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HomeMy WebLinkAbout2006-12-28 - Agendas - Final Firemen's Pension and Relief Fund Meeting Agenda December 28, 2006 A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11:00 AM on December 28, 2006 in Room 326 of the City Administration Building 1. Approval of the Minutes: • November 30, 2006 Meeting Minutes 2. Approval of the Pension List: • January, 2007 Pension List 3. New Business: • Elections to fill Dennis Ledbetter's position —Nomination letters have been sent. • Current Board of Trustees List - Informational • 2007 Meeting Schedule — Informational • Teddy O'Neal Retirement —Need to vote to accept • Discussion on Prorating Monthly Benefit upon Retirement 4. Old Business: • Ashland Management Letter — Copy of the letter that was sent. • Dennis Ledbetter Resignation —Need to vote to accept • City Attorney Kit Williams Report on Baxter International lawsuit • Appointment of Pension Board representative for the Baxter International lawsuit case. • COLA — Have not received the Cash Flow Report 5. Longer Investments: • Monthly Report Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes November 30,2006 Page I of 7 Firemen's Pension and Relief Fund Meeting Minutes November 30, 2006 A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11 :00 AM on November 30, 2006 in Room 326 of the City Administration Building Marion Doss called the meeting to order Present: Marion Doss, Ronnie Wood, Ted O'Neal, City Clerk Sondra Smith, City Attorney Kit Williams, and Trish Leach, Accounting. Absent: Mayor Coody and Pete Reagan. Approval of the October 26, 2006 Meeting Minutes: Ronnie Wood moved to approve the October 26, 2006 Meeting Minutes. Ted O'Neal seconded the motion. Upon roll call the motion passed 4-0. Mayor Coody and Pete Reagan were absent. Approval of the Pension Lists: Approval of the December, 2006 Pension List — No Changes Ronnie Wood moved to approve the December, 2006 Pension List. Ted O'Neal seconded the motion. Upon roll call the motion passed 4-0. Mayor Coody and Pete Reagan were absent. New Business: Dennis Ledbetter Resignation Marion Doss: Is there a copy of his resignation letter in the packet. Sondra Smith: Yes, but he did not state his reason for resigning in it. I am going to try to call him. I've called a couple of times and haven't been able to catch him in the Fire Marshall's office. I may have to call him at home after hours. Ron Wood: Do we want to table this? Can we do that? What do we need to do, have an election? Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes November 30,2006 Page 2 of 7 Sondra Smith: I don't think we have to have a motion. I would rather you guys talk to him and see if he will stay on the Board. Marion Doss: Could we not take any action on this. Do we need to appoint someone or have a new election? I would rather have an election. Sondra Smith: I don't think you can appoint. I think you have to have an election. In May we will be doing the election's so the person that is selected will have to be reelected. Marion Doss: That's right Dennis's term was up in May. Sondra Smith: Yes. So if you can talk him into serving until May it would be a lot better. That's what I was going to try to do when I talked to him. Marion Doss: Let's just table this until you get a chance to talk to him and maybe we can talk him into serving until May. Sondra Smith: That would be great. Ashland Management Letter Sondra Smith: Ashland Management sent a letter stating they will be contacting us about coming to one of our meetings to talk to us about their stocks. Basically they want to become our investment advisors. I know that you are probably not interested in changing. Marion Doss: Right, we are not. Will you send them a nice letter thanking them, if it meets everyone else's approval and tell them we are not interested in changing. Ted O'Neal: We will keep their name on the list. Marion Doss: Yes, very good. NCPERS Information on Pension Protection Act of 2006 Sondra Smith: This has to do with a new act that they are trying to pass. I didn't get it until November 27tb so I haven't really had time to go in depth over it but I wanted you to have a copy to review. Marion Doss: We can just review that in our own time. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes November 30,2006 Page 3 of 7 Old Business: City Attorney Kit Williams Report on Baxter International Lawsuit Kit Williams: I've been in contact with the attorneys representing you in this class action suit. We've had to submit another affidavit. I submitted one and we have had another one submitted by the Mayor to the judge in order to try to become a lead plaintiff for this particular case. We haven't heard yet if the judge is going to let us. The retirement system in Alaska is also asking to be the lead plaintiff. They have I think $500,000,000 in assets, of course they have more people. We are trying to be co-plaintiffs with them. At this point in time the judge hasn't made a ruling to my knowledge about whether or not they are going to let us be lead plaintiffs which is not critical for us because we will be plaintiffs regardless. It's much more critical to the attorneys representing us because if we are the lead plaintiff then our attorneys are going to be entitled to some of the attorneys fees if they are successful. If they are not successful then we won't owe anything and they will not receive anything and in fact they will be out their costs because they agreed not to charge us for the cost. Appointment of Pension Board representatives for the Baxter International lawsuit case Kit Williams: One thing we need to do or start thinking about is to designate who among the board should be our court official representative if the defense wants to ask questions or ask for a deposition of a person. Basically what would happen in that particular case is that the deposition might be done in a different location and if so then our attorneys would be responsible for getting our person to the location and paying their expenses because that is part of the litigation costs. They would also work with this particular person to make sure they were really up on all the facts involved in this. I've read the complaint very carefully myself and the basic issue is that the head people in the corporation were giving these rosy scenarios about growth and they continued to give the same rosy scenario for an eight or nine month period even after they should have know better. Also during this seven month period which is the key period for this suit a bunch of those people sold a whole bunch of stock that they had and made millions of dollars selling the stock. Then finally they had an announcement that came out and said we didn't meet our expectations and the stock went down about 20-25% in one day. That was kind of the red flag that got people looking and that's why this suit began. This was back in 2001 or 2002. Those were the basic allegations that these people were at the same time trying to buy another company and they were trying to use their own stock to buy this other company and therefore it was at their advantage that the stock be valued higher so they would have to pay less stock to buy this other company. Those are the two allegations that the head people intentionally deceived the normal stock owners like us. We owned stock at the time. We only potentially lost about $13,000 so it's not a giant hit for us. We didn't own that much stock but that is still a substantial loss and right is right and wrong is wrong. If our attorneys can prove that these people knew what they were doing and intentionally mislead investors then they should have to give back some of the additional profits they made. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes November 30,2006 Page 4 of 7 Marion Doss: How many Alaska employees did you say were involved? Kit Williams: I really don't know. I've been in communication with their head attorney but I haven't really asked him. I did note from their pleadings that they had a substantially larger pension fund. That's a state pension fund it's some sort of an employee pension. I can't remember which group of employees it was in Alaska. Marion Doss: The Alaska Labors Employer's Retirement Fund. Did you say a dollar amount approximately? Kit Williams: I thought they had $500,000,000 in their total pension fund. Marion Doss: Looks to me like and we don't know what the judge is going to do but $500, 000,000 verses us. Kit Williams: We are doing this jointly. Marion Doss: Okay. Kit Williams: We are saying we want to be co-plaintiffs that our attorneys and their attorneys will work together. I've read the documents to try to stay up on it and I read our motion that our attorneys did to allow us to be plaintiffs and I saw the defense response to that. The defense response to that included an article out of Fortune magazine that was attacking the ethics in the work history not of our attorneys but of the attorneys representing Alaska. This firm is one of the biggest firms that does this. They kind of almost to some extent invented this way to go after corporations and they have made millions of dollars. One of the firms has been investigated and has been charged with federal crimes. I don't think there has been any judgment against this particular one and they are fighting it asserting that they are innocent. They are alleged to have made pay offs to lead plaintiffs. The law has been changed to make it where they want institutional groups to be lead plaintiffs like us as opposed to an individual. What was alleged is that these individuals, once this new cause of action occurred, they would buy a whole bunch of their company's stock then after some event happened and the stock took a dive, which might have indicated that the company wasn't giving proper warnings and maybe there was some misbehavior, they would go and contact this particular law firm that specialized in this. The problem was that the law firm was probably sharing the attorneys fees with this investor. The investor is only supposed to get back what he lost he is not supposed to be getting a bounty. One thing I put in our affidavit is we assured the court that we are not a repetitive plaintiff, we are an investment board, we found out about this and our attorneys advised us about it. We felt like it was reasonable for us to go forward with it if our attorneys were correct. Marion Doss: Sounds like we just need to wait and see what the judge decides on that part of it. Kit Williams: I think that's correct. Assuming that we are one of the co-lead plaintiffs one of the members of this board will need to be appointed to be your official representative. I will work with that board member and have our other firm work with them and make sure they can Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes November 30, 2006 Page 5 of 7 stay on top of everything and truly understand this case enough because we are required as lead plaintiffs to give direction to our attorneys. That's one reason why I read the defense response. I didn't want to just read what our guys were saying, I wanted to see what the guys against us were saying too and it was an eye opener. Marion Doss: So if we get to that point we need to select someone that likes to travel. Kit Williams: Someone that has had experience or at least that's not going to be intimidated. Sondra Smith: And has time. Kit Williams: And has time. We have some that are retired. Sondra Smith: Do we need to go ahead and appoint someone today? Kit Williams: No. We are missing three members. Pete's not here but he is still a member right? Marion Doss: Yes. Kit Williams: At this point we haven't received any notice of deposition. Since we meet every month there is not an immediate rush but let's leave this on old business. Sondra Smith: Okay. Kit Williams: So you'll can think about it and talk to Pete. Is Ledbetter gone? Marion Doss: He sent a letter of resignation. We are just going to put that on hold and talk to him and see if there is a reason. Sondra said his term was up in May. I wanted to ask if he would finish out his term. Can we appoint someone to the remainder of his term or do we have to have a special election? A special election is okay with me. Kit Williams: That's just a hassle for the clerk but I don't know of anything in there that talks about appointment. Marion Doss: I don't recall either. We have done that a time or to. I kind of wondered at the time. Kit Williams: The only thing that makes me nervous about appointing someone is if we then needed that signature in a critical decision. Then it is possible that that person could be challenged. Marion Doss: That concerns me too. Ron Wood: I think it would be good to elect someone. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes November 30, 2006 Page 6 of 7 Marion Doss: I do to, I really do. There is always a chance that someone would say, if you appointed someone, that you appointed them so they would go along with your point of view or something like that. Sondra Smith: I don't mind doing elections but if we could talk Dennis into staying until May I think it would be better for the board. He may choose not to do that. Marion Doss: Who knows what's happened. Why he feels like he can't continue. Kit Williams: I don't have anything else on Baxter. Marion Doss: I appreciate the information on this. It sounds like mainly it's a business deal for the attorneys. Kit Williams: In reality I think a lot of times in class action suits the attorneys get more than anybody else. The city has agreed to authorize some attorneys to represent us in a potential sales tax and HMR tax class action suit against some internet companies who might not be paying the full amount of sales tax and HMR tax to the city as they are suppose to. I have seen class actions with just consumers and basically the consumer gets nothing. You get a certificate of 50% off or something. It's so worthless you don't even apply for it. I think in both of these cases that the city is getting involved with we see a chance to recover real money. Although if it is a class action the attorneys are going to make more than anybody if they are successful. Marion Doss: I guess the main thing on this is our responsibility to recover any money that may have been lost even if it is a small amount. That's the way we really need to look at it. Trish Leach: We receive on a regular basis class action letter notifications that there has been a suit for some reason and we research it and if we have the records we will pull the files and if you lost money we will pull what you bought, what you sold and file those. Sometimes we will get a check for a dollar or sometimes thirteen cents. Any time anyone approaches us and says there is a class action suit we feel like if you all get any money from it pulling the records is what we are supposed to do. If we don't have the records then Longer has them and they pull the files and file. Kit Williams: Hopefully it will be more than that. Trish Leach: I would hope it would be more than that. Kit Williams: If they actually ever approve the case and prove that we lost $13,000 then we should get about $8,000 back. Some of it will be used up with expenses and one third will go to the attorneys but at least we would get some dollars back so it is not like it's not worth pursuing. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes November 30,2006 Page 7 of 7 COLA Sondra Smith: I have not received the cash flow report back. Marion Doss: I don't expect to hear from that for a while. Sondra Smith: I don't either. Longer Investments: Equity Overage Approval — 52.8% Sondra Smith: Longer Investments sent a copy of the overage. As you know they can go plus or minus 5% from the 50% and they are at 52.8%. So we need to approve the equity overage. Ted O'Neal moved to approve the 52.8% Equity overage. Ronnie Wood seconded the motion. Upon roll call the motion passed 4-0. Mayor Coody and Pete Reagan were absent. Monthly Report Kit Williams: Looks like we have received $408.95 from the Bristol Myers litigation. Trish Leach: If Longer fills out the paperwork it goes straight back to them we don't always see that and if we fill out the paperwork the check will come to us. Sondra Smith: The yield last month was 3.7%. Meeting Adjourned at 11:50 AM FIREMEN'S RELIEF AND PENSION Jan 2007 1 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH LISTED ABOVE YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN , AND FOR THE PURPOSE SO STATED. DATE OF Regular Mo Year To Date EMP#RETIREMENT NAME Benefit Reg Benefit Q 79 11/99 ARMSTRONG (DILL), PAMELA 1,812.74 1,812.74 R 177 4/04 BACHMAN, EDDIE 2,618.55 2,618.55 S 74 3/86 BAIRD, JULIA 1,802.08 1,802.08 V 63 5/72 BOLAIN,ANN 109.27 109.27 R 68 7/99 BONADUCE, MICHAEL 2,988.76 2,988.76 S 44 9/86 BOUDREY, BETTY MRS. 2,477.42 2,477.42 R 45 9/86 BOUDREY, HOWARD 2,089.28 2,089.28 R 49 7188 BOUDREY, JACK 1,647.63 1,647.63 V 5 5/72 CASELMAN,ARTHUR 131.13 131.13 R 57 5/90 LATE, ROY 1,788.90 1,788.90 V 6 4/68 CHRISTIE,ARNOLD 109.27 109.27 V 8 10/76 COUNTS, WAYNE 109.27 109.27 R 77 11/99 DILL,GARY JOHN 1,812.75 1,812.75 188 12/05 DOSS, MARION H 5,376.91 5,376.91 R 11 2176 FARRAR,ALONZO 998.86 998.86 R 192 4/06 FARRAR, DANNY 4,155.36 4,155.36 R 38 5/84 FRALEY, JOSEPH G. 1,768.12 1,768.12 R 170 5/03 FREEDLE, LARRY 3,816.75 3,816.75 R 92 03/02 GAGE,TOMMY 2,596.69 2,596.69 V 34 6/79 HARRIS, JAMES E. 109.27 109.27 V 70 11/99 HARRIS, MARY RUTH 109.27 109.27 Q 182 10/04 JENKINS, EILEEN 1,788.75 1,788.75 R 93 06/02 JENKINS, JOHN 1,788.76 1,788.76 R 86 07/01 JOHNSON,ROBERT 3,073.47 3,073.47 R 64 4/95 JORDAN, CHARLIE 2,274.95 2,274.95 S 76 5/88 JUDY, JAN 1,647.63 1,647.63 R 37 3/84 KING,ARNOLD D. 1,522.37 1,522.37 R 54 5/89 KING,ARVIL 1,711.21 1,711.21 V 12 3/60 LANE, HOPE MRS 109.27 109.27 R 13 10/67 LAYER, MERLIN 456.22 456.22 R 173 12/03 LEDBETTER, DENNIS 3,775.80 3,775.80 V 181 10/04 LEE,VIOLA LOUISE 109.27 109.27 R 51 10/88 LEWIS, CHARLES 1,647.63 1,647.63 R 40 9/85 LOGUE, PAUL D. 2,868.28 2,868.28 R 50 9/88 MASON, LARRY 1,631.25 1,631.25 R 39 4/85 MC ARTHUR, RONALD A. 1,753.74 1,753.74 V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 109.27 R 15 4177 MC WHORTER, CHARLES 1,334.51 1,334.51 R 29 8/81 MILLER, DONALD 1,304.07 1,304.07 R 73 2/00 MILLER,KENNETH 3,180.02 3,180.02 V 42 2/86 MOORE, JAMES H. 109.27 109.27 V 176 4/04 MORRIS, DIXIE E. 125.66 125.66 R 48 7/88 MULLENS, DENNIS W. 2,191.30 2,191.30 R 184 3/05 NAPIER, LONNIE 3,518.28 3,518.28 R 196 01/02 ONEAL,TEDDY 4,120.99 4,120.99 R 46 5/88 OSBURN, TROY 1,899.66 1,899.66 R 81 02/01 PHILLIPS,LARRY 2,765.09 2,765.09 R 53 2/89 POAGE, LARRY 2,346.70 2,346.70 R 186 06/05 REAGAN, PETE 3,535.71 3,535.71 V 22 4/73 REED, JOE 109.27 109.27 S 172 12/03 SCHADER, MADGE 1,386.01 1,386.01 R 41 9/85 SCHADER, TROY 1,524.99 1,524.99 R 190 04/06 SHACKELFORD, GLEN 3,647.18 3,647.18 S 83 03/01 SKELTON, KIMBERLY 2,434.98 2,434.98 R 36 5/76 SPRINGSTON, CARL 806.19 806.19 S 90 03/02 STOUT, IMOGENE W. 767.80 767.80 R 165 12/02 TATE, RALPH 3,668.10 3,668.10 V 65 3/66 TUNE, BILLIE SUE 136.59 136.59 R 71 1/00 WARFORD,THOMAS 2,502.72 2,502.72 R 28 7/68 WATTS, DONALD 437.09 437.09 R 88 01/02 WOOD,RONNIE D 3,077.15 3,077.15 R 52 9/88 WRIGHT, RANDALL1,691.34 1,691.34 ----------- 113,316.82 113,316.82 12/27/2006 K:1Fire Pension\Pension List\Pension List 200-AOI 01 07 FP WM DATE OF Regular Mo Year To Date EMP#RETIREMENT NAME Benefit Reg Benefit DROP DATE DROP EMPLOYEES NEW BENEFITS 03/01/03 MAHAN, MARSHALL 4,077.28 03/01/03 PIERCE, JOEY 3,647.18 WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE JUST AND CORRECT;THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT THE SERVICES OR SUPPLIES FURNISHED,AS THE CASE MAY BE, WERE ACTUALLY RENDERED OR FURNISHED;AND THAT THE CHARGES MADE THEREFORE DO NOT EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR SERVICES OR SUPPLIES SECRETARY CHAIRMAN AND PRESIDENT ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF 2006. NOTARY PUBLIC MY COMMISSION EXPIRES : 12/27/2006 K:1Fire Pension\Pension List\Pension List 2 0 0 7101 0107 FP WM December 14, 2006 RE: Election of Board of Trustee The Firemen's Pension and Relief Fund Board of Trustees is now accepting nominations for one retired member position (Position 3). The term end date for Position 3 will be May 31, 2007; Dennis Ledbetter was serving in this position but has resigned from the Board. You will need to nominate one person for Position 3. I have attached a copy of the current Board of Trustees List and the Eligible Pension List. All Board of Trustees nominations must be submitted in writing and remitted to: Sondra Smith City Clerk/Treasurer 113 W. Mountain Street Fayetteville, AR 72701 All nominations must be received by 5:00 PM on December 29, 2006. Please return the attached page with your nomination by 5:00 PM on December 29, 2006. If you have any questions, please call the City Clerk's office at 575-8323. Sincerely, Sondra Smith Secretary Firemen's Pension & Relief Fund Board of Trustees City Clerk/Treasurer December 14, 2006 Firemen's Pension and Relief Fund Board of Trustees nomination for retired Position 3 with a term end date of May 31, 2007. I nominate the following for Position 3. Return to: Sondra Smith City Clerk 113 W. Mountain Street Fayetteville, AR 72701 All nominations must be received by 5:00 PM on December 29, 2006. Please return this page with your nominations by 5:00 p.m. on December 29, 2006. Sincerely, Sondra Smith Secretary Firemen's Pension & Relief Fund Board of Trustees City Clerk/Treasurer Firemen's Pension and Relief Fund Eligible Member List BACHMAN, EDDIE MASON, LARRY _ ............_ BONADUCE, MICHAEL MC ARTHUR, RONALD A DREY HOWARD MC CHRISTIAN, DWAYNE BOU __---- n_. _ . _ _ . DREY, JACK MC WH_ORTER, CHARLES � _... ._ .. . .._._. CASELMAN, ARTHUR :MILLER, DONALD CATE, ROY MILLER, KENNETH CHRISTIE, ARNOLD MOORE, JAMES H. COUNTS, W_ AYNE MULLENS, DENNIS-----------------—11-1111- DILL, GARY JOHN NAPIER, LONNIE __ .W__._ _ ._.__ . __ FARRAR, ALONZO O'NEAL_, TEDDY FARRAR, DANNY OSBURN, TROY ._m.... FRALEY, JOSEPH G. --- - PHILLIPS, LARRY FREEDLE, LARRY POAGE, LARRY GAGE, TOMMY .__...._ _. _ REED, JOE HARRIS, JAMES E. SCHADER, TROY JENKINS, JOHN SHACKELFORD, GLEN ............... ,JOHNSON,✓ROBERT SPRINGSTON, CARL JORDAN,,CHARLIE _ � ` TATE, RALPH KING, ARNOLD D. WARFORD, THOMAS u .e.� _ ._ _. _. __. KING, ARVIL WATTS, DONALD RIGHT LAYER, MERLIN W , RANDALL _ LED_ BETTER, DENNIS _ _ . _.__. LEWIS, CHARLES LOGUE, PAUL D. Does not want to serve on the Board 12/19/02 Firemen's Pension And Relief Fund Board Of Trustees Chairman Position 3/Retired Mayor Dan Coody Vacancy 113 W. Mountain Fayetteville, AR 72701 Replace Dennis Ledbetter 575-8330 — Work 06/01/05-05/31/07 Replaced Fred Hanna 01/01/01-Indef. Position 4/Retired dcoody@ci.fayetteville.ar.us Ron Wood 17315 Lake Sequoyah Road Secretary Fayetteville, AR 72701 City Clerk Sondra Smith 442-5925 — Home 113 W. Mountain 444-1699 — Work Fayetteville, AR 72701 466-2817 — Cell 442-7838 — Home 444-2700 — Pager 575-8323 — Work 07/27/95-04/30/03 Replaced Heather Woodruff 05/01/03-05/31/05 02/03/03-Indef 06/01/05-05/31/07 ssmith@ci.fayetteville.ar.us rwood@co.washington.ar.us Position 1/Retired Position 5/ Marion Doss Marshall Mahan 1125 Cato Springs Road 122 Holland Drive Fayetteville, AR 72701 Farmington, AR 72730 521-8988 — Home 267-2509 — Home Replaced Danny Farrar Replaced Ted O'Neal 05/31/91-Indef (Highest Ranking Member) 12/14/06-Indef. (Highest Ranking Member) 01/01/06-05/31/06 (Retired Member) mmahankci.fayetteville.ar.us 06/01/06-05/31/08 Mhdoss42@aol.com Position 2/Retired Pete Reagan P. O. Box 1922 Fayetteville, AR 72702 521-7542 — Home 841-0320 — Cell Replaced Darrell Judy 05/11/93-04/30/02 05/01/02-05/31/04 06/01/04-05/31/06 06/01/06-05/31/08 apfffay(&aol.com 23 s 2007 Meeting Schedule Firemen's Pension and Relief Fund Board of Trustees Last Thursday of each Month 11 :00 AM City Administration Room 326 January 25 February 22 March 29 April 26 May 31 June 28 July 26 August 30 September 27 October 25 November 29 December 27 Fayetteville Firemen's Pension and Relief Fund Deferred Retirement Option Plan (DROP) Distribution Election Form To be completed by Employee with regard to the distribution of his DROP account balance. 14 ba+e 6l Teddy J . O 'Neal December ;moi , 2006 date Member Name (please print) Retirement Date �� h��gytp •Qpv Please select option A, B,- or C: tLe,�-A A. The Fayetteville Firemen's Pension and Relief Fund is directed to make full payment to me, the member, less 20% federal withholding tax. I understand that the entire amount of distribution from my DROP account will be reported to the Internal Revenue Service. &hLI Signature of Member Date B. The Fayetteville Firemen's Pension and Relief Fund is directed to mail my full distribution to: Teddy J. O'Neal (Name of Annuity Provider) for deposit. I understand that the entire amount of distribution from my DROP account will be reported to the Inter al Revenue Service. Signature f mb r Date C. The Fayetteville Firemen's Pension and Relief Fund is directed to mail $ (fill in the amount) of my distribution to (Name of Annuity Provider) for deposit. The remainder will be paid directly to me, the member, less 20% Federal withholding tax. I understand that the entire amount of distribution from my DROP account will be reported to the Internal Revenue Service. Signature of Member Date (To be completed by the Annuity Provider if option B or C is selected) In accordance with the above authorization of the depositor, we agree to deposit the forthcoming distribution amount from the Fayetteville Firemen's Pension and Relief Fund in the following account: Type of Account: (fill in the blank) IRA Rollover w/ Charles Schwab & Co . (Account # 1118-0962) I(we) certify that the account is a qualified account, as defined by the Internal Revenue Service, to receive distributions, from the Fayetteville Firemen's Pension and Relief Fund, on which the income tax may be deferred. T,nnger Investments / C�• Annuity Provider Authorized Sign re ((( P_ n_ Box 1269 �'� �9 Mailing Address ate Fayetteville , AR 72702 479-443-5851 City State Zip Telephone Number Return to: Firemen's Pension and Relief Fund City of Fayetteville 113 West Mountain Fayetteville, AR 72701 Page 1 of 2 w. `a The following is an excerptfrom the original DROP Member Election Form: IMPORTANT NOTICE Attorneys for the Fayetteville Firemen's Pension and Relief Fund Board of Trustees has advised that there may be serious potential tax consequences as a result of participating in the Deferred Retirement Option Plan (DROP, A.C.A. &24-11-850) as follows: An application for a letter of determination as to the tax deferral status of the Firemen's Pension and Relief Fund Plan and Trusthas never been filed with the IRS. Also, no determination request has been made for.the Deferred Retirement Option Plan (DROP1, an amendment to the pension and relief fund plan and trust. Reliance on another State's qualification is not permitted. An adverse ruling on the tax deferred status of the plan could have serious detrimental tax consequences to each participant DROP distributions will be treated as ordinary income in the yearconstructive receipt occurs and rollover into an otherwise qualified plan, IRA, or other investment may not be possible. By not acting to formally tax qualify the plan, an array of possible options for the DROP participants may not be available. We strongly urge you to seekadvice from a competent taxaccountantand/oran attomey before participating in the DROP program. You assume the risk of such adverse tax consequences if you elect to participate. 1 understand that the Fayetteville Firemen's Pension and Relief Fund has no liability for any adverse tax consequences which may accrue to me as a participant In the DROP plan. V - Dgde Page 2 of 2 Department 303 W. Center 5t. Fayetteville AR. 7270 1 J] no Aut. 3 f MEMO To: Chief Officers of the Fayetteville Fire Department Thra: Mauro,Campos, Battalion Chief. From: Teddy O'Neal, Captain Bate: Thursday, December 14, 20 6 This is my letter of retirement of my position as a member of this department. Please accept this letter to be effective immediately. It is with great sadness and yet great pride that my years of service are over. Due to family and health reasons that I have come to this decision. I have considered the past 25 years of service very rewarding and have made several life long friendships. It has been a pleasure and a privilege to serve the City of Fayetteville and it's citizens as a member of the Fayetteville Fire Department. -------------- FIREMEN'S PENSION dE. RELIEF FUND AFFIDAVIT STATE OF ARKANSAS ) )ss: COUNTY OF WASHINGTON ) I, do solemnly swear the (Please check the appropriate statement below) 1. �am a former firefighter for the Fayetteville Fire Department. 2. I am the sponselformerspousetwidow ofa former firefighter for the FayettevilleFire I net L4 andthat:Ihave not remarried since becoming eligible for benefits. 3. I am an eligible dependent of a former firefighter for the Fayetteville Fire Department and submittedthe attached school affidavit for verification of school attendance. 4. I presently receive benefits from the Fayetteville Firemen's Pension and Relief Find and I am eligible to continue receiving the pension fimd benefits as governed under state law. My personal information is as follows: Address: JNC42 Telephone: to J tA (41: 967-59!5-? Social Security No.: - 1 3 -- 7!!�5 Birth date: l ! 7— 1-5 el PLEASE LIST ALL sENMCmitwBEMW(complete only for spouse,minor children and/or children under 23 years ofage enrolled in a institute of higher education): NAME SoC1AL SECURr1y No. BIRTH DATE RELATioNsHw � NE7 432: 35• DiI7 pQ-tt-s J 6ss78A Or:W- . LM -33 -D43 qG�TGk /431 -99 --T3-72 q - ISS- oo �a 6RI&k DATED this day of A44 (JV� signature) SUBSCRIBED AND SWORN to before me,a Notary Public,this_&day of rr��J' (�o . N ; ic-Arkansas GTON COUNTY My Commission Expires: ©9—O a D/�.. ,4 issior. ;08-01.2012 (This affidavit is requuvd annually by the Futmen's Pension and ReliefFund Board of Trustees and must be properly completed and returnedto +. the Fayetteville City Cled; 113 West Mountain,Fayetteville,Adkansas, 7270.1 by January 31st'each year.) t.. (Revised 12/2006) ye v� tic 113 West Mountain ARKANSAS Fayetteville, AR 72761 Telephone: (479) 575-8323 Fax: (479) 718-7695 city—clerk@ci.fayetteville.ar.us City Clerk/Treasurer Division December 21, 2006 Charles C. Hickox Ashland Management Inc. 475 Park Avenue South, 32nd Floor New York, NY 10016 RE: Firemen's Pension and Relief Fund Board of Trustees Dear Mr. Hickox: Thank you for your interest in meeting with the Firemen's Pension and Relief Fund Board of Trustees. I presented the Board with a copy of your letter. The Board is currently pleased with their investment advisor and is not interested in making a change at this time. Again, thank you for your interest. Sincerely, _ Sondra Smith Secretary Fayetteville Fireman's Pension and Relief Fund Board of Trustees Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 November 30, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Common Stock 4,210 AT&T 27.06 113,926.00 33.91 142,761.10 1.6 1.330 5,599.30 4.9 3,625 Advanced Micro 21.98 79,661.91 21.57 78,191.25 0.9 0.000 0.00 0.0 Devices Inc. 1,350 American International 67.52 91,147.68 70.32 94,932.00 1.0 0.660 891.00 1.0 Group Inc. 1,000 Anadarko Petroleum 29.02 29,024.15 49.36 49,360.00 0.5 0.360 360.00 1.2 Corp. 4,750 Applied Materials Inc. 16.08 76,402.33 18.01 85,547.50 0.9 0.200 950.00 1.2 1,300 B.P. Amoco PLC A.D.S. 39.63 51,523.00 68.08 88,504.00 1.0 2.360 3,068.00 6.0 2,570 Bank of America Corp. 46.98 120,743.23 53.85 138,394.50 1.5 2.240 5,756.80 4.8 2,700 Barclays PLC 39.80 107,472.69 54.06 145,962.00 1.6 2.040 5,508.00 5.1 1,800 Caterpillar Inc. 47.07 84,718.51 62.03 111,654.00 1.2 1.200 2,160.00 2.5 2,250 Chevron Corp. 38.26 86,084.01 72.32 162,720.00 1.8 2.080 4,680.00 5.4 2,750 Citigroup 39.33 108,149.59 49.59 136,372.50 1.5 1.960 5,390.00 5.0 2,950 Coca-Cola 41.85 123,445.69 46.83 138,148.50 1.5 1.240 3,658.00 3.0 2,700 Dell Computer 22.79 61,530.57 27.24 73,548.00 0.8 0.000 0.00 0.0 Corporation 3,000 Disney Company 24.79 74,365.95 33.05 99,150.00 1.1 0.310 930.00 1.3 1,340 Emerson Electric 47.97 64,279.80 86.70 116,178.00 1.3 2.100 2,814.00 4.4 1,250 ExxonMobil 27.65 34,563.09 76.81 96,012.50 1.1 1.280 1,600.00 4.6 1,650 Gannett Co., Inc. 58.18 95,998.16 59.52 98,208.00 1.1 1.240 2,046.00 2.1 5,100 General Electric 25.89 132,035.35 35.28 179,928.00 2.0 1.000 5,100.00 3.9 2,750 Hain Celestial Group, 19.49 53,591.18 30.07 82,692.50 0.9 0.000 0.00 0.0 Inc. 3,075 Health Care Select 31.99 98,360.84 33.26 102,274.50 1.1 0.453 1,392.85 1.4 Sector SPDR Fund 1,350 Intl Business Machines 83.36 112,534.65 91.92 124,092.00 1.4 1.200 1,620.00 1.4 5,025 Intel Corp. 18.36 92,242.67 21.39 107,509.87 1.2 0.400 2,010.00 2.2 2,050 Johnson&Johnson 60.33 123,685.67 65.91 135,115.50 1.5 1.500 3,075.00 2.5 4,285 Newell Rubbermaid Inc. 25.21 108,023.80 28.49 122,079.65 1.4 0.840 3,599.40 3.3 1,885 Northern Trust Corp. 57.34 108,090.96 56.96 107,369.60 1.2 1.000 1,885.00 1.7 2,550 Pfizer 24.20 61,710.00 27.49 70,099.50 0.8 0.960 2,448.00 4.0 3,000 Powershares Dynamic 16.37 49,110.00 17.47 52,410.00 0.6 0.000 0.00 0.0 Networking 2,790 Powershares Lux 17.19 47,960.12 17.77 49,578.30 0.5 0.000 0.00 0.0 Nanotech 5,300 Powershares Water 17.56 93,060.25 18.27 96,831.00 1.1 0.145 767.65 0.8 Resource 1,525 Schlumberger, LTD 59.17 90,234.25 68.48 104,432.00 1.2 0.500 762.50 0.8 4,000 The Technology Select 20.91 83,620.05 23.52 94,080.00 1.0 0.174 696.48 0.8 Sec SPDR Fund 5,175 Time-Warner, Inc. 17.26 89,297.52 20.14 104,224.50 1.2 0.220 1,138.50 1.3 2,750 US Bancorp 31.21 85,815.68 33.64 92,510.00 1.0 1.320 3,630.00 4.2 1,500 Walmart Stores 45.66 68,487.75 46.10 69,150.00 0.8 0.670 1,005.00 1.5 2,900,897.11 3,550,020.77 39.3 74,541.48 2.8 Preferred Debt Securities 5,375 G.E. Preferred 6.625% 25.60 137,585.24 25.47 136,901.25 1.5 1.656 8,902.34 6.5 AAA/AAA(C 6-28-07) 137,585.24 136,901.25 1.5 8,902.34 6.5 Mutual Funds-Equity 20,000.0000 iShares MSCI Japan 10.69 213,850.00 13.81 276,200.00 3.1 0.058 1,157.64 0.5 Index Fund 1 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 November 30, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 1,500.0000 iShares MSCI Taiwan 12.54 18,803.55 14.52 21,780.00 0.2 0.136 203.26 1.1 Index Fund 3,000.0000 iShares S&P Europe 82.03 246,094.10 103.95 311,850.00 3.4 1.879 5,635.90 2.3 350 Index 478,747.65 609,830.00 6.7 6,996.80 1.5 Calls -13 B.P. Amoco PLC 7.02 -9,121.71 8.60 -11,180.00 -0.1 January 60 Calls -27 Dell January 25 Calls 2.76 -7,464.76 2.85 -7,695.00 -0.1 -16,586.47 -18,875.00 -0.2 Corporate Bonds 50,000 NationsBank Corp. 99.79 49,894.00 101.18 50,591.25 0.6 6.375 3,187.50 6.4 Subordinated Notes AA3/A+ (NC) 6.375% Due 02-15-08 65,000 J.P. Morgan Chase 102.60 66,687.00 102.29 66,487.59 0.7 6.700 4,355.00 6.5 Bank AA3/A+ (NC) 6.700% Due 08-15-08 50,000 Bankers Trust NY Corp 99.26 49,630.00 101.40 50,701.40 0.6 6.000 3,000.00 6.0 Subordinated Notes A2/A(NC) 6.000% Due 10-15-08 25,000 First Union Corp. 93.78 23,446.00 101.60 25,399.40 0.3 6.000 1,500.00 6.4 Subordinated Debentures Al/A(NC) 6.000% Due 10-30-08 25,000 Pepsico Incorporated 97.49 24,373.00 101.17 25,292.35 0.3 5.700 1,425.00 5.8 Medium Term Note Al/A+ (NC) 5.700% Due 11-01-08 50,000 Hershey Foods Corp. 97.63 48,816.00 109.56 54,778.35 0.6 6.950 3,475.00 7.1 Notes Al/A+ (NC) 6.950% Due 08-15-12 50,000 Paribas New York 96.03 48,014.00 110.49 55,244.35 0.6 6.950 3,475.00 7.2 Branch Subordinated Notes AA3/AA- (NC) 6.950% Due 07-22-13 75,000 Merrill Lynch &Co. 99.26 74,442.00 109.83 82,375.27 0.9 6.500 4,875.00 6.5 Inc. Global Bonds AA3/AA- (NC) 6.500% Due 07-15-18 50,000 National City Corp. 96.65 48,326.00 112.40 56,200.20 0.6 6.875 3,437.50 7.1 Sub. Notes A2/A- (NC) 6.875% Due 05-15-19 50,000 IBM Corp. Debentures 100.01 50,004.00 117.23 58,612.75 0.6 7.000 3,500.00 7.0 Al/A+ (Subject to make whole call) 7.000% Due 10-30-25 50,000 Dell Computer Corp. 95.46 47,731.00 115.39 57,695.30 0.6 7.100 3,550.00 7.4 Debentures A2/A (Subject to make whole call) 7.100% Due 04-15-28 2 LONGER INVESTMENTS INCORPORATED ,16 A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 November 30, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Accrued hiterest 7,770.56 0.1 531,363.00 591,148.76 6.5 35,780.00 6.8 Government Bonds 150,000 U. S. Treasury Note 100.00 150,000.00 105.00 157,500.00 1.7 5.125 7,687.50 5.1 5.125% Due 05-15-16 50,000 U. S. Treasury Bond 100.01 50,004.00 111.47 55,734.37 0.6 5.500 2,750.00 5.5 5.500% Due 08-15-28 50,000 U. S. Treasury Bond 98.95 49,474.00 108.25 54,125.00 0.6 5.250 2,625.00 5.3 5.250% Due 11-15-28 Accrued Interest 1,226.91 0.0 249,478.00 268,586.28 3.0 13,062.50 5.2 Government Agency 450,000 Federal Home Loan 100.00 450,000.00 99.94 449,718.75 5.0 5.020 22,590.00 5.0 Bank(C 9-14-06 @ 100, IX) 5.020% Due 09-14-07 200,000 Federal Home Loan 100.00 200,000.00 99.97 199,944.79 2.2 5.100 10,200.00 5.1 Mortgage Corp. (C 3-17-07 @ 100, 1X) 5.100% Due 03-14-08 110,000 Federal Home Loan 100.00 110,000.00 100.00 110,000.00 1.2 5.280 5,808.00 5.3 Bank (C 9-19-07 @ 100, IX) 5.280% Due 09-19-08 100,000 Fed Nat'l Mortgage 100.00 100,000.00 100.00 100,000.00 1.1 5.125 5,125.00 5.1 Assoc (C 10-3-07 @ 100, 1X) 5.125% Due 10-03-08 100,000 Federal Home Loan 100.00 100,000.00 99.97 99,968.75 1.1 5.000 5,000.00 5.0 Bank(C 12-22-06 @ 100, IX) 5.000% Due 12-22-08 200,000 Federal Home Loan 100.00 200,000.00 100.00 200,000.00 2.2 5.100 10,200.00 5.1 Bank(C 5-20-08 @ 100, ix) 5.100% Due 11-20-09 525,000 Federal Home Loan 100.00 525,000.00 100.06 525,328.12 5.8 5.520 28,980.00 5.5 Bank(C 8-24-07 @ 100, IX) 5.520% Due 02-24-10 50,000 Tennessee Valley 98.95 49,474.00 103.08 51,539.25 0.6 5.625 2,812.50 5.7 Authority(NC) 5.625% Due 01-18-11 125,000 Federal Home Loan 100.00 125,000.00 101.06 126,328.12 1.4 5.500 6,875.00 5.5 Bank (C 2-18-09 @ 100, IX) 5.500% Due 08-18-11 200,000 Fed Nat'I Mortgage 100.00 200,000.00 100.44 200,875.00 2.2 5.400 10,800.00 5.4 Assoc (C 9-15-08 @ 100, 1X) 5.400% Due 09-15-11 3 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 November 30, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 70,000 Federal Home Loan 100.00 70,000.00 99.56 69,693.75 0.8 5.300 3,710.00 5.3 Bank(C 12-28-07 @ 100, quarterly) 5.300% Due 12-28-11 55,556 Federal Home Loan 100.00 55,555.56 98.91 54,947.92 0.6 5.080 2,822.22 5.1 Bank(C 1-29-07, continuously thereafter) 5.080% Due 10-03-12 250,000 Federal Home Loan 100.00 250,000.00 98.34 245,859.37 2.7 5.000 12,500.00 5.0 Bank(C 10-5-07 @ 100, continuously thereafter) 5.000% Due 10-05-12 100,000 Federal Home Loan 100.00 100,000.00 100.19 100,187.50 1.1 5.250 5,250.00 5.2 Bank(C 11-14-08 @ 100, 1X) 5.250% Due 11-14-12 75,000 Federal Home Loan 100.00 75,000.00 99.19 74,390.62 0.8 5.375 4,031.25 5.4 Bank (C 1-29-07, continuously thereafter) 5.375% Due 11-07-13 125,000 Federal Farm Credit 100.00 125,000.00 97.81 122,265.62 1.4 5.300 6,625.00 5.3 Bank(C 6-22-07 @ 100, continuously thereafter) 5.300% Due 06-22-15 100,000 Federal Home Loan 100.00 100,000.00 101.62 101,615.60 1.1 6.000 6,000.00 6.0 Mortgage Corp. (C 4-28-09 @ 100, quarterly) 6.000% Due 04-28-16 210,000 Fed Nat'l Mortgage 100.00 210,000.00 101.03 212,165.62 2.3 6.000 12,600.00 6.0 Assoc (C 10-24-08 @ 100, quarterly) 6.000% Due 10-24-16 Accrued Interest 33,429.08 0.4 3,045,029.56 3,078,257.90 34.0 161,928.97 5.3 Alternative Investments 4,000 streetTRACKS Gold 63.53 254,118.79 64.39 257,560.00 2.8 0.000 0.00 0.0 Shares 254,118.79 257,560.00 2.8 0.00 0.0 Cash and Equivalents Dividends Accrued 9,865.63 9,865.63 0.1 0.000 0.00 0.0 Money Market 517,510.74 517,510.74 5.7 4.630 23,960.75 4.6 527,376.37 527,376.37 5.8 23,960.75 4.5 Certificate of Deposit 40,000 Capital One Bank FSB 100.00 40,000.00 99.88 39,952.76 0.4 4.900 1,960.00 4.9 Falls Church, VA BAAI/NR(NC) FDIC-Insured 4.900% Due 02-20-07 4 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 November 30, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Accrued Interest 544.44 0.0 40,000.00 40,497.20 0.4 1,960.00 4.9 TOTAL PORTFOLIO 8,148,009.25 9,041,303.54 100.0 327,132.85 4.0 5 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. CASH CONTRIBUTIONS/WITHDRAWALS City of Fayetteville Fire Pension and Relief Fund 08-15-02 to 11-30-06 CONTRIBUTIONS 09-10-03 Money Market $350,000.00 08-04-04 Money Market $127,000.00 09-01-05 Money Market $145,000.00 08-17-06 Money Market $408.95 (Bristol-Myers Squibb litigation settlement) $622,408.95 WITHDRAWALS 2002 Total Money Market $199,000.00 2003 Total Money Market $75100.00 2004 Total Money Market $935,000.00 2005 Total Money Market $1,106,000.00 01-03-06 Money Market $394,000.00 02-01-06 Money Market $100,000.00 03-01-06 Money Market $90,000.00 04-01-06 Money Market $82,000.00 04-27-06 Money Market $145,000.00 05-01-06 Money Market $10,000.00 05-05-06 Money Market $100,000.00 06-01-06 Money Market $105,000.00 07-01-06 Money Market $95,000.00 08-01-06 Money Market $95,000.00 10-01-06 Money Market $80,000.00 11-01-06 Money Market $65,000.00 $4,352,000.00 6 LONGER INVESTMENTS INCORPORATED A Registered Inveshnent Advisor