HomeMy WebLinkAbout1987-11-25 MinutesMINUTES OF A MEETING OF THE FIRE PENSION & RELIEF FUND BOARD OF TRUSTEES
A meeting of the Fayetteville Fire Pension & Relief Fund Board of Trustees
was held on Wednesday, November 25, 1987 at 1:30 p.m. in Room 313 of City
Hall, 113 West Mountain Street, Fayetteville, Arkansas
PRESENT: Chairman Pennington, Secretary McWethy, Fire Chief Jackson,
Retiree Springston, and Firemen Bonaduce, Dill and Reagan.
Also present was Administrative Services Director Scott
Linebaugh.
Chairman Pennington called the meeting to order.
MINUTES
Linebaugh asked that the
Business. He said that,
he had stated there was
should be noted that
investment, leaving only
minutes of the last meeting be corrected, under Old
although the Minutes were correct in reporting that
$465,000 in the Merrill -Lynch cash account, it
$100,000 of that went to pay for the M -L Lee
$365,000 available.
It was moved by Jackson, seconded by Bonaduce, and
minutes of the last meeting, as corrected.
PENSION LIST
unanimous, to approve the
Pennington introduced approval of the Pension List for December, with no
changes from last month.
It was moved by Bonaduce, seconded by Dill and unanimous to approve the
Pension List for December.
OLD BUSINESS
INVESTMENTS
Linebaugh recommended $100,000 be invested with First Federal of
Fayetteville, at 7.250% for six months, that $100,000 be invested with First
Federal of Arkansas, at 7.625% for one year, with the remaining
approximately $165,000 to be invested with First National Bank at 6.919% for
one year. Linebaugh pointed out the interest rates were today's quotes for
Certificates of Deposit.
After discussion, it was decided the investment at First Federal of Arkansas
should be made for six months, at the rate quoted of 7.350%, instead of for
one year at 7.625%.
Jackson, seconded by Bonaduce, moved that $100,000 be invested at First
Federal of Arkansas for six months, $100,000 be invested at First Federal of
Fayetteville for six months, and $165,000 be invested at First National Bank
for one year. The motion passed unanimously.
LIABILITY INSURANCE
Linebaugh recommended the Board jump at obtaining the liability insurance
policy quoted by Pete Reagan at the last meeting. Linebaugh said he could
not find any other package which even came close. He added that the Board
should scrutinize the policy very carefully. He also told the Board they
were covered by the City's liability insurance but this only covers civil
rights matters. He said it would not cover a situation where the Board
might make an investment which is not prudent. He said he checked with
Markel and other big insurance carriers. He said most of them wouldn't even
touch it and others said the price would be so far out of sight the Board
wouldn't want to pay for it. Linebaugh said he would like to obtain a copy
of the policy for the City Attorney to review.
DANNY FERRAR
Pete Reagan brought up Danny Ferrar's request for reinstatement in the
Pension Program. Accounting Supervisor Zelda Parson reported a check had
been received last week. She said it had been decided that the way the
City's contribution would be handled is to pay LOPFI less Ferrar's
contribution. Reagan asked how Ferrar's previous pension moneys would be
handled. Linebaugh said there was a State statute which deals with how to
handle the situation. There was discussion as to whether interest should be
paid back, as well as the pension fund's share of the State turnback it
would have received. Jackson suggested that LOPFI could be sent a letter
asking them to determine the amount.
TRAVEL REIMBURSEMENT
Linebaugh said he never received a statement from Pete Reagan regarding
reimbursement for his travel expenses. Reagan said he had the information
at home.
NEW BUSINESS
Reagan reported that the Equity Account was up $40,000 from last month, and
the Income Account was up $10,000 from last month.
Jackson said RNC sent a letter which essentially said "everything's going to
be alright." He said another letter was received from Merrill -Lynch about
the acquisition fund saying "the news is good...Tom has not yet made any
acquisitions and all your funds are invested in short-term governmental
securities....and it's getting better all the time."
ADJOURNMENT
The meeting was adjourned at about 2:05 p.m.
CHAIRMAN
SECRETARY