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Home My WebLink About2003-11-20 - Agendas - Finalt 1 Firemen's Pension And Relief Fund Meeting Agenda November 20, 2003 A Special meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11:00 a.m. on November 20, 2003 in Room 326 of the City Administration Building. 1. Approval of the Minutes: • October 30, 2003 2. Approval of the Pension List: • December 2003 Pension List Approval 3. Investment Report: • Longer Investments • 4. Old Business: • Ashland Management 5. New Business: • NCPERS Legislative Alert • Budget Reports • Fireman's Pension Meeting October 30, 2003 Page 1 of 6 • Firemen's Pension and Relief Fund Meeting October 30, 2003 A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11:00 a.m. on October 30, 2003 in Room 326 of the City Administration Building. Present: Danny Farrar, Pete Reagan, Robert Johnson, Marion Doss, Ronnie Wood, Sondra Smith, Secretary, City Attorney Kit Williams, Marsha Farthing, Elaine Longer and Kim Cooper. The meeting was called to order by Marion Doss. Approval of the Minutes: Pete Regan moved to approve the minutes. Danny Farrar seconded. The motion passed unanimously. Approval of the Pension List for November, 2003. Pete Reagan moved to approve the Pension List. Robert Johnson seconded. The • motion carried unanimously. • Pete Regan: We have asked Kit for an opinion from the Attorney General and it is attached to the minutes. Kit Williams: It is basically as we thought it would be. I was just concerned by the way they titled their Act and wanted them to clarify it. Marion Doss: They are saying it is okay the way that we are doing it. Kit Williams: I think so; I don't think it changes any thing that we have done at this point in time. Pete Regan: Act 833 money goes to the fire department account not the pension board account. Sondra Smith: Yes, I didn't know if you wanted to be aware of these funds or not, if you do not I will not put them with the agenda in the future. Marion Doss: Act 833 money goes into the fire department to purchase certain things. Sondra Smith: Should someone from the fire department sign this letter on the Act 833 money or should I continue to sign it. Fireman's Pension Meeting October 30, 2003 Page 2 of 6 Kit Williams: You probably need to sign it as the City Treasurer. Kit Williams: This Ashland Management invoice, I don't think the Fire Pension Board actually contracted with Ashland Management, I think Merrill Lynch did. I guess you did have to approve the purchase of that didn't you. Pete Regan: I think every quarter or once a year, whenever we paid Ashland, Merrill Lynch would bring a paper for us to sign agreeing to pay them. Whether we have done that and Merrill didn't pay them I don't know. That could be incorporated in the proposed litigation. Kit Williams: It is probably independent of that unless we are going to sue Ashland and we are not I don't think, so that is probably a separate obligation even though it is related to Merrill Lynch. It concerns me that this is way after the fact that Merrill Lynch has been relieved, and then all of a sudden we get this bill. Did we ever issue a check for that Marsha, do you know. Marsha Farthing: It usually just showed up on the statement that we received and we would record it. Pete Regan: What would be your recommendation Kit? • Kit Williams: Eventually we will probably have to pay it; we paid them in the past even though it was through Merrill Lynch, as long as it was for the period of time that Merrill Lynch was your financial advisor. We would have to go back and look at the records and make sure that was the time they were your advisor, as soon as Merrill Lynch was let go that should have ended their fees. You would need to ask Elaine Longer about when they quit being a part of your fund; we will probably have to pay up to then. Pete Regan: Would you recommend that we *rite them a letter requesting the date? Kit Williams: No, I think I would just ask Elaine Longer about that and see when Merrill Lynch was terminated. Pete Regan: I spoke to Jody Carreiro with Osborn, Carreiro and Associates in Little Rock today because we have still not received a costing of working after DROP or the ten year DROP. If we are going to adopt either one or both of those there would have to be a resolution from this board and it would have to be taken before City Council and then the actuary's would have to redo it to make sure that their numbers are correct. Kit Williams: So the resolution would come from the City Council before the actuary would see if it is possible? Pete Regan: The actuary is going to give us a costing of it and say yes you can do this • and this is what it is going to cost. We have currently two guys that are getting towards • • • Fireman's Pension Meeting October 30, 2003 Page 3 of 6 the end of their DROP and have expressed an interest in staying, either working after DROP or going to a ten year DROP. To expedite that there may be a need for a special meeting. Steve will get the information from Osborn, Carreiro & Associates because he is the one that asked for it. • Marsha Farthing: Don't you have to be actuarially sound to do the ten year DROP? Pete Regan: He said you could do it on a cash flow study and on a cash flow study we are actuarially sound. He said the number will not be significant at all to do it. Kit Williams: Elaine, we have an old bill from Ashland that was hired through Merrill Lynch. When did you take over for Merrill Lynch and terminate them. They have sent us a bill and we do not want to pay for a period of time that they were no longer working for us. Elaine Longer: Kim do you remember an account that was managed by Ashland? Kim Cooper: I don't think we actually knew any of the names of the other managers. Kit Williams: What happened when you took over for Merrill Lynch did you immediately cancel all of them? Kim Cooper: The board signed a letter stating to terminate the relationship immediately and to follow the instructions of Longer Investments to transfer the assets to Longer Investments. Elaine Longer: We can find that letter and the date. Kit Williams: Just get me a copy of that letter so we can compare that with their bill to see if we actually have to pay them some money. Elaine Longer: As of the date of that letter their responsibility ceased, unless their contract called for a 30 day grace period at the end of their contract. Kit Williams: I don't think we ever signed a contract, I think Merrill Lynch did. Elaine Longer: The bill that they are sending you does it give a date through which they are billing you? Kit Williams: If it doesn't, then we will request it. Investment Report - Elaine Longer, Longer Investments: We have the September 30th portfolio and we have put in the updated one as of October 28th in your reports because for the month of October the stock market is up about 5% so it has been a significant difference since the last time. • • • Fireman's Pension Meeting October 30, 2003 Page 4 of 6 The amount invested in common stocks is 46.8% and the mutual funds that are foreign stocks are 3.5% so you are right at the 50% maximum on your policy. The current market value is back up over $10 million, the income on the portfolio is $324,000 a year or 3.4% yield. The important thing about that income yield is that, that comes in regardless of what the stock market is doing. You are earning the equivalent of a five year treasury note on a portfolio that has a 50% growth component. That is where we want you, I would actually like to see it closer to a 4% yield on the total portfolio but we haven't been able to buy the 6% type bonds yet. The cash balances that you see of about $238,000 are ear marked to go into bonds, our impression has been that we can wait a little bit and get a better buying opportunity. Today the GDP numbers came out for the third quarter and they were over 7% which was a big surprise, people were expecting 6.2%, back when I wrote the news letter in September it was 5%. It went from an estimate of 5% in September up to 6% and I think it came in at 7.7% which is the highest quarterly growth rate since 1984. It is a really big growth rate and that has helped to push stock up this morning and push bond prices down and interest rates up. The cash that you see there is just really sitting to wait to get into bonds at a better buying opportunity. You still have the Enron Bond and we do now have a bid on the bond, we were able to get a bid of $11.00 on the bond which would give you about $5,500 if we came out of it versus a cost of $32,000. I wanted to mention that to you to see if you wanted to just keep the bond in the portfolio, 1 know that you are in litigation with Merrill Lynch, we can kick it and take a loss or you can just keep it in the portfolio but I did want you to know that we did finally have a bid showing up if you want to get rid of it. Kit Williams: I would be concerned about selling it at this point in time unless you could get to a point that you could actually get your money back. I can see the other side arguing that this is kind of a settlement that you agreed to go ahead and take this money. I would talk to the lawyers that are handling your case and see if they think this would have any ramifications on their case. Where did this bid come from if they went from nothing to $11.00? Elaine Longer: They are in the process of settling with the creditors and the bankruptcy courts, so once that process begins to move forward they can tell whether the creditors are going to get 25 cents on the dollar or 20 cents on the dollar, so then firms are more willing to bid for outstanding bonds I think that is probably what has happened. As long as you keep it, it is still in violation of the policy just because it is a junk bond. Kit Williams: I think you need to get some advice from your attomeys about whether or not they feel it would have any impact on their suit and then you decide. Pete Regan: I think that is an excellent idea. Danny Farrar: How long is that bid good for? _ - - Fireman's Pension Meeting October 30, 2003 Page 5 of 6 Elaine Longer: That is just good for the day they bid. That is just an indication of the • marjcet today. We did get two bids one was for $8.00 and another firm passed on bidding and the other bid was for $11.00. • • Kit Williams: I think if you eventually get to the point that you want to accept something, I would give some basic parameters to Elaine and let her snatch the one that looks the best. Elaine Longer: We will just bring that up at the next meeting and bring a fresh bid. On page 13 you have the break down of your largerest equity holdings and you can see that as a percent of total portfolio 3.3% is your largest exposure and 1.3% of total portfolio based on cost is your largest exposure to any one equity and that is well within you portfolio parameters. Page 14 shows your credit rating of your corporate bonds and then you have the government bonds and the government agencies securities with the call features showing next to the agency. We don't have much call risk you have a 6% that's callable on October 6, since it wasn't called this will roll forward. It is kind of a long bond and 2017 is the maturity so it's probably not going to be called immediately. Other than that you don't have anything that is coming up for call that would be very difficult for us to achieve at least that interest rate on a reinvestment. Page 18 is a summary of your realized gains year to date, $99,000, I think as of today they are closer to about $128,000 and the net income of $194,000. Page 19 gives you an idea of what the income on the fixed income securities is which is your bond and on the total portfolio. The yield on book value for your bonds is 5.3% and the weighted average maturity is 10 years. You have a very high income in the 10 year average maturity compared to say a 10 year treasury which is trading at about 4 '/<. Fixed income securities that mature within three years or less are 5.3% of the total portfolio so even once we use the $2.5 million that we have in cash if we want to extend maturities forward we can use any of that 5% of the portfolio that it is in the shorter maturities to lock in higher yield. On page 20 we have a summary of your contributions and distributions year to date and page 21 is your summary of performance. Looking across the columns your equity performance has been about 13 '/2 % and that is from inception to date. The S&P 500 on a cash basis has done 12 '/2 % with dividends reinvested 15% and 13.2% on the Dow Industrials with dividends reinvested. Even though we had all that activity in the fourth quarter last year you really haven't lost anything in terms of performance, this is net of expenses and net of commission. Fixed income has delivered about a 7.2%, the real estate investment trust 24.8% on the total return basis, the cash shows a minus 1.2% but that is because the fees are billed against the cash and cash is eaming .5%. When we bill fees against cash you will end up with a negative return. The total investment retum has been 7.5%. On page 22 it shows the break down of the stocks and how we rate them. According to your policy they need to be rated at least a weighted average of B+ or better and your weighted average of 3.5 would put it between an A- and a B+. • • • Fireman's Pension Meeting October 30, 2003 Page 6 of 6 Your investment policy follows and the key consideration is the asset allocation which in your policy is 25% to 50% equity and we are right at 50%. I think given the cash flow analysis that your actuary did, I think your policy is still very valid as far as the appropriate assets allocation to get you to where you need to be. According to their cash flow analysis you are not having to shoot for 14% or 15% returns to get back to actuary sound he is assuming a 6% return on investment. So you don't have to go out there and assume a lot more risk than what is in your policy. Pete Regan: Our insurance turn back check what do we do with it? Marsha Farthing: Deposit it into your fund. Kit Williams. I looked at this bill from Ashland Management and the date that the account was terminated was August 8, 2002. We would be responsible for the fees up to that point in time. The part that we may want to argue about is the advisory group terminates 30 days after written notice. They have charged you for a month after they were terminated; they have charged us through September 7, 2002. They charged us $1,100 during that time frame. I would suggest that we send them a letter stating we did not contract with them and that if they want to get this other $1,100 they can get it from Merrill Lynch and that the only thing that we will be willing to pay is the other portion up to when they were terminated and if they are willing to accept that and not harass us any more then we will send them a check, if not and they want to fight it out, then they can sue us. Pete Regan moved to send Ashland Management a letter stating we would pay them the amount of money that would be due up to their termination but only if they agree not to harass us for the other amount. Danny Farrar seconded. Motion carried unanimously. Kit Williams: I will write Ashland Management a letter. Pete Regan moved to adjourn. Danny Farrar seconded. Motion carried unanimously. Meeting adjourned at 11:50 AM. Next meeting will be November 20th at 11:00 AM due to Thanksgiving. FIREMEN'S RELIEF AND PENSION December 2003 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE IIIH OF DECEMBER 2003. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE ES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED. DATE OF EMP#RETIREMENT NAME REGULAR FUTURE Year To Date MO BENEFITSUPPLEMEN1 REG BENEFIT FED. TAX ST. TAX 79 11/99 ARMSTRONG (DILL), PAMELA 74 3/86 BAIRD, JULIA 2 3/75 BLACKARD, PAUL 63 5/72 BOLAIN, ANN 68 7/99 BONADUCE, MICHAEL 44 9/86 BOUDREY, BETTY MRS. 45 9/86 BOUDREY, HOWARD 49 7/88 BOUDREY, JACK 4 6/67 CARL, FLOYD JR 5 5/72 CASELMAN, ARTHUR 57 5/90 CATE, ROY 6 4/68 CHRISTIE, ARNOLD 84 03/01 CIRCT CLRK WA CO 85 03/01 CIRCT CLRK WA CO 8 10/76 COUNTS, WAYNE 61 6/66 DAVIS, BEULAH F. (DECEASED) 78 11/99 DILL,GARY JOHN 11 2/76 FARRAR,ALONZO 38 5/84 FRALEY, JOSEPH G. 170 5/03 FREEDLE, LARRY 92 03/02 GAGE,TOMMY 34 6/79 HARRIS, JAMES E. 70 11/99 HARRIS, MARY RUTH 93 06/02 JENKINS, JOHN •86 07/01 JOHNSON,ROBERT 64 4/95 JORDAN, CHARLIE 76 5/88 JUDY, JAN 37 3/84 KING, ARNOLD D. 54 5/89 KING, ARVIL 12 3/60 LANE, HOPE MRS 13 10/67 LAYER, MERLIN 14 7/74 LEE, HAROLD 51 10/88 LEWIS, CHARLES 55 12/89 LEWIS, ROGER (DECEASED) 40 9/85 LOGUE, PAUL D. 50 9/88 MASON, LARRY 39 4/85 MC ARTHUR, RONALD A. 35 2/82 MC CHRISTIAN, DWAYNE 15 4/77 MC WHORTER, CHARLES 29 8/81 MILLER, DONALD 73 2/00 MILLER,KENNETH 42 2/86 MOORE, JAMES H. 17 2/66 MORRIS, WILKIE MRS. (DECEASED) 16 4/64 MORRIS, WILLIAM H. 62 .10/68 MORRISON, ELIENE 48 7/88 MULLENS, DENNIS W. 58 9/90 OSBURN, EDWARD (DECEASED) 46 5/88 OSBURN, TROY 81 02/01 PHILLIPS,LARRY 53 2/89 POAGE, LARRY 22 4/73 REED, JOE 30 3/81 SCHADER, EARVEL 41 9/85 SCHADER, TROY 82 03/01 SKELTON,KELLY 83 03/01 SKELTON, KIMBERLY 23 4/71 SKELTON, LAWRENCE BURL (DECEASED) •66 8/98 SKELTON, PAULINE 36 5/76 SPRINGSTON, CARL 90 03/02 STOUT, IMOGENE W. 25 2/75 STOUT, ORVILLE (DECEASED) 165 12/02 TATE, RALPH 26 3/66 TUNE, BILLIE SUE 27 3/71 TUNE, MILDRED MRS. 71 1/00 WARFORD,THOMAS 1,658.91 218.40 1,649.16 218.40 100.00 43.68 100.00 43.68 2 735 14' 218.40 2,267.18 218.40 1,911.99 218.40 1,507.82 218.40 100.00 43.68 120.00 43.68 1,637.10 218.40 100.00 43.68 100.00 43.68 1,658.92 218.40 914.10 218.40 1,618.08 218.40 3,492.86 218.40 2,376.34 218.40 100.00 43.68 100.00 43.68 3,273.93 218.40 2,812.66 218.40 2,081.90 218.40 1,507.82 218.40 1,393.18 218.40 1,566.00 218.40 100.00 43.68 417.50 218.40 100.00 43.68 1,507.82 218.40 2,624.88 218.40 1,492.83 218.40 1,604.92 218.40 100.00 43.68 1,221.26 218.40 1,193.41 218.40 2,910.17 218.40 100.00 43.68 115.00 43.68 125.00 43.68 2,005.35 218.40 1,738.46 218.40 2,530.45 218.40 2,147.56 218.40 100.00 43.68 1,268.40 218.40 1,395.58 218.40 1,114.17 109.20 1,114.17 109.20 390.00 218.40 737.78 218.40 702.65 218.40 3,356.83 218.40 125.00 43.68 125.00 43.68 2,290.35 218.40 18,466.41 18,359.16 828.68 828.68 30,304.94 25,157.38 21,250.29 16,804.42 828.68 1,048.68 18,226.50 828.68 0.00 0.00 828.68 3,397.50 18,466.52 10,273.50 18,017.28 24,668.42 26,358.14 828.68 828.68 36,231.63 31,157.66 23 119 30 16,804.42 15543.38 17,444.40 828.68 4,810.90 828.68 16,804.42 0.00 29,092.08 16,639.53 17,872.52 828.68 13,652.26 13,345.91 32,230.27 828.68 55.00 993.68 1,103.68 22,277.25 17,986.64 19,341.46 28,053.35 23,841.56 828.68 14,170.80 15,569.78 12,365.07 12,365.07 3,482.00 4,508.40 8,333.98 7 947 55 37,143.53 1,103.68 1,103.68 25,412.25 NET 300.00 100.00 1,258.91 350.00 145.00 1,154.16 100.00 100.00 475.38 2,259.76 300.00 50.00 1,917.18 1,911.99 287.68 50.00 1,170.14 100.00 120.00 1,637.10 100.00 0.00 0.00 100.00 0.00 100.00 1,558.92 75.00 839.10 200.00 15.00 1,403.08 500.00 100.00 2,892.86 226.00 50.00 2,100.34 100.00 100.00 700.00 200.00 2,373.93 500.00 100.00 2,212.66 2,081.90 200.00 50.00 1,257.82 240.00 100.00 1,053.18 130.00 1,436.00 100.00 417.50 100.00 75.00 25.00 1,407.82 0.00 325.00 75.00 2,224.88 78.16 1,414.67 150.00 50.00 1,404.92 100.00 150.00 1,071.26 125.00 25.00 1,043.41 325.00 75.00 2,510.17 100.00 0.00 115.00 125.00 2,005.35 ' 0.00 200.00 38.00 1,500.46 2,530.45 300.00 100.00 1,747.56 100.00 1,268.40 57.00 1,338.58 125.00 25.00 964.17 125.00 25.00 964.17 0.00 390.00 70.00 17.00 650.78 702.65 0.00 300.00 100.00 2,956.83 125.00 125.00 300.00 1,990.35 DATE OF EMP# RETIREMENT NAME 28 59 88 52 7/68 WATTS, DONALD 5/91 WATTS, WAYNE (DECEASED) 01/02 WOOD,RONNIE D 9/88 WRIGHT, RANDALL DROP DATE DROP EMPLOYEES 02/01/99 05/01/99 04/01/00 07/01/00 01/01/01 03/01/03 03/01/03 03/01/03 04/01/03 LEDBETTER, DENNIS BACHMAN, EDDIE NAPIER,LONNIE REAGAN,PETE DOSS,MARION MAHAN, MARSHALL PIERCE, JOEY SHACKLEFORD, GLEN O NEAL TEDDY REGULAR FUTURE Year To Date MO BENEFIT SUPPLEMENI REG BENEFIT FED. TAX ST. TAX 400.00 2,816.02 1,547.82 76,401.47 218.40 4,618.40 218.40 31,194.62 218.40 17,244.42 9,696.96 855,707 83 800.00 200.00 8,289.22 200.00 25.00 1,740.00 NET 400.00 0.00 1,816.02 1,322.82 66,372.25 NEW BENEFITS 3,455.40 2,396.34 3,219.73 3,235.68 4,920.63 3,731.29 3,337.69 3,337.69 3,771.29 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 AND PRESIDENT • ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF 2003. NOTARY PUBLIC MY COMMISSION EXPIRES : YTD 6810-9810-5335-00 846,010.87 ,�.r---- A. 10/30/2003 13:.5 4794437129 P. 0. Box 1269 Fayetteville, AR 72702 Phone: (479) 443-5851 Toll-free: (B00) 827-7710 Fax (479) 4437129 Fax • LONGER INVESTMENTS ComI ///41/ PAGE 01 Longer Investments Inc. Tat Sondra Smith From: Kim Cooper Fara 575-8257 Pages: 4 Phone: 575-8353 Date: October 30, 2003 Dear Sondra: The letter signed by the members of the City of Fayetteville Firemen's Pension & Relief Fund board was sent to Merrill Lynch via Federal Express on August 6, 2002. A copy of that letter is attached. I confirmed receipt of the letter with Gilbert Weisbecker on August 7. He indicated that he would inform the other money managers of the termination of the relationship on that day. The bill from Ashland Management goes through August 8, 2002, plus an additional 30 days through September 7. Please let me know if you need any additional information. K •6 -- Kim Cooper 1 Ty 10/30/2003 13205 4794437129 LONGER INVESTMENTS CITY OF FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND 113 W. MOUNTAIN STREET FAYETTEVILLE, AR 72702 Mr. Gilbert Weisbecker Merrill Lynch 2200 N. Rodney Parham Road Suite 300 Little Rock, AR 72212 RE: Account Number 563-96345 Account Number 563-05G88 Account Number 563-05L79 Account Number 563-96346 • Dear Mr. Weisbecker: • August 6, 2002 PAGE 02 The members of the City of Fayetteville Firemen's Pension and Relief Fund Board met this morning and elected to terminate their relationship with Merrill Lynch as investment advisor for the fund, effective immediately. Longer Investments Inc. in Fayetteville, Arkansas, has been selected as the new investment advisor. Merrill Lynch is no longer authorized to' execute transactions in the above -referenced accounts, and all trading should cease immediately, unless directed by Longer Investments Inc. Please initiate the transfer of assets from these accounts to the account that has been established. at Northern Trust Company in Chicago, Illinois, in the name of the City of Fayetteville Firemen's Pension and Relief Fund, according the delivery instructions that are listed on page two. r 10/30/2003 13t05 4794437129 • • • Mr. Gilbert Weisbecker August 6, 2002 Page Two LONGER INVESTMENTS Cash Wires Northern Trust Company Chicago, IL ABA 4071000152 Credit Wire Account #5186041000 Northern Trust Account #03-03353/City of Fayetteville Firemen's Pension and Relief Fund DTC-Elieible Securities DTC #2669 Agent Bank #20290 Institutional ID #73160 Northem Trust Account #03-03353/City of Fayetteville Firemen's Pension and Relief Fund Fed Book Entry NORTHERN CHGO/Trust ABA 4071000152 Northern Trust Account #03-03353/City of Fayetteville Firemen's Pension and Relief Fund Physical Delivery The Northern Trust Company 40 Broad Street, 8'" Floor Northern Trust Account #03-03353/ City of Fayetteville Firemen's Pension and Relief Fund New York, NY 10004 Euroclear Euroclear Brussels for Acct. of Northern London 90125 Northern Trust Account #03-03353/City of Fayetteville Firemen's Pension and Relief Fund Northern Trust's mailing address and phone number are listed below: Northern Trust Company Attn: Isaac Carter 50 South LaSalle Chicago, IL 60675 (800) 621-1911, extension 08155 PAGE 03 10/30/2003 13;05 4794437129 LONGER INVESTMENTS PAGE 04 Mr. Gilbert Weisbeckcr August 6, 2002 Page Three Until the transfer of assets is completed, you are authorized to accept trading instructions, from Longer Investments Inc. for the above -referenced accounts. In addition, please release any information regarding the accounts that is requested by Longer Investments including, but not limited to, current holdings, cost basis, acquisition dates, and any details regarding the currents assets that may be needed to achieve a timely transfer to Northern Trust. Please refer any questions regarding the transfer of assets to Kim Cooper with Longer Investments Inc. at (479) 443-5851. Thank you for your attention to this matter. Sincerely, CITY OF FAYETTEVILLE FIREMEN'S PENSION AND RELIEF BOARD %oae( reaM • DAVID J. WHITAKER �ssistant City Attorney Judy Housley Office Manager Phone (479) 575-8313 FAX (479) 575-8315 • KIT WILLIAMS FAYETTEVILLE CITY ATTORNEY October 30, 2003 Ashland Management, Inc. One' Battery Park Plaza New York City, NY 10004-1405 THE CITY OF FAYETTEVILLE. ARKANSAS 113 W. Mountain, Suite 302 Fayetteville, AR 72701-6083 By FAX: (212) 425-6026 RE: Fayetteville Fire Pension & Relief Fund Account # 563-05G88 Dear Ashland Management, Inc.: For some reason, your bill of August 13, 2002 to Mr. Richard Yada of Merrill Lynch has been forwarded to the City of Fayetteville. Please provide us copies of any agreements signed by the Trustees of the Fayetteville Fire Pension and Relief Fund with your corporation We have not used Merrill Lynch as our financial advisor for over a year and have retained securities counsel to pursue a substantial potential claim against Merrill Lynch. We cannot pay any portion of your bill without documentation that this is a legitimate and proper debt of the Fire Pension and Relief Fund. Please send all future correspondence and documentation to my office. • KW/jh With kindest regards, Kit Williams Fayetteville City Attorney CC: Dan Coody, Mayor Fayetteville Fire Pension and Relief Fund Trustees Sondra Smith - NCPERS Legislative Alert Page 1 • From: <info@ncpers.org> To: <ssmith@ci fayetteville.ar.us> Date: 11/18/03 6:53PM Subject: NCPERS Legislative Alert Subject Line: NCPERS Legislative Alert The tentative agreement on the Medicare prescription drug bill is a bad deal for public employees and most Americans. Specifically, the bill: * does not allow public employers to offer higher health benefits to pre -Medicare eligible retirees (see related story); • does not specifically provide a subsidy to public employers or funds to continue retiree drug benefits; * does not guarantee the current level of Medicare benefits; " does not reduce spiraling drug costs. Tell Your Members of Congress to Vote "NO" on Medicare Reform Congress is expected to vote on the Medicare Prescription Drug bill in the next few days. This bill is a bad deal for public employees and pension funds. Contact your Senators and Representative and urge them to vote "NO" on this bill. • Visit the NCPERS website, www.NCPERS.org, for more details and how to email your members of Congress. • Rqa qAMIn,qy Wx� q cy5ga'� q� 1 g�yy� //�� `RR �s �iqn �it 1 I {�� IL tJ�b5o5ib LT�i�%7l3> PW:22 gegggg 3 q g. gOw:cs L' icy p5• 1Siy�iyIp y6I PD. y 51 S� �.�S S1 S� g I .{Am'SSJi[%%z Amrs•r afJYJSJAAAWSYm”roAZA>llFAaf so C�"� , r. p•I ?L •34 r V. d� 1 Lail, { e a 8 a 'JA'A AA 90AA T A.L'AA 'A AiV'A'A AA A 'N "O AiC ^J A'A �. Intc tOE aF w��pwwygai�ww w w� �pt� 'aT�2��wpt a0�,a�a� �Ybj ('p�Ct��Q'O }i� CCN daCCl aP�. 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