folks and myself time. unfortunately that's continuing. there's a couple of pronouncementmentsments that arg down the pike for next year. we don't know the full ram addition -- ramifications on the time required. it is getting more difficult. i appreciate your comment. thank you. any public comment on this item? >> clerk: number 9 is discussion time. mayor's budget instructions for the san francisco health service system for the fiscal year 2019-20 and fiscal year 2020-21 general fund administrative budget. presentation by pamela levin. >> in december, the the mayor's

office issued the budget instructions for fy 19-20 and 21. it only applies for general fund budget. both budgets will be brought forward to you next month. one of the first steps in the budget formlations the budget instructions is the 5-year financial plan. they issued one for 1920, 23 and 24. the@ç deficit in 19-20 is projected to be $107.4 million and 2021, $183.4 million. these are up from what has

happened in this last year but they are significantly down when everything went sour in 2008. in those ranges they were $300 million and more. when the local tax revenues are projected to grow in the short term, we are still seeing increases in expenditures that outpace revenue growth. that's primarily due to increase in employee costs and pension is the biggest factor. voter mandated compliments were set aside and requires contributions to supporting entitlement services. the reason i mentioned this is because is all our administration budget is recovered from other departments to the extent that we have constraints and we have

constraints. as you usual, the areas of uncertainty are the collective bargaining negotiations. all but maybe a handful of those are up. they are currently in negotiations. those will be completed in may. it's still roll of the dice. there's financial obligations for those causing authority. we are looking at a risk of an economic recession. everyone has heard that why the city is preparing for that, it's unclear just how much that's going to affect us. i want to quickly touch on the mayor's priorities. the first priority is to get

things done. what the mayor is looking at building more housing, reducing homelessness, addressing behavioral health needs, cleaning the city streets and making them safer, creating equitable opportunities for everyone and making government more accountable. in the terms of the fiscal policy is continue to build reserves, limit ongoing cost growth, fund strategic one-time investment and make every dollar count. the reason i say those, because that is a specific statement that the mayor has said. rest of this presentation, eye will be focusing on how not only just what the budget instruction say but how they fit within our strategic plan.

concepts are very tied to what we have in our strategic plan and frankly what we've been trying to do every year. at least that i know of. this first is focusing on equitable outcomes. this includes using metrics, using information and then achieving outcomes based on $é-l(qq&iverable;xeip &c @&oject strategic goals within our performance -- gosh, strategic goals within our strategic plan. the other is prioritizing those with the greatest need we ensure

the highest and best use of the current funding and then identify funds that can be spent more effectively and efficiently. budget instructions are as follows. equal to 2% of the general fund growth. we are reducing in 1920 must be on going. what this results in the first year is $67,000 and the second year is another $67,000 for total of $134,000. then departments must propose contingency saving 1% in 2019. 20 in additional 1% in 2021.

this is@ç due to the uncertainty of labor negotiations and ongoing city revenues. the way this works, we proposed contingency. they look at what is occurring then they make it a decision with us on what contingency or if contingency reductions will be made. the contingency proposals must total $34,000 in 2021 and another $34,000 in -- i'm sorry, 1920 is $33,000 and 2021 is an

additional $33,000 on top of the original 33. the instructions are department shall not add new positions in their budget. this is verbatim per the instructions. once the budget proposals are submitted to the mayor's office, they will discuss with us any new positions if they align with the mayor's priorities. we are closely working with the mayor's office to ensure that the positions associated with the strategic plan are reflected in the annual salary ordinance. the next is department must clearly define goals within the

program. this is throughout the strategic plan. we are using data-driven to measure effectiveness in programs and services. it fits in very well with the direction. the department's mission should be particularly reflective of goal cleaver -- achieving equitable outcomes for residents throughout the city. our constituents are our members and our goal to reduce equitable outcomes are based on who we serve and the impact of economic and social inequities. the strategic plan goal is to reduce fragmentation.

it's to understand the impacts. >> president breslin: in interest of time, you can condense this and point out that's most effective. >> i plan to do that. thank you very much. we're also supposed to see community engagement on developing the budget. this came up last year to gather information and gather responses. we have always provided opportunity for members to talk to us during the budget process or talk to the board. with are adding an additional way that our members or the public can assess our budget documents to increase member engagement and ensure transparency. we're supposed to look at long term savings and cost avoidance.

we to consider participating in the city program. we are also supposed to consider independent review and audits and develop budget missions. i like to know there are no current reviews and audits by the comptrollers's office. kpmg, external audit, is very good. we are developing an internal audit plan to ensure compliance with rules and regulations and ensure best practices are followed. as i mentioned in february, we will bring the 1920 and 2021 budget to the finance and budget committee and health service board for final approval. at that time we'll be bringing in the stability fund.

are there any other questions? >> commissioner lim: general comment on the mayor's budget, every year they come up with a projected deficit, the following year, 2021 is and 83. for last 10 years, in 2008, every year the city comes up with a positive surplus every year. [please stand by]

salaries and benefits. the issue in the pensions is that they had projected and put into their accuwearial calculations a better return on investments than they are getting so therefore since they are not getting it, they have to charge more, you know, they collect more in the pension rates go up. as you know, we also have the issue where all of us are living longer, and that has to be taken into account over and other. >> thank you. any public comment on this one? >> one more. >> with all of the deficits projected, this is a small department. 2% around 6 to $7,000.

the only person not taking into consideration the savings for the city in terms of we have saved more than $10 million for the last three or four years. they don't take that into consideration. yet they want to cut 6 to $7,000, not taking into consideration the millions they saved the city. in. >> in the end we have been successful in getting them not to make a lot of the cuts we propose, and based on exactly what you are saying, we remind them at every possible time that we bring in savings. >> thank you. >> there wasn't any public comment. item number 10, please. excuse me. go ahead. >> herbert weaner, city retiree.

commissioner lin brought up a significant point. the surpluses seem to materialize. i think there is a real deficit on financial analysis on the part of the city. that is a deficit we have to address. maybe what should happen is when the report is submitted to the mayor, possibly alternative statistics should be shown in addition to the report that is requested. i think to sending information is in order here, and this should be pointed out to the mayor, basically this is an old story. i think it happened in the last eight years. i agree with commissioner lim. the negative result is the employees will be negatively impacted. i realize the position that

administrators of the health service system are in. they have to comply with requests and advocate for us. it is a tricky tightrope to walk. i want to express my consent. what we are dealing with is a deficit in financial analysis and also the aim of the city is fiscal retentions, and those are my thoughts as a retiree. thank you. >> no other public comment. public comment is closed. item 10. >> item 10 is an action item. approve resolution orders the health service board election for two expiring terms. presenter aviant.

>> abbie yant. today we are kicking off the health season for the health service board. we have a number of items in the packet to include resolution for your approval regarding the election. there is a copy of the department elections notice to be sent to the department of elections tomorrow morning. there is an exhibit on the member notice. there is the member notice itself. there is an election schedule. the nomination form with the sponsor pages. next slider, please. on the important dates moving to the election. assuming your approval today, tomorrow january 11th members can start nominating. the forms are due back no later than february 14th. those come to the health service system.

once those are reviewed. the nominees will be notified directly of their status. on february 21st. on the 28th candidates notified of the nomination have an orientation session in the department of elections. this is currently scheduled on that date from 2:00 to 4:00 p.m. march 27th is the deadline for candidates to submit election statements to the department of elections by the close of business. on april 30th ballots are mailed to eligible sfhss members. may 9 to 29, voting can take place. those ballots go to the department of elections, we will not accept them at hss. ballots are counted on may 30th. winner announced. new elected members begin the

term at the meeting on jun june 13th. i think that is really it. natalie will be steering the ship from the hss perspective. we have set up an elections e-mail for that purpose so she can answer questions that she is permitted to respond to and is in close correspondence with the department of elections. there is the resolution in your packet. i don't know that i need to read that unless you wish me to, and that is what is before you for approval today. >> just for my information. this is a five-year term. is there some history why two of the elected members are elected the same year?

proxy? >> any other comments? >> all right. i need a motion. >> i would like to move to approve. >> second. >> any public comment on this item? all those in favor. all those opposed. unanimous. all right. it is time for a break. i think everybody would like that. excuse me. the calendar before you break. >> okay. >> can we do the raise and benefits first before the break? >> please, yes. >> item 11 is the presentation

of the 2019 rates benefits for the plan year 2020. presentation by abbie yant. >> good afternoon, commissioners. you have in your packet the rates and benefits calendar for plan year 2020, and i think i don't need to read it to you. we tried to group it in a fairly logical order. we will do our best to stay in that logic. things fall off the calendar at times. we also in anticipating that we might possibly need additional meeting times, we did put a hold out on each of your calendars for extra meetings in those crucial months of march, april and may. i don't at this point needing them. we wanted to have them on the calendar in case the need should

arise. we will wrap up, obviously, in june as medicare products will be brought before you in june in order to meet the timelines to go to the board of supervisors through the budget process. are there any questions? >> i would like to say that if we are short of time, it is more convenient for board members and probably everyone to be able to start the board an hour early if possible rather than have the full meeting where you have to set up everything. >> we will poll the group to find that out as well. >> most board members would prefer that. it is not a whole new day or you don't have to set up this room. it is simpler if it can be done in an hour. a lot of times we have added a meeting at the end. >> i have to start the

discussion with the transbay authority board secretary who has the meeting before and the human rights meeting before us. we may want to start earlier. >> what time does the meeting after start? >> they come until 4:30 p.m. we have the room until 4:00 p.m. i asked if we stay until 4:30 p.m. if we communicate with her. >> they start setting up at 4:30 p.m. >> thank you. any other comments? thank you. did you vote on that? >> i move we adopt the calendar for the 2019 rates and benefiters cycle. >> i second the motion. >> all those in favor, aye. any opposed? no. >> i don't remember ever adopting a calendar. >> it was a discussion item.

i'm sure she will take it under advisement. >> thank you, council. >> now we will have a break. >> we are back in session. item 11. item 12 is review incurred but not reported and the contingency reserve fund status by aon mike clark. >> this is the report of two of the theory serves we keep for the self funded benefit programs. what i would like you to go on page three which explains the theory serves. i will -- reserves.

first are the estimate of unpaid claim liability for any claims we call run-out claims where services were rendered on or before a given date. those claims have not yet been paid. if you see your primary care physician on june 30th that is not going to paid by your health plan on june 30th. it would be paid probably in july. we calculate june 30 of each plan year. that is the last day of the fiscal year. that is the first. second is ton continuing genesee. it is -- contingency to help protect us against potential for funding estimate short fulls over and above what we capture with ibnr. this could occur if the claims in the plan year exceed the

projected claims when we develop the equivalents. like the ibnr, we calculate as of the last day of the fiscal year, june 30th. the third, which we will talk through in coming months, are the stabilization reserves or rate stabilization reserves. these are an annual determination of gain and loss. we calculate this based on plan year experience, as of december 31st. we will review that with you in coming months. page 4. listing our calculation for the ibnr reserves june 30, 2018. you can see three major plan buckets we do this for. blue shield of california, flex funded plans.

we combined access plus and trio for this illustration. second be is united healthcare city plan. you can see for both those active and early retirees are captured. third is delta dental of california active employee ppo plan. as you look at the change from our prior calculations as of june 30, 2017 to june 30, 2018, for instance you will see decrease on the blue shield plans. that is primarily driven by a change of administrative possessing that took place actually in february 2018 by blue shield on how they process pharmacy claims. they used to have a couple week claim lag. with the administrative change that eliminated the claim lag.

pharmacy claims are add used indicated and played instantaneously. that is for the blue shield plan. for united healthcare city we saw substantial increase in the population between 2017 and 2018 so that is the primary driver of the city plan increase. then continued favorable experiences as pamela commented earlier was a key driver behind the slight reduction in delta dental plan. in total, the reserve recommendation for june 30, 2018 is almost identical to where it is at for all three plans as of june 30, 2017. >> one question for the chair. this has been reviewed and audited as presented?

>> cape has thoroughly reviewed the calculations so i believe that when the audit report is issued. for instance they haven't come to me or palawith -- palawith any specific questions in several months. it makes me think whatever is happening in the audit process they have reconciled to these calculations. >> thank you. >> the last page of my report is the contingency reserves. you can see for blue shield of california and united health care city plan generally increases of 5.5 to 6 percent. very favorable on the dental plan leading to rededuction in total projected increase 4.4% in

the contingency reserves june 30, 2018. then i note the very bottom statement on page 5, the change in contingency reserves does become a component of claim stabilization reserves for each of the plans in the coming months. >> any questions? any comments? thank you. any public comment on this item? seeing none, thank you very much. >> thank you. >> moving right along here. now we will go into our governance committee matters. i will have item number 13, please. >> item 13 an action item. start fiscal year 2017-2018 health service board annual

selfie valuation process. presenters include the chair and randy scott and indicate howard and the managing deputy director from the department of human resources. >> if you would come and introduce yourself and provide background about your role in relationship to this process, and i will make a general statement. just identify who you are and what you do. >> thank you. commissioner scott, president breslin. kate howard managing director of the department of human resources. thank you for asking dhr to support the commission in the annual process. i am here with a timeline and overview of the survey questions that we have used in prior years and ask for your action on those

a tems today. >> as a part of the terms of governance we have undertaken to do a board selfie valuation to kind of look at, take time to reflect during the prior year what did we do? what could we have done better or differently?

>> supervisor fewe >> supervisor fewer: our clerk is miss wong, and i would like to thank sfgovtv for broadcasting this meeting. madam clerk, do you have any announcements? >> clerk: yes. [agenda item read]. >> supervisor fewer: thank you very much. let's see...madam clerk, we will hear items one through six last on today's agenda. can you please call item number seven. >> clerk: resolution approving

an emergency declaration of the san francisco public utilities commission to repair the southeast treatment plan final force main for a total estimated cost not to exceed 5 million. >> supervisor fewer: thank you very much. i believe michael chan will present on this item. >> my name is michael tran. i'm a project manager for the san francisco public utilities commission. i'm overseeing this emergency project, and the objective of today's presentation is to provide an overview of booster pump station and an emergency declaration. the first picture on the slide shows the booster pump station. i'd like to give a broad overview. booster pump station is located

several blocks northeast of the treatment plant. it's located several miles south of the at&t neighborhood. we are back in public session. we can never make an assumption that no public is present. they are always present.

item 19, please. >> item 19 is an action item. possible report on action taken in closed session regarding employee evaluation. >> president breslin: i am looking for a motion. >> i move we not report on what was actions taken during the closed session. >> second. >> all those in favor. oye. >> it is unanimous. >> item 20. >> item 20 is an action item. vote to elect whether to disclose any or all discussion held regarding the employee evaluation in closed session. >> the

emergency declaration on september 26, 2018 to include authorization under both chapter 6.60 and chapter 21.15 with an increased anticipated not to exceed value of $5 million. giving -- i'd like to give aa

pipelines. construction target is expected to complete in 2023 with an engineer's estimate for construction at $38 million. currently, ceqa is classifying it as a mitigated declaration. what we're asking for is the board of supervisors support of the approval of the emergency declaration by san francisco public utilities commission pursuant to san francisco ad stiff code chapter 6.60 and chapter 21.15 with a not-to-exceed value of you.

>> supervisor fewer: thank you very much. colleagues, any questions? at the. hearing none, let's hear from the b.l.a. >> good morning, supervisors. severin campbell from the budget and finance office. there is a budget that we were provided. it's on page 17. table one, page 17 of our report. the budget's for a little more than $9.4 million. the emergency declaration is for up to $5 million. we are actually recommending a reduction in the emergency amount, to reduce it by $ $88,000, otherwise, we do recommend approval as recommended. >> supervisor fewer: thank you.

colleagues, any questions or comments? let's open it up to the public. are there any members of the public who would like to comment on item number seven? seeing none, public comment is now closed. [gavel]. >> supervisor fewer: i have a question. this is the third emergency declaration that sfpuc has brought before us, and i'm wondering if there is any kind of prevention plan moving forward or are we just going to be seeing a lot of emergency declarations? >> specifically for this pipeline, we are planning for a permanent relachlt project to hopefully mitigate the future needs for emergency declarations. historically, we have been inspecting them as soon as there is a notice of deficiency for each one of these pipelines, but at this point, it doesn't appear that it is possible to further repair without alleviating potential

safety -- health and safety concerns. >> supervisor fewer: so it's just that these emerging declarations are specific projects, and it's kind of not related to an overall maintenance problem? >> correct. i believe so. >> supervisor fewer: correct. >> supervisor fewer: correct. i'd like to make a motion to - working for the city and county of san francisco thank you, and we can take that without objection. [gavel]. >> supervisor fewer: and then, i'd like to move this to the full board with a positive recommendation as amended. [gavel]. >> supervisor fewer: madam clerk, can you please call item eight. [agenda item read]. >> supervisor fewer: thank you very much. i understand that the department needs more time on this item, so i'd like to continue this to the call of the chair and bring this back when they're ready, but let's open this up for public comment first, are there any members of

the public that would like to speak on this item? seeing none, public comment is now closed. colleagues, is there a motion to continue this item? yes, made by supervisor mandelman, and we can take that without objection. thank you very much [gavel]. >> supervisor fewer: madam clerk, can you please call item number nine? [agenda item read] few. >> supervisor fewer: thank you very much. we have derek chu, ad stror of compliance peculi compliance -- director of

administration and finance rec and parks. >> good morning, supervisors. i am derek chu, director of administration and finance rec and parks. in 2018, the clubhouse was destroyed in a fire. the department is in the process of replacing the clubhouse, and the projected cost is $4 million. the department has identified a funding source for this project, and it is through the refunding of outstanding bond issues in 2006 and 2007 that were secured by the open space fund. the debt service reserve for the refunded lease revenue bonds was no longer necessary once 2006 and 2007 bonds were refunded. the department proposes to use $4 million of these funds for investment in the park system. the $4 million in leased revenue bonds savings are tax exempt and there are must be used for a public purpose. the golden gate park golf

course clubhouse, although used as a public recreational facility is operated by a private lessee. on the advice of bond counsel, the department has identified the rossi pool project eligible to receive these fund does. as such, the department is requesting board approval of this ordinance that would schiff $4 million of open space moneys from the rossi pool project to the golden gate park clubhouse project and reserve $4 million of debt savings for the rossi pool project. the department thanks the work of everyone. >> supervisor fewer: thank you very much, mr. chu. colleagues, any questions? let's hear from the b.l.a.

>> this legislation, what the board is being asked to use is funds from the rossi pool project. the recreation and park project actually approved these funds for the clubhouse project. as mr. chu said, this is because it is being operated by a private nonprofit entity and probably is not eligible for tax exempt bonds. so the funds are being used for the clubhouse project. it's $4 million. we do show the funds of the clubhouse project on page 31 of our report. this is expected to fund the project, and then in order to make the rossi pool whole, money services for the 2006-2007 revenue bonds are no longer needed because those bonds were refunded within the use of the rossi pool, so it's basically both funds would be made whole.

therefore, we recommend approval. >> supervisor fewer: thank you very much. let's open it up for public comment. are there any members of the public that would like to comment on this item? seeing none, public comment is now closed. [gavel]. >> supervisor fewer: mr. chu, i have a question. i am completely supportive of the rebuild of the golf course. it's in my district. and also rossi pool. it's in my district, too. as we're switching funds, i find it a little shocking that you have $4 million left in this 2006-2007 revenue fund. why is that and is there more funds available there? >> the city refunded those 2006-2007 bonds, and in the process of one saving money for the city, the debt service

reserve that was placed for those bonds was no longer needed because those bonds have since been made off by the refunding. so it wasn't that we were not spending the money fully. those moneys were in a reserve for those bonds self- >> supervisor fewer: -- specifically. >> supervisor fewer: and it was 4 million. >> yes. >> supervisor fewer: okay. thank you. i look forward to those projects being done soon. >> we're working on them. thank you. >> supervisor fewer: okay. do we have a motion for this? yes, from supervisor mandelman. so i think we can move this with a positive recommendation to the board. thank you very much. [gavel]. >> supervisor fewer: madam clerk, can you please call item number 10. [agenda item read]