1977-13
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RECElVED MAY
H. RUSSELL FOGLER
1032 N.W. 94th Street
Gainesville, Florida 32601
April 22, 1977
Mr. Thomas A. Sanche~
City of Clermont
#1 West Gate Plaza
Clermont, Florida 32711
Dear Tom:
This letter is in response to your request of April 13th for
an outline of my proposed schedule and fees.
Enclosed is a copy of the original proposal as of October 1974.
The only change in this is that rather than making an annual written
presentation, I would prefer to make the written presentation every
secon~ year when I come down. Correspondingly, I am only asking to
be paid once every two years. Because .of-the cost of typing and
telephone calls I would appreciate an"increase of the fee from $150
to $175, plus the usual mileage expense. This $175 would only be
paid every second year with no annual charge. I believe that such
bi-annual review is now appropriate since the guidelines and rapport
with your trustee have been set.
Thank you and please call me if you have any questions (376-0535).
eY*-
7=e;:~:-
HRF /kj
Enclosure
2 1977
. versus the pOlfcy guideiines. The policy guiaelines
set ranges of policy. However, in a specific year,
the Council might want the trustee to act in a certain
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October 9, 1974
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Mr. Robert Hopkins
City Manager
I West Gate Plaza
Clermont, Florida 32711
Dear Bob:
I enjoyed seeing and meeting with the City Council on
September 25. I felt that both the Council and Mayor were
quite knowledgeable, and their thoughtful questions indicated
to me that Clermont has given the proper concern to its pension
fund investment.
In regard~.,to the Mayor I s question about whether I would
be interested in acting as a consultant, the answer is "yes".
From our discussion, I would envision such a position entails
three functions.
(1) An annual evaluation of the conformity of the
actual portfolio to the recommended ttuidelines
which are being drafted by the Council. In regard
to common stocks and bonds, this would evaluate
conformity to quality and diversification guide-
lines. Also, the portfolio would be checked to
insure that the proper balance of cash (short-
term paper, etc.), bonds, and stqck were maintained.
(2)
To raise current questions to be asked of your
investment trustee. For example, presently you
might' ask about, the appropriateness of a no-load
short-term mutual fund for your cash position.
Also, you might ask what factors would cause him
to suggest an increased common stock position
during this next year. It i~'the function of your
investment tru~tee to develop answers to such
questions. ' '
The importance of such'questions is that they
provide a basis for specific 'operating instructions
versus the policy guidelines. The policy guidelines
set ranges of policy. However, in a specific year,
the Council might want the trustee to act in a certain
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.., o"r'-;"" -'J;L . ,way within the' g~i'de1ines. ,For 'example,', if the
.':~, "l:~ ;~~ ' '-:~.;/:'<. ,"'" ".guide1ines' sugge~t ',0%:-' 20% in, cash,. the ,Council
, ' >" " .. > ,might indic,at~ .;that: it:.:desir.es '~ll;..oash . reserves
::~ >i:>~':'. .:' :..t;/<'.:~;i.;,..'~.}-:"~,:,\," :'i ':, up ~o20~" be::held "un~il"there" is" a: decline 'in' both
. ':. ,...- . ""'\ :.,:.:hheprime';:, rate' below'10% ::and;:two' montQs ,of declines; ;,' :
> . "., '" in either,':the':'co'nsurner"price,Index:or':-the Whole- '. .~. :C'.
~.~.<,:.-: .... ". ,... ~ '; sale. Price Index. J 'Such" operating' instructions should
,.';':. ~:::/.. ,be "suggested; a~" additional guidelines for only'lthe
:'~":: .' !..'.: next year ,'-' and ,should be :mutua11y acceptable to both'
~. " " .' .,," t;h~"..CQuncil.'axjd;~'the,:-investmen~ 'trustee. .
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,;.~,;.....~,;::...:':: ...., :;;,;:<:':".i.~:'. '.::.' ,( 3) ".:' TO' 'be 'avail~b1e throughout the year for consultation ' "
,:',:.'.,~:,., '-.,~.i>',.-.:..,~ :.j', ;': :....'via telephone concerning appropriate portfolio
, f)'. .'.: '. ." .~....t'.~,.., . ,guidelines.. "'.' ;':', ,..'," ";
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The evaluation report would be done in Gainesville and
..; , ,~" .,'i' "'J ;'... mailed to you prior to your annual meeting with your invest-
',:,.....'. ;''-''.: ment trustee; every secoIld year, I would come to Clermont
...,~', '>.. ;.., .' in person for discussion,of the report. This personal
':.',r, ;:.,~. '., ,',:~";:'; appearance' might immedia~ely "precede your annual meeting with
:<':;,.:......1'. ':'. 'your investment' trustee.' I, believe such personal appearances
':,:' '/)~.,: ": -..:' ::.',:' , .-are important if I am to provide the most relevant service to
< '~';~::~~':':" :', i. ,~': ,.' you.. ' Also, over time, my reports should h~lp to provide
,.'::'~',:.:.::;,:, '.',:'. ~~':;.,..' long-term continuity in your investment approach; such con-
':.:,~\-.:..~:':; _;," ~.,' .'? ':, :.tinuity is important because of the turnover of Council
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"~'.\/::~<-.:~~~' ..-, Finally, turning to the 'Mayor's question about my fee,
;',;;~::~.~:~\::).,\,,:';"4:''':,'):;, I, believe that $150. 00 plus mileage is certainly a reasonable
~z.1:f;::"\":;~t::;/;',:;:ifee for the above service, and professionally I do not feel
~~~"f;.j;:~,.~~~;t:~~';'/:: .,.,::that I, can accept a lower annual fee. E:ren if you do not
~:'!':;~:,:t~_i-.ro'':::?'('''r'':- choose'4lo retain me as a consultant, I w~ll be happy to
~~41.~~~~:~~.~:~0~~~\pr.ovide very general,consul~ation services gratis via the
"'.~,;f,~'~l'';'''''''' ,n.<~~::.,,;~ telephone. .' .
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,'$~.~'('<:<~~'5~.:~:. 7~~~t:'0~:~'. ~ l?ok forward to hearing from. you regarding your ~ecision
i' ,:..:.'~, i-~;,~t.~~~ ,pn ".th~S",. and I ,;lso hope that you w~ll send mE.7 a .tentat~ve
, ,"<,'~J," ~~,,,,(,,J":\ 'dra-4=t T.of,.the gu~delines for my comments.
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t"'I:;FI>. ~$""~' y. -r""'"'IIIfff,".r', 0.\".....,).\... ~,.., .4- ~~:., fr..... .'~ ...... " ...... "..
.,>~~_.,,~ ~'o""~;.:.,. :~~' .~::A"."r:,~..}i.\,l"'~"~':""'.,.?~..~l;.:i~.".:'~,,,,:,:,,., "0 ...' ", 'H. ,Russell.Fogler, Ph.D.
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~'~;';~:.f~ .,::'~, ..,.;...,;:- .;:~O~f~":>:'I~~~.ri9',,;~ay/sh9U-ld~):.~e'~ab9ve statements be understood as an
< ", >I"~.~ ..;~~ .' i"'."<. Of~U'0.:.9~)1rny~yt:men1:-!'..~~~~~L oJ::: specific ~nvestment, Fe:conunendations.
'~;~ '~. ^ " -: ,::;f~".?~$:.1'he 8~n:V~~es.,.~~t11ned:;.,ar~~ge~eral anal~~~.p~J,-:?orpfo,l.io c,0~~~~,i7":::.
'-: .' .;I-~'~,f~.' t'.;. t:loD,';.no,t ~r.commendations' or' . fa ' . -:t9-':Pp;rc 'a.~.~~~.'.i;~~; ";;,:'" "''if
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Sincerely,
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