HomeMy WebLinkAbout1987-10-29 MinutesMINUTES OF A MEETING OF THE FIRE PENSION BOARD
A regular meeting of the Fayetteville Firemen's Pension and Relief Fund
Board was held on Thursday, October 29, 1987 at 1:30 p.m. in Room 313 of
City Hall.
PRESENT: Chairman Pennington, Secretary McWethy, Fire Chief Jackson,
Firemen Bonaduce, Dill and Reagan. Also present were
Administrative Services Director Scott Linebaugh and Public
Safety Director Marty Coates
ABSENT: Retiree Carl Springston
CALL TO ORDER
The meeting was called to order by Chairman Pennington.
MINUTES
It was moved by Jackson, seconded by Dill and unanimous, to approve the
minutes of the last meeting.
NOVEMBER PENSION LIST
It was moved by Reagan, seconded by Bonaduce, and unanimous, to approve the
Pension List for November.
OLD BUSINESS
DANNY FARRAR
Linebaugh reported a letter was sent to LOPFI requesting pension funds be
reimbursed to Danny Farrar. He said he called LOPFI this morning and they
stated his contributions would be sent back sometime around the 1st of
November.
CASH FLOW CHECK
Linebaugh said the staff was asked to run a "cash flow check". He said
there should be approximately $465,000 in the Merrill -Lynch cash account.
He said $100,000 will have to be available in April of 1988, and $100,000
will have to be available in October of 1988, because there are so many
potential retirees.
[Correction: Only .-$365,000is available in the Merrill -Lynch cash account,
because $100,000 of the $465,000 total went to pay for the M -L Lee investment.]
Fire Pension Minutes
October 29, 1987
Page 2
Reagan asked if any Certificates were due to mature near those dates.
Linebaugh said no Certificates would mature until 1989.
Linebaugh questioned whether it was legal to leave the $465,000 in the
Merrill -Lynch cash account, and whether that money should be invested
through RNC.
The Board discussed whether to invest the total amount or split it into more
than one investment.
Dill asked if some of the money could be kept in the Merrill -Lynch account.
Linebaugh said City Attorney McCord's opinion was that keeping the funds in
that account was an improper transaction. He said it was legal to invest in
any Arkansas bank approved by the State Treasurer, or in C.D.'s. He said
that the City investments are currently being made in Treasuries, for which
there is a $50 fee. He said bids are taken for those investments. Bonaduce
asked if an Attorney General's opinion could be obtained. Linebaugh said
that might take a long time.
Bonaduce suggested bids be obtained and a decision be made at the next
meeting. Linebaugh pointed out that the banks are not enthusiastic about
bidding on large investments. Linebaugh advised the funds be divided into
two investments.
Following further discussion, Jackson made a motion that Linebaugh solicit
bids, that he choose the best bid, and that he check into making the ready
asset account (or something similar) legal for the Board to participate in
by seeing if RNC would set something up at an acceptable cost. The motion
was seconded by Dill. Linebaugh said he would get bids for the next regular
meeting. The motion passed unanimously.
ROY SKELTON
Linebaugh reported he received a signed statement from Roy Skelton on the
receipt of his check
FIDUCIARY LIABILITY INSURANCE
Pete Reagan reported on a seminar he attended where he learned that pension
board members should have fiduciary liability insurance. He said at the
seminar he learned a $10 million dollar policy costs $8,500 per year. He
said he contacted Kansas City Life which quoted a cost of $300 per million
for a 7 -member board.
McWethy noted the City holds a public official liability insurance policy,
under which the City Board members are covered. Linebaugh said he would
check into who else could be covered under that policy. He added that it
Fire Pension Minutes
October 29, 1987
Page 3
was important to
pension board as
have individual coverage as well as coverage for the
a whole.
Following discussion, Pete Reagan moved that the staff get a package
together for the Board to review. The motion was seconded by Jackson and
passed unanimously.
MERRILL-LYNCH REPORT
Richard Yada
investment of
On the Equity
is now worth
$635,000. He
OTHER BUSINESS
reported on the Income Portfolio. He said the original
$1,647,585 is presently worth $1,799,695.
portfolio, Yada reported the original investment of $507,000
$439,000. He noted that in September that portfolio was up to
said he thought RNC would be restructuring this portfolio.
Pete Reagan asked if it was reasonable for board members to ask for gas
expenses for a seminar. Jackson said he thought it.wauld;be:.reasonable as
long as it was based on the average mileage of a 1967 Volkswagen. Linebaugh
said $.20 per mile was the standard reimbursement used by the City.
It was moved by Jackson, seconded by Bonaduce, and unanimous to approve the
request.
ADJOURNMENT
The meeting was adjourned at 2:30 p.m.
CHAIRMAN
SECRETARY