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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 • • 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 • 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.