MEETING OF THE TRUSTEES CHARITABLE TRUST UNDER THE IVY B. HORR REVOCABLE TRUST WEDNESDAY, DECEMBER 13, 2000 MINUTES

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1 MEETING OF THE TRUSTEES CHARITABLE TRUST UNDER THE IVY B. HORR REVOCABLE TRUST WEDNESDAY, DECEMBER 13, 2000 MINUTES The Trustees of the Charitable Trust Under the Ivy B. Horr Revocable Trust met in regular session on Wednesday, December 13, 2000, in the Shasta College Board Room. 1. CALL TO ORDER The meeting was called to order by Mrs. Patricia Hunn, Vice President of the Trustees, at 7:55 p.m. 2. ROLL CALL Roll Call indicated the following: Trustees Present Mrs. Cheri A. Beck Mrs. Judi D. Beck Mr. Harold J. Lucas Mrs. Patricia A. Hunn Mrs. Rayola B. Pratt Mr. D. Scott Thompson Ms. Monica Lippingwell Trustees Absent Mr. Kendall S. Pierson 3. FLAG SALUTE Mr. Thompson led the flag salute for those attending the Trust Meeting. 4. MINUTES OF THE ANNUAL MEETING HELD DECEMBER 8, INTRODUCTION OF SPECIAL GUESTS Mrs. Hunn asked for additions or corrections to the minutes of the annual meeting held December 8, It was moved by Mrs. Cheri Beck, seconded by Mrs. Pratt, and carried unanimously THAT THE MINUTES OF THE DECEMBER 8, 1999, ANNUAL MEETING BE APPROVED AS SUBMITTED. Ms. June Stephens, Executive Director of the Foundation, was introduced.

2 MEETING OF THE TRUSTEES DECEMBER 13, INFORMATIVE REPORT - REPORT OF AWARDS MADE FOR CYCLE 10 OF THE IVY B. HORR REVOCABLE TRUST Ms. Stephens reported that this is the tenth year, or cycle, of the Ivy B. Horr Revocable Trust. This year, 14 awards were given out for a total of $101,000. Ten of the awards are new applicants and four are renewals. The four renewals represent one person studying to be a Nurse Practitioner from CSU Chico, one person in Physical Therapy attending CSU Fresno, one person in Medical Science attending UC Irvine, and one person attending Kirksville College in the Doctor of Osteopathy program. Of the ten new loans, three are studying Dental Hygiene, three are in Medical Science, one physician assistant, one physical therapist, one nurse, and one RN anesthetist. Over $500,000 has been awarded since the inception of the Trust. The Trust balance is $1,392, with 44 recipients in the repayment phase owing a total of $304, Over $100,000 has been repaid to date. Nine students are in default and have been sent to collections for a total dollar amount of $37,123. One recipient has filed bankruptcy. 7.1 ORGANIZATION OF THE TRUSTEES FOR Ms. Hunn stated that this meeting has been designated by the Trustees as the Annual Organization Meeting of the Trustees of the Charitable Trust Under the Ivy B. Horr Revocable Trust. It was moved by Mrs. Cheri Beck, seconded by Mr. Thompson, and carried TO ELECT PATRICIA A. HUNN AS PRESIDENT OF THE TRUSTEES. It was moved by Mr. Lucas, seconded by Mrs. Cheri Beck, and carried TO ELECT RAYOLA B. PRATT AS VICE PRESIDENT OF THE TRUSTEES. It was moved by Mr. Thompson, seconded by Mr. Lucas, and carried TO ELECT CHERI A. BECK AS CLERK OF THE TRUSTEES. It was moved by Mrs. Judi Beck, seconded by Mr. Thompson, and carried TO SELECT DOUGLAS M. TREADWAY AS SECRETARY OF THE TRUSTEES. 7.2 CONSIDERATION OF RESOLUTION FIXING TIME FOR REGULAR Attached to the Agenda, as Exhibit A was a copy of a proposed Resolution Fixing the Time for Regular Meetings of the Trustees of the Chari-

3 MEETING OF THE TRUSTEES DECEMBER 13, 2000 MEETINGS table Trust under the Ivy B. Horr Revocable Trust. The proposed Resolution stated that regular meetings of said Trustees shall be held between the first day of January, 2001, and the 31 st day of December, 2001, on the second Wednesday of every month, as necessary, with the December meeting just prior to the Annual Organization Meeting of the Board of Trustees of the Shasta-Tehama-Trinity Joint Community College District. The next Annual Organization Meeting will be held December 12, It was moved by Mr. Lucas, seconded by Mr. Thompson, and carried TO APPROVE THE PROPOSED RESOLUTION FIXING TIME FOR REGULAR MEETINGS. 7.3 APPOINTMENT OF ADMINISTRATORS FOR THE CHARITABLE TRUST Mrs. Hunn noted that it was recommended the Trustees appoint Douglas M. Treadway, Trust Chief Executive Officer; Ellen Peres, Trust Assistant Chief Executive Officer; and June Stephens, Trust Assistant Chief Executive Officer, as administrators of the Charitable Trust under the Ivy B. Horr Revocable Trust, in accordance with the Resolution attached to the Agenda as Exhibit B. It was moved by Mr. Thompson, seconded by Mrs. Cheri Beck, and carried TO APPOINT DOUGLAS M. TREADWAY, TRUST CHIEF EXECUTIVE OFFICER; ELLEN PERES, TRUST ASSISTANT CHIEF EXECUTIVE OFFICER; JUNE STEPHENS, TRUST ASSISTANT CHIEF EXECUTIVE OFFICER, AS ADMINISTRATORS OF THE CHARITABLE TRUST UNDER THE IVY B. HORR REVOCABLE TRUST, IN ACCORDANCE WITH THE RESOLUTION ATTACHED TO THE AGENDA AS EXHIBIT B. 8.1 CONSIDERATION OF AUDITED FINANCIAL STATEMENTS FOR THE CALENDAR YEAR ENDING DECEMBER 31, 1999 AND CONSIDERATION OF AUDITED FINANCIAL STATEMENTS FOR THE CALENDAR YEAR ENDING DECEMBER 31, 1999 AND 1998 Dr. Treadway explained that attached to the Agenda as Exhibit C, was a copy of the audited financial statements for the Charitable Trust under the Ivy B. Horr Revocable Trust, for the calendar year ending December 31, 1999 and 1998, as prepared by Nystrom and Company, Certified Public Accountants. Dr. Treadway noted that Trudy Tavares of Nystrom and Company was present if there were any questions, as was Rod Long and Terry Ross of A.G. Edwards. There used to be an investment committee, which gave a report and that is why these individuals are here.

4 MEETING OF THE TRUSTEES DECEMBER 13, 2000 (Continued) Mrs. Cheri Beck commented that we used to have a policy that we did not invest in high risk. She questioned what the current risk level is and what the rules of the trust are. Dr. Treadway responded that the portfolio type is the same as in the past. It has only gone from a committee to a direct money management firm and it is still conservative. Terry Ross also responded that the Ivy B. Horr is 50% fixed income and 50% equity. He said that a handicap is that there are different styles of managing. It has been a value style. On the equity side they are introducing a growth/blended management. Historically, one style buffers the other. Last year, it was an unusual period, which was very narrowly focused on performance. Mrs. Cheri Beck mentioned that she noticed an investment in bonds. Terry Ross replied that the bond portion is individual not a mutual fund so the trust owns its own array of bonds. Mrs. Cheri Beck questioned how they select what we invest in and how they determine what we can do. Terry Ross answered that they do not manage the money themselves but instead have professional money managers who use a staggered approach. Terry Ross further explained the bond investments. Mrs. Cheri Beck mentioned that she didn t recognize many blue chips and asked what they would consider a blue chip. Terry Ross gave an example of Emerson Electric. Terry Ross said he was happy to say that it has been a challenging two years but year-to-date the Ivy B. Horr Trust is outperforming all the others. The Ivy B. Horr Trust year-to-date portfolio is up 8.5%. 8.1 CONSIDERATION OF AUDITED FINANCIAL STATEMENTS FOR THE CALENDAR YEAR ENDING DECEMBER 31,1999 AND 1998 (Continued) Dr. Treadway recommended the independent auditor s report, as submitted by Nystrom and Company, Certified Public Accountants, be accepted. It was moved by Mrs. Cheri Beck, seconded by Mr. Lucas, and carried TO ACCEPT THE INDEPENDENT AUDITOR S REPORT, AS SUBMITTED BY NYSTROM AND COMPANY, CERTIFIED PUBLIC

5 MEETING OF THE TRUSTEES DECEMBER 13, 2000 ACCOUNTANTS. 8.2 REPORT OF INCOME AND EXPENSE ON A CASH BASIS, AND ASSETS FOR THE IVY B. HORR REVOCABLE TRUST FOR THE PERIOD JANUARY 1, 2000, THROUGH OCTOBER 31, 2000 Dr. Treadway stated that attached to the Agenda as Exhibit D, was a report of income and expense on a cash basis for the period January 1, 2000, through October 31, 2000, and a report of the assets for the Ivy B. Horr Revocable Trust as of October 31, Dr. Treadway recommended that the report of income and expense on a cash basis, and assets for the Trust be approved as submitted. It was moved by Mrs. Judi Beck, seconded by Mr. Lucas, and carried TO APPROVE THE REPORT OF INCOME AND EXPENSE ON A CASH BASIS, AND ASSETS FOR THE TRUST, AS SUBMITTED. Mrs. Cheri Beck asked Ellen Peres, Vice President of Administrative Services, to please explain the administration fees. Ellen Peres responded that the administrative fees are those charged by A.G. Edwards and the collection agency. 9. ANNOUNCEMENTS There were no announcements. 10. COMMENTS FROM INDIVIDUAL MEMBERS OF THE BOARD 11. COMMENTS FROM THE AUDIENCE 12. DATE OF THE NEXT MEETING Mrs. Hunn asked if there were any comments from individual members of the Board. There was no response. Mrs. Hunn asked if there were any comments from the audience. There were none. Mrs. Patricia A. Hunn announced the date of the next regular Trust Meeting as December 12, 2001 at 7:30 p.m., in the Board Room of the Administration Building. 13. ADJOURN It was moved by Mrs. Pratt, seconded by Mr. Thompson, and carried to adjourn the Trust Meeting at 8:12 p.m. Respectfully submitted, Susan M. Vanderwerf Secretary

6 MEETING OF THE TRUSTEES DECEMBER 13, 2000