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HomeMy WebLinkAbout1990-05-24 Minutes•
MINUTES OF A MEETING OF THE POLICE PENSION BOARD
A meeting of the Fayetteville Police Pension Board was held on
Thursday, May 24, 1990, at 1:30 p.m. in Room 326 of City Hall at
113 West Mountain, Fayetteville, Arkansas.
PRESENT: City Manager Scott Linebaugh, Dr. James Mashburn, Eldon
Roberts, Jerry Friend, Rick Hoyt, Retiree Hollis Spencer,
and Clarice Pearman.
ABSENT: Secretary Sherry Thomas
CALL TO ORDER
The meeting was called to order by City Manager Scott Linebaugh.
INVESTMENTS
Linebaugh stated that the purpose of the meeting was to make some
investment decisions regarding several different subjects,
including selection of money managers anddistributions of funds.
Ben Mayes reported to the Board the status of the current pension
fund investment package and how the different assets were split up.
He explained that handouts given Board members showed current asset
holdings as of April 30, 1990. Individual investment managers'
accounts were broken down into cash/cash equivalents, fixed income
holdings and equity holdings categories and summarized. The
Managers were listed as Shearson/Lehman/Hutton, Oppenheimer, and
Madison Investments and the amount the City has invested in CD's.
When asked about the status of a T-bill which matured on May 10,
1990, he explained that the City had been maintaining and investing
the $35,000 until such time the Board chooses an investment
manager. He presented three different scenarios to the Board and
explained how each would impact the investment funds and assets and
the percentages of each. He also explained that his office could
give the Board a report to show each category's percentage of
investment. It was agreed that the report helped make the
investment package easily understandable.
Roberts reported on Elaine Longer's references and related to the
Board what her client, Clark McClinton, had shared with him
regarding her outstanding investment performance and abilities.
McClinton has been with Longer for several years, and he has no
qualms in her ability.
Linebaugh stated that Longer has a good record and a conservative
approach to managing money.
There was a brief discussion on the reports Longer would provide
the Board, and Friend asked if Mayes could "translate" Longer's
reports into the type he had presented today. Mayes confirmed that
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May 24,1990
his department could do this usually in 2 to 3 days after receipt
of Longer's report.
Eldon Roberts, seconded by Friend, made a motion to transfer the
entire amount currently in the Oppenheimer account ($2.4 million)
to Elaine Longer's management firm, with the rest of the
investments remaining in Dean Witter with Mike Kirkland as manager.
Linebaugh stated that he felt the $2.4 million figure was a lot of
money to be handled by only one manager. He said he would like to
see it split up between several managers to allow for any unforseen
problems that might adversely affect the portfolio. He suggested
perhaps transferring $1 million to Ms. Longer's firm and observing
her performance for a year or so.
Mashburn stated that having several different people running the
investment policy makes the possibility of violating the policy
guidelines extremely likely. Linebaugh explained that the Board
could solve that problem by simply setting guidelines for the
managers to follow and make sure they understand they are not to
exceed those guidelines.
Hoyt, seconded by Linebaugh, made a motion to amend the original
motion of "giving the entire $2.4 million to Ms. Longer" to state
"transfer $1.5 million to Longer Investments and the remainder to
be split between AVITAR and ACORN". The motion was amended
successfully by a vote of 4 to 2.
A vote was then taken on the amended motion, which passed 4 to 2.
Linebaugh stated one other order of business was to decide how much
fixed income the Board would turn over to Longer Investments. He
suggested giving her one of the Treasury Notes ($300,000) and then
allow her to select any stocks she might want to keep out of the
Oppenheimer account, having Shearson transfer those directly to
her. Mashburn suggested getting Longer together with the Pension
Board to go over this and the investment policy as well.
Linebaugh suggested that Elaine Longer be informed that she has
been assigned to manage $1.5 million from the Oppenheimer account,
give her a copy of the meeting minutes and allow her time to
prepare for a meeting with the Board to discuss her ideas on the
management of the fund. Mike Kirkland will also be informed of the
Board's action, with a request for $900,000 to be managed by AVITAR
and ACORN and consult with Kirkland concerning the amounts to be
managed by each.
POLICE PENSION BOARD ELECTIONS
There was a discussion about election proceedings and number of
people to be elected or re-elected. Linebaugh stated he would meet
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May 24, 1990
with Secretary Sherry Thomas to begin the proceedings for an
election.
Friend asked if the Police Board had bylaws to follow for
elections, business meetings and such. Linebaugh stated that they
did not but the Board could pass resolutions to accomplish the same
things that bylaws do. The Board currently follows the state laws
governing the Police Pension Board.
ADJOURNMENT
The meeting was adjourned at 2:20 p.m.