CALL TO

ORDER

The regular 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 1:30 p.m., October 24, 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, Scott Lee, and Eric Ortega

Trustee absent:  Vicki Holmbom

Legal Counsel present:  Anthony Trembley, and Laura McAvoy arrived at 2:15 p.m.

Legal Counsel absent:  None

Guests present:  None

PLEDGE OF

ALLEGIANCE

Trustee Ortega led the pledge of allegiance.

ADOPTION OF AGENDA

On motion of Trustee Lee, seconded by Trustee Edmonds 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 Henry, seconded by Trustee Edmonds and carried, the minutes of the regular meeting of September 26, 2008, was approved, as presented.  Trustee Lee abstained.

AUDIENCE TO ADDRESS THE BOARD

None

ACTION ITEMS

Approval of Projected Budget

Approval of Portfolio Reallocation

Approval of Payment of Invoices

Upon motion of Trustee EdmondsLee, seconded by Trustee Henry and carried, the projected budget was approved, as presented.

Item was tabled for the meeting of November 14, 2008.

Upon motion of Trustee EdmondsLee, seconded by Trustee Lee and carried, invoice from Nordman, Cormany, Hair & Compton, LLP in the amount of $ 200.00 was approved for payment, as presented.

Upon motion of Trustee LeeLee, seconded by Trustee Henry and carried, invoice from Musick, Peeler & Garrett, LLC in the amount of $ 1,347.50 was approved for payment, as presented.

Upon motion of Trustee EdmondsLee, seconded by Trustee Lee and carried, invoice from Vance, Thrift & Biller, LLP in the amount of $ 1,275.00 was approved for payment, as presented.

Upon motion of Trustee LeeLee, seconded by Trustee Henry and carried, invoice from Canterbury Consulting, Inc. in the amount of $ 7,238.00 was approved for payment, as presented.

INFORMATION ITEMS

PERS Retirement/ Investment Services Report

Trustee Lee gave a report and passed out material related to a program offered by the Public Employee Retirement System (PERS).  Trustees Lee, Edmonds and Henry attended an informational seminar where PERS representatives presented information on the services provided to public agencies wishing to have PERS serve as the investment vehicle for post retirement health benefits.  The information provided detailed procedures involved in such an effort.  Mr. Trembley counseled the Board that he had been in contact with PERS representatives and had discerned that for the OUHSD to transfer its funds would require a “liquidation to cash” method of transferring the funds.  In addition, Mr. Trembley shared case law and other information regarding the Trustee’s Fiduciary responsibilities as they pertained to making such a transfer.  A part of this information covered legal requirements for what constitutes due diligence before undertaking such a transfer.  Mr. Trembley advised Trustees that a Request for Proposal (RFP) would likely be a part of this due diligence.  Trustees Edmonds and Henry

expressed concern regarding the performance of certain holdings in the current portfolio and with the level of fees charged by Canterbury Consulting.  It was also expressed that the fees charged would be less under PERS and would offset the loss of flexibility associated with the loss of control in investments that the Board currently enjoys if the Trust’s funds were transferred to PERS.  An article detailing PERS’ recent financial losses was distributed and was accompanied by a general discussion of the current economic climate and downturn.

INFORMATION ITEMS

CSEBO

City National Bank

Open Comments

The CSEBO Estimated Income and Expense Report of the Coastal Schools Employee Benefits Organization (CSEBO) as of June 30, 2008, balances reported are as follows: Select Care Medical - $1,418,878; Delta Dental - $ 194,943; and Medical Eye Services - $ 140,732.

Board Chair Rice reported that as of September 30, 2008, the City National Bank Investments account reflects an ending market value of $ 27,530,792.  Board Chair Rice also reported that as of September 30, 2008, the City National Bank Money Market account shows an ending balance of $ 155,308.

Trustee Lee requested consideration of mileage reimbursement for expenses incurred as a part of the trip to visit with PERS.

Trustee Rice thanked Mr. Trembley for his ongoing counsel and work to safeguard the assets of the Trust and to properly research and advise the Board on issues related to the Trustee’s Fiduciary Responsibility.  Chair Rice also reiterated concern about the economic outlook, but reminded the Board of its many ongoing efforts to protect and grow the assets of the Trust and that investigating PERS as a potential investment vehicle was just one example.  

ITEMS FOR FUTURE CONSIDERATION

1.  PERS Retirement Services Report

2.  Mileage Reimbursement – Scott Lee

3.  Actuarial

4.  Stop Loss Carrier

5.  HMO Self Funding

6.  Annual Budget

Counsel Trembley left the meeting at left at 2:50 p.m.

CLOSED SESSION

Board Chair Rice announced that the Board was going into closed session to discuss confidential materials relating to:

Ø  Conference With Legal Counsel--Potential Litigation; Significant Exposure To Litigation Pursuant to Government Code Section 54956.9(b): 1 case (PVSD Unification)

RECONVENE IN PUBLIC:  REPORT

OF CLOSED SESSION ACTION

ADJOURNMENT

The Board reconvened in open session at 2:55, Chair Rice announced that no action was taken.

There being no further items of business, Board Chair Rice adjourned the meeting at 3:15