I am not sure what you meant by “local” server. Is that server not accessible by anyone but you? Also “full text indexed” is referring to a database, not a Domino server. Make sure you “create index” the database in the Database–Properties, next to last tab, then retry your agent again.
Having said all that I am not sure you can design such an agent (sending mail mail automatically) uisng simple actions. What you will need is an agent that executes once a day (specified time of day), checking if today is the 1rst of the month, or something like that, just don’t use the end of the month since there will be month with 31 days, 30 days and February with 28 or 29 days. . If it is (the 1rst) then send the mail. All that would require non trivial code using LotusScript or complex @Command Language.
Good luck !