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I. CONSENT AGENDA COUNTY ADMINISTRATOR 2 ORANGE COUNTY FLORIDA November 19, 2013 TO: Mayor Teresa Jacobs -AND- Board of County Commissioners FROM: Eric Gassman. Deputy County Adminis rat~ Jim Moye. Chief Deputy Comptroll ' SUBJECT: Orange County Deferred Compensation Program - Vanguard Renewal CONSENT AGENDA ITEM DECEMBER 17, 2013 Background On September 30. 2008. the Board approved a contract with Vanguard for third party record keeping services. and with Vanguard and Dimensional Fund Advisors for investment provider services for the County's Deferred Compensation Program. The term of the contract was for five (5) years with a five (5) year renewal option. The contract became effective on May 1. 2009, with the initial five (5) year term ending on April 30, 2014. New Vanguard Fee Proposal At the time of the initial contract, the lowest cost share class the County could offer employees was Vanguard's Investors Share class per Vanguard's existing fee structure at that time. This share class includes a record keeping fee component and a fund management fee component as part of the overall fund expense ratio. For example. the Vanguard S&P 500 Index Fund has a fund expense ratio of 0.17% consisting of 0.9% for record keeping expenses and 0.8% for fund management expenses. Since the record keeping fee component does not cover the total cost of record keeping, participants also pay an annual per-participant record keeping fee of $42. Vanguard recently revised its fee structure and the County is now eligible to offer employees Vanguard's Admiral Share class (their lowest cost share class). The fund expense ratio of the Admiral Share class does not include a record keeping expense percentage which results in a 25

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