Oklahoma Tobacco Settlement Endowment Trust
Board of Directors
DRAFT Minutes
September 7, 2011

Board of Directors’ Members Present: Kenneth D. Rowe, Casey Killblane, Susan Walters Bizé, George E. Foster, O.D., John Kennedy,
W.R. Lissau, Lisa Nowlin, D.D.S.
Staff Present: Tracey Strader, Jonás Mata, Sjonna Paulson, Connie Befort, Sharon Neal, Lance Thomas, Dorothy Antwine, Jennifer Wilson, Rachel Wright
Guests Present: Tim Allen, Laura Beebe, Julie Cox-Kain, Chelbie Crajg, Eric Finley, Misty Doney, Robert McCaffree, Travis Monroe, Jan Preslar

Agenda Item and Discussion
Action and Follow-up
1. Open Meeting Act Announcement and Call to Order
Ken Rowe announced that the requirements of the Open Meeting Act, including the filing of the meeting and posting of the agenda had been met. He called the meeting to order.
2. Approval of Minutes of the May 11, 2011 regular Board Meeting
Motion to approve minutes of the May 11, 2011 regular board meeting made by Casey Killblane and seconded by Bill Lissau. Motion passed unanimously.
Dr. Foster was absent for the vote.
Dorothy Antwine will make the minutes part of the permanent record.
3.a. Board of Investors Update – Certification of Earnings from FY 2011
Travis Monroe, Director of Agency Services, State Treasurer’s Office announced that the Board of Investors certified $18,917,000 in earnings from FY 2011. They set aside $150,000 to pay for any senior secured debt which had not yet been audited. It is possible that some of this funding will be certified in the future.
3.b. Board of Investors Update – Discussion and possible action on FY 2012 contract for staff support to the Board of Investors
Travis Monroe requested approval of the contract with the State Treasurer’s Office to provide staff support to the Board of Directors. The new contract amount is $113,479, which is $6,000 less than the amount presented at the May meeting of the Board of Directors and no longer includes any portion of the Treasurer’s salary.
Motion to approve the FY 2012 contract with the State Treasurer’s Office in the amount of $113,479 was made by Casey Killblane and seconded by John Kennedy.
Motion passed unanimously.
3.c. Board of Investors Update – Attorney General’s opinion on earnings from the fund
Travis Monroe discussed the Attorney General’s opinion clarifying the conflict between the Constitutional language and statutory language regarding the calculation of earnings to be certified. Based on the initial understanding of the opinion, it appears that net realized capital gains would be included in the earnings calculation. If the Board of Investors takes the new calculation into consideration an additional $17.3 million would be certified for FY12. Mr. Monroe also announced that the fund was in the 4th percentile of all endowments and the corpus balance was approximately $660 million. The Board of Investors is exploring new asset classes of real estate and emerging markets. Mr. Monroe reminded the Board of Directors that TSET’s share of the settlement payments go directly into investments, and that the fund balance, which includes certified earnings that have not yet been requested for use in reimbursing grants and expenses, remains invested.
Ken Rowe will appoint an ad hoc committee of the board to meet with the Treasurer and staff to discuss the implications of the opinion on the Board of Investors’ investment strategy and the Board of Directors’ allocation of earnings policy.
4.a. Chair’s Report – FY 2012 Board Meeting and Retreat, November 16-17, 2011
Ken Rowe announced that the board meeting and retreat will be November 16-17, 2011. The meeting will begin with a joint board meeting with the Board of Investors at the State Capitol and move to the Skirvin for the Board of Directors business meeting and retreat.
4.b. Chair’s Report – Discussion of Board Meeting Dates for 2012
Tracey Strader discussed possible board meeting dates for 2012. It was decided that Thursday’s would be the best day to schedule board meetings.
Dorothy Antwine will follow-up with the board to review possible 2012 board meeting dates, keeping Thursdays in mind. .
5.a. Director’s Report – Introduction of New Staff Members
Tracey Strader introduced a new staff person, Connie Befort. Ms. Befort is the new Program Manager for the Health Communities Incentive Grants Program. Connie was previously employed with the American Lung Association and has a depth of experience in prevention and in working with many of TSET’s grantees, partners, and communities.
Sjonna Paulson introduced Rachel Wright as the new Health Communication Consultant. Ms. Paulson said Ms. Wright joined TSET from Schnake Turnbo Frank, a statewide agency. She worked on accounts in the public health and private sectors that focused on rural outreach and media relations. She has managed strategic planning and research efforts, and has a background in writing.
Jonás Mata introduced Jennifer Wilson as a new Program Officer. Jennifer was previously employed at the Oklahoma Department of Health in the Quality Management Division and is a Mobilizing Action through Planning and Partnership (known as MAPP) trainer. Jennifer has also served as a Program Consultant within the Tobacco Use Prevention Service of OSDH working with TSET’s tobacco control grantees and also served as the Statewide Students Working Against Tobacco (SWAT) Coordinator.
5.b.i. Director’s Report – Agency Updates – FY 2011 Audit Progress
Tracey Strader reported that the agency audit was in its final stages and so far there have been no findings. Ms. Strader said at the November board meeting Nate Atchison with Finley and Cook would provide the audit report to the board.
5.b.ii. Director’s Report – Agency Updates – Equal Employment Opportunity, Affirmative Action, and Sexual Harassment Policies
Tracey Strader said that the Equal Employment Opportunity, Affirmative Action and Sexual Harassment policies were agency policies that are updated annually. These had been reviewed by the agency attorney and were provided in the board packets.
5.c. Director’s Report – Conference Sponsorships
Tracey Strader reported that in FY 11 conference sponsorships were over budget by $1,000. Five requests have already been received for sponsorships in FY 12. Ken Rowe announced that he has delegated his authority to approve conference sponsorships to Casey Killblane, Vice-Chair.
5.d. Director’s Report – Agency Updates – Training Events and Opportunities
Tracey Strader encouraged the board to consider attending any of three upcoming national conferences: Grantmakers in Health, March 2012; CDC ‘Weight of the Nation,’ May 2012; and the National Conference on Tobacco or Health, August 2012.
6.a. Program Development Committee Report – Nutrition and Fitness Community Grants Update
Jonás Mata reported that orientation was held on August 11 and 12 for the new Nutrition & Fitness grantees. Thirteen of the 15 coordinators had been hired and were in attendance along with coalition members. A Pre-“Academy of Excellence” was held on August 25 and the “Academy of Excellence will be held Oct. 25 – 27, to provide a thorough foundation for lead agencies and coalitions to understand the Communities of Excellence framework and how to assess the needs and strengths of their communities with regard to nutrition and fitness.
6.b. Program Development Committee Report – Multi-agency Alignment Project Update
Jonás Mata reported that Oklahoma Public Health Academy is being established in collaboration with the Oklahoma Department of Mental Health and Substance Abuse Services, Oklahoma State Department of Health, and the Tobacco Technical Assistance Center to align trainings, tools, and templates as all agencies are working within community settings and offering similar strategic planning processes and trainings. A kickoff event was held on August 24 with leadership from each agency expressing commitment to aligning their efforts according to the MAPP framework.
6.c. Program Development Committee Report – Healthy Communities Incentive Grants Program Update
Susan Bize reported that Connie Befort would be managing the Health Communities Incentive Grants program and that information could be found on the OK Turning Point website. There is a November 1 application deadline for the Certified Healthy Communities which must be attained before a community can apply for the TSET grant. Connie will manage the TSET application process and ensure that the funds are managed appropriately. The incentive grants money will be used by communities to promote any of the criteria within the Certified Healthy Communities structure. Dr. Laura Beebe will serve as evaluator for the program. Ms. Strader reported that the amount of funding available to each community is based on the size of the community and the level of certification the community achieves (basic, merit, or excellence). Ms. Strader also announced that a recognition event for all organizations and communities certified as healthy will be held March 1, 2012 at the Cox Convention Center.
6.d. Program Development Committee Report – Discussion and Possible Action on Funding of a Technical Assistance Center at Oklahoma State University Focused on Multi-unit Housing and College Campuses
Susan Bizé reported that the OSU proposal for a Technical Assistance Center reflected grant coordinator capabilities rather than necessary capacity to provide statewide consultation and technical assistance. The committee was also concerned that without ongoing intensive program consultation from the State Program Office, OSU would not be ready to operate a statewide Technical Assistance Center.
Program Development Committee recommended that the proposal not be funded, but that the existing grants be extended through October 31, 2011 with an allocation of $10,000 each to finalize program activities and reports.
Motion passed unanimously.
7.b. Program Implementation Committee Report – Presentation – Tobacco Control Evaluation Updates, Tobacco Stops With Me Campaign
Casey Killbane introduced Dr. Laura Beebe and noted that the Longitudinal and Cross-sectional evaluation reports were in the board packets. Dr. Beebe reported that exposure to the campaign a doubles quit attempts among tobacco users, increases knowledge about the harms of secondhand smoke, changes attitudes about tobacco and motivates non-tobacco users to help tobacco users quit. The summary of the comparison between the longitudinal study and the cross-sectional study was that campaign evaluation showed consistently high levels of campaign awareness and positive perception of brand attributes, changes in secondhand smoke knowledge, and changes in tobacco-related attitudes over time. The findings may be viewed as precursors to behavior change and a possible bellwether of future tobacco cessation and that these were notable achievements for the three-year campaign.
The evaluation also provided TSET staff with valuable information in terms of campaign reach among target populations. For example, households with children were more likely to report exposure than households without children. Health Communication staff listen to the evaluation and used the information to adjust media buys.
7.c. Program Implementation Committee Report – FY 2012 Health Communications Updates
Sjonna Paulson reported that the full Health Communications report with images of all the communications products was included in the board packet. She reported that the Tobacco Stops With Me pregnancy ad resulted in a 170% increase in Helpline call volume from among pregnant women. She also reported that the Students Working Against Tobacco (SWAT) program had been redesigned and restructured with the help of Rescue Social Change Group. This redesign and restructuring was requested by the Communities of Excellence grant coordinators, SWAT adult partners, and SWAT youth. Three “campaigns” were developed to engage youth in activism to support policy and prevent tobacco use. Each campaign provides training videos, specific actions SWAT teams can take, and measures of progress which provide points and incentives for SWAT members and teams. Lance Thomas, TSET Health Communication Consultant, did an excellence job of managing this process.
Ms. Paulson also reported that the SoonerQuit for Women campaign is receiving a 50% federal match from the Oklahoma Health Care Authority, and the campaign will run throughout the year to encourage women of low socioeconomic status to quit smoking. She also reported that in FY 12 the Tobacco Stops With Me campaign will concentrate on the health impacts of secondhand smoke and tobacco use as well as tobacco’s economic impact on households, businesses and the state. The Shape Your Future campaign’s messaging goals include increasing the prevalence of Oklahomans who participated in the recommended level of exercise and increase the prevalence of Oklahomans who consume five or more servings of vegetables and fruits a day. Shape Your Future is moving forward in partnership with the OSDH and initial concepts will be available soon.
Casey Killblane asked about TSET Day at the Capitol. Tracey Strader described how grantees were able to interact and learn about each other while touching base with their legislators about their local programs. Dr. Foster commented that the SWAT teams are critical to the communities’ success. Ms. Strader stated that a youth program component for nutrition and fitness will also need to be addressed before the community grantees move into their implementation years.
7.d.i. Program Implementation Committee Report – Discussion and Possible Action on Renewal on Program Grants and Contracts for GY 2012 – Communities of Excellence in Tobacco Control (Wave I)
Casey Killblane presented the recommendation from the committee to fund TSET’s most mature grants, the Communities of Excellence Wave I grants, and asked for questions. There were no questions.
Program Implementation Committee recommended renewing Communities of Excellence Wave I grants for the slate of 17 grantees covering 26 counties and 1 tribal nation totaling $3,801,357.
Motion passed unanimously.
7.d.ii. Program Implementation Committee Report – Discussion and Possible Action on Renewal on Program Grants and Contracts for GY 2012 – Communities of Excellence in Tobacco Control (Wave II)
Casey Killblane presented the recommendation from the committee to fund the Communities of Excellence Wave II grants with the recommendation that Logan county be extended for only a six month period. Ms. Killblane asked Jonás Mata address the topic of Logan county. Mr. Mata explained that the program needed extensive TA with action plans to help the lead agency, Langston University, better manage the program. Ms. Killblane noted that the Logan county recommendation was included in the committee’s recommendation and she asked if there were further questions. There were no questions.
Program Implementation Committee recommended renewing the Communities of Excellence Wave II grant with Langston University for only a six-month period in the amount of $86,343 – with continuing funding based upon achievement of an action plan to address major Strategic Plan deficiencies, including outreach to the entire county.
Motion passed unanimously.
Program Implementation Committee recommended renewing Communities of Excellence Wave II grants for the remaining 6 grantees listed in the slate covering 11 counties totaling $999,091. Motion passed unanimously.
7.e. Program Implementation Committee Report – Oklahoma Tobacco Helpline Updates
Tracey Strader reported that substance abuse and mental health screening questions were added to the Helpline registration protocol in August 2011. Also, Alere Wellbeing has
negotiated lower pricing on lozenges and the Oklahoma Tobacco Helpline will soon be able to offer them to all participants. Previously, due to their cost, lozenges were restricted to smokeless tobacco users. She also reported that the North American Quitline Consortium survey results showed Oklahoma to be second in the nation in promotional reach, and fourth in the nation in treatment reach among smokers. Oklahoma also reaches a relatively high number of tobacco users for a relatively low cost.
Ms. Strader also mentioned the launch of web “only” program by Alere Wellbeing that allows users to receive all services on-line rather than calling in. Its effectiveness will be evaluated as part of the overall Helpline evaluation conducted by Dr. Beebe. In addition, Alere Wellbeing has contracted with the national office for Communication Service for the Deaf to provide video-to-video services for the deaf and hard of hearing. Training of CSD staff in registration and counseling protocol is underway and services are slated to be available no later than January 2012.
7.f. Program Implementation Committee Report – Report on Carryover Amounts for the Oklahoma Tobacco Research Center and Oklahoma Center for Adult Stem Cell Research
Jonás Mata reported that the carryover amount for the OTRC was $171,500 and the carryover amount for the OCASCR was $250,000. Board members asked why the carryover was so large, for both. Dr. McCaffree explained that the OTRC was unable to hire faculty as expected, and that the OCASCR decided that $50,000 in seed grants is not enough money for the research that is required. Expenditures related to research are often related to the timing of a project and the recruitment of faculty. Tracey Strader reminded the board that all of TSET grants are administered on a reimbursement basis, and this slows the expenditure rate as well.
Program Implementation Committee recommended approval of the carryover amounts for the Oklahoma Tobacco Research Center and the Oklahoma Center for the Adult Stem Cell Research.
Motion passed unanimously.
7.g. Program Implementation Committee Report – Update on Amount of the Contract with the Oklahoma State Department of Health, Tobacco Use Prevention Service
Jonás Mata reported that the board approved a contract with the OSDH in the amount of $700,000 during the May meeting. However, when the contract was finalized an error was corrected and this resulted in a contract amount $35,000 higher than the approved amount. The total amount of the contract was $735,000.
Program Implementation Committee recommended approval of the contract with the Oklahoma State Department of Health, Tobacco Use Prevention Service in the amount of $735,000 for FY 2012.
Motion passed unanimously.
7.h. Program Implementation Committee Report – Discussion and Possible Action on Amendment to Increase the Contract with the Tobacco Technical Assistance Consortium for the Multi-agency Alignment Project
Jonás Mata reported that TTAC had lapsed a little over $25,000 from FY 2011 due to the fact that the contract began so late in the fiscal year and there simply wasn’t time to accomplish the workload in the short period of time. He requested that $25,000 of the unexpended amount be added to the FY 2012 contract for TTAC to complete the work from FY 2011.
Program Implementation Committee recommended approval of the carryover amount of $25,000 for the Tobacco Technical Assistance Consortium.
Motion passed unanimously.
Dr. Foster made a motion to go into Executive Session. Bill Lissau seconded the motion.
Motion passed unanimously.
8.a. Executive Session – Review and Discussion of Renewal of Grants for the Communities of Excellence in Tobacco Control (Wave III) (RFP# TSET 092-4), as authorized by the Open Meeting Act – 25 O.S. § 307(b)(7) and as Required to Preserve Confidentiality Under 62 O.S. Supp. 2006, § 2309 (C)(4)
Dr. Foster made a motion to come out of Executive Session and Casey Killblane seconded the motion.
Motion passed unanimously.
8.b. Executive Session – Review and Discussion of Unsolicited Proposals, as authorized by the Open Meeting Act – 25 O.S. § 307(b)(7) and as Required to Preserve Confidentiality Under 62 O.S. Supp. 2006, § 2309 (C)(4)
Program Implementation Committee recommended that Pontotoc County Health Department’s Communities of Excellence grant be awarded with six-months of funding for $62,500 conditional upon completion of an action plan to address Strategic Plan deficiencies.
Motion passed unanimously.
Program Implementation Committee recommended that KI BOIS Community Action Foundation’s Communities of Excellence grant be awarded with six-months of funding for $62,500 conditional upon completion of an action plan to address Strategic Plan deficiencies.
Motion passed with Dr. Foster and Bill Lissau casting dissenting votes.
Program Implementation Committee recommended that the slate of the remaining eight grantees be funded at $125,000 each.
Motion passed unanimously.
Program Development Committee recommended funding for a grant to the Oklahoma Child Care Association to develop after school standards, in the amount of $511,000 over two years.
Motion passed unanimously.
Program Development Committee recommended funding for the Oklahoma Institute for Child Advocacy in the amount of $165,820 over two years.
Motion passed unanimously.
Program Development Committee recommended grant funding for Oklahoma State University Dining Services in the amount of $95,550 over three years.
Motion passed unanimously.
9. a. Proposed Executive Session – Board of Directors to Discuss Evaluation of the Executive Director as authorized by 25 O.S. § 307 (B)(1)
Motion to go into Executive Session made my John Kennedy and seconded by Casey Killblane.
Motion passed unanimously.
John Kennedy left the meeting.
Casey Killblane made a motion to come out of Executive Session and Dr. Foster seconded the motion.
Motion passed unanimously. John Kennedy was absent for the vote.
7.a. Program Implementation Committee Report – Presentation – Oklahoma State Department of Health Reorganization
Ken Rowe acknowledged that Julie Cox-Kain, Chief Operating Officer for the Oklahoma State Department of Health had arrived and asked her to proceed with her presentation. Ms. Cox-Kain reported that the OSDH had reorganized their efforts to improve Oklahoma’s health status, after considering employee input and determining the best strategic alignment of priorities and resources. The agency is moving toward more of a wellness approach and has created The Center for the Advancement of Wellness, which will move under Ms. Cox-Kain’s oversight. The Center will include what were the Tobacco Use Prevention Service and the Strong and Healthy Oklahoma Division (which addresses obesity). In addition OSDH will increase its focus on tribal relationships. Sally Carter has been asked to serve as the full-time tribal liaison for the agency. Ms. Carter will remain in The Center until a Center Director is hired. In addition the Community Development Service, which includes Turning Point, Minority Health and Health Equity, will also move under Ms. Cox-Kain’s oversight.
There will also be a new Health Planning and Grants department under Ms. Cox-Kain’s oversight to help bring in new state, federal, and private resources. All of these areas will be co-located to help facilitate routine communications. Increased collaborative opportunities between OSDH and TSET are anticipated.
Bill Lissau left the meeting.
Bill Lissau returned to the meeting.
10.a. Agency Operations Committee Report – Follow-up on Name Change and Status of Contract with Alere Wellbeing, Inc., Formerly Free & Clear, Inc. for Provisions of Oklahoma Tobacco Helpline Services
Tracey Strader reported that Free & Clear, Inc. was already under Alere when TSET awarded the contract for Oklahoma Tobacco Helpline Services. The move to call their organization Alere Wellbeing, Inc. was only a name change. Jan Preslar, TSET’s general counsel, confirmed the report.
10.b.i. Agency Operations Committee Report – FY 2011, Fourth Quarter Budget to Actual – Operating Budget
Tracey Strader reports that approximately 76% of the operating budget was expended through August 2011. TSET is expecting additional invoices to come in prior to the November board meeting and it is possible that the fiscal year will be closed before the end of November.
10.b.ii. Agency Operations Committee Report – FY 2011, Fourth Quarter Budget to Actual – Programs Budget
Tracey Strader reported that approximately 68% of the Programs budget was expended through the fourth quarter of FY 11, and 81% was expended through August 2011. A number of outstanding invoices still exist for the fiscal year, but staff should be able to report the final figures at the November board meeting.
The board commended Tracey Strader for her commitment and dedication to her job, and a salary increase of 7% was mentioned. Tracey will also pursue management training opportunities available for executive directors.
10.c. Agency Operations Committee Report – Discussion and Possible Action on TSET Staffing to Include Two Additional Positions
Tracey Strader directed the board to a proposed TSET organizational chart in the board packets. Tracey recommended changing Sjonna Paulson’s title from Director of Communications to Director of Health Communications, and adding two new positions: a Public Information Officer (PIO), and a Grants Manager. The PIO will allow Ms. Paulson and her staff to focus on programmatic communications needs. The PIO will assist with agency communications and outreach. The Grants Manager position will assist grants and programs staff with incoming proposals, reviews, and other grants management functions.
Ken Rowe left the meeting.
Agency Operations Committee recommended changing Sjonna Paulson’s title from Director of Communications to Director of Health Communications and recommended the addition of a Public Information Officer and Grants Manager.
Motion passed unanimously.
John Kennedy and Ken Rowe were absent for the vote.
10.d.i. Agency Operations Committee Report – Consideration and Possible Action on Adjustments to FY 2012 Budgets after Certification of Earnings on August 24, 2011 – Operating Budget to Reflect Changes in Staffing, and Operating Expenses
Ms. Strader reviewed the proposed revisions to the operating budget, to reflect 1) the new Public Information Officer, 2) staff salary adjustments and promotions as appropriate, 3) additional furniture for the new positions, 4) an increase in the contract with the State Treasurer’s Office to support the Board of Investors, and 5) carry forward of $25,000 in funding for the grants management system.
Ken Rowe returned to the meeting.
Agency Operations Committee recommended adoption of the final operating budget in the amount of $997,362.
Motion passed unanimously.
John Kennedy was absent for the vote.
Agency Operations Committee recommended a salary increase for Tracey Strader in the amount of 7%. They also recommended that she follow through with her plans to obtain executive coaching.
Motion passed unanimously.
John Kennedy was absent for the vote.
10.d.ii. Agency Committee Report – Consideration and Possible Action on Adjustments to FY 2012 Budgets after Certification of Earnings on August 24, 2011 –Programs Budget to Reflect Changes in Staffing, Grants and Contracts
Tracey Strader reviewed the revisions from the preliminary programs budget for FY 2012 to reflect 1) the new Grants Manager, 2) program staff salary adjustments and promotions as appropriate 3) a move of $22,000 from health communications to printing, 4) adjustments to the budgets for the Communities of Excellence and Specific Populations initiatives, 5) the addition of carryover for the OTRC, OCASCR and TTAC, 6) the correction to the OSDH Tobacco Use Prevention Service contract discussed in the Program Implementation committee report, 7) an additional $6,500 in services for webinars for TSET grantees and partners, and 8) to reflect Sjonna Paulson’s salary to come out of the Programs budget 100%.
The total of both the operating and programs budgets combined is $25,927,899, comprised of funding from TSET earnings, carryover and reserves, and funding from other state agencies for joint programs, totaling an estimated $25,973,641.
Agency Operations Committee recommended adoption of the final programs budget in the amount of $24,930,537
Motion passed unanimously.
John Kennedy was absent for the vote.
11. New Business – any matter not known about or which could not have been reasonably foreseen prior to the time of posting the agenda [25 O.S. § 311 (A)(9)]
Ken Rowe called for new business. There was no new business.
Program Development Committee revised the motion to extend the OSU Addressing Tobacco in Specific Populations grants for one month (October) from $10,000 to $20,000.
Motion passed unanimously.
John Kennedy was not absent the vote.
12. Public Comment
Ken Rowe called for public comment. There was no public comment.
13. Adjournment
Motion made to adjourn made by Casey Killblane and seconded by Bill Lissau.
Motion passed unanimously.
John Kennedy was absent for the vote.