MINUTES OF THE EMPLOYEE RETIREMENT ACCOUNT COMMITTEE REGULAR QUARTERLY MEETING OF FEBRUARY 20, 2020. Present: Secretary Shayla Griggs, Treasurer Kelly Strickland, and Member Aaron Olson. Others: Pension Plans Administrator Debra Martin, and Senior Pension Analyst Anthony Ferrer. Absent: Vice Chair Jeffrey Vredenburg. 1. CALL THE MEETING TO ORDER: Secretary Griggs called the meeting to order at 10:00 a.m. 2. PLEDGE OF CIVILITY: Secretary Griggs read into the record a memorandum from Former Mayor Willie Charles Shaw, dated February 13, 2015, entitled "City Commission and Advisory Boards Meeting Protocols and Pledge of Civility." 3. PUBLIC INPUT: None. 4. APPROVAL OF MINUTES: 4.1.Approval Re: Minutes of the Employee Retirement Account Committee Regular Quarterly Meeting of November 7, 2019. Presenter: Secretary Griggs. A motion was made by Treasurer Strickland and seconded by Member Olson to approve the Minutes of the Employee Retirement Account Committee Regular Quarterly Meeting of November 7, 2019. Motion carried unanimously (3-0). 5. QUARTERLY INVESTMENT REPORTS: 5.1.Presentation and Discussion Re: AIG Retirement Services, ERAC Report for Quarter Ending, December 31, 2019. Presenter(s): Gregg Hudak, Financial Advisor, Carolyn Garvey, Financial Advisor, and Lilia Pivetta, Relationship Manager, VALIC Financial Advisors, AIG Retirement Services. Secretary Griggs informed the Committee that the new Mutual Fund Platform conversion is pending legal review of the contract. Mr. Hudak, Ms. Garvey and Ms. Pivetta came before the Committee and introduced themselves. Ms. Garvey provided an overview of quarterly activities noting there were thirty-four (34) new employees enrolled for the quarter. Book 1 Page 50 02-20-2020 10:00 a.m. Book 1 Page 51 02-20-2020 10:00 a.m. Ms. Garvey discussed a recently held seminar for employees on Social Security; that the next educational seminar will be on financial wellness. Mr. Hudak formerly introduced Lilia Pivetta; that Ms. Pivetta is a relationship manager; that Ms. Pivetta will provide additional support as the DC Plan moves forward to the new Mutual Fund Platform. Ms. Pivetta stated her role is to support administration of the DC Plan; that she has been in the retirement business for twenty-five years with twenty-two years at VALIC, AIG Retirement Services. Mr. Hudak added that he is still the point of contact locally. The Committee thanked Mr. Hudak, Ms. Garvey and Ms. Pivetta for their time. 5.2. Presentation and Discussion Re: Quarterly Investment Analysis Review Ending December 31, 2019 Presenter: Howard Daher, Principal, Daher Capital Group. Mr. Daher came before the Committee and introduced himself. Mr. Daher reviewed thet fourth quarter financial market activity noting the economy is slowing; the quarter ending December: 31, 2019 with a return of over 9% for the overall portfolio; that there is an expectation the fourth quarter this year could be slowing and pulling back. Mr. Daher discussed the best performing sectors in the S&P 500. Mr. Daher presented thet four funds being monitored on the watch list and discussed the analysis performed. The Committee thanked Mr. Daher for his presentation. 6. UNFINISHED BUSINESS: None. 7. NEW BUSINESS: None. 8. OTHER MATTERS: Member Olson posed the question for guidance to share with the employees on potential fourth quarter slowing, Ms. Garvey replied each employee should be in a portfolio appropriate for where they are in relationship to their retirement. Mr. Hudak added there is a monthly newsletter that updates past performance and upcoming market speculations; that the newsletter may be received by the employee via mail or email; that the employee may also meet with Ms. Garvey. Mr. Hudak provided a financial services industry updated; that June 30, 2020, Regulation Best Interest takes effect; that any financial advisory works in the best interest of the client with respect to retirement funds; that the employees will fill out a Client or Customer Relationship Summary (CRS) on each appointment; that iti is a safe guard in the industry that all brokers and dealers have to comply. Ms. Martin asked that Mr. Hudak forward the form and al link to the regulation. Discussion ensued on the vacant seat on the Committee; that this position must be filled by a City resident; that the seat is advertised with no interest at this time. Consensus for selection of Chair at the June 4, 2020 meeting. Member Olson posed the question what the projected target date for the transition to the Mutual Fund Platform is, Mr. Hudak replied upon a signed contract and agreement in place, there will be forty days needed to finalize. 9. ADJOURN. Secretary Griggs adjourned the Employee Retirement Account Committee (ERAC) Regular Quarterly Meeting at 10:30 a.m. olly Sircblans Secretary SALbp Shayla Griggs Tréasurer Kelly Strickland Book 1 Page 52 02-20-2020 10:00 a.m.