MINUTES OF THE EMPLOYEE RETIREMENT ACCOUNT COMMITTEE (ERAC) REGULAR QUARTERLY MEETING OF NOVEMBER 17, 2016 Present: Chair Bonita Wagner, Vice Chair Courtney Mendez, Treasurer Kelly Strickland, and Member Duncan Miller Others: Pension Plans Administrator Harry Ramphal, Senior Pension Analyst Anthony Ferrer, and Pension Specialist Chinyere Deehan Absent: Secretary Pamela Nadalini 1. CALL THE MEETING TO ORDER: Chair Wagner called the meeting to order at 10:00 a.m. 2. PLEDGE OF CIVILITY: Chair Wagner read into the record a memorandum from Mayor Willie Charles Shaw, dated February 13, 2015, entitled "City Commission and Advisory Boards Meeting Protocols and Pledge of Civility." Chair Wagner noted Committee consensus to excuse the absence of Secretary Nadalini, who is on City business and unable to attend the meeting. Chair Wagner welcomed Treasurer Kelly Strickland to the Committee and stated that she is the Finance Director for the City of Sarasota; that she is replacing John Lege as Treasurer for the Employee Retirement Account Committee. 3. PUBLIC INPUT: None. Pension Plan Administrator Ramphal requested the Board excuse Secretary Nadalini from meeting due to being on City business. Chair Wagner noted consensus to excuse absence of Secretary Nadalini from the Employee Retirement Account Committee Regular Quarterly Meeting of November 17, 2016. 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the Employee Retirement Account Committee Regular Quarterly Meeting of August 18, 2016 A motion was made by Member Miller, seconded by' Vice Chair Mendez to approve the minutes of the August 18, 2016, Employee Retirement Account Committee (ERAC) Regular Quarterly Meeting. Motion carried unanimously (4-0). 5. QUARTERLY REPORTS: 5.1. Presentation and Discussion Re: VALIC ERAC Report for Quarter Ending September 30, 2016 Carolyn Garvey, Financial Advisor, VALIC Financial Advisors and Gregg Hudak, Manager, VALIC Financial Advisors, came before the Committee to present the VALIC Employee Retirement Account Committee Report for the quarter ending June 30, 2016. Book 1 Page 9 11/17/16 10:00 A.M. Book 1 Page 10 11/17/16 10:00 A.M. Ms. Garvey stated that two mailings were sent to participants this quarter; that a letter was sent to City employees asking for their assistance in developing their retirement plan; that she received responses from 37 employees; that the responses from the employees were followed up with an email with instructions regarding Social Security benefits; that a second letter was sent to employees asking them to consider adding additional funds to their retirement plan; that approximately 25 participants increased their contributions to their retirement plan. Mr. Hudak played a video for the Committee which highlighted VALIC's new website developments which are available to the participants. He stated that the participants are able to view their personalized retirement plans online; that the participants have received an email from VALIC outlining the changes in the VALIC website. 5.2. Presentation and Discussion Re: Quarterly Investment Analysis Review Ending September 30, 2016 Howard Daher, Principal, Daher Capital Group, came before the Committee to present the quarterly investment analysis review for the quarter ending September 30, 2016. Mr. Daher presented a brief overview of the market and discussed the growth in the economy; and stated that the economy has accelerated during this quarter; that the election and the potential rise of interest rates caused concern for many people; that a week after the election, the market was up by 8.74%. Mr. Daher discussed the growth of the individual holdings and the funds being monitored on the watch list; that year to date the rate of return for the portfolio is 4.6% versus the benchmark of 1.12%, and added that the portfolio is up 6.38% since inception. In response to a question from Mr. Daher regarding the extension of the City of Sarasota's contract with VALIC and whether further extensions require a Request for Proposal (RFP), Pension Plans Administrator Ramphal stated that the current extension of the City of Sarasota' 's contract with VALIC is effective until September 30, 2017; that the Committee should discuss an RFP approximately six or seven months before this contract ends; that the decision for an RFP should be made by the May 18, 2017 ERAC quarterly meeting. Treasurer Strickland stated that she spoke with the City's Purchasing Manager regarding this RFP; that the Purchasing Manager is working on a new purchasing ordinance for the City of Sarasota which would allow retirement accounts to be exempt from the RFP process; that the Purchasing Manager anticipates having the ordinance in place by the end of the fiscal year. Pension Plans Administrator Ramphal stated that Mr. Daher could present the various financial service options before the Committee instead of submitting an RFP before the contract with VALIC ends; that the Committee could then make a decision whether to continue with VALIC or choose another financial manager. Mr. Hudak stated that he has prices available for VALIC plan options; that he will give them to Mr. Daher to present to the Committee; that a three month time period would be necessary to change from one plan to another. 6. NEW BUSINESS: 6.1. Presentation and Discussion Re: Proposed 2017 Employee Retirement Account Committee Regular Quarterly Meeting Schedule Pension Plans Administrator Ramphal presented the 2017 ERAC quarterly meeting dates to the Committee and stated that meeting invitations will be sent out to the Committee members and consultants. 7. OTHER MATTERS: None. 8. ADJOURN. Chair' Wagner adjourned the Employee Retirement Account Committee (ERAC) Regular Quarterly Meeting at 11:23 a.m. - R6us 1 Khcklnig Chair Bonita Wagner Treasuref Kelly Strickland Book 1 Page 11 11/17/16 10:00 A.M.