I. Call to Order

Chuck Jordan, Administrative Committee Chair, called the meeting to order at 2:30pm.

II. Approval of Consent Calendar

Mr. Jordan asked for a motion to accept the consent calendar as presented.

M/S/C – Unanimous

III. Public Input

No public input.

IV. Sacramento Report

Dr. Omar Noorzad, Executive Director, stated that the ongoing federal government shutdown will not have a fiscal impact on the regional center system unless it continues beyond the end of 2025.

As Dr. Noorzad was unable to attend the recent ARCA meetings, he invited Mark Wolfe, Board member and TCADD Board ARCA representative, to share an ARCA update with the committee.

Mr. Wolfe said that services such as CalFresh and SNAP (Supplemental Nutrition Assistance Program) are often resources for people served by the regional center and these would be directly affected by a long-term federal government shutdown.

V. YAI-START Team Training Contract

Uvence Martinez (Director, CDD) and Darcy Bishop (Manager, CPP) reviewed the YAI-START Team Training Contract.

The purpose of the contract is to provide additional funding in the amount of $329,863 to the University of New Hampshire Institute on Disability to support certification and training for the YAI-START team. The completed certifications are required by June 30, 2027.

Ms. Martinez and Ms. Bishop shared that unforeseen YAI-START staffing shortages and turnover created the need for additional team certification and training.

In response to questions, Diva Johnson (Associate Executive Director) explained START services focus on preventative measures in cooperation with the individual served, their families, team and others who directly support the person at risk. START services are based on a comprehensive biopsychosocial assessment in which complex needs are addressed through crisis planning, education, consultation and coaching.

Ms. Martinez added that DDS has already approved the amount for the contract.

The committee discussed the importance of preventative efforts as a tool to mitigate crises. Mr. Jordan called for a motion to present the contract to the full Board for approval at the next Board meeting.

M/S/C – Unanimous

YAI-START Team Training Contract to the full Board for approval

Due: November 7, 2025

VI. Housing Authority of the City of Santa Barbara Contract

Ms. Bishop reviewed the Housing Authority of the City of Santa Barbara contract with the committee.

The contract requests $1,000,000 to be used for project development at 15 S. Hope Ave in Santa Barbara. The development would set aside five housing units solely for individuals served by TCRC and their families, and provide rent level affordability at about 15% of the area median income.

Ms. Bishop shared that the funds have been approved by DDS. Ms. Martinez noted that this contract responds to community needs for affordable housing options, as determined by recent CPP surveys.

The committee expressed support for efforts to create affordable housing options in the community. Mr. Jordan called for a motion to present the contract to the full Board for approval at the next Board meeting.

M/S/C – Unanimous

Housing Authority of the City of Santa Barbara Contract to the full Board for approval

Due: November 7, 2025

VII. B-2 Budget Allocation – FY 25/26

Phil Stucky, CFO, presented a comparison of the B-2 allocation of FY 25/26 to the A-2 allocation of FY 24/25.

Purchase of Service (POS) Non-CPP:

• POS Base Allocation – Increase from about $551.8 million to $556.9 million due to caseload growth
• Continuation Allocation – Continuation of funding from placements in FY 24/25
• Competitive Integrated Employment Incentive/Internship – Monies for FY 25/26 included in the POS base allocation
• Service Provider Rate Reform – Funds based on the prorated share of expenditures per regional center

POS – CPP: DDS has so far only funded a small portion of community placements for FY 25/26; most funding is expected in the next allocation.

Operations (OPS):

• Core Staffing – Caseload growth is the main driver; funds reflect a higher than expected increase of 8%
• Facility Rent – Funding for office expansions later included after discussions
• H&S Waiver Assistance for Non-English – Position removed and not funded in FY 25/26
• Performance Incentives / Reduce Caseload Children 0–5 Years – Prorated share based on growth and reduced ratios
• UFS/CERMS-Now LOIS – About $345,000 expected in the B-3 allocation for FY 25/26 (estimated around February 2026)
• Service Provider Rate Reforms – One-time FY 24/25 staffing funding not renewed in FY 25/26
• Public Records Act – About $437,000 provided for staffing and legal costs

VIII. Summary of Vendor Audits – FY 24/25

Mr. Stucky reported findings of vendor audits for FY 24/25. DDS requires TCRC to conduct a number of vendor audits each year as part of performance contract requirements; TCRC has met this requirement each year, including FY 24/25.

The majority of audit findings related to unmet staffing and support hours, and amounts were not excessive. Vendors may repay monthly or via offsets; TCRC allows up to five years to repay.

One audit resulted in over $1 million in findings involving an SLS provider billing the full authorized amount each month; source data did not support billing. The vendor did not dispute findings and agreed to pay back funds.

The committee requested additional clarification. Ms. Johnson noted SLS billing codes/subcodes are complicated and newer providers can make errors; some submit $8–$14 million in billings per year.

DOFA, QA, and Services and Supports are providing technical assistance; service coordinators and departments are monitoring billing and hours for compliance and irregular activity.

IX. DDS Contract Changes – FY 25/26

Mr. Stucky informed the committee that the DDS Contract for FY 25/26 included adoption of definitions for AI (Artificial Intelligence) and GenAI (Generative Artificial Intelligence). DDS is creating directives to guide use of AI/GenAI for regional centers.

TCRC has allowed use of GenAI for administrative tasks in a closed environment with agreements that guarantee material is not used in training AI models.

Adam Chelonis, CIO, confirmed the changes do not change TCRC operations at this time.

X. PERS Valuation (July 2025)

Mr. Stucky reviewed the PERS valuation. The handout covered key points of the TCRC plan; the full valuation is available on the CalPERS website. The TCRC valuation was released in August 2025 and reflects measures current as of June 30, 2024.

He defined the Employer Normal Cost Rate as the annual cost of providing retirement benefits for services performed by current employees and explained this cost is decreasing as employees with richer plans leave TCRC.

The Unfunded Accrued Liability (UAL) is projected to increase as active members and payroll costs increase. He noted a 6.1% investment loss in 2022 contributed to increased UAL (amortized over 20 years).

TCRC has prepaid UAL annually in July (saving 3.25% vs monthly payments) and will continue as long as cash is available. UAL for year ending June 30, 2024 was about $27.3 million (83.7% funded) vs about $25.4 million (83.3% funded) for year ending June 30, 2023.

A CalPERS actuary would be available to present details at an upcoming meeting.

XI. Rate Study Implementation

Mr. Stucky described an overview of the rate study implementation process:

• Plan and Communicate – Regular notifications with internal staff and providers
• Update Systems – Replace old authorizations/subcodes with new ones; ensure rate tables correspond
• Engage Providers – Ensure providers are informed and understand change details

Ms. Johnson noted automation has minimized impacts to services and staff workloads, though manual data entry has not been fully eliminated.

Preparations are underway to ensure providers receive FY 26/27 QIP (Quality Incentive Program) payments appropriate to their service code(s). Reporting areas include employment, prevention and wellness, and provider capacity.

To receive the additional QIP payment for the entirety of FY 26/27, a provider must have an eligible service code for FY 24/25, meet foundational vendor requirements, attend necessary trainings, and complete the DDS data collection survey by January 31, 2026.

XII. Adjourn

Mr. Jordan adjourned the meeting at 3:22pm.

Next Administrative Committee Meeting – 2:30pm, Tuesday, November 18, 2025

Next TCADD Board Meeting – 4:00pm, Friday, February 6, 2025