HomeMy WebLinkAbout2005-04-28 - Agendas - Final Firemen's Pension and Relief Fund
Meeting Agenda
April 28, 2005
A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11 :00 a.m.
on April 28, 2005 in Room 326 of the City Administration Building
1. Approval of the Minutes:
• March 31 , 2005 Special Meeting Minutes — Joint Session between the Policemen's Pension and the
Firemen's Pension.
• March 31,2005 Meeting Minutes
2. Approval of the Pension List:
• May 2005 Pension List
3. Old Business:
• Hiring an attorney for the TIF lawsuit
• 2005 Elections
4. New Business:
• Nichols & Campbell, P.A. - Income Tax refund for Retirees
S. Longer Investments:
• Report
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Special Joint Meeting Minutes
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Special Joint Meeting of the Firemen's and
Policemen's Pension and Relief Fund Board of Trustees
Meeting Minutes
March 31, 2005
A special joint meeting of the Fayetteville Firemen's and Policemen's Pension and Relief Fund
Boards was held at 11 :00 a.m. on March 31 , 2005 in Room 111 of the City Administration
Building
Randy Bradley of the Policemen's Pension and Relief Fund Board of Trustees called the meeting
to order.
Present: Randy Bradley, Jerry Friend, Jerry Surles, for the Police Pension Board; Marion
Doss, Danny Farrar, Robert Johnson, Pete Reagan, Ronnie Wood, for the Fire Pension
Board; City Clerk Sondra Smith, City Attorney Kit Williams and Eldon Roberts.
Absent: Mayor Coody, Tim Helder, and Dr. Mashburn.
Highway 71 East Square Redevelopment District: A discussion on hiring legal counsel to
represent the Pension Boards' regarding the declaratory judgment suit for the Highway 71 East
Square Redevelopment District.
Kit Williams: The reason I asked that a special meeting be called jointly between you all is that
the City, to protect itself from illegal exaction suit on this TIF District that the City Council has
formed, had to file a declaratory judgment action. A declaratory judgment action asks the courts
to tell us how to divide the tax increment pursuant to the constitution and the state law. It is very
unclear exactly how to do that. If we had not done that and we had just asked the assessor to
guess about which way is the right way to interpret it, more likely than not we would have been
challenged in court by taxpayer groups saying she guessed wrong. No matter which way she
guessed, they would have said she guessed wrong, and so I did not want that to happen. To
! prevent that from happening, I filed a declaratory judgment action to do two things: number one,
to say the tax increment in this district, that is questionable, should not be distributed until a
court has decided how constitutionally it should be according to the law and the constitution.
The attorney general is going to be involved with the suit. The county has already filed their
answer. The school board is going to file their answer. The library is going to file an answer and
I thought at one point that the same attorney that is representing the library could represent the
pension plans because you all are setting in almost the identical position.
jA constitutional amendment was passed by the people for all three of your groups, for the
library, police pension fund and fire pension fund authorizing the citizens to vote a mil for the
funds. The question would be "Did Amendment 78, which had this general repealer clause that
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says any constitutional provision in conflict with this is repealed, did it actually go back and
repeal the provisions within the amendment for you all's group that says that it will be used only
for police and fire pension funds?"
I can tell you that the courts don't like these general repealer clauses. And if they can read the
constitutional amendments together so they're saying they're not in conflict, then the previous
constitutional amendment won't be repealed to this effect. That's the argument the library's
going to make. That's at least one of their arguments that the general repealer did not affect the
original constitutional amendment that allowed the people to vote for the library mil or allowed
the people to vote for police and fire pension mils. So basically this is not going to be a trial. I
don't think there's any disputes about any facts. I think we can stipulate to all the facts. It will
just be arguments presented to the court from various sides saying the mil should be in the
district or the mil should not be in the district, and they should so remain with the taxing entities
which would be the library, pension boards, schools, or whatever.
I thought that the attorney for the library board, who is already up to speed on this, I thought it
would be nice for you all to hire him because he already knows what's going on. He's already
educated himself. The library board indicated that, no, they want him all to themselves, and they
don't want him to represent anybody else even though you certainly are not in conflict with them
and won't be in conflict with each other. You'd be making the same arguments, but if they have
instructed their attorney that he can't represent even a similar situated party, which is what you
all are then you would have to find somebody else. I would hope that what you would do is hire
the same attorney because you all are basically identical. I don't want you to spend much on
attorney's fees. You simply need to have somebody there making the same argument that the
library is going to make: that the general repealer clause doesn't affect the amendment where
you all got your right to have the millage. So it's not a difficult case for an attorney to represent
you, but you need to have somebody on your side. I'd be happy to make the argument. I'm
required to by the trust indenture that your tax increment will be included in the district and the
library's tax increment, everything but the debt service increment for the school district is
included in. I need to make the argument that the 25 mils that the attorney general opined was
not in the district will be in the district. And that's why the attorney general has agreed to come
in the case and argue this.
We need to get everything to the Supreme Court and let them decide. I would hope that you all
would choose an attorney. I know that in the past you all have used Martin & Kieklak. You
can't in this particular case because Kieklak is a JP on the county side and there would be some
potential conflict. The county millage is almost certainly in and therefore it is to the county's
benefit to get more millage in so that the debt gets paid off sooner and they would get their
increment back. So there would be a conflict with that particular firm, that is one firm that you
could not retain for this particular lawsuit. Apart from that I can't think of any other firm that
would be potentially out from the conflict of interest situation. I know that in the past there have
been some attorneys that have represented the city for certain things. You're free to determine
who you want to use one way or another. It's pretty much up to the board. I do recommend that
you try to retain an attorney, but when you do you should also try to keep the costs at a fairly
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minimal level. In other words your attorney just needs to appear in circuit court and make the
argument and then write a kind of "me too" brief to the Supreme Court, but I wouldn't send the
attorney down there to try to make an argument that's already going to be presented to the court
by other attorneys.
Whoever you talk to you might try to see if they would agree to a top end of what they would
charge on their hourly rate or maybe if they would do a cap on the top end so that you would not
be out any more money than you have to. I'm open to any questions about that. I just wanted
you to hopefully work together on this. It cuts your costs in half by working together.
Eldon Roberts: Who is the school's attorney?
Kit Williams: Rudy Moore is the school's attorney and he's too involved. The library's
attorney is Vince Chadwick, he has the same interest as you, the school board has different
issues. I don't think he could and I would not recommend Rudy either.
Eldon Roberts: What are we trying to gain here losing absolutely zero tax dollars? That's what
we're trying to gain?
Kit Williams: Less than 5% of the city value is in this district and then it's only the growth on
that.
Eldon Roberts: Right.
Kit Williams: So you're talking about a very small amount of money over the long term and
that's one reason I don't want you to spend much money on an attorney to represent you. You
could spend more money on the attorney than you would ever lose in the increment. I don't want
that to happen.
Eldon Roberts: What do you feel like the chances are that we're going to be successful in this
court battle? Are we going to pay an attorney's fee and still lose the battle too? We've got to
weigh what this attorney is going to cost versus what we're going to lose. We could lose both
and the attorney's fees and the court cost.
Jerry Friend: How long is the TIF?
Kit Williams: Normally a TIF lasts 25 years and if they pay off the debt earlier than 25 years
they can do further projects. Really the tax increment, the growth is at the very end. The very
end is where you get a substantial amount of money that each taxing entity would be losing
because it takes a long time for growth to rise up but every year it's more and you stack it on
each other. 'The City Council, on request of Mayor Coody and the school board, passed a
resolution that said that they will not fund any further projects after this initial Mountain Inn
project. So its $3.5 million and we get $300,000 back from the sale of the land. They will use
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$180,000 that for sidewalks and the $120,000 goes back for the debt. So the whole debt is
actually less than $3.4 million after we pay it back.
Jerry Friend: But that debt doesn't affect us at all.
Kit Williams: The debt does not affect you except that the debt will be paid by the tax
increment that is in the district.
Jerry Friend: But if we pay it off first, early or something.
Kit Williams: Once it gets paid off then there will be no new projects and that keeps the back
end from being a big loss.
Jerry Friend: So we have to take what we get from the tax and take 5% of it.
Eldon Roberts: Just the growth amount, Jerry.
Kit Williams: Five percent.
Jerry Friend: Five percent of all the growth.
Kit Williams: Actually 4.7% so it's even less than 5% but then you take that and then it's just a
growth within that. I think that it's probably in your benefit to work out some sort of agreement
with an attorney. There are lots of good attorneys out there. I know that on occasion that Jim
Rose has worked with the city at very reasonable rates almost as a public service and he also was
involved in the incinerator case. He knows a little bit about these sorts of tax issues. I have not
talked to him. He might be someone you would want to consider and of course Fayetteville is
full of attorneys. I'll leave that up to you all but I would think that it would be in your own best
interest to have an attorney. This attorney can basically file what I call a "me too" brief where he
looks at what the library says and says yeah us too. That's exactly our situation, we've got the
same constitutional amendment, it says it's suppose to be used for police and fire pension only
and so Amendment 78 did not repeal it and that's his argument. The same argument is made on
the circuit court level and the Supreme Court level. It's not a real complicated case and the big
thing is that there's not a fact issue. That's when trials get more expensive, you've have to do
depositions, you have trials and courtroom time. I think that we can stipulate to all the facts.
The facts really are not what are in dispute. The dispute is what does the law mean? What does
the law require? How do these constitutional amendments interact with each other? I don't
think from your prospective that it would be a difficult or expensive case. I think that you all
certainly could consult with, or interview two or three firms, or two or three attorneys, or
whatever. How the city has to select professionals like attorneys is that you are supposed to
select the most qualified and then negotiate price. So that's what you would initially do. You
could select several amongst yourself, just people that you'd think would be good attorneys, and
then look at your top selection and then certainly talk to your top selection and say well we have
very little money at stake here and we don't think it's a very complicated case. I'd be happy to
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talk with whoever you select and explain the issues to them. You need to ask what will it cost us
for you to do this and if they say well I'll have to charge you $150 an hour and I don't know how
long it will take and I just can't top end, then say thank you very much and you take a look at
your second most qualified attorney and see if there is a better financial situation for you down
the line.
Eldon Roberts: Kit, did I understand you say the TIF can go for 25 years? Has there been a
projected time line on this one?
Kit Williams: There has been a projected time line under almost what I consider the worst case
scenario with only about three mils in the TIF; I think it was in the 20 year time. That assumes
that the city will never raise any millage itself and of course the City Council can and probably is
going to have to increase millage in order to make expenses in the future. All those mils would
go in without any question.
The school board is asking for almost 5 mils right now to be voted on in May. There is no
question that if that passes all those mils are going to be in the TIF. So as you see that would
even in the worst case scenario be doubling and tripling the amount of money coming in, and of
course when you do that you pay off much faster. My gut feeling on how the courts will finally
decide this is that there's going to be at least 7.66 mils in the TIF right now except that you all
and the library might actually be out but that's only 1 .8. So that would still be far more than the
three that they thought were in there. I will be personally shocked if it's not paid off in a dozen
year but you know who knows. We're still waiting for the Supreme Court.
Jerry Friend: You said the worst case scenario but there's probably a worst one what if the
whole thing just blows up and explodes. I mean what would happen then?
Kit Williams: Well if the country went into a depression and property values didn't go up then
it could be a long time. The law says that the TIF will be existence until the bonds are paid. So
if the property value went down and there was not increment then it would go on and on until
finally inflation would do it. Actually even that is some what protected because right now the
assessments on property in the TIF district are doubled what they're paying because you can
only increase the amount you are paying, 5% residential and 10% commercial so there's already
built in growth at current property values right now. It just takes a while for the taxes to catch up
because of the other amendments that slow down growth. So I really think that because it's such
a small amount of money and a fairly large TIF District with other buildings like the Terminella
building and you see the other ones that are being proposed. I think the chances are extremely
good that it will be paid off.
Jerry Surles: What happens if we decide to just take our lumps and go on about our business
and just ride? The school board wins, the library board wins, are they going to go ahead and take
our money?
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Kit Williams: No, I don't think so. I think that probably the Supreme Court would look at the
library's arguments and see if they apply to you. However it could concern me because as the
city attorney I want a final resolution on everything and I'd hate to get to the Supreme Court and
say you didn't get this other party. This other party never said anything about their interest so
we're not going to decide this case until they get their argument in. So it would be better for you
all at least to have someone in there making an argument for you. I can't do it because I'm
representing the City and I'm under the requirement of the Trust Indenture to make the
arguments that say you're millage is in. I think you could probably get an attorney to go forward
and make your arguments. It's possible that the court would even order that your attorney fees
be paid.
Eldon Roberts: Irregardless of what happens in all this we're going to continue to draw our tax
dollars off of this TIF District the amount we've always been drawing.
Kit Williams: Oh yeah.
Eldon Roberts: That's a true statement.
Kit Williams: It does not go in.
Eldon Roberts: We're only dealing with the increase.
Kit Williams: The increase of 5% within the whole district which is 5% of the whole town. So
you're going to get 95% of the growth regardless, you're going to get 100% of the current base
regardless and the only question would be what about the growth within that 5%? So it's a fairly
small amount and that's why I also think an attorney, especially someone that's kind of been
helpful to the city in the past would be willing to do this at a fairly nominal charge just to make
sure that everything will be presented properly.
Marion Doss: I kind of thought the way it was right now the Mountain Inn is not worth
anything so we're not getting anything for it. But I realize the whole district as it grows and as
it's worth something, we still wouldn't be getting anything until the bonds are paid off?
Kit Williams: You're talking about the millage increase on the Mountain Inn?
Marion Doss: Yeah.
Kit Williams: The Mountain Inn is figured into the base so you're getting a little bit from the
Mountain Inn now but not much. It wouldn't even be done unless we do the TIF District but yes
its growth, its value increase is going to be within the district, that's one of the big things within
the district that helps it grow especially early on. That's going to be a $22 million project and so
you go from a $1 million or less to $22 million and that's a lot. The Mountain Inn itself is
paying for a lot of this district.
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Jerry Surles: Would 95% of$20 million be a lot more than 100% of$1 million?
Kit Williams: The Mountain Inn is totally within the district and so all of its increase is going to
be captured by the district. All the increase in the district, which is now about 5% of the total
value of Fayetteville, but all the growth within the district, would be captured by the number of
mils that are dedicated into the district so all of that growth goes into the district. Apart from the
25 mils that the attorney general says that growth doesn't and that's of course half of it right
there.
Jerry Surles: Did I understand you to say that we'd only lose about 5%? We're getting 100%
now up to this point then the TIF comes in and we'd be down to 95%. Correct?
Kit Williams: You'd actually continue to get 100% of the base.
Jerry Surles: That's what we get now.
Kit Williams: You get 100% of the base but you don't get the advantage of increase in the TIF
District unless the court says you're entitled to it and that could be significant because there's
enough to pay off three million dollars. I mean not your millage alone but if you'd look at the
figures that the University of Arkansas Business Forecasting Unit did, there are big increases in
value coming for that district. Part of it would be the Mountain Inn, part of it the Terminella
Building and part of it is the old library now that it's been converted into private use which
means it will go on the tax roles instead of not being on the tax roles and then some of these
other projects that have been planned down there. I think it would be worth pretty substantial
money for you all even at combined of only eight tenths of a mil that's going to be still a
substantial amount of money within the longevity of the district. I can tell you this, you're
almost going to have to have a lawyer, and you're a named party. I have to obtain service.
Jerry Surles: You mean that you have already filed a lawsuit against us.
Kit Williams: That's right.
Jerry Surles: And you're sitting here telling us what we need to do.
Kit Williams: Well I'm telling you that you have to get a lawyer.
Marion Doss: Kit it looks to me like you should to be representing us as a city pension fund and
the developers representing the TIF District.
Kit Williams: The TIF District is not the developer's district. The TIF District is the city's
district, the city is the one issuing the bonds, and it's the city that obtains the money that's going
to do the project and decides what the project is. Then the city sells the property that has been
acquired and demolished to the developers at slightly above the appraised value that has been
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already determined in order for them to go forward with their project. It is the City Council that
made the decision to go forward not the developers.
Marion Doss: They're actually doing it for the developers for enticement.
Kit Williams: They're doing it to get the project accomplished, that's right; if the project
doesn't go forward then this development would not go forward.
I'm required by the Trust Indenture to file this suit and go forward. There was a question in my
mind actually about whether or not I even needed to name you. You're the city really to some
extent but I felt like it was much better to have all the bases covered so that we don't expose
ourselves to an illegal exaction suit. That's the only way that we could have substantial money
loss if we didn't do this declaratory judgment suit.
I think the school is wrong. The school district has told the assessor that they're entitled to four
and half mils that were never passed by the voters for them. This is additional millage that was
never passed, but they want the increment on these four and half mils. I think that's wrong. I
think they will lose on that. If this went for 25 years, that would be like $17 million dollars. So
how much attorney's fee do you get for $17 million dollars? They would get a third. That's five
million dollars. That's enough to inspire lots of attorneys to come after them. So to try to avoid
that, that's why I filed this declaratory judgment.
Jerry Friend: So if we pay an attorney with a contract and happen to win accidentally and I
don't know how and we got five million dollars.
Kit Williams: Well you don't recover extra money. The declaratory judgment is just going to
say I don't want any of these disputed mils distributed and that's virtually almost all of these.
Eldon Roberts: We want to keep getting them.
Kit Williams: None of the increment distributed.
Jerry Friend: Let's say we did. Could that attorney then say okay you owe me a third of that.
Kit Williams: Oh no.
Jerry Friend: Not if we've contracted.
Kit Williams: The one third I'm talking about is the taxpayer's attorney if they file an illegal
exaction case and then they claim they get a percentage of what is recovered.
Jerry Friend: Been there, done that.
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Kit Williams: Usually it's not a third, I've seen it be a third. Hopefully, it would be less, but
even so 17 million you take 15% or 20%. That's still a lot of money.
Eldon Roberts: Do you feel comfortable in telling this board what you think the bottom and top
number should fall in between.
Kit Williams: You're talking about for attorney fees?
Eldon Roberts: Yes, sir.
Jerry Friend: For the amount of work you think that will have to do.
Kit Williams: They would have to do two things. They'd have to file one brief in the circuit
court and probably show up for the oral argument whatever that would be. They'll have to spend
a little bit of time agreeing to the stipulated facts that I'm going to prepare and propose so that
we don't have to have any evidentiary hearings. We just say that this was the ballot, this was the
ordinance it's nothing that I think is in dispute. They'd have to spend a little bit of time
reviewing that, a little bit of time doing some research and then they'll have to file a brief in the
Supreme Court. It can be pretty short; it probably would be in their case because they would be
following along the arguments that the library is going to make.
Eldon Roberts: You talking about the State Supreme Court I guess.
Kit Williams: Really there's not going to be a final decision until the State Supreme Court
gives us the final decision. If we stopped at circuit court that really wouldn't protect us.
Eldon Roberts: We want a contract. This hourly thing scares me to death because it could go
on.
Kit Williams: You could do an hourly thing with a maximum something like that if you wanted
to. I would think that it would be pretty reasonable for an attorney who realizes that it doesn't
have to go to trial.
Eldon Roberts: That's a given now it doesn't have to go to trial. That's a given?
Kit Williams: From my prospective it is, I'm dealing with other attorneys I can't imagine
there's any facts in dispute. It's just what the law means at this point in time I think. There are
other attorneys involved and until I've got every attorney to sign off on the stipulated facts, I
can't tell you that every body is going to do it. I think that they will.
Pete Reagan: So you're working with whom?
Kit Williams: Rudy, Vince Chaddick and George Butler and then whoever you all get. I've
worked a lot in the past with them and I don't think that there will be any problem. I think we all
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have an interest to keep the costs down for our government that we're working for. Nobody has
an interest to run the clock. I don't know exactly what Rudy's situation is if he gets paid by the
hour. Vince I'm sure gets paid by the hour, but I think that they would be working to cooperate
with us. I don't think anybody would want to delay and run up the clock. I would think that you
all combined could probably get a contract in the $5,000.00 level as a cap. It's possible that you
could get it less than that. I'd hate to tell you. I know that in earlier cases when the city hired
outside counsel like on the incinerator case, we paid unbelievable amounts of money.
Jerry Friend: You got that.
Kit Williams: When I first got on the City Council, one of the first things I did was we fired
those out of town counsels who were just milking us. Dale Evans, Kent Hirsch and the rest made
about $2.6 million I think off the incinerator case. Well it's pretty hard to argue with that
because we paid our own attorneys more than that to lose. So it's pretty hard for us to come up
and say that's too much money, judge, because we had voluntarily paid outside counsel more
than that (which really stuck in my craw), because a lot of the stuff they did was delay tactics.
Marion Doss: Kit, we're not the only city in the state that has a TIF.
Kit Williams: We're about the only one. The only other one that has this going forward is
Jonesboro and that's going to be kind of a different issue probably. Everybody else went belly
up as soon as the attorney general said 25 mils were out. So we are the test case.
Jerry Friend: Is there any danger of this one stopping?
Kit Williams: Well I don't think so. We haven't actually done the bond closing yet on the TIF.
That comes later in April and purchasing the property. We're already working towards doing a
demolition contract.
Jerry Friend: Who's the owner of that property?
Kit Williams: Its not just the Mountain Inn we are dealing with, the owner of the Mountain Inn
is Stella Moga but we're also taking the county courts building, the county owns that. And then
we're taking the old Niblock Law Firm. You probably shouldn't use them because there's a
potential conflict there maybe.
Jerry Friend: Does the government say that we're going to sell this for $300,000?
Kit Williams: Yes.
Jerry Friend: But it's going to cost us $3 million. Whoever owns it anything they get goes
toward tearing it down first?
Kit Williams: We buy buildings, all four buildings.
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Jerry Friend: The owner walks off with money?
Kit Williams: Including the Redbird Cafe $2.6 million. Then we spent almost $900,000 tearing
it down and getting the site ready for development. $1 .2 million is going to the Mountain Inn.
a
Jerry Friend: The owner of that walks away with money?
Kit Williams: She walks away with $1 .2 million.
Jerry Friend: That's ridiculous Kit.
Kit Williams: It is ridiculous. We could have condemned the building.
Jerry Friend: And tear it down.
Kit Williams: But the problem with that is we would not have gotten ownership of the building
until the court case and the Supreme Court decision on our condemnation efforts against her,
which would probably be two years out. This project is contingent not only on the TIF District
and us getting this land together and selling it to them for $300,000 but also $8 million in federal
tax credits that if they're not spent this year they're lost. They won't be spent on this project so
this project would not go unless we can get a good title. The City Council decided to buy the
Mountain Inn.
Jerry Friend: I know. I know.
Marion Doss: There are certain developers that have a lot of things going on right now in
Fayetteville.
Jerry Friend: And it sticks in my craw. Big time.
Kit Williams: I think you almost have to get a lawyer to represent you jointly. I would just
urge you to have a stiff enough contract so that you end up not paying any more than you have to
and you definitely have a cap at the top of it. Your lawyer will not need to go to Little Rock to
argue before the Supreme Court. That could be part of your contract that you don't expect your
lawyer to go down there.
One thing the Arkansas Supreme Court will limit the arguments and you've got such a tiny bit
and the library will be covering it anyway. He could go down there and all he'd be doing is
sitting in the audience watching. That's pretty expensive watching. So you can limit your
expenses that way by limiting what your lawyer would be doing for you. I'm sorry that the
library decided they didn't want Vince to represent you because he already knows probably all
the issues involved in this and he's a fine lawyer and would do good job but since they bowed up
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their back and said they didn't want him to work for anybody else. You've got to do what your
client is telling you.
Marion Doss: I thought maybe it was in the contract with him or something.
Pete Reagan: Let me ask you a question Kit on the assistant city attorney.
Kit Williams: Okay.
Pete Reagan: Can we use him?
Kit Williams: I wish that would be true but if I have a conflict because I am already on the
other side then anybody in my office would have the same conflict.
Pete Reagan: You're in different offices there. You're on one side and he's on the other.
Kit Williams: It's just like what I said about Martin. Why couldn't Mark Martin do it because
he's just sharing an office with Ken Kieklak, it's because Kieklak is on the Quorum Court Mark
is not, it's because they are in the same firm, if one person has a conflict they both have conflicts.
So the assistant city attorney can't argue against me.
Randy Bradley: Is this going to be in writing by our meeting in three weeks from today?
Eldon Roberts: How soon do we need to get an attorney?
Kit Williams: I would hope that you would move quickly because really we can't go forward
with the case until everybody's got their attorney in line and file their appearance.
Jerry Friend: That's cool. We won't get an attorney and the TIF can't happen.
Kit Williams: No. The TIF is going forward. What you're saying is the illegal exaction can't
happen. The TIF is going forward.
Pete Reagan: So you're saying within a week, two weeks?
Kit Williams: Yeah, I would hope that you all could do that if you would.
Randy Bradley: I personally don't want to take any action at all until all the board members are
here.
Kit Williams: Sure. In fact I don't think we have quorum except for fire. I don't think the
police has quorum. So you can't take official action. Of course you wouldn't take official action
until you hire somebody any way.
Firemen's and Policemen's Pension
and Relief Fund Board of Trustees
Special Joint Meeting Minutes
March 31, 2005
Page 13 of 16
Eldon Roberts: Wait a second the police has quorum.
Kit Williams: I hope that in your regular meeting of the fire pension you look at this and decide
what you want to do. We will probably need another special meeting with the police then at
some point in time to decide what you're going to do.
Sondra: Randy when's our meeting in April?
Randy Bradley: Three weeks from today.
Kit Williams: That would work for you to actually hire somebody at that time rather than
deciding to hire somebody. You know you all could meet together when you interview.
Pete Reagan: We'll have to get together to interview.
Kit Williams: Do you want the purchasing office to send a little notice for attorneys to apply or
how do you want to try to handle that?
Jerry Friend: Are attorneys bound to not apply for something they're not an expert in?
Kit Williams: You could pay a lot of money for someone to become an expert.
Jerry Friend: Right. We don't want to pay to educate somebody.
Sondra: You had suggested Jim Rose.
Kit Williams: I think Jim would probably do a good job.
Eldon Roberts: Jim's always been fair by us at the police department.
Randy Bradley: If he didn't treat us right he'd be in trouble.
Jerry Friend: Didn't you say that Odom had a conflict?
Kit Williams: No, that would be Niblock. Conrad would do a good job for you too. In fact it's
always better to interview more than one any way. If you wanted to you could actually have the
purchasing officer invite those two attorneys if that's what you wanted to do.
Jerry Friend: Has Jack got a conflict?
Kit Williams: Jack Butt? No he does not. I think most attorneys don't, very few would have a
conflict.
Firemen's and Policemen's Pension
and Relief Fund Board of Trustees
Special Joint Meeting Minutes
March 31,2005
Page 14 of 16
Randy Bradley: Can we get this in writing? I can't remember all these facts of what we are
dealing with.
Sondra Smith: I can transcribe them next week.
Pete Reagan: Can we interview three attorneys if we come up with three names. Can we have
them talk to you Kit about what the requirements are going to be?
Jerry Friend: You could tell them what they're up against and then we could interview them.
Kit Williams: The only thing is I can only talk to you all since you are not represented parties, I
can recommend that you get an attorney and that's what I'm doing. Apart from that I can't really
give any advice.
Jerry Friend: You can tell the attorney how much work you expect that they are going to have
to do. Do we need a motion of some kind? Like name some names.
Jerry Surles: Can we not go ahead and pick out three attorneys.
Jerry Friend: Yeah, I think we can. Jim Rose. Jack Butt.
Kit Williams: Conrad Odom too.
Pete Reagan: With the Odom Firm?
Jerry Friend: I think those three will be good.
Pete Reagan: I think rather than interview them I think they could submit something in writing.
Jerry Friend: That makes more sense.
Eldon Roberts: I think they should be contacted and let them call Kit and let him tell them what
it's about. They should be able to give us some numbers.
Kit Williams: What I would ask them to do is just submit what they believe would be required
to represent you.
Pete: Second.
Marion Doss: Sounds good to me.
Sondra Smith: You said Jim Rose, Jack Butt and Conrad Odom.
Kit Williams: The Odom Firm.
Firemen's and Policemen's Pension
and Relief Fund Board of Trustees
Special Joint Meeting Minutes
March 31,2005
Page 15 of 16
Eldon Roberts: They'll be able to get a hold of these other attorneys and talk business won't
they to get a feel for what they need to do.
Sondra Smith: So do we have a motion and second?
Pete Reagan: Second.
Sondra Smith: Who made the motion?
Jerry Friend: I think I did.
Kit Williams: Jerry Friend made the motion. Pete made the first second I believe.
Pete Reagan: Yeah I did.
Randy Bradley: I want to make an addendum to that motion. I want to nominate Pete to be the
one that gets a hold of these attorneys here in town and gets them in touch with Kit.
Kit Williams: I don't have any problems contacting them myself. In fact I'll probably see a
couple of them at lunch today.
Jerry Friend: Who else thinks this TIF deal is terrible.
Jerry Surles: Sounds to me like a bunch of attorneys are going to get money out of it to me.
Sondra Smith: I'm going to do a roll call vote on receiving a proposal from Jim Rose, Jack Butt
or Odom Law Firm.
Jerry Friend moved to receive proposals from Jim Rose, Jack Butt and the Odom Law
Firm. Pete Reagan seconded the motion. Upon roll call the motion passed unanimously.
Mayor Coody, Tim Helder and Dr. Mashburn were absent.
Eldon Roberts: If the number that comes back from these folks doesn't suit you I would
certainly go elsewhere. I don't think you're going to be bound by these three.
Jerry Friend: Oh no.
Eldon Roberts: I think they need to know that up front too, say this is not a give me thing,
we're not just going to give you a blank check. We're going to check elsewhere if we're not
satisfied.
Jerry Surles: Well apparently we need an attorney one way or the other.
Firemen's and Policemen's Pension
and Relief Fund Board of Trustees
Special Joint Meeting Minutes
March 31,2005
Page 16 of 16
Eldon Roberts: I think $5,000 is ridiculous.
Jerry Friend: Not as ridiculous as tearing down a building for somebody.
Marion Doss: For $900,000.
Meeting Adjourned at 11:50 AM
... ....... .... ..... .. .. .. . ......
Firemen's.Pension and Relief Fund
Board of Trustees Meeting Minutes
March 31,2005
Page 1 of 3
Firemen's Pension and Relief Fund
Meeting Minutes
March 31, 2005
A meeting of the Fayetteville Firemen's Pension'and Relief Fund was held at 12:00 AM on
March 31, 2005 in Room 111 of the City Administration Building
Marion Doss called the meeting to order
Present: Pete Reagan, Robert Johnson. Marion Doss, Danny Farrar, Ronnie Woods, City
Clerk Sondra Smith and City Attorney Kit Williams.
Absent: Mayor Coody
Approval of the February 24, 2005 Meeting Minutes:
Pete Reagan moved to approve the Minutes. Robert Johnson seconded the motion. Upon
roll call the motion passed 6-0.
Approval of the April 2005 Pension List:
Sondra Smith: Lonnie Napier has moved from the DROP portion for April to the regular
pension list. Also Floyd Carl deceased.
Marion Doss: Is Pauline Skelton still living?
Sondra Smith: I think so, I will check.
Robert Johnson: Are those the only changes to the list?
Sondra Smith: Yes.
Robert Johnson moved to approve the Pension List. Pete Reagan seconded the motion.
Upon roll call the motion passed 6-0.
Longer Investments:
A copy of the investment report was given to the Board.
Firemen's Pension and Relief Fund
Board of Trustees Meeting Minutes
March 31,2005
Page 2 of 3
Old Business:
Siined Investment Policy
A copy of the revised signed investment policy was given to the Board.
NCPRES Conference
Sondra Smith: I have attached a copy of Pete's travel request, it shows the approximate cost of
his trip to the conference.
New Business:
Floyd Carl Death Certificate
A copy of Floyd Carl's death certificate was given to the Board.
Affidavits — Non-return
Sondra Smith: We have a problem with some of the pension folks not turning their affidavit's
in to us. I think we should set a policy. Without the affidavit if a pension person lives out of
state there would probably be no way of knowing when someone deceased. I would like this
Board to set a policy stating if we do not receive the affidavits by a date specific, then we hold
their checks until we receive the affidavit.
Pete Reagan moved that the Board set a policy that when the affidavits are sent to the
pensioners if they are not received within a 30 day time period of the due date that is stated
on the notice that all retirement payments be stopped until such affidavit is received by the
City Clerk. Robert Johnson seconded the motion.
Marion Doss: Is 30 days enough time for you Sondra.
Sondra Smith: We usually give them a long deadline. We send the affidavits out in December
and we usually give them until the end of January to return them. I think that 30 days after the
due date should be sufficient. The affidavits protect the Pension Board from people drawing a
pension check that are not eligible to draw a check.
Upon roll call the motion passed 6-0.
2005 Elections
Sondra Smith: Robert and Ronnie are you willing to serve another term?
Firemen's Pension and Relief Fund
Board of Trustees Meeting Minutes
March 31,2005
Page 3 of 3
Robert Johnson: Yes.
Ronnie Wood: If elected yes.
Sondra Smith: I will send the nomination letter out. After we receive the nominations I will
send the election forms out. Do they go to everyone receiving a pension check?
Marion Doss: Yes. We represent all of the people on the pension list.
Lonnie Naaier's retirement
Danny Farrar: Do you have everything from him.
Sondra Smith: Yes. Don't we need to vote on his retirement?
Pete Reagan: When we approve the pension list we are approving his retirement.
Meeting Adjourned at 12:20
FIREMEN'S RELIEF AND PENSION
May 2005
THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE
MONTH OF MAY. 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 Fed Tax St Tax Net
79 11/99 ARMSTRONG (DILL), PAMELA 1,759.94 8,799.70 300.00 100.00 1,359.94
177 4/04 BACHMAN, EDDIE 2,542.28 12,711.40 479.27 119.82 1,943.19
74 3/86 BAIRD, JULIA 1,749.59 8,747.95 350.00 145.00 1,254.59
2 3/75 BLACKARD, PAUL 106.09 530.45 106.09
63 5/72 BOLAIN, ANN 106.09 530.45 106.09
68 7/99 BONADUCE, MICHAEL 2,901.71 14,508.55 475.38 2,426.33
44 9/86 BOUDREY, BETTY MRS. 2,405.26 12,026.30 300.00 50.00 2,055.26
45 9/86 BOUDREY, HOWARD 2,028.43 10,142.15 2,028.43
49 7/88 BOUDREY, JACK 1,599.64 7,998.20 287.68 50.00 1,261.96
4 6/67 CARL, FLOYD JR, (Deceased 2/28/05) 0.00 212.18
5 5/72 CASELMAN, ARTHUR 127.31 636.55 127.31
57 5/90 CATE, ROY 1,736.80 8,684.00 1,736.80
6 4/68 CHRISTIE, ARNOLD 106.09 530.45 106.09
8 10/76 COUNTS, WAYNE 106.09 530.45 106.09
77 11/99 DILL,GARY JOHN 1,759.95 8,799.75 100.00 1,659.95
11 2/76 FARRAR,ALONZO 969.77 4,848.85 969.77
38 5/84 FRALEY, JOSEPH G. 1,716.62 8,583.10 200.00 15.00 1,501.62
170 5/03 FREEDLE, LARRY 3,705.58 18,527.90 500.00 100.00 3,105.58
92 03/02 GAGE,TOMMY 2,521.06 12,605.30 226.00 50.00 2,245.06
34 6/79 HARRIS, JAMES E. 106.09 530.45 106.09
70 11/99 HARRIS, MARY RUTH 106.09 530.45 106.09
182 10/04 JENKINS, EILEEN 1,736.65 8,683.25 350.00 100.00 1,286.65
93 06/02 JENKINS, JOHN 1,736.66 8,683.30 350.00 100.00 1,286.66
86 07/01 JOHNSON,ROBERT 2,983.95 14,919.75 500.00 100.00 2,383.95
64 4/95 JORDAN, CHARLIE 2,208.69 11,043.45 2,208.69
76 5/88 JUDY, JAN 1,599.64 7,998.20 200.00 50.00 1,349.64
37 3/84 KING, ARNOLD D. 1,478.03 7,390.15 265.00 35.00 1,178.03
54 5/89 KING, ARVIL 1,661.37 8,306.85 130.00 50.00 1,481.37
12 3/60 LANE, HOPE MRS 106.09 530.45 106.09
13 10/67 LAYER, MERLIN 442.93 2,214.65 442.93
173 12/03 LEDBETTER, DENNIS 3,665.83 18,329.15 650.00 200.00 2,815.83
181 10/04 LEE, VIOLA LOUISE 106.09 530.45 106.09
51 10/88 LEWIS, CHARLES 1,599.64 7,998.20 75.00 25.00 1,499.64
40 9/85 LOGUE, PAUL D. 2,784.74 13,923.70 325.00 75.00 2,384.74
50 9/88 MASON, LARRY 1,583.74 7,918.70 137.61 25.00 1,421.13
39 4/85 MC ARTHUR, RONALD A. 1,702.66 8,513.30 150.00 50.00 1,502.66
35 2/82 MC CHRISTIAN, DWAYNE 106.09 530.45 106.09
15 4/77 MC WHORTER, CHARLES 1,295.64 6,478.20 150.00 1,145.64
29 8/81 MILLER, DONALD 1,266.09 6,330.45 125.00 25.00 1,116.09
73 2/00 MILLER,KENNETH 3,087.40 15,437.00 325.00 75.00 2,687.40
42 2/86 MOORE, JAMES H. 106.09 530.45 106.09
176 4/04 MORRIS, DIXIE E. 122.00 610.00 122.00
62 10/68 MORRISON, ELIENE 132.61 663.05 132.61
48 7/88 MULLENS, DENNIS W. 2,127.48 10,637.40 2,127.48
184 3/05 NAPIER, LONNIE 3,415.81 6,831.62 110.00 88.00 3,217.81
46 5/88 OSBURN, TROY 1,844.33 9,221.65 200.00 38.00 1,606.33
81 02/01 PHILLIPS,LARRY 2,684.55 13,422.75 2,684.55
53 2/89 POAGE, LARRY 2,278.35 11,391.75 300.00 100.00 1,878.35
22 4/73 REED, JOE 106.09 530.45 106.09
172 12/03 SCHADER, MADGE 1,345.64 6,728.20 1,345.64
41 9/85 SCHADER, TROY 1,480.57 7,402.85 57.00 1,423.57
83 03/01 SKELTON, KIMBERLY 1,182.03 5,910.15 125.00 25.00 1,032.03
66 8/98 SKELTON, PAULINE 413.75 2,068.75 413.75
82 03/01 SKELTON,KELLY 1,182.03 5,910.15 125.00 25.00 1,032.03
36 5/76 SPRINGSTON, CARL 782.71 3,913.55 70.00 17.00 695.71
DATE OF Regular Mo Year To Date
EMP#RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net
90 03/02 STOUT, IMOGENE W. 745.44 3,727.20 745.44
165 12/02 TATE, RALPH 3,561.26 17,806.30 300.00 100.00 3,161.26
65 3/66 TUNE, BILLIE SUE 132.61 663.05 132.61
27 3/71 TUNE, MILDRED MRS. 132.61 663.05 132.61
71 1/00 WARFORD,THOMAS 2,429.83 12,149.15 300.00 2,129.83
28 7/68 WATTS, DONALD 424.36 2,121.80 424.36
88 01/02 WOOD,RONNIE D 2,987.52 14,937.60 800.00 200.00 1,987.52
52 9/88 WRIGHT, RANDALL 1,642.08 8,210.40 200.00 25.00 1,417.08
90,572.16 442,825.55 9,537.94 2,157.82 78,876.40
DROP DATE DROP EMPLOYEES NEW BENEFITS
07/01/00 REAGAN,PETE 3,432.73
01/01/01 DOSS,MARION 5,220.30
03/01/03 MAHAN, MARSHALL 3,958.53
03/01/03 PIERCE, JOEY 3,540.95
03/01/03 SHACKLEFORD, GLEN 3,540.95
04/01/03 O'NEAL, TEDDY 4,000.96
05/01/04 FARRAR, DANNY 4,034.33
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 , 2005.
NOTARY PUBLIC
MY COMMISSION EXPIRES :
YTD
6810-9810-5335-00
6810-9810-5335-06
YTD Column
Difference 0.00
"I'E'VILLE"
FAY E ,i
THE CITY OF FAYETTEVILLE, ARKANSAS
KIT WILLIAMS,CITY ATTORNEY ,
DAVID WIRTAKER, ASST. CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCEA
LEGAL L DEP
ARTMENT
TO: Police Pension Board
Fire Pension Board
FROM: Kit Williams, City Attorney
DATE: April 21, 2005
RE: Legal representation for boards in the Declaratory Judgment suit
Pursuant to your request, I . contacted Jack Butt, Conrad Odom, and
Jim Rose and asked that they, submit a proposal for joint representation of
your two bodies. Enclosed is a copy of one of those letters, plus a follow-=up
letter after I learned that the legislature had passed an amendment to the TIF
law.
All three experienced and highly qualified attorneys kindly submitted
letters proposing how they would anticipate handling your representation. I
have attached these letters and urge your careful analysis of each:
Your boards can operate as a professional selection committee to
select your choice as the best attorney to represent you. I do not think you
could go wrong selecting any of these fine lawyers.
KIT WILLIAMS
FAYETTEVILLE CITY:ATTORNEY
DAVID J.:WHITAKER
Assistant City Attorney
Judy Housley
Office Manager
THE.CITY OF FAYETTEVILLE; ARKANSAS
Phone .(479) 575-8313 113 W. Mountain, Suite 302
FAX (479) 575-8315 Fayetteville,AR 72701-6083
April 14, 2005
Honorable Jack Butte
P.O- Drawer 1868
Fayetteville, AR 72702-1868
Dear Jack`
The legislature passed .the TIF statute amendment .with an' emergency
clause, and the Governor signed this new law on April `12 th
. (I think): The new
'
law-. appear s to remove the: library and--police and ,f re pension Tillages :from:
TIF districts. Thus, your potential representation of the-pension boards would
appear to Have been made strongerand easier.now. We do not.close the bonds .
until , next week and so thisnew Iaw may, be the controlling law. The
redevelopment distract and pro�ect :plan were enacted by ordinance p ionto the
..passage of the new law. Regardless, they-will 'probably` be controlled by this
new law as the protect plan, ordinance did not have an emergency clause and
.willhio't be effective until after the ,TZF Statute amendment became 'law. .(See
A.C.A. 14-55-203) Attached 1s a copy.of the nein TIF Iaw amendment.
I would recommend that any attorney representing the pension .boards
still make a short argument about the constitutional issue even though your
legislative argument.. is now much stronger that . the . County Assessor's
Certification of the Total Ad Valorem Rate and. Applicable Ad Valorem Rate.
should be adjusted to remove the pension boards' millage'from the district.
�...�'
KIT;WILLIAMS
Fayetteville City Attorney
KW/jh
Enclosure
KIT WILLIAMS
FAYETTEVILLE CITY ATTORNEY .
DAVID J: WHITAKER
Assistant City. Attorney. .
Judy Housley
Office Manager THE CITY OF FAYETTEVILLE, ARKANSAS-
Phone (479) 575-8313 113 W. Mountain; Suite 302
FAX (479) 575-8315 Fayetteville, AR 72701-6083
April 13, 2005
Honorable Jack Butt
R.O. Drawer 1688
Fayetteville; AR 72702-16.88
Dear Jack:
The Fire Pension Board and Police Pension Board. met jointly and asked
that I invite you and .two other: respected attorneys to submit a- proposal for
representation of the. two Boards jointly. n.'the Declaratory Judgment action I
filed for the City. Enclosed.is a copy: of.that Declaratory Judgmentcomplaint.
As you see both pension boards are:named parties::
All other'parties have. or will :voluntarily ,enter appearances (without
summons-being' is ued) and ,will probably be able.to. agree to stipulated facts.to
frame the legal issues. ,Most of those will be "indisputable" facts such as:
ballots that- approved;school millage, abary millage, and the-pension millage,
the Assessor's Certification of the. ad: :valorein' rates :and base value of the
district, City ordinances,, etc:
The funds will have two major arguments that'I am-`.
aware of to keep their millage from being affected by the TIF district:
(1) Constitutional issue:
Amendment 3:1 provided that the electors can pass a millage (up .
to 2) for the police; and fire pensions. Fayetteville citizens voted to assess one..
mill divided between the two pension boards. This. was rolled back to .4 mill
each as ,a result of the.Property Tax Rollback suite by Evans and Hirsch. .
Article 16 §11 states,that "no moneys arising: from a_ tax levied :for any.
-purpose shall be used for any . other purpose:" Amendment �8.:(authar zing
TIFs) tafes: "Anyprovision of the Constitution of the State ,of-Arkansas in
.conflict ,with .this section: . is repealed insofar as it is in .conflict with this:
amendm6fit. As: you know; general repealer Ianguage. is not favored .by the
Courts. It is arguable that such eneral 'repeal did not_re eal the language in
g P P _
Amendment..31 that the cities ,may annually `thereafter, levy a tax from
which .there shall ..be created a Fund to :pay.Retirement`.Salar. es to policemen
and firemen theretofore or thereaffter earned . .."
(2) Statutory issue
The ..statutory -definition of "Total ad valo"rem rate" given ;in the TIF -
statute is. ``tlie total millage;:.rate of all county, eity, school and other: local:
general property ;taxes .levied . :. ". A.C.A. §I4-168-301` (17). 'The library has
(asserted its. -millage ,is a special, not, general tax and hence would fall outside
the definition of taxes susceptible. to TIF financing. You`might make that same
argument or the Police and Fir ePension.Board millage:
If you are interesting in helping the pension boards by;representing-them
in. this :Declaratory 3udgmep. case, please submit a proposal of representation
that will be considered by .the pensiori`boards: As" well as any. others submitted:
Since he amount of'inillage.will lie very low; (the increase, in , :reillage value of.
:8 mill In .:a ` distr ct including less than 5%0 of: the city propertyvalue), the
boards -are interested in in how your time; iii representing hem in this
issue can be kept- to a nimmium. Please also send a standard type of resume
showing experience, qualif cations; etc
I hope. you will consider representing the::pension boards as I cannot;
because I must r resent the Ci 'in this Deelarato . Jud crit action. I will do
�P ' ry. gm
everything T can to expedite aid simplify this case.:.
With kindest regards;
KI WILLIAMS
Fayetteville LCity Attorney
;Enclosure
DAVIS,WRIGHT, CLARK, BUTT& CARITHERS, PLC
ATTORNEYS AT LAW
19 EAST MOUNTAIN ST.
P. O.BOX 1688
FAYETTEVILLE,ARKANSAS 72702-1688
SIDNEY P.DAVIS,JR
TILDEN P.WRIGHT III PHONE(479)521-7600 TAMERON C.BISHOP
- '.
CONSTANCE G.CLARK FAX(479) 521-7661 ERIC R GRIBBLE
WM.JACKSON BUI1'II 171tQ.//WWW-aavlsWnCASEYD.LAWSONgbflaw.cOm I.R CARROLL
KELLY CARI HERS
TISHA M.HARRISON
DOHA.TAYLOR
JOHN G.TRICE WRITER'S DIRECT E-MAIL MISSYLEFLAR
MARK W.DOSSEIT )butt@daviswrigbtlaw.com CHAD GOWENS
April 20, 2005
RE: Representation of Fire and Police Pension
Board v. City of Fayetteville (Washington
County Case No. CIV 05-559-2
Mr. Kit Williams
Fayetteville City Attorney
113 W. Mountain, Suite 302
Fayetteville, Arkansas 72701-6083
Dear Kit:
Thank you for offering an opportunity to bid on representing the Fire and .Police Pension Boards in
the above matter.
My firm and I would be pleased to independently represent those entities and aggressively determine
and address any issues arising out of this lawsuit that affect them, consistent with their best interests.
These circumstances relate to our bid: as you can easily understand, there are no "expert" lawyers
on TIF Districts in Arkansas, much less, Northwest Arkansas and we, as others, will be learning from
a standing start on this particular area of the law. While I think everyone is interested in gaining
clarification of the law, any firm that represents the Police and Fire Pension Boards will need to
zealously understand and represent their interests in litigation so they do not suffer any prejudice from
the outcome. Finally, while this case might give itself to a contingent fee, it is not of the type which
lends itself to that and our proposal thus contemplates an hourly fee.
Because of the other circumstances noted above, it is very difficult to project with any certainty the
amount of time it will take us to become familiar with all TIF related issues, including the statutory
and constitutional issues you note, to discuss the ramifications with our client, and to conceive and
present their position properly before the trial court and, inevitably, the appropriate appellate court.
Estimating the total dollar amount of the fee is thus practically impossible. If I must guess, it would
be in the range of$5,000 to $107000.
With that in mind, here is our proposal: I wouldbe the supervising partner for the litigation and
delegate as much of the work as I could to junior partners, associates, paralegals and research clerks
in order to keep the fees as low as possible while the work is still performed at the most competent
level: my rate is $175 per hour (this would apply also to senior partners Davis, Wright, Clark and
Carithers, though it is unlikely they would be involved); the rates of John Trice and Mark Dossett,
$150 per hour; the rates of associates Tameron Bishop, Eric Gribble and Casey Lawson $125 per
hour, and the rates of J. R. Carroll, Tisha Harrison and Chad Gowens $110 per hour.
We bill on an itemized, monthly basis with time kept in increments of one-tenth. There is no charge
for fax or copies less than 20; increments of copies greater than 20 are billed at 15¢ each and
overnight express at cost.
For a full firm resume I would refer you to our website, www.daviswrightlaw.com but I have printed
off for your convenience the homepage and resumes for the lawyers most likely to work on this
project. I am eager to be of service to the Pension Boards in this matter and look forward to your
response.
Sincerely,
DAVIS, WRIGHT, CLARK, BUTT
& CARITHERS, PLC
eamlacksonutt, II
WJB/jbw
Enclosures
cc: Partners
ODOM & ELLIOTT, P.A.
ATTORNEYS AT LAW -
MEMBERS OF THE FIRM MAILING ADDRESS (479)442-7575
BOBBY LEE ODOM P.O. DRAWER 1868 FAX(479).442-9008
DON R.ELLIOTT,JR. FAYETTEVILLE,AR 72702
RUSSELL B.WINBURN JEFFERY J. BOEN
ADMINISTRATOR
J.TIMOTHY SMITH STREET ADDRESS
CONRAD T. ODOM I E. MOUNTAIN
ALAN L. LANE FAYETTEVILLE,AR 72701
MATTHEW L. LINDSAY
April 20, 2005
Via Hand Delivery
Kit Williams
City of Fayetteville Attorney's Office
113 W. Mountain, Suite 302
Fayetteville, AR 72701
Re: Fire Pension Board and Police Pension Board Proposal
Dear Kit:
Thank you for your letter of April 13, 2005. Please let this letter serve as my
proposal to represent the Fire Pension Board and Police Pension Board jointly in
the Declaratory Judgment action the City filed on the TIF issue.
Our law firm is a civil litigation law firm with a large portion of our practice devoted
to labor law issues. We have the highest rating allowable as rated by Martindale
Hubbell. Listed in the Martindale Hubbell as one of our clients are Plumbers and
Steamfitters Local 29 of the United Association of journeymen and Apprentices of
the Plumbing and Pipefitting Industry of the United States and Canada, AFL-CIO.
In addition to the experience that we have in labor law issues, it is my familiarity
with the issue at hand. As you are aware, I previously served on the City Council
from 1992-1994. After that I served for 6 years on the Planning Commission and
most recently completed the unexpired term of Bob Davis representing Ward 3.
During my time on the City Council I became very familiar with TIF district issues.
This is a complex issue which requires understanding not only of the issues involved
in the TIF district but the needs of the Fire Pension Board and Police Pension
Board. My hourly rate is $150.00 per hour with a minimum 1/6`x' hour calculation.
® 12
5=
Kit Williams
April 20, 2005
Page Two
I would be happy to present to the Boards any additional information that they
deem necessary and interview if their desire.
Thank you for your time and attention to this matter.
Sincerely,
Conrad T. Odom
CTO/amr