CSEBA Board of Directors Amended Agenda 1 March 2, 2018

BOARD OF DIRECTORS MEETING FRIDAY, MARCH 2, 2018 9:00 A.M. CA SCHOOLS JPA CONFERENCE CENTER 1950 South Sunwest Lane, Suite 102 San Bernardino, CA 92408 WEBINAR LINK: Copy and Paste the link onto your browser and follow the instructions to access the meeting https://csjpa.webex.com/csjpa/onstage/g.php?MTID=eaed15bfcb32fd5df2db75509a42a7544 WEBINAR LOCATIONS: Huntington Middle School, 1700 Huntington Drive, San Marino 91108 23715 North Bay Road, Blue Jay 92317 5715 Utah Trail, 29 Palms 92277 42271 Moonridge Road, Big Bear Lake 12219 Second Avenue, Victorville 92395 23525 Pala Lane, Apple Valley 92307 264 Teague Drive, San Dimas 91773 6241 Warner Ave. Space 142, Huntington Beach 92647 6162 Rotary Way, Joshua Tree 92252 13565 Cedar Street, Hesperia 92344 2890 Inland Empire Blvd, Suite 100, Ontario 91764 12219 Second Avenue, Victorville 92392 18422 Bear Valley Road, Victorville 92395 14535 Whittier Blvd, Whittier 90605 810 E. Valencia Avenue, Burbank 91501 15576 Main Street, #11, Hesperia 92345 6291 Lake Apopka Pl., San Diego 92119 720 9th Street, Ramona 92065 6925 Etiwanda Avenue, Etiwanda 33122 Valle Road, San Juan Capistrano 92675 1330 S. Knott Avenue, Anaheim 92804 385 N. Muller Street, Anaheim 92801 1360 Manzanita Way, Lake Arrowhead 92352 5130 Riverside Drive, Chino 91710 Public Record Inspection Location 1950 South Sunwest Lane, Suite 100 San Bernardino, CA 92408

CSEBA Board of Directors Amended Agenda 2 March 2, 2018

AMENDED AGENDA

MEMBER DISTRICTS MANAGEMENT LABOR Adelanto SD Josie Perez-Belcher Vacant Alta Loma SD Joan Sanders Peggy Swistock Apple Valley USD Vacant Vacant Baker Valley USD Vacant Vacant Baldy View ROP Lisa Porter Evangelina Lliles Bassett USD Jorge Ronquillo Carla Mahaffey Bear Valley USD Linda Rosado Teri Sutton Beaumont USD Penni Harbauer Gregory Abt Central SD Barbara Mikolasko Ann-Marie Bihary Centralia SD Scott Martin Mitch Ramsey Chaffey Community College Susan Hardie Brian Sherman CharterSafe Robert Coontz Vacant Chino Valley USD Patti Newton Todd Hancock College and Career Advantage Patricia Romo Kathy Struiksma Colton Joint USD Jessica Hurst Russell Levine Copper Mountain College Bonnie Bilger Diana Morris Covina Valley USD Michelle Doll Sita Rampershad Cucamonga SD Rick Jensen Heidi Ober E. San Gabriel Valley ROP Annet Johnson Ariel Porras E. Whittier City SD Dr. Douglas Staine Ivan Pastrano Encinitas Union SD Araceli Hernandez Kelly Brennen Etiwanda SD Doug Clafin Carl Strub Excelsior Education Center Alicia Anderson Vacant Hemet USD Andrea Murray Andrea Mortensen Hesperia USD Shauna Warnock Meagan Lavoie Laguna Beach USD Leisa Winston Margaret Warder Morongo USD Vacant Sandi Pearce Mt. Baldy Joint SD Vacant Vacant Mountain View SD Sheri Staszewski Meghan Giacchetti North Orange County ROP Howard Burkett Mirna Castaneda Ontario-Montclair SD Jordan Aquino Mary Kay Scheid Ramona USD Rena Seifts Connie Fierro Rialto USD Vacant Vacant Rim of the World USD Todd Beal Kathryn Sayer Riverside USD John J. Preston Laura Egan San Bernardino City USD Vacant Vacant San Bernardino CC District Kristina Hannon Kevin Palkki San Bern. Co. Supt. of Schools Linda Fabre John Gamboa San Marino USD Linda de la Torre Jose Caire Santee SD Tim Larson Charlene Stanley Savanna SD Dr. Pauline Tressler Debbie Girgenti Silver Valley USD Beatrice Ramirez Deborah Farrington South Pasadena USD Karen Reed Steve Reyes Summit Leadership Academy Desiree Gardner Anna Cornejo Victor Elementary SD Dale Etter Rhonda Heathcoat Victor Valley Community College Nonnie Compton Pearl Bandringa Westminster SD Tony Wold Kim Bui Yucaipa-Calimesa Jt. USD George Velarde Laurie McGrand

CSEBA Board of Directors Amended Agenda 3 March 2, 2018

CSEBA STAFF: Dr. Karla Rhay Ellen Alcala Javier Gonzales Teresa Saenz Christian Jones Yolanda Comer Cesar Contreras Francisco Rodriguez Kandy Delgado Melissa Hernandez Leana Hardgrave Cassandra Thompson-Jervis 1.0 CALL TO ORDER 1.1 APPROVAL OF ADDITIONS OR CORRECTIONS TO MARCH 2, 2018 BOARD OF DIRECTORS AGENDA

Please note that the Board of Directors cannot take action on any items not on the agenda with certain exceptions as outlined in the Brown Act or pursuant to an addition or correction to the Agenda. Matters brought before the Board of Directors that are not on the agenda may also, at the Board of Directors discretion, be referred to staff or placed on the next agenda for the Board of Directors

2.0 PUBLIC COMMENTS

At this time, members of the public may address the Board of Directors regarding any item within the subject matter jurisdiction of the Board of Directors, provided that no action may be taken on off-agenda items unless authorized by law. Comments shall be limited to three minutes per person and twenty minutes for all comments, unless different time limits are proposed by the President and approved by the Board of Directors.

4.0 CONSENT CALENDAR 4.1 APPROVAL OF MINUTES FROM THE BOARD OF DIRECTORS MEETING OF DECEMBER 12, 2017 4.2 APPROVAL OF 2018-2019 DRAFT CSEBA MEETING AND EVENTS CALENDAR 4.3 APPROVAL OF REVISED FULLY-INSURED EPIC HEARING 4.4 APPROVAL OF CLIFTON, LARSON & ALLEN FISCAL 2016-17 ANNUAL AUDIT REPORT 5.0 PRESENTATIONS 5.1 AFFORDABLE CARE ACT UPDATE – AMERICAN FIDELITY 6.0 DISCUSSION/ACTION ITEMS 6.1 DISCUSSION AND APPROVAL ON 2018-2019 RATES 6.2 DISCUSSION AND APPROVAL OF 2018 CSEBA STORE VOLUNTARY BENEFITS 7.0 INFORMATION/DISCUSSION 7.1 CSEBA ONLINE ENROLLMENT IMPLEMENTATION UPDATE 7.2 STANDING REPORTS 7.2.1 BUSINESS DEVELOPMENT REPORT 7.2.2 FINANCIAL OFFICER'S REPORT 7.2.2.1 SELF FUNDED UTILIZATION REVIEW 7.2.2.2 2ND QUARTER 2017-2018 INVESTMENT REPORT

7.2.3 HCR AND LEGISLATIVE REPORT 8.1 ADJOURNMENT TO CLOSED SESSION

“A Closed Session Meeting is now required. Matters to be discussed are those permitted by Government Code Sections 54956.8, 54956.9, 54956.95, 54957, and 54957.6 – Personnel, Litigation, and/or Real Property"

9.0 BOARD OF DIRECTORS COMMUNICATIONS 9.1 PROPOSED/FUTURE AGENDA ITEMS 9.2 COMMENTS BY THE BOARD OF DIRECTORS 10.0 FUTURE MEETINGS 11.0 ADJOURNMENT

THE NEXT SCHEDULED MEETING: CSEBA BOARD OF DIRECTORS, JUNE 21, 2018 LOCATION: WEBINAR

CSEBA Board of Directors Amended Agenda 4 March 2, 2018

THIS FACILITY IS WHEELCHAIR ACCESSIBLE The California Schools Employee Benefits Association (CSEBA) conforms to the protections and

prohibitions contained in Section 202 of the Americans with Disabilities Act of 1990. A request for disability related modification or accommodation, in order to participate in a public meeting of CSEBA shall be made to Karla M. Rhay, Ed.D., Chief Executive Officer, CSEBA JPA, 1950 South Sunwest Lane, Suite 100, San Bernardino, California 92408, Requests for such modifications or accommodations shall

be made at least two full business days of this meeting.

CSEBA Board of Directors Minutes 1 December 12, 2017

BOARD OF DIRECTORS MEETING TUESDAY, DECEMBER 12, 2017 11:00 A.M. South Coast Winery and Resort 34843 Rancho California Road Temecula, CA 92591 Public Record Inspection Location 1950 South Sunwest Lane, Suite 100 San Bernardino, CA 92408

MINUTES

MEMBER DISTRICTS PRESENT MANAGEMENT LABOR Alta Loma SD Joan Sanders Peggy Swistock Baldy View ROP Lisa Porter Evangelina Lliles Bassett USD Jorge Ronquillo Carla Mahaffey Bear Valley USD Teri Sutton Beaumont USD Gregory Abt Central SD Barbara Mikolasko Ann-Marie Bihary Centralia SD Maria Lopez (Alt) Chino Valley USD Todd Hancock Colton Joint USD Jessica Hurst Russell Levine Copper Mountain College Bonnie Bilger Covina Valley USD Rob Zerbal (Alt) Sita Rampershad Cucamonga SD Rick Jensen Heidi Ober E. San Gabriel Valley ROP Annet Johnson Ariel Porras E. Whittier City SD Corrine Conley (Alt) Ivan Pastrano Etiwanda SD Carl Strub Hemet USD Rebekah Mortensen Hesperia USD Meagan Lavoie Laguna Beach USD Leisa Winston Margaret Warder Morongo USD Sandi Pearce North Orange County ROP Howard Burkett Mirna Castaneda Ontario-Montclair SD Jordan Aquino Mary Kay Scheid Ramona USD Connie Fierro Rim of the World USD Kathryn Sayer Riverside USD John J. Preston San Bernardino CC District Kevin Palkki San Bern. Co. Supt. of Schools Linda Fabre John Gamboa San Marino USD Linda de la Torre Jose Caire Santee SD Tim Larson Charlene Stanley Savanna SD Dr. Pauline Tressler Debbie Girgenti Summit Leadership Academy Desiree Gardner Anna Cornejo Victor Valley Community College Nonnie Compton Pearl Bandringa Yucaipa-Calimesa Jt. USD David Stevenson (Alt) Laurie McGrand

CSEBA Board of Directors Minutes 2 December 12, 2017

CSEBA STAFF: Dr. Karla Rhay Melissa Hernandez Teresa Saenz Leana Hardgrave Ellen Alcala Christian Jones Francisco Rodriguez Cassandra Thompson-Jervis Cesar Contreras Javier Gonzales OTHERS: Bonnie South Bear Valley USD Adam Estrada Hesperia USD Barbara Popham San Bern. Co. Supt. of Schools Catherine Wind-Muro San Bern. Co. Supt. of Schools Liz Trejo San Bern. Co. Supt. of Schools Beth Sparks Yucaipa-Calimesa Jt. USD Brent Crane Aon Hewitt Linda Zitelli Aon Hewitt Beca Tomcho Benefitfocus Chad Cruz Benefitfocus Debbie Beltz Health Advocate Robert Feldhake JPA Counsel Jon Fisher VOYA 1.0 CALL TO ORDER

President Mikolasko called the meeting of the CSEBA Board of Directors to order at 11:04 a.m. and asked for a roll call to confirm a quorum.

1.1 APPROVAL OF ADDITIONS OR CORRECTIONS TO DECEMBER 12, 2017 BOARD OF DIRECTORS AGENDA There was a request to add Item 3.0 Chief Executive Officer Report to the agenda. CSEBA Board of Directors approved the December 12, 2017 agenda with the addition of Item 3.0 as requested; approved by a unanimous vote by the CSEBA Board of Directors. Motion: Russell Levine Second: John Gamboa Ayes: Joan Sanders, Peggy Swistock, Lisa Porter, Evangelina Lliles, Jorge Ronquillo, Carla Mahaffey, Teri Sutton, Gregory Abt, Barbara Mikolasko, Ann-Marie Bihary, Maria Lopez, Todd Hancock, Jessica Hurst, Russell Levine, Bonnie Bilger, Rod Zerbal, Sita Rambershad, Rick Jensen, Heidi Ober, Annet Johnson, Ariel Porras, Corrine Conley, Ivan Pastrano, Carl Strub, Rebeka Mortensen, Meagan Lavoie, Leisa Winston, Margaret Warder, Sandi Pearce, Howard Burkett, Mirna Castaneda, Jordan Aquino, Mary Kay Scheid, Connie Fierro, Kathryn Sayer, John Preston, Kevin Palkki, Linda Fabre, John Gamboa, Linda de la Torre, Jose Caire, Tim Larson, Charlene Stanley, Dr. Pauline Tressler, Debbie Girgenti, Desiree Gardner, Anna Cornejo, Nonnie Compton, Pearl Bandringa, David Stevenson, Laurie McGrand Nays: None – Abstentions: None Motion Carried

2.0 PUBLIC COMMENTS

None. 3.0 CHIEF EXECUTIVE OFFICER’S REPORT

CEO Rhay reported on the Strategic Plan for staff growth, with Cassandra Thompson-Jervis was added as clerical support. In addition, beginning in the new fiscal year, consideration is being given to increase the duties of the Training Manager to support both CSEBA and the sister JPA. Rhay went on to comment that Blue Shield is in its second year, and the expectation that with Trio, the pool will see balance. CEO Rhay continued by reviewing the topics discussed during the day one annual event and the importance of assisting members with meeting their overall

CSEBA Board of Directors Minutes 3 December 12, 2017

wellness and well-being programs. She reported that as of now, there is not a date for the annual 5K. She closed by reminding the Board that the Executive Committee will hold its Strategic Planning event in June 2019, with the outcome of a two-year plan for which staff builds agenda items for the committee and board to consider.

4.0 CONSENT CALENDAR 4.1 APPROVAL OF MINUTES FROM THE BOARD OF DIRECTORS MEETING OF JUNE 21, 2017 4.2 APPROVAL OF 2017-2018 ADMINISTRATIVE AGREEMENT 4.3 APPROVAL OF REVISIONS TO GOVERNING DOCUMENTS, BYLAWS, POLICY AND AGREEMENT 4.4 ADOPTION OF 2017-2019 STRATEGIC PLAN

The CSEBA Board of Directors approved all items on the Consent Calendar as presented; approved by a unanimous vote by the CSEBA Board of Directors. Motion: Linda de la Torre Second: John Preston Ayes: Joan Sanders, Peggy Swistock, Lisa Porter, Evangelina Lliles, Jorge Ronquillo, Carla Mahaffey, Teri Sutton, Gregory Abt, Barbara Mikolasko, Ann-Marie Bihary, Maria Lopez, Todd Hancock, Jessica Hurst, Russell Levine, Bonnie Bilger, Rod Zerbal, Sita Rambershad, Rick Jensen, Heidi Ober, Annet Johnson, Ariel Porras, Corrine Conley, Ivan Pastrano, Carl Strub, Rebeka Mortensen, Meagan Lavoie, Leisa Winston, Margaret Warder, Sandi Pearce, Howard Burkett, Mirna Castaneda, Jordan Aquino, Mary Kay Scheid, Connie Fierro, Kathryn Sayer, John Preston, Kevin Palkki, Linda Fabre, John Gamboa, Linda de la Torre, Jose Caire, Tim Larson, Charlene Stanley, Dr. Pauline Tressler, Debbie Girgenti, Desiree Gardner, Anna Cornejo, Nonnie Compton, Pearl Bandringa, David Stevenson, Laurie McGrand Nays: None – Abstentions: None Motion Carried

4.5 APPROVAL OF EPIC HEARING SELF-FUNDED QUOTE

CSEBA Board of Directors approved the items on the Consent Calendar as presented; approved by a unanimous vote by the CSEBA Board of Directors. Motion: Linda de la Torre Second: John Preston Ayes: Joan Sanders, Peggy Swistock, Lisa Porter, Evangelina Lliles, Jorge Ronquillo, Carla Mahaffey, Teri Sutton, Gregory Abt, Barbara Mikolasko, Ann-Marie Bihary, Maria Lopez, Todd Hancock, Jessica Hurst, Russell Levine, Bonnie Bilger, Rod Zerbal, Sita Rambershad, Rick Jensen, Heidi Ober, Annet Johnson, Ariel Porras, Corrine Conley, Ivan Pastrano, Carl Strub, Rebeka Mortensen, Meagan Lavoie, Leisa Winston, Margaret Warder, Sandi Pearce, Howard Burkett, Mirna Castaneda, Jordan Aquino, Mary Kay Scheid, Connie Fierro, Kathryn Sayer, John Preston, Kevin Palkki, Linda Fabre, John Gamboa, Linda de la Torre, Jose Caire, Tim Larson, Charlene Stanley, Dr. Pauline Tressler, Debbie Girgenti, Desiree Gardner, Anna Cornejo, Nonnie Compton, Pearl Bandringa, David Stevenson, Laurie McGrand Nays: None – Abstentions: None Motion Carried

5.0 PRESENTATIONS 5.1 CALIFORNIA ADVOCATES LEGISLATIVE REPORT

Faith Lane-Borges with California Advocates shared several bills introduced to the legislation and key issues are transportation, health, housing and various other key issues currently trending throughout the state and county. Leslie reviewed various bills being considered that could have a direct impact on school districts and its members; pregnancy leave, prohibiting or refusing paternal leave and possibly making playground aide position a part of classified negotiations. The single payer healthcare delivery system is still open but currently not scheduled to go into a committee vote at this time. The legislation has been looking to adjusting the health care and pharmacy industries; prohibiting pharmaceutical companies from providing discount coupons

CSEBA Board of Directors Minutes 4 December 12, 2017

then not allowing there to be notification of generic drugs. Pharmaceutical companies must provide a 90-day notice when there will be price increases to any specific drug. Prescription drugs, their affordability and the fiscal impact with workers’ groups have been and large subject at the state capitol. Public Safety officers have also been a topic and how they are covered under the current workers’ compensation policies. Faith provided her email contact so members can contact her if they have additional question to the information presented: flane@caladvocates.com

5.2 ELECTION AD HOC REPORT

Jose Caire, Election Chair shared the list of candidates who submitted their names to run for vacant and expiring seats on the Executive Committee; two management seats, two labor seats, one management alternate and one labor advisory. Board members submitted their qualification summaries and will be asked to share their qualifications and interest to the Board of Directors. In addition, Jose explained the term years and how the final election count would determine seats on the Executive Committee.

6.0 DISCUSSION/ACTION ITEMS 6.1 NOMINATIONS AND ELECTIONS TO EXECUTIVE COMMITTEE

Jose Caire introduced the interested list of candidates and asked each to speak on their qualifications and interest in becoming a member of the Executive Committee. After each address the Board of Directors, ballots were distributed, collected and the results would be shared later during the meeting.

6.2 CLIFTON, LARSON & ALLEN FISCAL 2016-17 ANNUAL AUDIT REPORT

Javier Gonzales introduced the auditor from Clifton, Larson & Allen LLP, Certified Public Accountants, Leslie Ward who shared the purpose of the audit, what was in the audit report and reviewed the findings from the annual audit. The report in its entirety along with supplemental information was currently in the CSEBA EC & BOD Communications Dropbox for members to review but she did share that JPA was stable, their finance experience positive due to excellent internal controls.

6.3 DISCUSSION AND APPROVAL OF 2018 AMWINS RENEWAL

CEO Rhay introduced Linda Zitelli of Aon Hewitt, reviewed the presentation from the November 15, 2017 Executive Committee meeting when AmWins rates for retirees were presented and the concern of the 40% renewal rate increase for TransAmerica pharmaceutical. Transamerica decline to provide an extension, they were not inclined to even renew due to the high utilization on pharmacy. Linda shared that Aon went back to AmWins and could secure a lower Rx renewal through Envision with two options that closely mirror the current plans through Transamerica. There are copay differences that the retiree will have to evaluate. Rather than a 40% Rx renewal the new renewal is 5.1% for the enhanced plan and 16.9% for the basic plan. This brings the overall renewal to 2.5% for the plans with the enhanced pharmacy (gold and silver) and 2.6% for bronze. The renewal for the basic pharmacy is 6.6% for the (gold and bronze) and for silver 6.4%.

The CSEBA Board of Directors approved the Envison Pharmacy Design Plan at a 5% increase through AmWins, as presented; approved by a unanimous vote by CSEBA Board of Directors. Motion: Russell Levine Second: Linda Fabre Ayes: Joan Sanders, Peggy Swistock, Lisa Porter, Evangelina Lliles, Jorge Ronquillo, Carla Mahaffey, Teri Sutton, Gregory Abt, Barbara Mikolasko, Ann-Marie Bihary, Maria Lopez, Todd Hancock, Jessica Hurst, Russell Levine, Bonnie Bilger, Rod Zerbal, Sita Rambershad, Rick Jensen, Heidi Ober, Annet Johnson, Ariel Porras, Corrine Conley, Ivan Pastrano, Carl Strub, Rebeka Mortensen, Meagan Lavoie, Leisa Winston, Margaret Warder, Sandi Pearce, Howard Burkett,

CSEBA Board of Directors Minutes 5 December 12, 2017

Mirna Castaneda, Jordan Aquino, Mary Kay Scheid, Connie Fierro, Kathryn Sayer, John Preston, Kevin Palkki, Linda Fabre, John Gamboa, Linda de la Torre, Jose Caire, Tim Larson, Charlene Stanley, Dr. Pauline Tressler, Debbie Girgenti, Desiree Gardner, Anna Cornejo, Nonnie Compton, Pearl Bandringa, David Stevenson, Laurie McGrand Nays: None – Abstentions: None

6.4 DISCUSSION AND APPROVAL OF CSEBA STORE FOR VOLUNTARY PRODUCTS

Chad Cruz of Benefitfocus shared information on the CSEBA store, and the various elective products that would be offered and the intent to not compete with American Fidelity. There was extensive discussion by the members of the Board of Directors as to the conflict with American Fidelity and if there was a comparison of prices available to the members to choose which platform would be best for them. CEO suggested this item be tabled and brought to the Executive Committee for indepth discussion. It will be brought back to the Board at its next meeting.

7.0 INFORMATION/DISCUSSION 7.1 BENEFITFOCUS IMPLEMENTATION UPDATE

Becca Tomcho of Benefitfocus shared the status of the implementation process, the top priorities and reviewed the status of the live platform occurring at several member districts. Several districts are having their implementation timeline pushed out to a later date due to missing data for the final implementation.

7.2 STANDING REPORTS 7.2.1 BUSINESS DEVELOPMENT REPORT

President Mikolasko shared this information could be reviewed in the agenda packet and asked if there were any questions; there were none.

7.2.2 FINANCIAL OFFICER'S REPORT 7.2.2.1 SELF FUNDED UTILIZATION REVIEW 7.2.2.2 INVESTMENT REPORT

Javier Gonzales presented the quarterly investment report, the executive summary of the investment in LAIF and the San Bernardino County Treasury, current cash and investments with LAIF, and the total cash in claims trust accounts (includes Wells Fargo bank reserves due to electronic transfers for cash flow access to the self-insured plans). The funds due from interest and interest rate earned on cash are held in the County Treasury and interest earned on cash is held in LAIF.

7.2.3 HCR AND LEGISLATIVE REPORT

Brent Crane reported on the current legislative bills and executive orders which could potentially affect impact health and welfare plans for CSEBA members. Subsidies are still in place, employer spending accounts could possibly be eliminated and reviewed the current Trump administration changes and concerns. There have been concerns from employers that if the current health care exchanges in place fail this could have a negative effect on the plans offered to retirees.

7.3 FINAL ELECTION RESULTS

President Mikolasko asked Jose Caire to announced the election results to for the CSEBA Executive Committee; Management - 3 year terms: Jordan Aquino, Ontario-Montclair SD, Nonnie Compton, Victor Valley CCD; Labor - 3 year terms: Carl Strub, Etiwanda SD, Kevin Palkki, San Bernardino CCD, Management Alternate – 3-year term, Linda Fabre, San Bernardino County Superintendent of

CSEBA Board of Directors Minutes 6 December 12, 2017

Schools; Labor Advisory - 3 year term: Judy Correnti, San Marino USD 8.1 ADJOURNMENT TO CLOSED SESSION

The CSEBA Board of Directors meeting moved into Closed Session at 1:35 p.m. and was approved by a unanimous vote of the CSEBA Board of Directors.

Motion: Heidi Ober Second: Debbie Girgenti Ayes: Joan Sanders, Peggy Swistock, Lisa Porter, Evangelina Lliles, Jorge Ronquillo, Carla Mahaffey, Teri Sutton, Gregory Abt, Barbara Mikolasko, Ann-Marie Bihary, Maria Lopez, Todd Hancock, Jessica Hurst, Russell Levine, Bonnie Bilger, Rod Zerbal, Sita Rambershad, Rick Jensen, Heidi Ober, Annet Johnson, Ariel Porras, Corrine Conley, Ivan Pastrano, Carl Strub, Rebeka Mortensen, Meagan Lavoie, Leisa Winston, Margaret Warder, Sandi Pearce, Howard Burkett, Mirna Castaneda, Jordan Aquino, Mary Kay Scheid, Connie Fierro, Kathryn Sayer, John Preston, Kevin Palkki, Linda Fabre, John Gamboa, Linda de la Torre, Jose Caire, Tim Larson, Charlene Stanley, Dr. Pauline Tressler, Debbie Girgenti, Desiree Gardner, Anna Cornejo, Nonnie Compton, Pearl Bandringa, David Stevenson, Laurie McGrand Nays: None – Abstentions: None Motion Carried

8.1 CASE NUMBER : CIVDS1701975

JPA Counsel provided the members of the CSEBA Board of Directors with an update to the status as information only. No action was required.

The CSEBA Board of Directors meeting moved out of Closed Session at 1:59 p.m. and was approved by a unanimous vote of the CSEBA Board of Directors.

Motion: Linda de la Torre Second: Pearl Bandringa Ayes: Joan Sanders, Peggy Swistock, Lisa Porter, Evangelina Lliles, Jorge Ronquillo, Carla Mahaffey, Teri Sutton, Gregory Abt, Barbara Mikolasko, Ann-Marie Bihary, Maria Lopez, Todd Hancock, Jessica Hurst, Russell Levine, Bonnie Bilger, Rod Zerbal, Sita Rambershad, Rick Jensen, Heidi Ober, Annet Johnson, Ariel Porras, Corrine Conley, Ivan Pastrano, Carl Strub, Rebeka Mortensen, Meagan Lavoie, Leisa Winston, Margaret Warder, Sandi Pearce, Howard Burkett, Mirna Castaneda, Jordan Aquino, Mary Kay Scheid, Connie Fierro, Kathryn Sayer, John Preston, Kevin Palkki, Linda Fabre, John Gamboa, Linda de la Torre, Jose Caire, Tim Larson, Charlene Stanley, Dr. Pauline Tressler, Debbie Girgenti, Desiree Gardner, Anna Cornejo, Nonnie Compton, Pearl Bandringa, David Stevenson, Laurie McGrand Nays: None – Abstentions: None Motion Carried

President Mikolasko reported out that no action was taken by the members of the CSEBA Executive Committee on the information presented for Case Number CIVDS1701975.

9.0 BOARD OF DIRECTORS COMMUNICATIONS 9.1 PROPOSED/FUTURE AGENDA ITEMS 9.2 COMMENTS BY THE BOARD OF DIRECTORS 10.0 FUTURE MEETINGS

President Mikolasko shared this information could be reviewed in the agenda packet and asked if there were any questions; there were none.

11.0 ADJOURNMENT

CSEBA Board of Directors adjourned the December 12, 2017 meeting at 2:00 p.m.; approved by acclamation of the CSEBA Board of Directors.

DRAFT CSEBA JPA2018-2019 CALENDAR

EXECUTIVE COMMITTEE MEETINGSDATE LOCATION SUITE TIMESeptember 26, 2018 JPA Office, 1950 South Sunwest Lane, San Bernardino 102 9:00 a.m.November 14, 2018 JPA Office, 1950 South Sunwest Lane, San Bernardino 102 9:00 a.m.January 30, 2019 Webinar Meeting 100 9:00 a.m.February 20, 2019 JPA Office, 1950 South Sunwest Lane, San Bernardino 102 9:00 a.m.May 8, 2019 JPA Office, 1950 South Sunwest Lane, San Bernardino 102 9:00 a.m.

June 23-25, 2019 Strategic Planning , Location TBD

BOARD OF DIRECTORS MEETINGSDATE LOCATION SUITE TIMEDecember 10, 2018 JPA Annual Members' Summit, TBD 8:30 a.m.December 11, 2018 Board of Directors' Orientation, TBD 8:00 a.m.December 11, 2018 Board of Directors' Meeting, TBD 11:00 a.m.March 1, 2019 JPA Office, 1950 South Sunwest Lane, San Bernardino 102 9:00 a.m.June 19, 2019 Webinar Meeting 100 9:00 a.m.

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JPA EVENTS/CONFERENCESDATE LOCATION SUITE TIMEOctober 29, 2018 JPA 10th Annual Golf Invitational, Riverside, California 11:00 a.m.TBD CSEBA 5K, Location TBD TBA

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NON-JPA EVENTS/CONFERENCESDATE LOCATIONSeptember 11-14, 2018 CAJPA, South Lake Tahoe, CaliforniaJanuary 15-17, 2019 CPHCC, Location TBAApril 15-18, 2019 CASBO, San Diego, California

*DISCLAIMER: Calendar meetings and events are subject to change or cancellation per the CSEBA President and JPA CEO

Pending Executive Committee and Board of Directors Approval

Item 4.3 Approval of Revised Fully Insured EPIC Hearing

Strategic Goal Initiatives

PROGRAMS Background/Issue At the December 2016 Board Meeting the Board voted to add EPIC hearing as a fully insured product for those districts wanting to add it for their employees. Currently two districts are using the EPIC hearing product. The current premiums average about $1.10 PEPM. After further review, we asked Aon to look at the feasibility of looking at adding EPIC hearing aid benefit to the entire pool on a self-funded basis. EPIC was willing to hold the rates quoted for the 2017 plan year for 2018. This was brought forward to the board of directors in December 2017 and approved. However, since that time, EPIC proposed a new option on a full insured basis that we believe will be a better solution for the members of CSEBA. They are proposing we add the amplify program, on a fully insured basis. Plan descriptions are attached for board review. Fiscal Impact The cost for this program is: .25 PEPM. Findings/Recommendation The Executive Committee’s recommendation is that the Board of Directors approve the implementation of the EPIC Amplify program effective at renewal 2018-19.

EPIC Hearing Aid Plan Options

Plan1(Self-Funded) Cost Plan2(FullyInsured) CostAmplify&AmplifyPlus

ASOFee $0.20PEPM Amplify $0.25PEPMClaimsPEPM $1.50 AmplifyPlus $1.00PEPMFundinglevel $500 AmplifyVistaCopays: $599&$899

AmplifyPlusVistaCopays: $499&$799AnnualCost(includes$0.20ASOFee&$270,000projectedclaims-240utilizers)

$311,494

AnnualCostwithAmplifyPlans(noadditionalclaimcosts) $51,867-at$0.25

$207,468-at$1.00

PlanDifferencesCSEBAfundsupto$500forhearingaids

PlanDifferencesMembershaveaccesstodiscountedcopaysforVistahearingaidsandfullnetworkatpreferredpricing.

Amplifycopayrange-$490to$2,399AmplifyPluscopayrange-$490to$1,999

Notes:

ASOFee,AmplifyandAmplifyPlusPricingguaranteedfor3years.

ASOfeeandAmplifypricingbasedon17,289employeesandincludesapprox.38,000coveredlivesAllplansaboveincludeaccesstoouronlineListenHear,LiveWellhearingwellnessprogramforadditionalwellnessrewardssavings-upto$400offapurchaseexceptforVistacopaypricing.

EPIC Hearing Aid Plan Options

Notes:

ASOFee,AmplifyandAmplifyPlusPricingguaranteedfor3years.

ASOfeeandAmplifypricingbasedon17,289employeesandincludesapprox.38,000coveredlivesAllplansaboveincludeaccesstoouronlineListenHear,LiveWellhearingwellnessprogramforadditionalwellnessrewardssavings-upto$400offapurchaseexceptforVistacopaypricing.

Self-FundedEPICmanages/administers:

FullyInsuredCoverageformembers:

eligibilitymaintenance eligibilitymaintenance

benefitcoordination&claimsadministration

noback-endclaimspaidbytheJPA

anannualroutinehearingtestisincluded

anannualroutinehearingtestisincluded

accesstotheentireselectionofnamebrandhearingaidsbyallmajormanufacturersatPreferredandPreferredPluspricing

accesstotheentireselectionofnamebrandhearingaidsbyallothermajormanufacturersatPreferredandPreferredPluspricing

membermarketingandcommunicationmaterials

membermarketingandcommunicationmaterials

professionalnetworkmaintenance,followupcare,complimentarybatteriesandextendedwarranties

professionalnetworkmaintenance,followupcare,complimentarybatteriesandextendedwarranties

utilization&membersatisfactionreporting

utilization&membersatisfactionreporting

What Matters Most. Amplify An Affordable Hearing Benefit Solution for Health Plans.

www.epichearing.com/Amplify

Page 2 of 5

1 877.606.3742

epichear ing.com Amplify your benefit offering with affordable hearing coverage from EPIC Hearing

Healthcare. Amplify is an exclusive hearing benefit solutions for Health Plans, including:

Lowest member copays for premium, digital technology

Largest accredited network of hearing care professionals

Extended service and loss & damage warranties

One-year supply of batteries with purchase

Routine hearing test

Turn-key Implementation

Ease of administration (no claims processing)

Amplify Fee CSEBA Membership Size Amplify PEPM

17,000 Employees / 38,000 Total Covered Lives

$0.25 (Per Employee Per Month; Dependent

Coverage Included)

*Rate guaranteed for 3 years

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Amplify Coverage Members receive an annual routine hearing test and choice of name brand, digital hearing aids at a low, fixed co-pay. Covered Hearing Aid Devices:

BONUS FEATURES Routine Annual Hearing Test (CPT 92552) included. Members also have access to EPIC’s branded catalogue of hearing aids from all major manufacturers (Oticon, Phonak, Resound, Starkey, Siemens/Signia, Unitron, Widex) at Preferred pricing.

Level of Technology

Features/ Specifications

Retail Price Standard EPIC HSP Price

Amplify Member Price

Entry 4 - 8 Channels $1,400 $495 $490

Essential 4 - 8 Channels 2 Programs

$1,650 $1,199 $999

Standard 4 - 12 Channels 2 - 3 Programs

$2,250 $1,499 $1,299

Advanced 8 - 12 Channels 3 - 4 Programs

$2,700 $2,099 $1,899

Premium 16 - Channels 4 - 5 Programs

$3,500 $2,499 $2,399

Member Co-Pay

$599

Member Co-Pay

$899

Vista 610

Vista 810

Member Co-Pay

$899

Mid Level Technology Premium Level Technology

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epichear ing.com Amplify HEARING AID (DEVICE) FEE SCHEDULE Covered Hearing Aid- Mid Level Member Co-Pay - $599

(Typical Retail $2,250) Vista 610 Covered Hearing Aid- Premium Level Member Co-Pay - $899

(Typical Retail $3,500) Vista 810

Preferred Pricing Schedule on Other Products

Entry $490

Typical Retail $1,400 Phonak Starkey Unitron Hansaton

Essential $999

Typical Retail $1,650

Phonak Resound Oticon Unitron Hansaton

Signia (formerly Siemens) Starkey Beltone Widex

Standard $1,299

Typical Retail $2,250

Phonak Starkey Unitron Widex Hansaton

Signia (formerly Siemens) Oticon Resound Beltone

Advanced $1,899

Typical Retail $2,700

Phonak Starkey Unitron Widex Hansaton

Signia (formerly Siemens) Oticon Resound Beltone

Premium $2,399

Typical Retail $3,500

Phonak Resound Starkey Unitron Hansaton

Oticon Beltone Signia (formerly Siemens) Widex

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Item 4.4 Clifton, Larson & Allen Fiscal 2016-17 Annual Audit Report

Strategic Goal Initiatives FINANCE Background/Issue The California Schools Employee Benefits Association (CSEBA) Joint Powers Authority operates as a Local Education Agency in the State of California, and as such, is held compliant to annual financial audits pursuant to the education code. The audit reflects the financial condition and activities of CSEBA for the fiscal year ended June 30, 2017. The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, using the accrual basis of accounting, which necessarily include amounts based upon reliable estimates and judgments. Each program is maintained as an individual enterprise fund and is considered as a separate accounting entity for sharing in residual net assets in accordance with CSEBA’s bylaws. Clifton, Larson & Allen LLP, Certified Public Accountants has performed an independent audit examination of the financial statements in accordance with auditing standards generally accepted in the United States of America.

Fiscal Impact

None at this time.

Findings/Recommendation

No findings are reported. It is recommended that the Board of Directors approve the fiscal audit report.

Item 6.1 Discussion and Approval on 2018-2019 Rates Strategic Goal Initiative FINANCE, MEMBERSHIP, PROGRAMS Background/Issue Under the Strategic Plan, the objective is to communicate with the members to increase their knowledge of the programs and benefits available through CSEBA, including understanding their health plan renewals relevant to employee benefits. Fiscal Impact Impact will vary by vendor. Findings/Recommendation Aon Hewitt will lead discussion of 2018-19 rates for CSEBA Board of Directors as approved and recommended by the Executive Committee. This item is being presented for action by the Board of Directors.

Item 6.2 Review of CSEBA Store for Voluntary Benefits

Strategic Goal Initiatives

BRAND AWARENESS, PROGRAMS, SERVICE, FINANCE, TECHNOLOGY Background/Issue Benefitfocus was approved by the CSEBA Board as the vendor partner of online health benefit enrollment and administrative billing services for CSEBA. In addition to these core services, an opportunity exists to provide non-competing supplemental and voluntary insurance products to the 28 districts offering medical on the CSEBA web-based platform powered by Benefitfocus The CSEBA Store would enable CSEBA to consolidate non-supplemental & voluntary products onto the platform to differentiate CSEBA from others by simplifying the employee online experience in choosing products that employees may find beneficial (ie, legal/identity theft, pet insurance, financial wellness). The CSEBA Executive Committee was updated at the January 24, 2018 meeting where they approved moving forward with the CSEBA Store of voluntary benefits with products identified as non-competing with American Fidelity. Fiscal Impact There is no impact to the JPA budget. Voluntary products are paid through payroll deduction. Findings/Recommendation The Executive Committee recommends approval of the CSEBA Store of voluntary products identified as non-competing with American Fidelity.

Item 7.1 CSEBA Online Enrollment Implementation Update Strategic Goal Initiatives TECHNOLOGY, PROGRAMS, MEMBERSHIP, SERVICE, Background/Issue At the Board of Directors meeting in June 2017, Benefitfocus was approved as the online benefits enrollment platform. JPA staff and the Benefitfocus team developed an implementation timeline to meet the open enrollment dates for each participating member district. Beca Tomcho, of Benefitfocus, will update the Board on the progress of the CSEBA implementation. Fiscal Impact None at this time. Recommendation This item is being brought forward as information only.

Item 7.2.1 Business Development Report

Strategic Goal Initiatives

MEMBERSHIP Background/Issue The following activities are ongoing District Presentations:

� Blue Shield TRIO expansion growth � Wellness Action Team ongoing meetings � Strategic planning work in progress � Benefit focus implementation � CPHCC Strategic planning � RFP responses � Renewal meetings � Meetings with Go365 regarding wellness programs growth targets � Quoting prospects for next F/Y � Contract reviews � American Fidelity Meetings � Delta Dental meetings

Fiscal Impact Not Applicable. Findings/Recommendation This item is presented for information only.

Item 7.2.2.1 Self-Funded Utilization Review Strategic Goal Initiatives FINANCE Background/Issue The financial outlook of the CSEBA self-insured Blue Shield of California, Delta Dental, VSP & MES plans are reported to the Executive Committee on a quarterly basis and at the Board of Directors meetings. The report includes a summary of revenues and expenses based on rates approved by the Board of Directors. The report also includes detailed information listing the specific claim expenses derived from utilization for each plan. Fiscal Impact The funding model for the self-insured plans take into account contributions received by the participating member districts versus the expenditures paid out through the first six (6) months of the fiscal year. The net surplus/deficit balances are carried forward for the remaining six (6) months and reconciled at the end of the fiscal year at June 30, 2018. Findngs/ Recommendation CSEBA will continue to project an ending balance for each of the self-insured plans based on 6 months of utilization experience. Due to plan volatility, not enough credible information has been established to “estimate” a financial (surplus/deficit) position with a high degree of confidence.

Item 7.2.2.2 Investment Report-2nd Quarter 2017-2018 Strategic Goal Initiatives FINANCE Background/Issue The California Schools Employee Benefits Association JPA assets are maintained in the San Bernardino County Treasury and in the Local Agency Investment Fund (LAIF) in Sacramento, which is administered by the State Treasurer’s Office. Funds are invested in a manner that will protect principal, allow for cash flow needs and optimize returns, and are in conformity with all federal, state, and local statutes governing such investment of public funds. Fiscal Impact Interest earnings are used to offset program costs and reduce the required member contributions. Findings/ Recommendation This item is being brought forward as information only.

Item 7.2.3 HCR and Legislative Report Strategic Plan Focus Area Strategic Initiative – MEMBERSHIP Background/Issue Under the Strategic Plan, communication and education is key to servicing our members. One form of communication is to update our members on Health Care Reform and California assembly bills pertinent to health and welfare plans that could potentially affect CSEBA members. Fiscal Impact None now Findings and Recommendations Presented for educations purposes.

Item 10.0 Future Meetings Strategic Goal Initiatives BRAND AWARENESS, MEMBERSHIP, SERVICE Background/Issues The following is a list of the CSEBA 2017-2018 Meetings as approved by the CSEBA Board of Directors: 10.1 Future JPA Meetings, Ad Hoc Focus Groups and Events: CSEBA Executive Committee Meeting 9:00 a.m. May 9, 2018 Location: 1950 South Sunwest Lane, Suite 102, San Bernardino, CA 92408

CSEBA Board of Directors Meeting 9:00 a.m. June 21, 2018 Location: Webinar

The following is a list of the CSEBA 2017-2018 Events as approved by the CSEBA Board of Directors: 10.2 Future JPA Meetings, Ad Hoc Focus Groups and Events: CSEBA 5k Date: TBA Location: TBA 10.3 Non-JPA Conferences and Events: Fiscal Impact Not applicable. Findings/Recommendation This is provided as information only.