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Home My WebLink About1995-03-30 - Agendas - Final• • AGENDA FIREMEN'S 'PENSION AND RELIEF BOARD March 30, 1995 11:00 a.m. City Hall Room 326 1. Approval of the minutes of the February 23, 1995 meeting 2 Approval of Pension List for April, 1995 3 Old Business 4 New Business • A. Investment Report, Merrill Lynch 5. Adjournment • • • • • MINUTES OF A MEETING OF THE FIRE PENSION BOARD A meeting of the Fayetteville Firemen's Pension and Relief Board was held on Thursday, February 23, 1995, at 11:00 a.m. in Room 326 of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas. • PRESENT: Marion Doss (arrived late), Pete Reagan, Ron Wood, Retirees Darrell Judy and Howard Boudrey, Mayor Fred Hanna, City Clerk/Treasurer Traci Paul, and Personnel Director Don Bailey. CALL TO ORDER Mayor Hanna called the meeting to order. MINUTES Reagan, January • seconded by Judy, made a motion to approve the minutes of 26, 1995. The motion was approved unanimously. • PENSION LIST • Paul stated there were no changes in the pension list. Reagan, seconded by Boudrey, made a motion to approve the pension list for March, 1995. The motion was approved unanimously. OLD BUSINESS DROP PLAN Reagan stated Greg Jones is reviewing the Plan. The results may be presented at the next meeting. Marion Doss arrived. NEW BUSINESS INVESTMENT REPORT Chuck Dulmer, New Mexico Capitol, distributed a year end report and explained that New Mexico started managing this account in January of 1990. The return in the total portfolio for 1994 is 1.3%. The three components of the account are cash and equivalents, equities, and government/corp bonds. The make up of the account is 71% in stock, 25% in bonds, and 3.3% in cash and equivalents. The returns from last year were 3.2% in the stocks, 4.1% in cash, and -3.1 % in bonds. In comparison, the balanced index last year did eight tenths of 1%. The stock market, including dividends, February 23, 1995 last year returned 1.3%. The account did the same as the market, but only with 71% in stocks. The total return since January of 1990 is just under 66%. Stocks are up 79.8% since January of 1990 and in that same period the stock market is up 58.2%. You are doing better than the market has done in the same period of time. The net increase in the value of the account has been $1,396,874.11. Last year was the worst year in bond market history. Even conservative stocks were down last year. So far this year, the account is up almost 3%. In reviewing the portfolio, Dulmer stated the bonds have a short maturity and are the equivalent of a AAA rating. This is a very short term bond portfolio. On the stocks, some are up and some are down. Dynatech and Precision Castparts have doubled from what they were purchased at. They will be sold. Rockwell will also be sold. Dulmer briefly reviewed the status of some of the other stocks listed in the portfolio. In answer to a question will probably be better optimistic. from Reagan, Dulmer stated the market in 1995. There are many reasons to be Dulmer stated he would be available to anytime. PENSION AFFIDAVITS report to the Board In answer to a question from Reagan, Paul stated the pension affidavits had been mailed out to the retirees. ADJOURNMENT The meeting adjourned at 11:30 a.m. FIREMEN'S RELIEF AND PENSION FUND APRIL 1995 TRACI PAUL, TREASURER 4' THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH OF APRIL 1995. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED. EMP# NAME 43 BAIRD, RICHARD H. 1 BARNES, ELIZABETH 2 BLACKARD, PAUL 63 BOLAIN, ANN 44 BOUDREY, BETTY MRS. 45 BOUDREY, HOWARD 49 BOUDREY, JACK 4 CARL FLOYD JR 5 CASELMAN, ARTHUR 57 CATE, ROY 6 CHRISTIE, ARNOLD 7 COLE, EVERETT 8 COUNTS, WAYNE 61 DAVIS, BEULAH F. 10 DEARING, EMMA MRS. 11 FARRAR, ALONZO 38 FRALEY JOSEPH G. 33 HARRIS, BILL C. 34 HARRIS, JAMES E. 47 JUDY, DARRELL 37 KING, ARNOLD D. 54 KING, ARVIL 12 LANE, HOPE MRS 13 LAYER, MERLIN 14 LEE, HAROLD 51 LEWIS, CHARLES 60 LEWIS, MARVIE 55 LEWIS, ROGER 40 LOGUE, PAUL D. 50 MASON, LARRY 39 MC ARTHUR, RONALD A. 35 MC CHRISTIAN, DWAYNE 15 MC WHORTER, CHARLES 29 MILLER, DONALD 42 MOORE, JAMES H. 17 MORRIS, WILKIE MRS. 16 MORRIS, WILLIAM H. 62 MORRISON, ELIENE 48 MULLENS, DENNIS W. 58 OSBURN, EDWARD 46 OSBURN, TROY 53 POAGE, LARRY 20 POLLY, GRACE A. MRS. 22 REED, JOE 30 SCHADER, EARVEL 41 SCHADER, TROY 23 SKELTON, BURL L. 24 SKELTON, LEE 56 SKELTON, ROY 36 SPRINGSTON, CARL 25 STOUT, ORVILLE 27 TUNE, MILDRED MRS. GROSS FED. TAX 916.20 100.00 45.00 55 00 55 00 1,266.21 66.21 1,066.66 837 68 287 68 45.00 75.00 909.50 45:00 375.00 32.50 55.00 377 50 50.00 707.84 953.38 100.00 55.00 55.00 837.68 828.42 100.00 1,131.00 130.00 45.00 417.50 55.00 837 68 439.16 439.17 1,469.38 175.00 829.35 29.35 891 62 100.00 55.00 30.00 885.14 50.00 863.01 125.00 55.00 45.00 60.00 70.00 1,114.11 1,284.63 160.00 965.81 65.81 1,201.98 200.00 45.00 55.00 915.78 783.74 20.00 692.50 42.50 390.00 1,626.02 126.02 609.88 590.36 50.00 70.00 ST. TAX 50.00 10.00 10.00 20.00 30.00 50.00 NET 816.20 45.00 55.00 55.00 1,200.00 1,066.66 500.00 45.00 75.00 909 50 45.00 342.50 55.00 377.50 50.00 707.84 843.38 55.00 55.00 837.68 718.42 1,001.00 45.00 417.50 55.00 837.68 439.16 439.17 1,274.38 800.00 791.62 25.00 835.14 738.01 55.00 45.00 60.00 70.00 1,114.11 1,124.63 900.00 971.98 45.00 55.00 915.78 763.74 650.00 390.00 1,450.00 609.88 540.36 70.00 26 TUNE, JESS 28 WATTS, DONALD 59 WATTS, WAYNE 52 WRIGHT, RANDALL 70.00 400.00 921.17 877.68 96.17 150.00 70.00 400.00 825 00 727 68 30,812.74 2,236.24 170.00 28,406.50 WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR SERVICES OR SUPPLIES. SECRETARY CHAIRMAN ND PRE IDENT ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) )SS l irk • SWORN TO AND SUBSCRIBED BEFORE ME THIS°'CDAY OF c-- •• MY.COMMISSION EXPIRES .:1/4 ;.••. • rfte TARY PUBLIC i�Zl2c(q' r , 1995. } • • • FAYETTEVILLE FIRE DEPT PENSION AND RELIEF FUND PORTFOLIO PERFORMANCE 12/31/94 TO 02/28/95 NM CAPITAL MANAGEMENT INCOME ACCOUNT 3 - MONTHS TREASURY BILLS DJIA W/DIV REINVESTED S & P 500 W/DIV REINVEST LONG TERM TREASURY BONDS H IGH GRADE CORP BONDS' CPI (FEB) NM CAPITAL (time wtd) INCOME ACCT(tirne wtd) 12/31/94 $4,240,646 3,312,081 12/31/94 4.19 4.99 1.30 7.70 5.08 2.75 1.27 2.44 02/28/95 $4,342,564 3,387,387 02/28/95 + 0.99 + 5.07 + 6.59 + 5.48 + 4.79 + 0.75 + 2.53 + 4.01 • 41,320,,4t7 3, yzo, 661 • RECEIVED MAR 3 0 1995 CITY CLERKS OFFICE LEWIS D. JONES GREGORY D. JONES' J. SCOTT HARDIN 'BOARD NECOONIZED SPECIALIST IN TAX LAW February 6, 1995 • LAW OFFICES JONES & JONES 112 S. EAST AVENUE FAYETTEVILLE, ARKANSAS 72701 Board of Trustees of Fayetteville Fireman's Pension & Relief Fund ' ATT: Mr. Pete Reagan 1015 Lake Sequoyah Fayetteville,- _AR::72701 ' E5 RE: The Fayetteville Fireman's Deferred Retirement Option Plan Dear Pete: AREA CODE 1601) TELEPHONE 443-4313 TELEFAX 676.0628 RECEIVED MAR 3 0 1995 CITY CLERKS OFFICE This will confirm my meeting with you and Mike Bonaduce in my office this afternoon. It is my understanding that the Board of Trustees of the Fayetteville Fireman's Pension and Relief Fund (The Board) voted to retain my services for the .purpose of making recommendations concerning the adoption of the deferred retirement option plan. Further, I understand that a resolution concerning my hiring was properly presented to the Board which adopted the resolution approving same. As we previously discussed, my hourly fee for services is $100 plus reasonable costs and expenses. I will review the information you provided to me and contact the other individuals whom we discussed. In addition, you are going to provide me with a private letter from the Internal Revenue Service providing a favorable determination --for, an_-aOklahoma.s.ofaa. similar nature. _ LTpon making a preliminary....,, assessment of the situation, we can get back together and see which way this thing is heading. I look forward to working with you and the Board in resolving your problems in a prompt fashion. JOIN, P.L.C. GDJ/crm F1' ******PLEASE NOTE****** I Mailing address changed to: P.O. Box 1284 .Fayetteville, AR 72702-1284 • • LEWIS O. JONES GREGORY D. JONES• . J. SCOTT HARDIN •BOAR, RECOGNIZED SPECIALIST IN TAX LAW February 13, 1995 Mr. Robert Waact e Oklahoma ice Pension & Reti ent Board 201 63rd Street, Suite 230, Bldg. 2 ahome City r 0K7 7 31114` LAW OFFICES JONES & JONES 112 S. EAST AVENUE FAYETTE V ILLE, ARKANSAS 7 2 701 RE: Fayetteville Firefighters' Deferred Plan (AFFDROP) Dear Bob: RECEIVED MAR 3 0 1995 CITY CLERK'S OFFICE AREA CODE 16011 TELEPHONE 943-4313 TELEFAX 676.0628 Retirement Option I appreciate you taking the time to speak with me regarding Oklahoma's Police Deferred Option Plan. Further, thank you for agreeing to send to me the information submitted to the IRS by your Board in order to obtain your favorable private letter ruling. I look forward to receiving the information. If you have any questions, please feel free to contact me. C' lly, JONES & GDJ/crm `ate Pete Reagan Fayetteville Firefighters's Pension & Relief Fund bps: Dear Pete, I am waiting on a call from Johnny Reep or. Bill Lundy%.from Little Rock. I am attempting to get as much information as possible prior to -making :any recommendations. I will speak with Don Bailey at the Cityjo the•,next<_day.or„so. Iftyou have any.,questions,olplease call. s 1. • LEWIS D. JONES GREGORY D. JONES• J. SCOTT HARDIN •BOARD RECOGNIZED SPECIALIST IN TAX LAW March 15, 1995 LAW OFFICES JONES, JONES & HARDIN, P.L.C. P. O. BOX 1284 112 S. EAST AVENUE FAYETTEVILLE, ARKANSAS 72702-1284 Board of Trustees of Fayetteville Fireman's -Pensior. & Relief-FLnd-..— ATT: Mr. Pete Reagan 1015 Lake Sequoyah Fayetteville, AR 72701 RE: The Fayetteville Fireman's Deferred Retirement Option Plan Dear Pete: RECEIVED MAR 3 0 1995 CITY CLERK'S OFFICE AREA CODE (501) TELEPHONE 443-4313 TELEFAX 575-0520 I spoke with Beth Long, who is the attorney in Little Rock working with Bob Ross in connection with the preparation of the application for a IRS determination, regarding the DROP plan. It turns out, according to Beth Long, that the application is for the overall DROP plan. Ms. Long indicated that the underlying pensions plan had already been qualified by the IRS and they were treating the DROP plan, for purposes of the application, as an amendment thereto. She felt confident of the outcome. Ms. long indicated that she has the application prepared and will file same upon receiving one final form. She will send me a copy of the application at that time. This scenario is probably even better in that Fayetteville Firefighters' will not be "out-of- pocket" with th= -.plication. In any event, when you return from D: C. , S ve me ca 'T, JONES & HA IN, P.L.C. rego D. Jone GDJ/ cc: ,-Mike Bona • • • • LEWIS D. JONES GREGORY 0. JONES* J. SCOTT HARDIN •BOARD RECOGNIZED SPECul1ST IN TAX LAW March 27, 1995 LAW OFFICES JONES, JONES & HA1tDIN, P.L.C. P O. BOX 1284 112 S. EAST AVENUE FAYETTEVILLE. ARKANSAS 72702-1284 Ar. BethAnn y Arnold,er & Gr•b yer & Haley P.O. B. 70 Li e Rock, AR 72203 RE: Deferred Retirement Option Plan (DROP) Dear Ms. Long: COPY AREA CODE (501) TELEPHONE 443-4313 TELEFAX 575-0525 RECEIVED MAR 3 0 1995 CITY CLERK'S OFFICE This will confirm our phone conversation about a week ago concerning your application for a determination letter from the service in connection with the above referenced DROP plan. I appreciate you speaking with me on the subject. It is my understanding that the underlying pension plan has already been qualified by the service and that you are treating the Drop plan, for purposes of the application, as an amendment thereto. AsIwe discussed, Relief Fund. qualification of I represent'thre Fayetteville Fireman's Pension and Accordingly, I am very interested in the the Drop Plan. As w discussed, you are going to provide me with a copy of the appli .tion and the final determination. Thank you for your coopera ion in this matter. If you have any questions or comments, pl-ase d.• n hesitate to contact me. C HARDIN, P.L.C. • 'TT to Reagan Pension and ,` Board of Trustees of Fayetteville" Fireman's Relief fund ;csgV DTA. v( •.� �I.. ... 9 ; 1.. 20 n1; • • LEWIS D. JONES GREGORY 0. JONES• J. SWI 1 HARDIN •BMRD RECOGNIZED SPECIALIST IN TAX LAW March 27, 1995 LAW OFFICES JONES, JONES & HARDIN, P.L.C. P O. BOX 1284 112 S. EAST AVENUE FAYETTEVILLE, ARKANSAS 72702-1284 Board of Trustees of Fayetteville Fireman's Pension & Relief Fund ATT: Mr. Pete Reagan 1015 Lake Sequoyah Fayetteville, - AR 72701 RE: The Fayetteville Fireman's Deferred Retirement Option Plan Dear Pete: AREA CODE (501) TELEPHONE 443-4313 TELEFAX 575-0528 Please find enclosed an interim statement for services rendered in connection with my representation of the Fayetteville Fireman's Pension and Relief Fund. If you have any questions or comments regardi the bill, please contact me immediately. I will let you know upo eceiving a copy of the application for qualification of the ROP n from. Arnold, Grobmyer & Haley in Little Rock. JO Sr J• 10 RDIN, P.L.C. • GDJ/kl • • RECEIVED MAR 3 0 1995 CITY CLERK'S OFFICE • JONES, LEWIS D. JONES GREGORY D. JONES J. SCOTT HARDIN March 24, 1995 LAW OFFICES JONES & HARDIN, P.L.C. 112 S. EAST AVENUE FAYETTEVILLE, ARKANSAS 72701 Fayetteville Firemen's Pension and Relief Fund ATT: Mr. Pete Reagan 1015 Lake Sequoyah Fayetteville, AR 72701 RE: GENERAL FILE RECEIVED MAR 3 0 1995 CITY CLERK'S OFFICE AREA CODE (501) TELEPHONE 443-4313 TAX I.D. #71-0641105 TAX PAYERS I.D. NO. 71-0641105 WE CHARGE INTEREST ON ALL ACCOUNTS OVER 30 DAYS AT ARKANSAS' HIGHEST LAWFUL RATE FOR PROFESSIONAL SERVICES 1/26/95 Phone conference with Pete Reagan N/C 2/6/95 Office conference with Pete Reagan & Mike Bonaduce; Correspondence to Board; Review file; Research DROP Plan and Arkansas Law 2/13/95 Work on pension plan; Phone conference with Gene Tucker; Phone conference with Bob Weber at the Oklahoma Police Pension; Correspondence to Bob Weber 2/15/95 Receive and review information from Oklahoma pension regarding tax exemption and quali- fication of Oklahoma Plan; Phone conference with Don Bailey 2/16/95 Phone conference with Pete Reagan; Prepare for meeting with Don Bailey 2/17/95 Office conference with Don Bailey and review file 2/24/95 2.6 1.9 1.9 1.6 1.6 Phone conference with Catherine Henshaw 0.6 3/1/95 Phone conference with Mike Bonnaduce; Phone conference Pete Reagan; Phone conference with Bob 0.9 3/8/95 3/15/95 3/16/95 FEES: Office conference with Ron Wood and Pete Reagan; Phone conference with Bob 0.8 Phone conference with Bob; Phone conference with Beth Long 0.9 Phone conference with Pete Reagan. 0.3 TOTAL HOURS 13.1 13.1 Hours X $100.00/hour = $1,310.00 Paralegal Research - 5.0 hours X $25.00/hour = $125.00 TOTAL FEES $1,435.00 COSTS: 13 Copies @ $.20 each = $ 2.60 Long Distance Calls = $ 6.01 TOTAL COSTS $ 8.61 BALANCE DUE ON ACCOUNT $1,443.61 air Manual Check 0 z Send copy to: Payable to: 0 1. .1 Fund Name 0 0 .4 w 00 N .-1 0 faCroc ys°i 00r0 CU ..-1 LL D E 0 .,1 4 a ❑ a 0 04 N 04 U Ct. ❑ 0 ❑ .. 0 Sa CL 4 00 1 Account Number Sub Project 0 d 0 a a ti N ✓ C 1 N N A co✓ co— Sub Dept a v 0 0 C (35S ' Amount T i Account Name 0 L L ) iY Ili0) a 2 c (. II C 4 • 0•' O. .r4 0) (110 s a) as+ Qs ri G z 0 K < 0 Prepared by Approved by REQUEST FOR VENDOR FILE MAINTENANCE (CHECK ALL AVAILABLE RESOURCES, VENDOR UST, ACCESS SYSTEM PRIOR TO SUBMISSION OF THIS REQUEST) E OF REQUEST: 4-4-qj ct_DEPT/DIVISION: picrri MF t2FEf2K FOIA N .S pFNcInn1 812. TELEPHONE EXTENSION: NEW VENDOR: i/ VENDOR NAME: STREET OR P.O. BOX: _093 VENDOR CHANGE: VENDOR #: REQUESTED BY. TN AC1 1'4141 EFFECTIVE DATE: 4-- 4 - 95 CITY. ATTN: C42FGn12I b. JnNIES STATE: A' REMITTANCE ADDRESS IF DIFFERENCE FROM ABOVE: NAME: ADDRESS: CITY, ST, ZIP VENDOR RE-ENTRY: VENDOR #: ZIP CODE: 72.701 PHONE: 443 4313 rEDERAL ID NUMBER: OR SOCIAL SECURITY NUMBER ***YZ*Y*R;f*1! NEW VENDOR: VENDOR CHANGES: VENDOR RE-ENTRY: W-9 FORM MAILED: 71-Oc411p5 ,**** **** ***-R ****N****:* PURCHASING OFFICE USE ONLY ENTERED BY: DATE: G. L FILE INVENTORY FILE: TYPE OF ORGANIZATION CORPORATION (100): PARTNERSHIP (200): INDIVIDUAL (300): EMPLOYEE (400): PENSION (500): RECIPIENT (600): NON-PROFIT (700): 805751.] ACCOUNT NUMBER AMOUNT DATE REFERENCE INVOICE AMOUNT AND RETURN DISCOUNT NET AMOUNT 1]4/55 LEGAL SER /ICES FOR FPB 1443 61 1. CITY OF FAYETTEVILLE, FAYETTEVILLE, ARKANSAS 72701