MINUTES OF THE EMPLOYEE RETIREMENT ACCOUNT COMMITTEE (ERAC) REGULAR QUARTERLY MEETING OF MAY 18, 2017 Present: Chair Bonita Wagner, Secretary Pamela Nadalini, Treasurer Kelly Strickland, and Members Duncan Miller and Gary Dornbush Others: Senior Pension Accountant Cynthia Akersloot, Senior Pension Analyst Anthony Ferrer, and Pension Specialist Lois Belle Absent: None 1. CALL THE MEETING TO ORDER: Chair Wagner called the meeting to order at 9:59 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." 3. PUBLIC INPUT: None 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the Employee Retirement Account Committee Regular Quarterly Meeting of February 16, 2017 A motion was made by Member Miller, seconded by Member Dornbush, to approve the Minutes of the February 16, 2017, Employee Retirement Account Committee (ERAC) Regular Quarterly Meeting. Motion carried unanimously (5-0). 5. BOARD APPOINTMENTS: 5.1. Appointment Re: Selection of Chair Presenter(s): Secretary Nadalini Secretary Nadalini opened nominations for Chair; Member Miller nominated Chair Wagner to remain as Chair; there were no further nominations and by consensus the Committee supported Chair Wagner's nomination. 5.2. Appointment Re: Selection of Vice Chair Presenter(s): Secretary Nadalini Secretary Nadalini opened nominations for Vice Chair; Member Miller nominated Member Dornbush to serve as Vice Chair; there were no further nominations and by consensus the Committee supported nomination of Member Dornbush as Vice Chair. Book 1 Page 15 5/18/17 10:00 A.M Book 1 Page 16 5/18/17 10:00 A.M 6. QUARTERLY INVESTMENT REPORTS: 6.1.Presentation and Discussion Re: VALIC ERAC Report for Quarter Ending March 31, 2017 Presenter(s): Carolyn Garvey, Financial Advisor, VALIC Ms. Carolyn Garvey, Financial Advisor, VALIC, came before the Committee to present the VALIC Employee Retirement Account Committee Report for the quarter ending March 31, 2017. Ms. Garvey provided an overview of activity for the first quarter of 2017 and her role with participants; that there has been an increase in new hires over the past 3 quarters; that she continues to follow up with 457 eligible participants to increase enrollment. Discussion ensued around opportunities to effectively increase participation in seminars and education overall. Ms. Garvey extended an open invitation to Committee members to attend one of her seminars and Secretary Nadalini reminded Committee Members to be mindful of Government-in-the-Sunshine laws when attending public events. 6.2. Presentation and Discussion Re: Quarterly Investment Analysis Review Ending March 31, 2017 Mr. Howard Daher, Principal, Daher Capital Group, came before the Committee to present the quarterly investment analysis review for the quarter ending March 31, 2017. Mr. Daher presented al brief overview of the market and stated that Gross Domestic Product (GEP) is 1.8%, down from previous quarters and continuing to trend down; that data shows housing and employment up but the market is still volatile and uncertain. Discussion ensued around market volatility and current conditions. In response to a question from Secretary Nadalini asking when the funds were last rebalanced, Mr. Daher stated that the fund was rebalanced two or three years ago and that there should be a review of the Investment Policy Statement in the upcoming Employee Retirement Account Committee meeting of August 17, 2017 to determine if any modifications to the current Investment Policy Statement are necessary. In response to a question by Secretary Nadalini asking if VALIC offers Target Date Funds, Mr. Daher stated that there are currently no Target Date Funds available. Discussion ensued around different Target Date Fund strategies. Mr. Daher discussed the investments being monitored on the watch list and discussed the analysis performed; that the overall portfolio is well-balanced and historically looks good but there is a need to watch the one-to-three-year period. The Board thanked Mr. Daher for his presentation. 7. NEW BUSINESS: 7.1. Presentation and Discussion Re: Attendance Report Presenter(s): Secretary Nadalini Secretary Nadalini presented the Attendance Report to the Committee and stated that the Attendance Report is based on the records as reflected in the approved monthly Employee Retirement Account Committee Minutes throughout 2016. In response to a question by Vice Chair Dornbush asking if the City of Sarasota, 401a Defined Contribution Plan (the Plan) should be audited separately, Treasurer Strickland stated that the Plan is audited and included in the City's Comprehensive Annual Financial Report. Discussion ensued on the current process. A motion was made by Vice Chair Dornbush, and seconded by Trustee Miller, to approve the Attendance Report. Motion carried unanimously (5-0). 7.2. Presentation and Discussion Re: Proposed Annual Budget for Fiscal Year 2017 - 18 Presenter(s): Secretary Nadalini Secretary Nadalini presented the Proposed Annual Budget for Fiscal Year 2017 - 18 to the Committee and stated that the Proposed Annual Budget was increased slightly to accurately reflect anticipated expenses. A motion was made by Vice Chair Dornbush, and seconded by Trustee Miller, to approve the Annual Budget for Fiscal Year 2017 - 18 as proposed. Motion carried unanimously (5-0). 8. OTHER MATTERS: In response to a question by Trustee Miller asking for a status update on the Pension Plans Administration Division, Secretary Nadalini stated that Cynthia Akersloot has come on board as the Senior Pension Accountant; that Harry Ramphal has resigned his position as Pension Plans Administrator and the interview process to fill that position will begin shortly. Mr. Daher stated that he would not be able to attend the Employees' Retirement Account Committee Quarterly meeting on August 17, 2017 and asked the Committee to consider rescheduling. Chair Wagner noted consensus by the Committee to direct Staff to look at alternative dates. 9. ADJOURN. Chair Wagner adjourned the Employee Retirement Account Committee (ERAC) Regular Quarterly Meeting at 12:17 p.m. Roukl basue Chair Bonita Wagner Secretary Pamela Nadalini Book 1 Page 17 5/18/17 10:00 A.M