001[Music] um [Music] thank you good afternoon everybody a little bit of strange circumstances today so the three board members have asked me to open the meeting and do the first part so i'm calling the meeting to order roll call greg okay citizens present we're glad you're all here uh the room is arranged this way because we had another meeting just before this meeting and we figured you wouldn't mind anyway please stand for the pledge of allegiance i pledge allegiance next item on the agenda is adoption of the agenda we don't have any call to the public we didn't have any call to the public sorry okay the first item on the agenda for your consideration is resignation of frank waters uh who's been the longest member of the current uh board was one of the
002original members and was also the president of the or the chairman of the board recently you'll need to take action on accepting his resignation any discussion all in favor aye opposed none okay 2.2 is election of a chairperson as per section 3.3 in the declaration i second that i would like to be a member not the chairperson i nominate grey guidance then to be a chairperson greg are you accepting that [Laughter] so i think you need to vote all in favor aye opposed okay the eyes have it does he want to move if you want to move over here greg you can or you can work from there please take over the meeting number three bullitt city school district's notice of withdrawal any comment from bullhead city school district there's no one from the board
003here tonight here today to discuss this brandy who is brandy dubois who is your board member from representing our board was not able to attend and we could not could not contact everybody on the board to see who else might want to be here at least to share their views and kim was unable to get a hold of anybody i just have um one question i know that during the elementary district board meeting it was stated that per your legal counsel this was the acceptable route to go we do have some contracts that are written under the trust's name is the elementary district the same the dental and the vision and the unum which is life insurance and short-term disability have been written with various names we did have we did ask that that be
004checked both the vision and the dental vendors agreed that they would continue with the same coverage for this next school year and simply because of the way those uh contracts are written that it can be that it can be considered you know split or continued the way it is for unum it's a little more complicated because they were not willing to to continue under the same plan and this is information that i've not yet been able to share with the bullhead city board but they were not willing to continue under this under the one umbrella and would split it out so there there are some consequences that could happen as a result of that that might lead to the bullhead city board changing its mind relative to this and i suspect that's one of the
005reasons that they're supposed to be a 60-day period of time in there for you know for consideration so as i say i've not had the opportunity to share that with them collectively that that's a that that's a factor it does not affect anything relative to the health and pharmacy contract with kairos those of those have been separate to begin with but the other two companies vision and dental are both willing to uh just simply change the name on the on the policy and make it work and not change any rates at all i think timing was part of it you know brandi didn't know until late this morning that she was not going to be able to be here so um makes it a little difficult to get a hold of the others dated may
00618th so approximately you have until july 18th yeah july 16th i think is when act or withdraw the letter yes i don't know what to say to create a discussion as to because i'm not sure what i can ask that isn't wasn't in a closed session you know what prompted this who prompted this i understand the why i get it but is that long-term going to be beneficial to both districts you're just your district are you kicking the high school district to the curb you know i i you know what prompted this i think the the ongoing first of all the confusion with the muddy document which we're dealing with and we've talked about that in the past uh fairly recently you know that it's that actually the items that that you're going to consider
007next really play into this i think and just trying to get on with it you know i and my understanding and and um carrie you could correct me on this but i think in one of our conversations because carrie's caught called or emailed me and asked lots of really good questions and we've really tried to provide you know as much information as we can but she also recognizes that we're functioning in a rather muddy uh set of set of circumstances with the current document but the whole the my understanding was that the high school had not even given out to their folks and i could be totally wrong with this but even their open enrollment because of some concerns about about the background of these of these things so that was a whole lot of
008you know it's kind of like let's just get on with it so the 60 days gives us a chance gives you a chance as a board to decide you know where you want to proceed if you want to proceed with a a trust that actually that the document actually reflects what you all have been doing for years because you all have operated in good faith and made decisions and with advice from the ambassadors very good decisions in the best interest of both districts and yet the way that document is written doesn't support that so either the board has to change what it does or the document needs to reflect what the board is really doing which has been valuable to both districts um and i think all along well under the circumstances and it may
009also it may have partly been an idea of um uh let's force the issue and i think let's get something fixed the one the one key thing that i want to take away from this is i i worked closely with gathering my information from michelle who's the benefits coordinator i never heard that the open enrollment was uh pushed back because of questions that were coming or anything like that but i do know that when the elementary district met to do this the statement was said that allegations were made that prompted kind of just maybe let's move away i just feel it very necessary to be clear with they're not allegations they're just questions when when i'm newly appointed it's very important to read through all of these documents and wrap your head around the whole
010picture and i think dr stewart and myself are on the same page with that declaration is very confusing because this trust was never funded and so it makes it very complicated when i start asking certain questions as far as how are we budgeting who's looking at the money where are the audits all these things matter and when it's not funded and it's at separate districts i think that that's where my statements came from the other board that then might have prompted um maybe the allegations comment but it was not me alluding that there were any malicious things going on it's just when it's muddy then it's complicated and we do have contracts that are not currently signed at our district um michelle could i ask michelle a question on your behalf oh god i didn't
011even know that she was yes absolutely sherry greg are you okay with that michelle have the have the open enrollment docs gone out yes we actually got ours out before the bullhead side the only thing that we had held up was the signing of our vision care direct contract in the past they've not required ever to have them signed they did send us an email saying that now currently they do ask us to do that and they sent us ours without any rate increase in the two-year renewal which is typical of them and um somebody was instructed not to sign that so we had to wait we did sign our medical there's nothing to sign for dental there never has been and when i contacted emeritus they said we have things going back 20 years
012with companies and we don't ask them to sign anything it's just how it's done same thing with life insurance i will tell you when i spoke with una regarding whether or not this splitting apart would be detrimental they said that right now we have the district pays for life insurance policies on every employee that's a benefit they get twice their annual salary now this will not necessarily be the case if they have to send this back to underwriting and do new policies we currently have the option especially as a new employee to go up to 150 000 on a supplemental life policy and those are guaranteed issue up to five times your annual salary so i mean it's a give and take there depending on what you earn however if that dollar amount will no
013longer exist so people who've been paying into this and have been counting on it all this time will not have that amount any longer those with short-term disability will pay more for what they have so as an example metlife when they quoted us last year my short-term disability policy for myself would go from 33 a month to over sixty dollars a month for the same coverage as a classified person who doesn't get raises and asrs goes up every year i can't do that i would have to forego the policy at that point um it would still affect teachers and everyone else as well of course both districts would be rated independently and they would raise our rates independently of each other but they would raise so it would be an issue as far as auditing
014and the muddiness of the trust thing i totally get all of that [Music] it's very difficult when you're talking about being self-funded and not self-funded because we really aren't so with our life insurance and with our health insurance which are actual insurance policies we receive premium bills we pay those bills and send out the check so it's there's nothing over or under on that now with our vision and our dental currently we collect 32 a month the well the district pays 32 dollars per month per employee and eight dollars per month per employee for vision that goes into our medical account then we have claims that come in now not individual claims your doctor's not billing us they bill vision care direct or they bill emeritus who handles the claim they determine what should be
015paid and paid it and then they send us a bill to reimburse them for that which we then do now that i think was my question when i first came on is how do we know that 32 and 8 are good dollar amounts i think that it's a fair question to have that evaluated periodically so that you know our is the district taking and sending too much every month or maybe we're shorting it but it does take a period of three to five years of these kinds of claims and things to really see that picture i mean if you just looked at last year we'd be like oh we're taking way too much why nobody went to a doctor appointment that's a little appointment or half price check last thing you would do is sit
016there with your mouth open in front of somebody so our claims were very low other years they're going to be very high in july and august our teachers go take advantage of that time off and every kid's in that dentist office and you know our claims go up i do think that that's a very honest and good thing to evaluate on a periodic basis and it should be done i am you know and i think that that's that's where the confusion was because i had mentioned the arizona state statutes right there were two of them one for self-funded and one for pooled so at any time i should be able to go into the district office and ask for five years worth of audits to do exactly what michelle just said which is to give
017us an idea of where we're at with those claims when i went to go do that just as i was doing a self audit just as a constituent just seeing where we were where we fell with this checklist they weren't there and so it's not it is important for us to be able if those funds are in the elementary district or in the high school district that they're just monitored and that's so they were never allegations and i i apologize wholeheartedly if it came off that way it was just me doing my i know people hate when i say this but my due diligence and making sure that i was being responsible in checking all of our boxes that we had everything that we needed to operate appropriately so one comment i would make michelle
018very good explanation of all of that and especially the unum part which is really important to take back to my board for them to reconsider on uh you know on this whole process i'm not sure on the high school side but i know on our side the last two years i've been here when the auditors have been here and they audit everything so i'm i'm 95 positive that they've audited that piece you know on our side and i can't imagine if they didn't find anything on one side that they would find anything bad on the other side and i know the high school gets audited every year as well um i'm not sure i i think carrie probably it might you probably can't pull that piece of the audit out separately i don't know uh
019i will tell you we don't have our audit yet from december yeah so i can't tell you that specific piece but uh but i know that that the auditors dig into virtually every account we have and right now we have not just insurance but we have you know we have 44 budgets right now and they look at all 44 budgets uh when they come so um you know i would i would be hopeful that if we knew what to look for we could find exactly what any citizen wants if they came in on any day and you and and i would be hopeful of the same unfortunately i've not had so much luck so and it's just a it's just like a where you know like normally you could just send an email that says
020where is our healthcare budget right it would seem like a pretty simple request but like you said at the beginning it's muddy and because it's muddy no simple request is really that simple right now and so that's why i think um the way the way that our district is moving forward is we've we've just voted in that end-to-end review and that's where we're going to start the process of unmuting our water to kind of really look at this big picture and say if we're going to have a trust then let's make sure that everything's operating accordingly and that all of our eyes are being dotted and our t's are being crossed and i think that that it's just imperative that both districts do that for so that we make sure that everything's done properly and
021that's and that's on each of the districts the the trust board has nothing to audit you don't have a fund you don't have money you have no money right that was that was the year right that are presenting information on insurance arguing with them about certain items and getting the best insurance for the dollar for both sets of employees that's all we do we have no money that we give out and that's part of the money muddiness in that document is because the document is all based around there being a pot of money and that you all are you longer in the know you know the whole it's all different yeah it's very different maybe what we need is just a new document that says we're an advisory board and that's part and that's and
022that's why that's on the agenda today is you know for you all to go with that um mr chairman i i would say that if you don't want to take action on this document from the bullhead city governing board you don't have to um you know it's there's a 60-day window here and and not quite 60 left but overall a 60-day window in which some of the other and maybe your other decisions today will impact their ultimate decision and if anything you could just table it and let where does that leave the high school that they want oh we're still we're we're studying this course until until we get all of our ducks in a row the end to end review i mean that's why we voted for that so this isn't this has not
023been on our agenda because we're gonna see through that end to end first and see what that comes comes out to be before we move carrie could i could i ask a question when you're talking about the end to end are you talking about the end end in in the crushed budget okay okay and i think that may have been part of the confusion because originally when you and i talked i understood that you were talking about an end end for this trust for which there is nothing to audit that was confusing it was that's why originally when i sent you the email i gave you that scope of work because most of it the end to end at that point what i was trying to get here was the paper the paper trail i
024wanted the the declaration looked at i wanted the minutes look i wanted everything just a thorough look at to see where we stood and that was my proposal which is why i sent that scope of work and and that's when mr waters and i started speaking about where we were with that and why i wanted that scope of work but then we're on a time crunch just as your district is right i mean uh our window is very small and i've been working on this since january so when i when i got the when i was against a wall i had no choice but to take it to my board and do it a different route which is an end-to-end review just on colorado river districts plans and everything we have and not on the
025trust because something has to be looked at and i just i think that that is so important and actually stephanie moore is with eca and she's here tonight but it has to be just dove into so right now that end to end is just at the high school level not for the trust 2.5 discussion possible action to recommend the respective districts recommend to the respective districts your request for quote score and distribution she'll get it she's coming okay i'm sorry you skip two point four okay 2.4 discussion of the health trusts operations and responsibilities as stated in the agreement in the declaration of trust for the colorado river health employees benefit trust and possible action who put that on the chain carrie asked that it be added to the agenda and mr waters sent it
026to me uh he's the one who sent the agenda originally and i think this addresses what sherry was just talking about a few minutes ago of of you know you all talking about perhaps creating a document that reflects what you actually do as opposed to continuing to do the good things you all have doing have been doing under a document that doesn't really fit so and that's an option for you all to do well if you look at the date this was originally set up in october of 2014. we've come a long way since then it has not been revised for almost two years and what we do isn't what's in this document my thoughts are is dump this document and maybe maybe frank would be willing to create a document since he knows and
027he's been on this board as to what we actually do i my only concern is i don't think you can just dump it i mean i know that i know what you're gonna say you're just an advisory committee but i really don't think that you i mean i would i would venture to say that that would require legal input as to if you can just dump a declaration because i mean there is arizona state statutes in here a lot of work put into it i don't know if it was ever signed and actually sent to the state it was well it was signed but i don't know i have no idea if it was ever sent to the state so that's something that frank could answer i think there are signatures on the on the
028one from december 10th of 2019 there were signatures on that document from the revision but in terms of in 2014 i have no idea i have no idea if it ever went to the state if it ever went to anybody and truthfully right now frank would be the only one who could answer that and section 12 does say termination of trust that's the way to do it and and it states it very clearly how you how you could do it but that involves kim can you go to section 12 please it's it is not even a very clear statement uh sherry it's there section 12 please i think it's 12.3 oh they're just a smidgen yeah no the other way kim to but there you go right there would you identify yourself for the board
029please thank you i'm with um as far as the choice document is clear regardless of whether it's been filed with the stator the trust document is clear on the responsibilities of the trustees my concern of removing this document is that if you eliminate the health care trust as it stands the life insurance contract that michelle was alluding to that the health care trust is a party to that contract and if you eliminate the health care trust and that health care trust is not just the name of a group of an advisory group it's an actual legal entity if you eliminate the health care trust then you eliminate a party to the life insurance contract which you don't want to do so our my recommendation would be for the trustees to consider a rewrite of the
030document that the high school district has hired to do the end-to-end review i'm sorry um we would just recommend that the document went at such time that you either get together as a trust or individually as districts contract with a broker to move forward that you have the document rewritten but it still has to remain a trust until such time as you do something with your commingled benefits that are in the name of the trust at that point and they're and the trust then doesn't exist anymore if the trust is dissolved then the contract with the with unum would be void because a party to the contract didn't no longer exist so they would no longer have to provide service to either district so you would want to make sure that any of the contracts
031that are in the name of the trust are dealt with first before you consider dissolving this trust at all i mean that's that's the that's the biggest issue that you have the other stuff can all be figured out but your what happens with your dental or vision can can be fixed but if somebody mr chairman i think there are sections in this document other than the determination one for how to revise it and and make amendments to it so i think you could accomplish the business of rewriting it and changing it by using that that those segments of this document as opposed to terminating the trust and i think that would go a long ways towards resolving a lot of these issues that would be my recommendation so kim can you can you find the
032place that has to do with amendments please and then keep in mind that that's where when this declaration together it was under schools as in plural so then those amendments would then be sent to each right there it's right there district's governing board right which would then decide from your recommendations if those amendments were accepted so i think this gives you this one gives you the option then of of redoing the document without dissolving the trust and that might go a long ways i can't speak for my board because i'm not on the board and i work for them but i think it might go a ways towards resolving the concerns that they have my concern is that any revisions would need to be done before july 16th right i don't think that's impossible mr
033chairman my name is marcia coss i'm the current lake house of city chairperson for the ubc currently we are in the process of winding down our employee benefits trust because our benefits has moved over to the nadt but in the process our lake havasu schools employ benefit trust is winding down so now we are in the process of taking our remaining i think it's 3.7 million dollars that we have that will we will end up paying down um for employee premiums so once that monies are paid out for our employee premiums then our five-person board will no longer exist and that'll have to probably over the next 12-18 months um with regard to this trust document because we were in the same position that you're in and we were like five years ago okay we
034used the same agent that you ended up having which was unfortunate and we went through the same pains that you went through it took us about two years to get through to the point where we started meeting it will fix some of the things that you're experiencing now but suffice to say that the trust document that you have now um we ended up going through and having to repair ours and amend ours but suggesting that you can simply hire an attorney that is not experienced with health care law or whistle law with the vast knowledge and experience that someone needs to write a trust document like this would would probably do as much harm as this document is already doing and to have the experience of a broker which you would need to have a
035document that would allow you to go out and request a proposal for a broker with experience to hire you know some of them come with the companies already as part of their packages those kind of things so there are some things that you can do as you're board to put out a request for a proposal to hire a broker that can come along and help you to write a document that's exactly what we did and we wrote a trust document that allowed us to do a request for proposal hire a broker have all those things put together help us to rewrite our trust document and then we went out and did that rewrote our trust document and helped us to make our trust and our board whole so that we could do the recommendations get
036the proposals for our insurance vote on our plans and whether or not you believe that you don't have you know funds to fund your premiums you have fully insured plans and self-insured plans you just happen to be holding your dollars in one in two different districts just because you don't have a fund you know a trust fund account so to speak doesn't mean that you don't have dollars that you're responsible for and i understand that both of your districts are um are doing audits but you may be doing capital audits but you certainly as far as i can find as a request for public records you're looking at documents trying to find them i've yet to find any health insurance audits at all so i understand that your your financial audit for what you're using
037your dollars for you know the information and the things that you use in your school in your school rooms in your classrooms and your payroll absolutely i'm sure those are all above board and you're fine but what you're using your health care dollars for i've yet to find anything on those for either district and those are the types of things that are required not just not just for this particular trust document but anything that has to do with the arizona revised statute regulations that are in your current trust document your employee benefit trust document that are tied to both districts and your your document the very first paragraph enjoying ties both of your districts together and makes you one identified as schools so you're not an advisor anymore you're an employment of the trust and
038you're you're you're managing if you will your your benefit trust differently than what i've seen in the past but it still doesn't excuse the fact that you still have that fiduciary responsibility to your to your employees to the members of both of the districts and so you know the questions that i've seen member fairing asks are valid questions i've watched and i think there's other people in the room that have watched the board meetings for this particular board and watched and not seen any votes casper because i watched you review your report meets and the rules of the plans and never seen a vote and you have to have a public meeting you have to have a public vote in order to you really do need to have legal counsel that has experience in health
039care law and you really do need to have a broker giving you advice you when you surround yourself with all of those people with that experience then you make the decisions that's i guess mr chairman we need to we need to think about several things first of all we cannot compare this trust to the trust in lake havasu they actually excuse me they actually put money in a trust and their board actually makes decisions regarding uh contracts with insurance companies this board has never done that this board never had control of any money this board has always as far as i can tell going back through in minutes has always only made the advice to the two school districts and the two school districts decided whether to follow that advice or not my understanding is
040that the havasu trust had had a trusted administrator yes and that's been part of their problem and they had they had a mess to straighten out she's absolutely right they had a mess to straighten out but it's not the same it's not the same muddy or uh confusing thing here this board has never ever in any of its uh meetings that i can tell from going back through minutes decided how to spend the money for uh for the insurance for the two the two districts the board has advised those districts because of due diligence and asking all the questions and and holding people's feet to the fire she is correct that and it's already been stated by michelle that we run some risk a serious risk relative to life insurance by you know by a
041split i get that and that's a factor that needs to go back to my board for their consideration i totally understand that but i don't think we can care that we can talk about the two situations as being identical or the same because they're not part of the issue is that this may actually not really be a trust and i think and a different set of laws would apply yeah and i think any any amendment or revisions to this the one thing that i've noticed for my district is that it's not always carried to the governing board so we need to be mindful as a board that this exists and what happens in these meetings matter for what we put on our agenda so and that it's not might not be the same for your
042district but i can say for certain in my district some things that have happened here as from an advisory level have not then been carried to a voting level and they were voted on i mean there's there are minutes of when the votes were taken in terms of this board there may not have been voting right no i it's in your minutes who approved it last year who moved for it and seconded it i know but there are some that that were not carried over that's all i'm saying okay and so whenever we make revisions or anything to this document i think it's important from a board representative perspective that i as long as i sit here that i make my board fairly aware of every meeting that we have in case of things that
043need to be added to the agenda and that's why we just have a health care trust discussion every month because it's important that they remember that while they might not always see the recommendations from the reporting because they come here first does not mean that they're this is not happening you know what i mean right so it's just a um nothing is nothing is not fixable i think that's what i've been saying i'm just trying to find out where the problems are so that we can write those wrongs and move forward so i think revisions of this document are necessary i'm going to say that it all started with our superintendent that we had that was controlling both school districts at the time and wanted to be the same as lake havasu having the same
044broker and one of these clinics wanted this trust set up basically the way havasu did but it never materialized to the point of funds being put in your hands to control it and always stayed with the district and that's about as far as it went this should have been revised a long time ago to match what you actually do here and i bet all those revisions that you see there in 2019 was just somebody that left and came in and put a new signature on there not anything of essence in the whole document so that's it really does need to be revised a lot yes it is it's in the document but it also says the formation of a clinic so it that idea is in there and uh and i will tell in enduring
045good points that you bring i will also tell you that a couple of the changes that happened in december to 2019 uh mr flora and i had just come aboard in july of that year um these folks who have for years been the ambassadors for this board were immediately saying to both of us please take a look at all of this that's going on please help us figure out how we can and not just them against it because they've been a part of this you know that's one of the unique things about about this this board and how it's functioned has it functioned like most boards have no has it functioned always having votes no but my observation is you all listen to the ambassadors and the people in the room come to a consensus
046and then and then because it's just you know because it's an advice advice to the two districts that's a really powerful way of taking information back you know because a lot of people have have been part of that decision making i think that's a very unique and powerful way to do this i would not want i would not want as a district as a person working for a school board to be the only person who's trying to make a decision relative to health insurance and life insurance and all of these insurance policies i would always want to have this kind of a this kind of a body dorn's right i think that the people who initiated this document had some things in mind uh those things didn't transpire and uh and and so it it
047kind of morphed into what it's been which is not good relative to the document but has been good for both of the districts certainly so but a couple of changes that happened in december of 2019 after three months of serious digging into information that mr flora and i did led to a couple of those changes and they were minor changes we didn't even we didn't even delve into this document far enough to realize what a muddy mess it is at the time we were just trying to make things functional for you all right in the moment of of 2019 20 you know december and then into 2020. so it was only on later actually after the last meeting of this board when you all charged me and or with looking into looking into you know
048to this document that i went through it literally line by line and figured out oh we got issues here and sent you all an annotated version i'm not an attorney i don't pretend to be an attorney but just as a logical person uh who who helps who's here to help you in dorne you know we're here to help you guys in this situation uh looking through it and i'm going this is this is really uh detrimental to what you all are trying to do and have done for years so that kind of led on this side to request for let's be looking at how we can fix this um using your professional expertise as a broker and just throwing something out as an idea part of mnh as an agent um and this is sort
049of off the top of my head if the document is to be reviewed and if there is to be if there are to be amendments what if there were to be a restructuring for the for the trust to be restructured as what it is an advisory committee an advisory panel which since the get-go has had three community leaders and one representative from each district providing advice and counsel to each of the school boards which can act independently which they have done although for the most part on insurance matters they've pretty much been in sync but if in the destruction of the document trust is removed or trust is dissolved and it is turned into an advisory committee which both boards as local government political subdivisions are able to do and in fact have done in
050the past and if there's a way to work it out where it's it's a a transition but unum will not honor us then we will it will devolve into two separate entities two separate contracts they will go back to underwriting everything will change okay what if would they still do it if the trust just morphs into instead of private trust you know colorado river um health employee health advisory committee i would have to get back what gunman asked and it's a process because what i ask the person that i contacted unum then they have to ask underwriting and then it has to come back i mean it's it's everything is a process and everyone's working from home and let me tell you you i'm up at 3am emailing susie and susie's not answering until 11
051o'clock at night and you know it's a nightmare you should maybe agree on hiring some kind of a legal counsel that's experiencing trusts we can't hire them we don't have any money to completely review this and make amendments well and per our per our legal counsel at the district it has been recommended that a first step is a joint meeting between both districts and i think that that's imperative because while we are two separate entities this joins us and with no funds you cannot have an essers attorney you cannot have stop losses you cannot have all of these things that you have to have in place that make sure that everything is running smoothly so if you have a joint and i had mentioned it at our last governing meeting it's important that we all
052get together as as a joint group and say how do we get this done is it that we look for a broken a broker firm that has all of those elements under their umbrella is it that we hire each element individually or just start with the attorney that can give us legal advice but going through this document it is a it is a it's a legal document even if it hasn't been acknowledged and so you don't want to make a wrong move there and i think that everybody should have a voice and i think that that includes all 10 board members from the respective districts when we did have just the one really one superintendent the boards did meet once or twice a year together and this was some of the topics they did talk
053about when they did meet together on on a yearly basis they did that but once we went to the two different superintendents we really haven't met again even this is one topic we are combined we do have we still have igas with each other you know and they could talk about those as well but this would be one of those that they really do meet need to meet at least once a year to go over and make sure both are still following the world still doing what they need to so do would be my recommendation that the two boards meet and decide how they want to fund this revision and they don't have a budget i can't go out and do a you know request for any kind of proposals we don't have any money
054and during that meeting you know we have a vacant seat so if the elementary district comes with their recommendation that can be discussed at that joint meeting too and we can knock both of those things out okay so you're recommending if i'm hearing you right you're recommending that dorne and i go back to our boards and recommend a joint meeting okay with the intention of the the declaration being topic number one and also discussing appropriate legal counsel to get us through that declaration process and then item number two being the vacant seat that's on the board plural so it would have to be both it would be an at-large seat so that would be a perfect time to do that because very i mean it would be a community seat because there are there is
055a representative currently from each board on this board so it would be an at-large yeah yes um when you meet with the two boards and when you are discussing the matters with the lawyer could we possibly ask the question whether or not an iga can replace a trust legally because we have our funds in two separate pots and we enter into igas on a regular basis with each other to give ourselves by powers in other areas is that a legal option if the document is written correctly to go iga instead of trust i you know i don't know um my husband was in insurance years and years and years ago so i understand errors emissions and that kind of stuff but but and also umbrellas but i do not know if a iga could replace
056a trust and maybe we could get legal counsel on that as well and so when they look at our document and they're fixing the language because i for one will be extremely hurt if we lose unum extremely hurt and i will not be able to recover from that decision question for anybody anybody in the room has anybody actually called the state to see if this trust actually exists i know it may sound like a really dumb question but when this thing was filed okay this is very simple it's not it does not actually take a lawyer it doesn't take anybody with out just a phone call to see whether or not the state on their end accepted it and recognizes it stamped it because i know and please correct me if anybody knows different when
057a trust is created you can either have it recorded at the county level correct you can edit stamped and it's done and there's a and there's a there's a copy yeah is that are you thinking about that that's the problem the problem david is that i'm sorry go ahead yeah so as anybody we're called to see if what was intended all things being equal because what was intended back in 2014 or whatever was finalized in the manner of the state and how they view it which would then lead us down whatever road that we need to get to because fair to assume if the state and no uh legal entity has ever agreed that it exists it's not funded whether or not it's back and forth then all the contracts that were written with the
058trust's name don't exist so my question stands has anybody actually ever pulled and if you can't answer that that's okay because no one wants to put their foot in their mouth no i i'll answer for you uh so i've done a lot of phone calls to the doi which is the department of insurance so normally when a trust exists that's where the file that's where the form goes the signatures are signed and then they're sent off to the doi in recent years it was also the attorney general that would receive these documents but in the last two to three years that's no longer the case so i've played telephone tag with a gentleman by the name of steve for a week and a half who finally got me in touch with an analyst who said
059that it is not their job to file this so then i took another route and contacted a representative of the state which their recommendation with everything that's been said is they do not have to be filed with the state to be acknowledged by the state so once you have the signatures on this document and you act under it and you have an amended declaration then it is acknowledged by the state even if it doesn't have a stamp on it and so now what you do and this was information that i just received yesterday is you act as though it does have a stamp on it and you get legal advice and that's where i think our next step is is no more guessing no no more of this i think this is what we should
060do we get a professional that is legally mindful of this situation right the wrongs fix the document and move forward and it's just really that simple so yes those calls have been made do you want to formalize your request to us with a motion i make a motion that we direct mr wilcox and dr stewart to go to their respective boards and request a joint meeting with item one being discussion of hiring a proper attorney to go through our declaration and make revisions item two being that we discuss uh making recommendations to fill the seat that is left open for the community i i have one question on the filling the vacant seat is that the responsibility of the school boards or is that the responsibility of the trust so the way that the declaration
061the way that the declaration is written then it would be the schools as in plural so they would both have their recommendations and then we would bring it here so that's how it's written the colorado river high school district has already made their recommendation then hopefully the elementary district would would be able to make theirs before this joint meeting and i think the other thing that needs to be considered if you look at the section and i'm not sure kim would you back up i think it's in three or four that actually um there are suppose if there if there is a representative from each of the school districts there are supposed to be five community members so it should be a seven member board instead of a five member board if there are the
062two rep you know one representative from each of the districts uh i don't have it in front of me so stop right there no that's not the one no it's it's go down toward four please kim go on please oh no keep going please uh right there 4.01 the trustees shall be selected by the school's district which means both districts and may resign at any trustees may be selected are selected and may resign or be removed at any time um so it wouldn't actually come here no it does come back here but there is also there is also a section it may not be this one but there is one that says uh this is part of the muddiness of this document um uh because it's in us it's it's in a separate place and
063it's the schools always mean the two yeah but it means they come they come to an agreement if they're going to do that no an alternate trustee may be appointed who shall serve in the absence of a regular trustee so that would have been like a proxy today so if uh since miss dubois could not be here she could have had a proxy from her board just as uh you greg or sherry could have you know a proxy that you could appoint if you couldn't be present but i'm trying to find the one that says um there is a section that says that if there are two members of the board one representing each district that there should be five other board members and so that's part of the muddiness of this because it never
064says that at the beginning when it's talking about what makes up the trust board it only states it in another's place well it says at least five no more than one maybe an employee of the schools districts of each school district right and that's where it says five but then um i need to go get my my annotated copy that's all highlighted and find it if you'll let me do that it does say school though schools plural so i thought it would just leap out at me okay the trust shall be yeah it is in 4.01 the trust shall be administered by at least five joint trustees of whom no more than one may be a member of the governing board and no more than one may be an employee of the school's district but
065there's but there's a that's not that says that first part that's five but there's a there is a place that says it's confusing because it says that there are the at-large and then the other two which make it seven and i'm sorry i can't find it right now that might be something for the joint board meeting to discuss as well so the only way the only concern i have is the trustees shall be selected by the school's district and may resign or be removed at any time that to me says that it wouldn't come back here i think you're right about that so so they would be voted on during that joint session essentially and not be brought here discussion possible action to recommend to the respective districts a request for quotes for and distribution
066of payment for an audit of the trust activities so this is this is my fault because originally i had emailed the chairperson and gave them a scope of work that i that i sent to you and let him know that we at the high school district received three bids for that scope of work and then i was told that it was probably better suited to be done here in this venue than at my governing level so i reached out to dr stewart got frank waters contact information reached out to frank and told him this is where we're at this is the work we've done at my governing board but i think it's better served here so he said no problem and then it came to be on the agenda worded this way um so i'm
067not really sure we've already done our our vote so the take it to your respective districts um uh we've already done it for what we're gonna do so i don't know if you would want to just unless you wanted to make a recommendation to ask if the elementary district wanted to do it for their bookkeeping within the healthcare or if you just want to um take that off because it's just it's not worded it just wasn't serving the purpose that i was trying to get it on the agenda for um and keep in mind that was four weeks ago you know what i mean and so we just were not in a position to wait four more weeks for this meeting so we you know i just so we at our governing board just voted
068for an end to end with our books we already got the quotes so originally we had three bids and that's what i presented to frank to bring here so that because the original three bids were going to be split amongst the districts if the respective board members were recommended to take it to their district is how i proposed it to frank to be on the agenda um in that conversation it was put on the agenda like this so it's it's not really reflective of what i originally asked for so yes we got the three beds and we did the vote at the high school level for our books we do have a comment in the back if you want to ask michelle mr chairman if you want to while she's bringing up time the reason
069that we do this so early we already have our rates and everything set for 21.22 if we want to look at changing insurances for any reason for 2223 we do need to start this early we need to get this ironed out to know where we are where we're going so that then we can go that ugly drawing board of trying to select the new one again it is a long horrible process we do not want to finish it in may or june like we did last time it was horrendous for everyone especially for me i don't want to do that ever again so it's it seems like we have all the time in the world and i understand that but we really don't we every thing every step in this process takes a while so
070it is really imperative that they get together make their decisions correct the document so that we can move forward in a positive way to keep the best rates possible for the employees to keep them in our district to keep them working and that was the thing with the bids right was i started this process with michelle i believe in february or march and it just kept dragging out we lost so much important time there because with the vote that the district did decide to do at my district that is going to be a 90-day process so we have another 90 days to wait and then in the meantime whatever we find from that end-to-end review what does that mean for us looking at 22-23 and so 22-23 is important because of this last meeting we
071found out that we are splitting so i mean those are things that we i just couldn't drag my feet and when i found out that i couldn't i couldn't get you know the elementary wanting to get out of the trust and all this stuff um it seems to me like the high school work and i've watched every board meeting that there has been um for the last couple years you guys are making all these decisions and you're doing it inclusively without speaking to the elementary board right getting your into anything done and all this when that's something that should be done then together as the insurance companies correct that's an inaccurate statement because i did reach out the proper channels and i've heard that statement more than once i did reach out to the proper
072channels the proper channels was not to go to the elementary district it was to come here which is why i reached out to the elementary district superintendent and i asked her this is my scope of work these are our bids how do i proceed should i ask the chairperson to have it on the agenda so to answer your statement i did reach out to the elementary district and tried to bring it here so that we the representative for the elementary district and myself could split and go ask our respective districts but that wasn't done so you're absolutely right i took it to my governing board absolutely right yeah why wouldn't i because my teachers are waiting well i think that's up to the elementary school if they want to we can't make them do an
073audit and that's up to them but i strongly encourage that you get the meetings organized as soon as possible dorne and i will do that so you're withdrawing anything else on that line yeah on that one unless you wanted to modify it where we don't we're taking we're doing what we need to do for our district at this point i think that takes care of that um we don't have anything else on the agenda future items for discussion anyone backing to what michelle said um this is going to take 90 days for the high school district to get their act together there's got to be a joint board meeting to revise this document but the sooner this can be done then we look we're going to be looking at 22 23 and we'll be asking
074for quotes for new insurance just next year yes okay then yeah we'll be looking needs to get done in a timely manner so that we can get ready for the following year right and i think sherry that you know the timeline that the high school has relative to their audit can be parallel to us scheduling the meeting with the two boards i don't think i don't think it's a linear thing i think it can happen parallel future meeting dates at this point i think we should defer that to some dates that the two districts can work out and then hopefully dorne and i will certainly get things arranged with the two boards would you as a board like to be part of that discussion so you're there to answer questions or ask questions uh of
075those of the respective boards okay so we'll we'll try to make an arrangement so that it's you know a mutually good time thank you amber [Music] do [Music] you