CALL TO

ORDER

The special meeting of the Board of Trustees of the Oxnard Union High School District Retiree Health Benefits Trust was called to order by Board Chair Rice at 2:24 p.m., April 3, 2008, in the Oxnard Union High School District Board Room, 309 South K Street, Oxnard, California 93030.

Trustees present:  Roger Rice,  Jan Henry, Wayne Edmonds, and Vicki Holmbom

Trustee absent:  Scott Lee and Eric Ortega

Legal Counsel present:  Anthony Trembley

Legal Counsel absent:  Laura McAvoy

Recording Secretary present:  Grace D. Tuazon

Guests present:  Michael Lavin-Canterbury Consulting , Jim Rose-OFT President, Dr. Jody Dunlap-Superintendent, Steven Gama-Director of Risk Management

PLEDGE OF

ALLEGIANCE

Steven Gama led the pledge of allegiance.

ADOPTION OF AGENDA

On motion of Trustee Edmonds, seconded by Trustee Holmbom and carried, the agenda was adopted, as presented.  Items were then considered in the order in which they appear in these minutes.

ADOPTION OF MINUTES

On motion of Trustee Edmonds, seconded by Trustee Henry and carried, the minutes of the annual meeting of February 29, 2008, was approved, as presented.

AUDIENCE TO ADDRESS THE BOARD

None.

INFORMATION ITEMS

Investment Performance Review

A special report on the Trust portfolio, in particular Pzena’s performance was presented by Michael Lavin of Canterbury Consulting, Inc.  Mr. Lavin reported that as of March, 2008, every segment of the market was down.  However, despite the market’s disposition, the Trust’s portfolio has compounded 9.7 percent.  He further reported that despite Pzena’s current performance, Mr. Lavin expressed that his firm continue to have confidence in Pzena and understands concerns brought forward by trustees.  To that effect, Mr. Lavin presented trustees with a “Proposed Allocation of Additional $1M Investment – April 2008”, showing three options available for consideration by trustees as it relates to the additional $1M investment allocation.  An extensive discussion regarding the portfolio’s performance, in particular PZENA ensued.

ACTION ITEMS

Consideration of Approval of Trust Portfolio Reallocation

Consideration of Approval of CSEBO Surplus Amount

Approval of Renewal of Trust’s Liability Insurance Policies

Upon motion of Trustee Edmonds, seconded by Trustee Henry and carried that no changes to the portfolio’s current target allocations be made at this time.

Upon motion of Trustee Rice, seconded by Trustee Holmbom and carried that the terms stipulated under Option 3 of the attached “Proposed Allocation of Additional $1M Investment-April 2008”, be implemented as presented.

Upon motion of Trustee Edmonds, seconded by Trustee Henry and carried, renewal of General Liability/on-Owned Auto, Fidelity and faithful Performance, and Fiduciary Liability polices were approved, as presented. 

ACTION ITEMS (continued)

Approval of Authorization to Pay Future Insurance Invoices

Approval of Payment of Invoices

Upon motion of Trustee Edmonds, seconded by Trustee Henry and carried, the following future insurance invoices were approved for payment, as presented. 

Ø  General Liability/Non-Owned Auto - $448.00

Ø  Fidelity And Faithful Performance - $1,016.00

Upon motion of Trustee Holmbom, seconded by Trustee Henry and carried, invoice from Nordman, Cormany, Hair & Compton in the amount of $ 440.00 was approved for payment, as presented

Upon motion of Trustee Edmonds, seconded by Trustee Henry and carried, invoice from Tolman & Wiker Insurance Services in the amount of $ 6,750.00 was approved for payment, as presented.

INFORMATION ITEMS

CSEBO

City National Bank

Financial Statements

Open Comments

It was reported that as of January 31, 2008, the Estimated Income and Expense Report of the Coastal Schools Employee Benefits Organization (CSEBO) Select Care Medical balance was $ 1,784,331.31; Delta Dental balance was $ 264,242.40; and Medical Eye Services was $ 255,557.79.

Board Chair Rice reported that as of February 29, 2008, the City National Bank Investments account reflects an ending market value of $ 29,658,068.82. 

Board Chair Rice reported that as of December 31, 2007, the total liabilities and net assets was $30,615,309.

Trustee Edmonds expressed that he is pleased to see the trust portfolio performing well despite the market’s current outlook.  He shared information regarding retirement services offered by PERS and will work with trustee Lee to gather more information to present to the board at a later meeting.

Trustee Henry reported on the last CSEBO meeting.  She also reported that BlueCross is negotiating with top 10 doctors to come back into the group.  Trustee Henry will inquire about a presentation by Blue Cross regarding medical supplement plan.

Chair Rice asked Counsel Trembley to report on a Supreme Court ruling regarding allowing employers to dictate Medicare election to retirees at the next board meeting.  Chair Rice shared an email from Unification Counsel Laura McAvoy regarding attendance at meetings.  Trustees directed Chair Rice to communicate with Counsel McAvoy that her attendance at future meetings will most likely be required after the Unification vote.

ITEMS FOR FUTURE CONSIDERATION

·       Tolman & Wiker Insurance presentation: Dennis Corte

·       Supreme Court Ruling – Medicare: Anthony Trembley

FUTURE MEETINGS

May 29, 2008 – 2:00 p.m., in the Oxnard Union High School District Board Room.

ADJOURNMENT

There being no further items of business, Board Chair Rice adjourned the meeting at 3:41 p.m.