Sacramento Defined Contribution Plans Committee Meeting - June 17, 2026
Sacramento Defined Contribution Plans Committee Meeting - June 17, 2026
The Sacramento Defined Contribution Plans Committee met on Wednesday, June 17, 2026, at 10:03 AM in the City Hall Council Chamber. The meeting was called to order by Chair Patrick Zalasky and adjourned at 12:24 PM. Seven members were present: Jeremy Gardella, Brad Hoekstra, Chee Khang, Murray Levison, Ash Roughani, Kateshia Knox, and Chair Zalasky. Alternate member Matthew Anderson was also present. Member King Tunson was absent. The committee addressed the consent calendar, three discussion items, and approved an updated Investment Policy Statement.
Consent Calendar
- Approval of Minutes (File ID: 2026-00177): Passed a motion approving the March 18, 2026 meeting minutes as discussed, including edits requested by Member Levison (e.g., clarifying that items 4 and 5 were received, commented, and provided direction, and noting the separate vote for Vice Chair selection).
- Fiduciary Review (File ID: 2026-01181): Reviewed and filed.
- Administrative Allowance Account Statement (File ID: 2026-01186): Reviewed and filed.
- The consent calendar was adopted unanimously (7-0) on a motion by Member Hoekstra and second by Member Gardella.
Public Comments & Testimony
- No members of the public spoke on any agenda item.
Discussion Items
- Item 4: 2026 NAGDCA Conference Additional Expenditures (File ID: 2026-01180): Staff reported that pre-conference sessions on September 27, 2026, require an extra night of lodging because flight schedules do not allow arrival on the same day. The committee approved use of Administrative Allowance Account funds for additional hotel costs, staying within the originally approved $12,500 budget for up to five attendees (currently four attending). Motion by Member Levison, second by Member Gardella. Unanimously passed (7-0).
- Item 5: Review of 2026 1st Quarter by Fiduciary Consulting Group and Watch Status of Investment Lineup (File ID: 2026-01179):
- Fiduciary Consulting Group (FCG) presented a market update (S&P 500 down 4.33% Q1 2026 but up 9.15% year-to-date as of June) and a detailed compliance review of fund performance.
- Part 1 – Watch Status: The committee voted to retain the Nationwide Fixed Fund and Nuveen Real Estate Securities Select R6 on watch for quantitative reasons, and to place Vanguard International Growth Adm fund on watch (motion by Levison, second by Khang; passed 7-0).
- Part 2 – Fund Replacements: The committee voted to replace three underperforming funds: MFS Value R6 (56M in assets) with Putnam Large Cap Value; American Century Mid Cap Value R6 (14.8M) with T. Rowe Price Mid Cap Value; and MFS International Diversification R6 (37.2M) with MFS Blended Research International. Replacements were recommended due to persistent underperformance (4+ quarters out of compliance) and are expected to take effect in about 60 days. Motion by Levison, second by Knox; passed 7-0.
- FCG also provided information on the Vanguard target-date CIT (collective trust) option, noting potential minor savings and tax benefits, but no action was taken. The city attorney is reviewing the required power-of-attorney document.
- Item 6: Investment Policy Statement (IPS) Update (File ID: 2026-01178):
- The committee reviewed a redline version of the IPS, which had not been updated since 2021. Changes focused on terminology (e.g., replacing “fund” with “option” for future flexibility, removing specific vintage years, and ensuring consistency).
- Several minor edits were proposed and accepted: changing “size” to “cap” for consistency, hyphenating “industry-standard,” adding “provider” to a sentence, and revising “investment managers” to “investment options” in the oversight section. The phrase “perform a manager search” was retained for flexibility.
- The committee also agreed to review the IPS annually, with the first quarterly meeting as a target.
- Motion by Member Hoekstra, second by Member Gardella, to approve the IPS as amended. Passed 7-0.
- Meeting Extension: The committee unanimously approved a one-hour extension (motion by Levison, second by Hoekstra) to complete the agenda.
Key Outcomes
- Consent Calendar approved unanimously (7-0) with edits to previous minutes.
- NAGDCA Conference Additional Expenditures authorized within existing $12,500 budget (7-0).
- Investment Fund Actions:
- Nationwide Fixed Fund and Nuveen Real Estate Securities Select R6 retained on watch; Vanguard International Growth Adm placed on watch (7-0).
- Three funds replaced: MFS Value R6 → Putnam Large Cap Value; American Century Mid Cap Value R6 → T. Rowe Price Mid Cap Value; MFS International Diversification R6 → MFS Blended Research International (7-0).
- Investment Policy Statement approved with discussed amendments; annual review established (7-0).
- Next Meeting: September 2026 (date not specified).
- No public comments were received.
Meeting Transcript
Good morning and welcome to the Wednesday, June 17th, 2026 meeting of the defined contribution plans committee. The meeting is now called to order. Will the clerk please call the roll to establish a quorum? Thank you, Chair. Member Ugani. Here. Vice Chair Kang. Here. Member Tunsen is absent. Alternate member Knox. Here. Member Hochstra? Here. Member Gardella. Here. Member Levison. Here. And Chair Zalaski. Here. Thank you. I will now do the roll call for the alternate members. Alternate member Harland is absence. Alternate member Tran is absent. Alternate member Anderson is here in the audience. Alternate member Contreras is absent, and alternate member Bader is absent. Thank you, Chair. I would like to remind members of the public in chambers that if you'd like to speak on an agenda item, please turn in a speaker slip before the item begins. After the item is called, we will no longer accept speaker slips. You will have two minutes to speak once you are called on. We will now proceed with today's agenda. Please rise if you're able for the opening acknowledgments in honor of Sacramento's indigenous people and tribal lands. To the original people of this land, the Nissan people of the Southern Maidu Valley and Plains Miwok, Patland, Winton peoples, and the people of the Wilton Rancheria, Sacramento's only federally recognized tribe. May we acknowledge and honor the native people who came before us and still walk beside us today on these ancestral lands by choosing to gather together today in the active practice of acknowledgement and appreciation for Sacramento's indigenous peoples, history, contributions, and lives. Thank you. Now please stay standing for the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands. One nation under God, indivisible with liberty and justice for all. Next up is the approval of the consent calendar. Clerk, are there any members of the public who wish to speak on the consent calendar? Thank you, Chair. I have no speakers on this item. Thank you. Are there any commissioners who wish to speak on the item? Murray. Accidentally says PM instead of AM. And uh Jacob, I will give you a uh copy of what I have here. Um item four and five both say the action was received, commented, and provided at direction. That same thing happened on item three, where we talked about the um the NAGDA award. So um instead of just saying received and discussed, if it could also say receive commented and provided direction, the direction was to um have me work with Samantha on creating the uh the award application. Um item six, there was a separate motion to select our vice chair, but there's no vote, separate vote listed.
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