A resolution authorizing the Department of Law to compromise and settle all issues and possible claims that the Metropolitan Government may have against UBS PaineWebber Inc. and W. Keith Phillips as the employee of UBS PaineWebber Inc. through the payment by UBS PaineWebber Inc. of ten million dollars ($10,000,000.00) to the Metropolitan Government Trust Funds and three hundred thousand dollars ($300,000.00) to the Judgments and Losses Fund of the Department of Law.

Whereas, UBS PaineWebber Inc. (hereinafter referred to as "PaineWebber") served as investment consultant to the Metropolitan Government by and through the Investment Committee of the Metropolitan Employee Benefit Board (hereinafter referred to as "Investment Committee") in connection with the investment of the funds of the Metropolitan Government Trust Funds (hereinafter referred to as "Trust Fund") from 1990 through the middle of the year 2000; and

Whereas, W. Keith Phillips (hereinafter referred to as "Phillips") was the employee of PaineWebber who managed the account of the Metropolitan Government for PaineWebber throughout this period; and

Whereas, certain issues and concerns regarding PaineWebber's and Phillips' service and compensation as an investment consultant arose as the result of a performance audit of the Metropolitan Employee Benefit Board by the Internal Audit Section of the Metropolitan Government; and

Whereas, the Metropolitan Government has reviewed and considered all the relevant issues, concerns and potential claims arising out of, in connection with or relating to the consulting agreements and relationship between Metropolitan Government, PaineWebber, and Phillips' or PaineWebber's service as an investment consultant to Metropolitan Government by and through the Investment Committee, have considered the delay, expense and uncertainty of litigation and have determined that the resolution set forth in the Settlement Agreement and Release, attached as Exhibit A hereto, is reasonable and in the best interests of the Metropolitan Government.

Now therefore, be it resolved by the Council of The Metropolitan Government of Nashville and Davidson County:

Section 1: That the Metropolitan Department of Law is authorized to compromise and settle any and all claims that the Metropolitan Government may have on behalf of itself, its Investment Committee, its Employee Benefit Board, and its Trust Fund against W. Keith Phillips and/or PaineWebber by PaineWebber's payments in the amount of ten million dollars ($10,000,000.00), payable to the Metropolitan Government Trust Fund, and, additionally, by PaineWebber's payment in the amount of three hundred thousand dollars ($300,000.00), to the Judgment and Losses Fund of the Department of Law.

Section 2: This resolution shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored By: Jim Shulman, Tony Derryberry

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee
Introduced:	April 2, 2002
Adopted:	April 2, 2002
Approved:	April 3, 2002
By: