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R91-038RESOLUTION NO. R91-~ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, AUTHORIZING THE CHAIRMAN OF THE PENSION BOARD TO ENTER INTO AN AGREEMENT FOR PROFESSIONAL ACTUARIAL SERVICES BETWEEN GABRIEL, ROEDER, SMITH & COMPANY AND THIS CITY. WHEREAS, the Pension Board requires actuarial ~ervices; and WHEREAS, Gabriel, Roeder, Smith & Company has responded ~o a request for a proposal which fulfills the needs of the Board, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION DF THE CITY OF BOYNTON BEACH, FLORIDA THAT: Section 1. The Agreement for professional actuarial ~ervices attached hereto and incorporated by reference is hereby approved. Section 2. The Chairman of the Pension Board is hereby authorized to sign said Agreement on behalf of this Zity. PASSED AND ADOPTED this ~__ dayo~_ 1991. CI~BOYNTON B~E. ACH, FLORIDA ~omissioner ATTEST: Ci~ Clerk (corp0rat Ssa ) Commissigner Actuaries & Consultants 200 Globe Building,* 407 East Fo~t *Detroit, Michigan 48226 · 313-961-3346 February 19, 1991 FX Mr. Grady W. Swann Director of Finance 100 East Boynton Beach Boulevard Boynton Beach, Florida 33425-0310 Re: Proposal for Actuarial Service - Employees Pension Plan Dear Mr. Swarm: Enclosed is an updated page 13 for our Proposal dated November 28, 1988. The fee has been adjusted for the change in the Consumer Price Index between October 1988 and October 1990 (10 percent). All other provisions o~ the Proposal remain as originally submitted. Si nc~rely, RoLnald J. ~. Smith RJWS:jmg Enclosure COHTRACT COST (updated 2/19/91 ) and other re- irt- Sen4ce Hourly Rate Actuaries and Consultants $75-170 Technical Staff 30-65 CledcaJ Staff 15-25 Overhead (added to above rates) 10 Computer time 265 Other expense charges none Our quoted fees and rates include all expenses. We do not bill additionally for letters, phone calls, travel time, travel expenses, etc. Gabriel, Roeder, Smflh & Company City of Boynton BeaCh Employees, Pension Plan Proposal for Actuarial Services November 28, 1988 Gabriel, Roeder, Smith & Company 407 East Fort Street Detroit. Iv~an 48226 (800] 521-0498 November 28, 1988 City of Boynton Beach Purchasing Department 211 South Federal Highway Boynton Beach, Florida 33425-0310 We would be most pleased to provide actuarial and professional consulting services to the BOynton Beach Employees Pension Plan. Gabriel, Roeder, Smith & Company has orovided actuarial;and related consulting ser- vices to public and [ We are now retained ac- tuaries for more than 300 ret states.. Approximately 3/4 of our clients are public employee retirement systems, including 17 located in the State of Florida. Gabriel, Roeder, Smith & Company devotes substantial effort to providing reports and services in clear, concise wording using a minimum of technical terminology. The far- ranging locations of our clients and the long. associations we have enjoyed withthem at- test to our success ~n communicating technical information and the quality of our services. We have been associated with more than half our clients for more than 10 years and in excess of 20 clients for more than 35 years. We would be pleased to meet with you to review our proposal. Presentations will be made by Ronald J. W. Smith, 200 Globe Building, 407 East Fort Street, Detroit, Michigan 48226 (1-800-521-0498), who will also serve as the primary contact. Respectfully' submitted, Ronald J. W. Smith Boynton Beach Employees Pension Plan Table of Contents Page General Description of Firm ............................. 3 Supervising Actuaries ...................................... 5 Computer Equipment and Report Format ....... 7 Availability and Location of Staff ...................... 7 Proposal Pricing .............................................. 8 Governmental Clients ...................................... 8 References .................................................... 10 Understanding of Services Requested .......... 11 Contract Cost ................................................ 13 Exhibit A- Client Listing ................................. 14 Exhibit B - SamplerNewsletters ...................... 19 Gabriel, Roeder, Smith & Company 200 Globe Building Detroit, Michigan 48226 1-(800)-521-04~8 GENERAL DESCRIPTION OF FIRM Gabriel, Roeder, Smith & Company is a Michigan corporation wholly owned and operated by it's professional staff. The com- pany was incorporated in 1962 from a partnership and a sole proprietorship dating from 1938; We are independent of insurance companies, banks, trust companies, .legal and accounting firms. All income is generated on a feefor service basis. Our client base is national in scope and the firm's growth tends to be steady and consistent. We add. retainer clients Slowly and lose them rarely. We are registered to dO business in the State of Florida. Gabriel, Roeder Smith & Company has 50 emp oyees including 14 actuaries and consultants as well as personnel specializing in computer technology and communication. The company operates out (~f it's main offi(~ in Detroit; Michigan and maintains branch of- rices in New York, San Diego anti Ann Arbor, Michigan. Our primary business is ProVidingactuarial and consulting services to public employee retirement ~ystems. Members o~ our firm play an active roe n the deve opment of standards for public emp oyee ret rement pans For example= GRS members serve as authors and editors for severa publications of the Government Finance-Officers Association (.G. FOA). In addition, GRS members currently serve on the Coordinating Council on Public Retirement, the PenSion and Retirement Accounting Task Force of the Governmental Accounting Standards Board, the GFOA Committee ~n Public Employe~ Retirement Administration and the GFOA certifi~ate of Cor~fo~:mance Review Committee. From our substantial experience in the public employee retirement Gabriel, Roeder, Smith & Company 3 system field, position on the role of the actuary. Gabriel, Roeder, Smith & Company views the Trustees as policy makers and the actuary as technical advisor. The ac- tuary prepares and furnishes information, provides advice based on experience and knowledge, and the Trustees utilize the material as they see f'~. We believe the Trustees and the actuary should work as a team and that face to face meetings with the Trustees and staff are im- portant. A representative relationship pattern with new clients fol- lows: Initial Meeting with Trustees and Staff. To establish goals and priorities; discuss the principles of assumptions and actuarial methods; determine data availability; and be- come acquainted. Exp. erience Analysis. Actuary reviews available ex- penance data and develops reasonable assumption alter- natives. ° Assumption Package.* Assumption alternatives are dis- cussed with Trustees and a valuation package is developed and adopted. o Actuarial Valuation. Actuary completes actuarial valua- tion and furnishes written report (preliminary discussion may be desirable prior to furnishing the written report). o Meeting. Actuary meets with plan governing body to dis- cuss the.valuation report and other topics of interest. We recognize that each client has their own particular style and priorities and our relationship patterns reflect this diversity. An explic~ approach to the salectJon of actuarfaJ aasump,Jons requires that each assumption reflect the best estimate of future experience solely with respect to that assumption. An implicit approach, on the other hand, means that two or more assump§ons do not individually represent the best es- timate of future experience with respect to those assumptions. Pather, the aggregate effect of their COmbined use is presumed to be approximately the same as that of an explicit approach. We believe ff~e exolicit approach results in more useful infom3afion regarding (3) components of the benefit package, (ii) changes in the benefit package, and (~ii) the choice of ~ignificant assure tlon usadtodeterminethebeneftpackane ThePe.:.=~_~. ._ . p' s ~ , .~ r~an ~ecommendat~ons and Interpretations of the American Academy of Actuaries encourages the use of ex~licit assumptions, Gabriel, Roeder, Smith & Company SUPERVISING ACTUARIES ~The supervising actuary, who would be.assigned to the Boynton Beach Employees Pension Plan is: Ronald J. W.~Smith, EA, FSA Additional specific personnel who would be assigned to the ac- count are: Denise'M, Jones QUalifications of Mr. Smith and .Ms. Jones are detailed below. Other-technical and clerical ,staff will prOVide services from time to time during the course of our engagement (actuarial assistants, computer programmers, etc.). RONALD J. W. SMITH would be project manager. Mr. Smith would coordinate all activities, serve as principal actuary and con- sultant, and be responsible for presentations. Mr. Smith has served asan actuary with our firm since 1959. He has a Bachelor of Commerce Degree. He is a member of the American Academy of Actuaries, a Fellow of the Society of Ac- tuaries, a Fellow of the Conference of Actuaries in Public Practice, and an Enrolled Actuary. Mr. Smith has served as supervising ac- tuary to public employee retirement systems in Flodda, New Mexico, Arizona and Michigan for more than 25 years, and in Kan- sas for more than 10 years. He has extensive experience in making presentations before legisla- tive bodies, boards of trustees, employee groups and associations of public employee retirement plans. Mr. Smith appears before more than 20 boards each year. He has also made more than 10 appearances before the:New Mexico Legislative Finance Commit- tee in the last 5 years, more than 10 appearances before the Michigan House Retirement Committee in the last 15 years and presents the annual valuation report to the Wichita City Council. Gabriel, Roeder, Smith & Company 5 DENISE M. JONES has served as an actuary with our firm since 1978. She has a Bachelor of Arts degree in mathematics and has dOne PO.s.t~graduate work in actuarial re ated topics. She serves as aconsulting actuary for public employee refirer:nent systems in several sta~s. Ms. Jone~ is a regular speaker on the local police/fire systems pan.el at meetings of the Michigan Associat on of Public F_r~Ployee Retirement SyStems. We certify that Ronald J. W. Smith meets the requirements of the State of Florida for performance of actuarial services to public employee retirement systems. In addition, at least 5 other ac- tuaries at GRS meet these requirements. Gabriel, Roeder, Smith & Company is registered with the Florida Department of State (Document Number P18229). Documentation provided upon request. Gabriel, Roeder, Smith & Company 6 COMPUTER EQUIPMENT AND REPORT~ FORMAT ~nt (800/1600 bpi; user terminals. twenty-five Our actuarial and data processing staff have broad experience in programming the com~Uter in fl-i~ ~Chnicat areas your woi'k re- quires. Our ~0ftware is continuaily Updated. Micro-computer usage by retirement a~ministrators is increasing rapidly and we Provide t~bhnical consdltation and develop software to assist them. We have 1.2 micro-computers (IBM compatible, DOS systems) in our main office in vanous networked and stand- alone configurations includ ng capabi ity for te ecommun cat on datalinks. Our micro-computer software library is comprehensive and we maintain the most current versions available of software. Custom software developed by our office includes benefit calculation, cash flow and exclusion ratio programs. AVAILABILITY AND LOCATION OF STAFF The staff and facilities which would be assignedto the Boynton Beach Employees Pension Plan are located in Detroit, Michigan. We believe our centralized staffPermits us to offer the highest level of prompt informed service and personnel backup. Eleven of our professional staff have in:depth experience with public employee retirement plans. An actuary is available for telephone consultation during all office hours, Meeting attendance by the supervising ac- tuary is available with 24 hours notice, in the absence of schedule conflicts. Attendance by another experienced actuary can be ar- ranged when schedule conflicts exist. The services requested can be provided by our existing staff within the specified time frames. Gabriel, Roeder, Smith & Company 7 PROPOSAL PRICING We perform pricing analysis of several hundred proposed benefit cha~ges each ye~, incl~d ng 30 to 40 per year for ~ublic emPloybec eh-ts in the Stat~ of Florida. Tl~e relate~ actuarial cost estimate and actuarial impact statement required by Part VII, Chap- ter 112 Florida Statutes s pa~'t of our service, we routinely prov de th s information in less thar~ 3 Weeks. GOVERNMENTAL CLIENTS A listing of many of our public employee retirement system clients is attached as Exhibit A. The listing indicates the number of years we have been retained by each client. The client size varies from more than 300,000 active and retired participants with more than $15 billion of assets to less than 10 participants. We are retained by more than 15 pub c employee retirement systems having at leascO25,000 participants and $1 billion in assets. The schec~ule on page 9 indicates the people and asset size for a sample of 10 public employee clients. References for a sampling of our public employee retirement sys- terns appears on the following page. States Where Gi~S Provided Actuarial and Consulting Services During 1988 Gabriel, Roeder, Smith & Company GOVERNMENTAL CLIENTS Exhibit,A contains plan A~ets ,No. of Yrs. Retirement System .- (mi li~ns1 ~ ~ Servi~e~ ~rizo~a Public~afety ~plo~ ~re~m ~m ' g,~ 2~ 11 AV, ES, BV. O ~ ~ ~li~ ~d Rrefigh~ ~nsion ~ 217 ~ ~ + 11 AV, BV, O ~ ~e~ ~plo~ ~r~ment ~d ~t ~an 7~ 1~ ~ + ~ AV. BV Mi~igan Mu~cip~ Employes ~em~t S~tem" ~.~ 9.~ $1,~+ 42 AY, ES. BV, 0 ~do ~ner~, ~li~ and Rrefightars ~ns 2,197 614 $1~+ 5 AY, BV P~m ~ ~fimment S~em ~ 1~ ~1 + 41 AY, BV. O ~nix ~plo~es ~mment ~em 6,819 1.913 ~+ 45 AY, BV. O We~ Palm ~ach ~neral ~plo~es ~tirement S~tem ~ ~2 ~ + 42 AV, BV, O We~ PaJm ~ach ~li~ Pennon Fund 1~ 1~ ~+ ~ AV, BV. ~reme~ ~em ~ ~ $107 + 10 AV, BV. ES AV - annual valuation ES = experience studies BV = benefit change valuations O = other services such ss employee communications, plan design, accounting compliance, etc. These are mult -employer plans requiring ind v d~al actuar al valuations of each mun~c~pa t7 s par. ticipation. Gabriel, Roeder, Smith & Company REFERENCES We will provide name, address,and telephone number of a reference fo[ any client you select, The following are offered for your immediate use. Audrey Navin, Administrator Boca Raton Police and Firefighters Pension Pan City Hall (P.O, BOX D-600) Boca Raton, Florida 33432 (407-393-7714) Rita d. Goodwin, Director of Retirement and Insurance W'~-~ita POliCe and Fire Retirement Plan 455 North Main Street City Hall - 2nd Floor Wichita; Kansas 67202 (316-268~4549) Allan: Robertshaw, Chairman West Palm Beach Police Pension Fund City Hall West Palm' Beach, Florida 3,3402 Gabriel, Roeder, Smith & Company 10 UNDERSTANDING OF SERVICES REQUESTED BY CONTRACTOR ¸WE uire- ments as are applicable to the Pension Plan.. Weare familiar with these requirements from ~3ur work with Florida clients and public penSions fUnds in other states. bet 31 year as of Decem- ." delivered to the {5) weeks after the Pen- data for the valuation. b) Valuation reports will include a recommendat on as to the "req?red~ ,c~3ntribution~irAtes and such supplemental calculations as are requi?d f~:comp ance with ap- plicable statutes, reguiations and Governmental Account- ing StandardsS~at.e.~nent 5 (0~ successor accounting and financial reporting standards.) clude disp glossary of terms and ~it a reasonable under- cost methods and by persons This shall in- summary of the plan, cost methods, active of ~etired-lives by age groups, and 2. Preparation of Actuarial Impact Statements upon request. State- ments will be delivered within three weeks (15 working days) of re- quest and receipt of any additional: information required but not pre- viously submitted. This time frame can be and has been significant- ly shortened tc meet a special requirement of a client. 3. Keep the Pension Plan advised on developments in State and Gabde~ Roede~ Smi~& Company 11 Federal legislation and/or r'egul'ati~ns regarding financing, benefits, vesting, fiduciary responsibility, disclosure, or other compliance re- quirements. 4. Exp!ain and document deficiencies in theroperation of the Pen- sion 5. Pr~ovide actuarial consultati.o~, and advisory services on any ~eChniCal~ POi ~cy, egal or administrative ~probl~ms ar s ng during the course of operations - by meetings and routine telephone calls and written correspondence. e of the Pension Plan and to give effect to ; retirement in- dustry. Keep the Trustees appr seal of current trends and progress within the actuarial profession. 7. Give consultation and advisory services in the policy and ad- ministrative problems of implementing benefit changes. Develop and provide various tables and factors needed by the Pension Plan. These include, but are not limited to, mortality tables, present value factors and survivor factors. 8. Coordinate activities and reports, when applicable, with money managers, monitoring services, lega counsel and the Trustees. 9. Appear at selected meetings and hearings (up to 3 per year covered by base fee) for discussion of actuarial standards and/or the principles used in the determination of the funding requirement and in pricing of legislation, and such other pension plan matters as arise fro~ time t~ time. Gabrie/, Roeder, Smith & Company 12 CONTRACT COST (updated 2/19/91) ~ems re- :1 Consultants )'taft / t Overhead (added o above rotes) 1D ~bmputer time 265 //Other expense charges none / / Joted fees and rates include all expenses. We do not bill / for letters, phone calls, travel time, travel expenses, / ' Gabdel, Roeder, Smith & Company 13 GABRIEL, ROEDER, SMITH & COMPANY Actuaries & Consultants 200 Globe 8uildin8 · 407 East Fort · Detroit. Michigan 48226 · 313-961-3346 February 22, 1991 FX Mr. Grady W. Swann Director of Finance 100 East Boynton Beach Boulevard Boynton Beach, Florida 33425-0310 Re: Proposal for Actuarial Service - Employees Pension Plan Dear Mr. Swann: Enclosed is an updated page 13 for our Proposal dated November 28, 1988, revised to include the items mentioned in our conversation yesterday. The fee has been adjusted for the change in the Consumer Price Index between October 1988 and October 1990 (10 percent). All other provisions of the Proposal remain as originally submitted. Enclosed is a copy of a letter to another client regarding IRC Sec. 414(h) pickup and formal qualification under IRS Sec. 401(a). The only change might be an increase in IRS filing fees by the time Boynton Beach files. Sincerely, Ronald J. ~. Smith RJWS:jmg Enclosure CONTRACT COST (updated 2/22/91) Our proposed fixed fee for the first contract year covering items 1, 3, 4, 5, 6, 7, 8, and 9 under Scope of Services is $6,600. The amount for future contract years would reflect the percentage change in the Con- sumer Price Index and any change in the Scope of Services approved by the Board of Trustees. Our fee for Actuarial Impact Statements (item 2) and other requ..ested services would be based on the time and expenses incurred, with the exception Of meetings in accordance with the follOwing hourly rates. We are prepared to quote a firm fee for each specific task. Service Hourly Rate Actuaries and Consultants $75-170 Technical Staff 30-65 Clerical Staff 15-25 Overhead (added to above rates) 10 Computer time 265 Other expense charges none Our fee for benefit computations is $85 each if the "safe harbor'' exclusion ratio is used; otherwise $110 each. Individual benefit computations would add $600 to the annual fee. Our quoted fees and rates include all expenses. We do not bill additionally for letters, phone calls, travel time, travel expenses, etc. Gabriel, Roeder, Smith & Company 13 EXHIBIT A Client Listing Gabriel, Roeder, Smith & Company 14 Public Employee Retirement Plans Employing Actuarial Services Rendered by Gabriel, Roed'er Smith & Company ARIZONA ARKANSAS COLORADO FLORIDA ArLzona Elected Officials Retirement Plan Arizona Judges Retirement System Arizona Public Safety Personnel Retirement System Phoenix: Covers general city employees Tucson: Covers general city employees Local Police & Fire Retirement System Public Employees Retirement Systems covers: (a) State employees (b) Local government employees State Police Retirement System State Teachers Retirement System Public Employees Retirement Association covers: (a) State employees; state police (b) Public school employees except Denver (c) Local government employees (d) Judges Colorado Springs: Two separate systems: fire and police Atlantic Beech: Covers policemen, fire & general employees Boca Raton: Covers police & fire Gabriel, Roeder, Smith & Company 15 INDIANA KANSAS MICHIGAN Fort Pierce: Covers police, tim&general employses Hialeah: Covers police, fire & general employees Jacksonville Beach: Covers police, fire & general employees Naples: Covers general employees Orlando: Four separate, Independent systems: police, fire, general employees and aviation employees Palatka: Covers police, fire & general employees Palm Beach: Covers police, fire & general employees Saint Augustine: Covers fire & general employees Starke: Covers police, fire & general employees West Palm Beech: Three separate, independent systems: police, fire and general employees State Teachers Retirement System covers all teachers in the State Wichita: Two separate retirement systems: police & fire, and general employees State Employees Retirement System covers all state employees except police Public School Employees Retirement System covers all teachers and school employees in the State Municipal Employees Retirement System: 350 + local governmental units participate in the System on a voluntary basis. Covers general employees and in some cases police and firs. Separate accounting is maintained and an annual actuarial valuation made, for each unit. An additional 110 retirement systems for local govemmental units, of which the following are representative: Ann Arbor: Covers all city employees Cadillac: Covers police and fire C~inton Township: Covers police & fire Detroit: Two separate retirement systems: police & fire, and general employees Gabriel, Roeder, Smith & Company 16 MINNESOTA MISSOURI NEBRASKA NEW MEXICO Rlnt: Covers all city employees Grand Rapids: Two separate retirement systems: general employees and police&fire . ' Lansing: Two.separateretirement systems; general employees and p~ice & fire Muskegon;: ?w0. separate retirement system~ general employees and Port HurOn: Covers all; police & fire Warren: & fire Wayne County: Covers all county employees ployees and police Minnesota Police Pension Council: 26 individual city plans Minnesota Fire Pension Council: 20 individual city plans Minnesota Public Employees Retirement Association Missoud Local Government Employees Retirement System: 300 + local governmental units participate in the system on a voluntary basis. Separate accounting is maintained and an annual actuarial valuation made for each individual unit. Columbia Poqcemen's and Firemen's Pension Fund Missoud State Employees Retirement System Lincoln Policemen and Firemen Retirement Plan Public Employees Retirement Association covers in separate divisions: (a) State employees (b) State police (c) Legislature Gabriel, Roeder, Smith & Company 17 OHIO OKLAHOMA SOUTH DAKOTA VIRGIN IA WISCONSIN (d) Municipal general employees (e) Municipal p<~lce (f) Municipal fire New Mexico Judges Retirement System Ohio Public Employees Retirement System covers: (a) State employees (b)_Local government employees State Highway Patro~ Retirement System Ohio Schoo~ Employees Retirement System Oklahoma City Retirement System Sioux Falls: Two separate retirement systems: police & general employees and fire Aberdeen Firemen Retirement System Huron Firemen Retirement System Lead Firemen Retirement Syste Mitchell Firemen Retirement System Watertown Firemen Retirement System Fairfex County Educational Retirement System covers all school employees City of Fairfax Retirement Plans Wisconsin Retirement System covers: (a) State employees (b) Local government employees (c) Teachers (d) Elected officials Gabriel, Rqeder, Smith & Company 18 CITY OF BOYNTON BEACH EMPLOYEE'S PENSION PLAN BOARD OF TRUSTEES Post Office Box 310 Boynton Beach, Florida 33425-0310 Request for Proposal for ~ Investment Advisory Services A. SUBMITTAL: 1. Board. SELECTION STEPS AND-CALENDAR~ December 10, 1990, is the closing date for receiving proposals. Section C~provides guidelines for submission and required information to be included in the proposal. The Selection Committee of. the Board of Trustees will evaluate proposals and rank the firms accordingly, utilizing criteria as noted in Section C. The Board of Trustees will interview,selected proposers at a time and place co be announced. GUIDELINES FOR SUBMISSIONS/REQUIRED INFORMATION 1. Structure/Organization Experience: Summarize organizational structure and describe location of main and subsidiary offices. Describe any affiliation with banks, insurance companies or brokers. Describe experience and qualifications of managers who would handle this account. Is the manager available to attend quarterly meetings upon request? Does your organization or a separate division of your organization devote all of its time at investment management? Describe availability of staff for Board consultation. How long has your organization managed corporate retirement and municipal plan assets? What is the apprcXimate current level of assets under management? What percentage of total managed assets do employee benefit assets represent? How many funds do you manage? How many municipalities? How many public funds in Florida? Do you maintain a "recommended list"? How extensive Is it(number of issues)? What are the basic criteria for a stock being added to the list? Deleted? Who controls the addition or deletion of securities from the list? Is a recommended, percentagedistribution of particular stocks or industries given to the portfolio manager? May ~he manager deviate from the list or a rec°mmend~d~rcenta~e distribution? How would yo~ bmiefly characterize your style of Management of retirement and/or municipal fund asseEs? Research and Client Contact. Describe briefly research facilities available and how used. In-house capabilities and availability of information; outside support. Type and frequency of reports (furnish sample copy). Clearly understandable statements and accountings considered essential. Investment Performance. What average annual rate of re~urn can we reasonably expect over the next 3 to 5 years (assuming you have sole investment discretion)? Supply accurate representative performance figures by year over last ten year period concerning: (1) Similar discretionary pension fund accounts. (2) other discretionary pension fund accounts~ Fixed Income Assets: Explain briefly your recommendations for handling the fixed income portfolio. What are the main contributing factors to turnover in one of your bond portfolios? o Please give an indication of your outlook for the bond market for the next quarter. Next twelve months? What is a realistic rate of return on a marke~ basis to expect from a bond fund over the next three to five years? Account ManegementProcess a. E~p!ain b~ief~ the'manner of handling this acc~unt;~ that is;i'one inve~m~n~ c~rge,~Dail¥ r~u.£e~an~ ~ontinuous D~sc~ib~ b~&~t~ i~n~eStment selection and deciaion m~[h~' proc,ess, committee action? ca~-qualifi~:in~estme~t advisor act without bo Describe procedures for measuring investment performance· Are zndividual~nvestment advisors evaluated by you on their investment~performance? Describe limitations imposed by you on total asse~ volume per, account manager; also maximum number of accounts handled per manager. Do you have established operatfonal policies with continuing internal supervision so as to prevent excess workloads on individual accounu managers? References Please provide five references of similar type accounts: fund name, location, contac~ person and phone; and add a client list. Fees Please explain your fee structure and show fees for a fund of our szze, annual contribution rate, etc. (Show dollar amount as well as formula.) Investment Advisor Guidelines For Contract a. Maximum exposure to one company (equities/bonds) 2.5% of total fund principal. b. No investments directly or indirectly ~n non- registered securities, contracts, etc. c. No investments whi~ch cannot be readily traded. Invest to achieve a target annualized return as determined by Board of Trustees (all assets/time weighted) over the next several years. EVALUATION OF PROPOSALS Proposals will be evaluated using the criteria as noted in Section C. In some circumstances proposals may be so similar in quality that oral interviews may have to be arranged to assist in making the final selection. Further evaluation considerations will include the following: Responsiveness of the proposal in clearly stating the understanding of work to be performed. Please include Cost. Although a significant factor, cost not be the dominant factor. Cost is particularly important when all the ~ther evaluation criteria are relatively equal. ten copies to: City of Boynton Beach Employees' Pension Plan Sue Kruse, Secretary P.O. Box 310 Boynton Beach, FL 33425-0310 For your information & Guidance: Fund size: Approx. $17 million dollars Annual contributions: $1.6 million dollars may If you should have any questions, please call Diane Reese, Assistant Finance Director, at (407) 738-7409.