some -- hoping there is cooperation and collaboration there and whoever represents the board of supervisors at the state level so it's a broader more firm lobbying effort -- >> i didn't hear the word. >> i should say it "representation" at higher bodies and i actually like to

second what rebecca said about the lawsuit against sutter. that's an issue that we brought up at the retirees and came up during the time with negotiations with sutter and blue shield and the fact that many of the retirees live in the counties where there are no options for services so we're interested in following up and how that goes forward and keeping the options open in regard to what the board decides to do in the future so thank you very much. >> thank you for your comment. we are going to be guided in any of these efforts what is allowed urn our charter provisions by our council so unless anyone get any understanding or perception that we're out lobbying or doing those things. we do not do that here and we are a trust body. we look at the things that impinge upon the interest of

that trust and through the is appropriate channels and from our counsel will be active. yes? >> >> just to reiterate these bills were taken to the legislative committee and the board of supervisors and the mayor yesterday, so -- >> [inaudible] >> all right. thank you for that clarification. all right. we are i believe ready for the next item. >> item 15 discussion item. hss financial reporting as of december 31, 2014. pamela levin. >> pamela levin, deputy director cfo. there is nothing significant to report as a difference between last month and this month. in either the trust or the general fund except for the fact that because of

two delays in hiring we're showing a larger general fund surplus at the end of the year. we are quickly hiring up and i will be back next month and let you know where we are. >> all right. and again while you're here standing i want to personally and i know the board does as well commend you for the work that is represented here in the finance committee documentation that we received and discussed earlier at the meeting. it's taken an extraordinary amount of time and toll i know, professionally and personally for you to give leadership to this over time, and we thank you for that. >> thank you and i couldn't do it without a great staff so i would like to thank my staff and i would also like to thank corrina. she was helping me with the budget and without her we wouldn't have had all of the documents done.

>> it's a great piece of work. thank you again. okay. next item. >> are we doing item 16 or carrying it forward? >> what? >> [inaudible] >> yes please. >> item 16 discussion item approval to award contract for the f sa cobra 11. >> as i indicated earlier chief financial officer levin -- i am trying to get my head wrapped around the title. we listed this in the agenda as an action item -- discussion item and you're calling for action, so i would like to continue this item to our next meeting unless there's something that we absolutely need to know today

or creates an issue for you. >> i had discussions with the city attorney about the issue about they're starting to prepare to take over cob raas of july 1 so i am pretty comfortable with his recommendation that we continue on and come back to you next month. >> okay. thank you very much for that. okay. >> item 17 action item approval of the annual report. director dodd. >> thank you. catherine dodd director. i just wanted to highlight a couple of things and this is again an example of your work and the work of our department. this annual report is an 18 month look at the

accomplishments because we wanted to get on the calendar track with our strategic planning and planning here. again our increase in terms of the number of people that we provide services to. we increased year over year by 1167 lives in 2014 and i think that concept is like two large employers so as we increase there's -- think of adding large employers to our department. i think the info graphic on page five kind of summarizes how complex our activities are. i want to thank the communications manager for updating that in finance and all of the people that gave input. the idea of 72,000 calls, 21,000 in person member visits is pretty staggering. this was a year

where we also had to implement the federal taxes, so the pe cory fee which is per employee per year, the transitional reassurance year and $63 per employee per year. all of these add up to an incredible amount of money that was pumped into our rates. we were successful in taking the money we applied for through the early retiree insurance program, the 6.92 million and lowering the rates but that certainly didn't off set all of the fee associated with the obamacare. despite all of that. >> >> affordable care act. and the increase when you subtract the taxes was .1 4% in 2014 and for 2015 negative