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HomeMy WebLinkAbout1988-10-07 MinutesMINUTES OF A SPECIAL MEETING OF THE POLICE PENSION BOARD A specially called meeting of the Fayetteville Police Pension and Relief Fund Board of Trustees was held at•2:45 p.m. on Friday, October 7, 1988 in City Hall, 113 W. Mountain Street. PRESENT: Chairman Pennington, Treasurer Linebaugh, members Roberts, Hoyt and Friend; staff present: City Clerk Suzanne McWethy ABSENT: Dr. Mashburn and Hollis Spencer Linebaugh reported that, pursuant to actions taken by the Board at yesterday's special meeting, he had spoken to an employee of Elaine Longer's office, and was advised to deposit the Pension Board funds in a custodial account. He said this will mean paying a fee. He said Longer uses a bank in Chicago. Linebaugh reported First National Bank quoted a $200 fee plus .002 of the value of the portfolio, over a year's time. He said the cost would be about $1,200 for three months. He said it would cost more after that point Linebaugh said he talked with A. G. Edwards and informed them of the decision made by the Board yesterday. He said the firm offered to give us a free custodial account. He said Longer has recommended Mcllroy Bank because First National Bank has certain limitations, and because A. G. Edwards pays :interest weekly instead of daily, meaning you could lose out on interest rates. Linebaugh reported McCord had drafted the letter to Merrill Lynch and A. G. Edwards, which revokes trading authorization immediately. He said he would enclose a letter along with McCord's letter, stating the Board is opening up a custodial account and instructing them to transfer the funds to the account. Linebaugh said First National Bank told him it takes time to transfer the stock\ and bonds, and that Merrill Lynch is slow to make the transfer. He said a resolution was needed from the Board to authorize their actions. Hoyt said he didn't have any preference about where to have the custodial account. Linebaugh said the custodian would do the transfers of the funds, upon the instructions of Elaine Longer, and will provide reports to the Board. Linebaugh said he hadn't talked to Mcllroy Bank but has known them to charge higher fees than First National Bank. Jerry Friend asked if there was a problem in using the Chicago bank favored by Elaine Longer. Linebaugh said there probably was no problem. Hoyt asked about the offer made by A. G. Edwards of a custodial account at no charge. Linebaugh said what concerned him about that was the fact that Elaine Longer would then be restricted to using A. G. Edwards as a broker. • Police Pension Board Minutes October 7, 1988 Page Two Hoyt moved to set up a custodial account with First National Bank. There was no second to that motion. Roberts asked what the problem was with using Longer's Chicago bank. Linebaugh said "we don't know anything about it." Jerry Friend said if, for some reason, we want to stay local and, if Longer prefers Mcllroy over First National, he would prefer Mcllroy. Hoyt said, since the Board was acting so suddenly, he would like to keep the account in a local bank for at least six to eight weeks. It was moved by Jerry Friend and seconded by Eldon Roberts to set up the custodial account at Mcllroy Bank. The motion was passed unanimously, with Spencer and Mashburn absent. ADJOURNMENT The meeting was adjourned at about 3:05 p.m.