Present were Chairman Richard DeVaughn, Ronald Mercer, Michael Peck, Jay Dee Chase, Aneta Wilkinson and Garoldine Webb.

Chairman DeVaughn called the meeting to order.

Oklahoma Department of Human Services (OKDHS) Director Howard H. Hendrick began his comments to the Commission by listing some recent site visits that included Child Welfare Case Reviews, Family Support Supervisor’s Annual Conference, County Director’s Annual Conference, Canadian County Judicial Analysis of needs for Early Child Mental Health Services, Oklahoma County Juvenile Center Needs Assessment Planning Session, Judicial Technology Conference – surveying the opportunities for shared data, Oklahoma Health Center Foundation meeting, Information Services Tech’s Luncheon Address, Oklahoma Commission on Children and Youth, Space planning meeting for DMH, OUHSC and OKDHS DSD, Workforce Investment Act board meeting, Planning for service needs for DMHSAS used by OKDHS, Oklahoma County Juvenile Court Judges shared planning meeting, Adult Day Care Providers meeting to review rate needs and workforce issues, Governor’s Cabinet Meeting, OHCA Meeting regarding Automated Eligibility System, DMHSAS Transformation Grant progress assessment, Reviewed opportunities with Private Foundation representative to coordinate foundation giving for human services with OKDHS strategic thinking, Oklahoma County CW Continuous Quality Improvement initiative, Smart Start Oklahoma Board meeting, ADvantage Waiver Providers meeting, OCCY Task Force on Child Abuse Prevention planning, MOSAIC planning session to review goals, Various Officer’s 90 Day Review sessions, Fall Forum for the Oklahoma Institute on Child Advocacy, Family Start quarterly assessment of progress, Meeting with USDA-FNS Regional Administrator, OUHSC-College of Medicine-Department of Geriatrics 10th Anniversary event, Governor’s task force on State Employment Issues subcommittee on classified service, Meeting with Senate Co-President Pro Tempores regarding FY 2009 Budget Issues, Annual Latino Celebration, IT Governance Board funding session to review projects, Planning for legislative session with various members of the House and Senate, Six Sigma Project presentations to show various initiatives to deploy statistical methods to contain costs and improve outcomes, SoonerStart Interagency Director’s meeting to review the proposed budget request for FY2009, OU College of Medicine – Endocrine Department regarding Adverse Childhood Experiences Research and its affects on child health status, Child Support – review of various guideline and other proposed legislative issues for 2008, Midwest City Kiwanis Club, Oklahoma Partnership for School Readiness Board meeting, Oklahoma Capitol Improvements Authority Special Board meeting and Improving surveillance and safety in the delivery of the ADvantage Waiver services delivery system.

The director followed his site visits with some good news that included: Oct. 27, 2008 is “Make a Difference Day in Oklahoma” and the OKDHS County Administrators Association is partnering with Feed the Children to raise money and supplies to fill the state’s food banks for the upcoming holiday season. Also, OKDHS saw an impressive list of Certified Public Manager graduates as well as projects that were finalists for the Gerald D. Wilkins Good Work Award. 

Next, the director gave a brief update on the food stamp program before outlining the FY 2009 Budget Request that was discussed at length during the September Commission meeting.

The director touched on the FY 2008 Capital Bond Proposal that was discussed in detail later in the meeting before briefly discussing some major issues ahead that include: move proposed bonded construction projects through the approval stages; continue to attempt a resolution for the agreement for services delivered by the LTCA of Tulsa and plan for the 2008 Legislative Session.

OKDHS Chief Financial Officer Phil Motley presented the financial report for September. Through September, actual expenditures and encumbrances for the Department are less than budgeted expenditures by 6.7 percent. This is typical early in each fiscal year. This percentage represents approximately $29 million in total dollars expenditures less than budgeted through the first three months.  Historically, expenditures will accelerate slightly as the fiscal year progresses. 

Actual receipts and receivables through last month were 4.8 percent less than revenues necessary to fund a full performance, year-to-date expenditure budget.  This relationship produces a current year positive financial position of $5.6 million in state dollars. The previous year available cash is an additional $2.7 million. Aging Services Division remains the only division over budget at this point in the fiscal year. 

As of the report date, Aging Services is reported at 4.7 percent over budget which is primarily related to ADvantage Program expenditures. Two major programs in the agency are reported over budget through last month.  Children and Family Services Division Group Homes are over budget by 6.7 percent through last month. Staffing needs continue to drive these expenditures. The Aging Services Division ADvantage Program is reported at 14.5 percent over expended.

The number of children in foster care decreased by 169 from the month of August. Payment to adoption Subsidy recipients increased to 9,483 which is up by 251 over the previous month. Food benefit cases continued a recent trend and declined by another 1,124 cases in September. The number of TANF child only cases dropped by 47 last month and TANF cases with adults were 39 less than in August.

Sharon Neuwald, coordinator, OKDHS Office of Legislative Relations and Policy, presented for the Commission’s consideration, the recommendation of the Rates and Standards Committee for a rate increase for Level C residential services. Level C residential services are provided to children with moderate behavioral problems. The current rate, established July 1, 1993, is $46.49. The current number of level C beds is 12, serving 22 custody children in FY 2007. There has also been a waiting list for these types of services. The Commission approved the proposed new rate of $91, effective Nov. 1, 2007.

Commissioner Peck delivered, for the Commission’s considerations, a report of the four-project 2008 capital bond issue.

CONSIDERATION OF FOUR-PROJECT 2008
CAPITAL BOND ISSUE
BACKGROUND

1. Pontotoc County Human Services Center
   On Oct. 26, 2004 this project was brought before the Human Services Commission, and funding was approved up to the amount of $5,000,000.  Since so much time has elapsed, this project is being re-submitted for your consideration along with three additional projects. 
   
   For more than 20 years, the Pontotoc County Human Services Center has leased space from the Oklahoma Department of Central Services (DCS) in the Abbott-Miller Social Service Building, Ada, Oklahoma. In November 2006, DCS sold the building to the Chickasaw Nation, whereupon OKDHS signed a one-year lease with the new owner, with one option to renew. At the expiration of the second option in November 2008, occupants of the Abbott-Miller Building are requested to vacate the premises or negotiate a lease extension with the Chickasaw Nation.
   
   Project Proposal:  OKDHS has purchased a building site on 8.2 acres of land about one-half mile east of the present office, where together with the Pontotoc County Health Department  we propose to construct adjacent buildings to provide a convenient one-stop campus that serves the clients of both agencies. Through an interagency agreement to proportionately share costs, the LWPB Architecture Firm has been selected, and is currently in the construction document phase of this campus. The new human services center will house up to 109 FTE in approximately 27,390 square feet, including a Child Support Enforcement Office and the Area IV Office. The OKDHS building and the Pontotoc County Health Department building will each be separately owned and funded.
   
   
2. Tulsa County -- New emergency children's shelter
   Until May 2007, the Laura Dester Youth Shelter had a licensing capacity for 38 beds in three buildings.  This was increased in May 2007 to the current 50-bed capacity. The existing facilities on the Laura Dester Campus at 619 S. Quincy were constructed in the late1940s, and have reached the end of their useful life, as evidenced by higher than average maintenance costs. An appropriation to pay debt service and operating costs for a new shelter and office building was approved during the second 2006 legislative session. 
   Tulsa County -- New Emergency Children’s Shelter-continued:
   
   Project Proposal:  New construction will consist of three new cottages, with licensing capacity for 42 beds and 8 cribs, as well as overflow capacity for additional beds, and an administration building that will include education and recreation facilities. A 20-acre building site located in northeast Tulsa has been selected, and OKDHS has entered into a lease-purchase agreement for the land. The architecture firm of Kinslow, Keith & Todd has been selected for this project, and schematic designs for the campus are nearing completion.
   
   
3. Tulsa County office building purchase
   As part of the FY 2006 budget request to replace the Laura Dester Shelter described above, OKDHS also requested funding to construct an office building to replace the DDSD administrative offices also located on the aging Laura Dester Campus. 
   
   A 2007 cost estimate indicates the need for a 31,000 square foot building to house 124 case managers & other professional staff including the area medical director, nurses, occupational therapists, physical therapists, nutritionists, and administrative and supervisory staffs that provide support to DDSD clients in home and community based services. The estimated total cost of this new construction project is $6,057,678 including land, furnishings and moving costs. An appropriation to pay debt service and operating costs for this office construction was approved as a package with the Laura Dester Shelter during the second 2006 legislative session.
   
   Project Proposal:  Recently, a five-story office building has come on the Tulsa market at an asking price of $5,000,000. At 184,972 gross square feet (includes some enclosed parking, this comes to $27.03 per gsf) or at 121,453 net rentable square feet, $41.16 per nrsf. This building, located at 6128 E. 38th Street, currently leases space to one of the Tulsa area local units, known as 72H. 
   
   After responding to an OKDHS advertisement with the most competitive lease rates, the building became the temporary home for OKDHS tenants recently displaced from a downtown Tulsa office building. There is sufficient capacity to accommodate the Laura Dester DDSD offices as well. The building contains two state tenants, which OKDHS would retain in the short run -- providing some income to the project. Although the building is 33 years old, it is in good condition, and has over 500 parking spaces. The ability to accommodate all three groups in one OKDHS-owned facility will save rent, allow space for growth in the Tulsa area, and provide good value for a variety of agency needs.  
   
   After advertising for office buildings in the Tulsa area, OKDHS has secured an appraisal on the subject building, and staff is in the process of negotiating a price with the owner. However, if an agreement cannot be reached, a different building will be sought, or an office building will be constructed with the proceeds as originally anticipated. Additional funds have been identified in the bond issue request for renovations including restrooms, fire safety and lighting.
   
   
4. Creek County Human Services Center
   The OKDHS offices in Sapulpa are located in an old post office building owned by Creek County. The 98 FTE in the building are squeezed into 12,996 square feet, which is 35 percent inadequate for their needs.Also, the Child Support Enforcement Unit (17 FTE) leases space in a separate building in downtown Sapulpa. An appropriation to pay debt service and operating costs for this project was approved during the second 2006 legislative session. 
   
   Project Proposal: The new construction would house 107 FTE from the combined human services & CSED offices in a 25,812 square foot human services/CSED center. A building site has been selected on Rt. 66, and initial steps taken to acquire it. The Small Group architecture firm has been hired to commence the design process and initial floor plans and elevations have been submitted.
   

1. A proposal must be developed to address the agency’s prioritized capital need.  This proposal includes an analysis of costs, space needs, and cash flow capacity.
2. The agency must identify sufficient funding to amortize the bonded indebtedness.
3. The Commission for Human Services must review and approve the proposal.
4. The Council of Bond Oversight and the Oklahoma Development Finance Authority must also review and approve the plans, including the financing arrangements.

The above bonds will be issued through the Oklahoma Development Finance Authority. The bond funds will be placed in an intermediary bank where they will earn interest. They will be withdrawn at various stages of construction according to an established schedule. The 2006 legislature approved debt service funding for the Creek County and Tulsa County projects. Remaining ongoing costs will be addressed in the budget balancing process.

The four proposals here described are offered for Commission approval today.  Pending this approval, they are scheduled to be considered by the ODFA on Oct. 31, 2007 and by the council of Bond Oversight Review on Nov. 29, 2007.

OKDHS Human Services Centers Chief Operating Officer Marq Youngblood delivered a brief report before introducing Caddo County Child Welfare staff Susan Gray, Sandra Martinez and Jennifer Chrismon who presented a report on a very special birthday celebration for a young Native American custody child.

The date of the next meeting of the Oklahoma Commission for Human Services is Dec. 4, 2007.