6-26-08CITE' ®F A'I'LAl®t'I'IC BEACH
B®AI2II ®I+' TRUSTEES ®F TIIE ATLAI~ITIC BEAC~I PEl®TSI®1®T FITl~1DS
B®AItD 1VIEETII~IG 1VII1®1LTTES
FOR
June 26, 200
6:OOP.IVI.
1. Call to ®rder both boards. This meeting was held for both boards simultaneously. Those
merr~bers in attendance were Til-n To ~vnser~d, Malcolm Clemons, Harry T/IcNaily, Bob Sterrfeld and
Alan Gleit for the General Retirement System and Harry McNally, John Wolfe, Vic Gualillo, Dale
Hatfield and Bob Sternfeld for the Police Retirement System.
2. Interviews for investment consultants were conducted by allowing each firm to make a
presentation and then giving time for questions. The firms were interviewed in the following
order:
1. B®gdahn C®nsulting, LLC Firm was introduced by Dan Johnson, former Merrill Lynch
consultant that was presenting results to the board and now works for Bogdahn Group.
Joe Bogdalln gave profile of the Group explaining independence, fixed fees and staffmg.
He informed the board of the size, experience and quality of his staff and mentioned
value added services such as their own CPA's and Attorney and most work for municipal
plans. Also present was Troy Brown, the same ex-Merrill Lynch consultant that was
performing these services for the board up until he also moved to The Bogdahn Group.
Comments: Need to look at present allocation to foreign investments. There are foreign
investments in other funds than the Euro-Pacific.
Price is 15,500 for each plan. Fees quoted on Page 18 of presentation materials
2. Asset Strategy C®nsultants, Firm introduced by Fran M. Coopersmith, the senior
consultant and assisted by Andrea C. Stewart also a consultant. The firm expressed their
extensive experience, industry knowledge and a focus on retirement plans, endowments
and foundations. They indicate that they are very accessible to clients and have a good
client to consultant ratio. They expressed the ability to give custom solutions and that
they are pro-active with on-going communication and client support.
Comillent, Royce is a small Cap fund, not mid cap as described in our current analysis.
Derivatives are present in PIlVIC® total return fund.
Price for both plans including travel is X35,000.
3. T~ngstlle Asset C®nsulltflng, -The fine is represented by John McCarul from Boynton
Beach ®ffice and Brendon Vavrica from the Jacksonville ®ffice. The explained their
independence and no relationship with any other companies. The expressed very low
turnover and that the small size of the fine provides focus and detail to provide the best
service possible. The give special un-asked for services by providing asset allocation
advice. They use Mobius/Ti~fonna far asset performance evaluations as do most fines. ~ I
Comment: Fee recapture from mutual funds
Will help us search for a custodian
Can recommend custodian with independence
Very available, with local presence
Price is $12 000 for each plan or $24,000 total.
4. LTSS Instituti®nal C®nsulting, -The firm was represented by Michael T. O' Shields and
Thomas R. Burdette IV. Mr O'Shields was the spokesperson and expressed how pleased
he was to offer his firms services to Atlantic Beach because he and Mr. Burdette are
Atlantic Beach residents and look forward to helping us out. He described the magnitude
of UBS's presence in this area of expertise and offers the iilvestinent consulting services
from a position of strength in the marketplace due to the size of the firm. He describes
the services of Investment planning and assistance, On-going performance measurement,
Asset allocation analysis and assistance with management searches. UBS offers all of the
services of a huge firm to Atlantic Beach as a way of giving back to the community
Price far UBS's service is $10 000 for both plans.
Comment: This firm was the most like Merrill Lynch and they were happy with them. They also
agreed that the size of UBS would be an advantage in keeping fees down.
3. Discussion began with the Chairman of the General Plan Tim Townsend explaining that the
"Short List" was recommended to him by Bob Sugannan's office. The discussion amongst the
board members boiled down to all members agreeing on UBS as the firm they would like to
have. Comments relating to the power they have over keeping fees down due to their size, local
presence, and general knowledge were the reasons. All members shared a feeling that they were
happy with Merrill Lynch and that this firm was the most like Merrill Lynch.
4. General Plan motion made by Tim Townsend and seconded by Harry McNally. The vote was
unanimous to select UBS for the General Employee Retirement System.
5. The Police Plan motion was made by John Wolfe and seconded by Dale Hatfield, The vote was
unanimous to approve UBS for the Police Retirement System
6. Adjournment -General Harry McNally
7. Adjournment -Police Dale Hatfield
~~ ~~,,..r--°_
~ 1 `i i '%`
Tune ownsend~ Bo Stenifeld
Board Chairperson -General Employee Board Secretary _
ale Hatfield Bob Sternfeld
Board Chairperso -Police Employee Board Secretary