TO: Board of Supervisors
FROM: Sheryl L. Bratton, County Counsel
REPORT BY: Susan B. Altman, Deputy County Counsel
SUBJECT: Amendment No. 1 to Agreement 230103B with Hyas Group, LLC
RECOMMENDATION
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Approve and authorize Amendment No. 1 to Agreement 230103B with Hyas Group, LLC now doing business as Fiduciary Consulting Group, adjusting the scope and increasing the contract maximum from $37,000 to $72,000. (Fiscal Impact: $35,000 Expense; Deferred Compensation Board of Control; Budgeted; Discretionary)
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BACKGROUND
On July 26, 2022, after recommendation from Napa County's Deferred Compensation Board of Control, the County entered into Agreement 230103B with Hyas Group, LLC, for financial advisory services for the County's Deferred Compensation 457, 401(a) and Obra retirement plans (Plans). The Hyas Group now is doing business as the Fiduciary Consulting Group (FCG), a business within Morgan Stanley Institutional Investment Advisor LLC.
On April 24, 2018, the County entered into Agreement 180190B with Mass Mutual, which was subsequently purchased by Empower Trust Company, LLC, as the County’s deferred compensation plan recordkeeper. The contract for two 3-year terms is expiring in February 2027. Therefore, the County will be issuing a Request for Proposals (RFP) for deferred compensation plan recordkeeping services. Due to the complexity and highly sensitive nature of this service, the County’s Deferred Compensation Board of Control is seeking professional assistance to conduct this RFP and is requesting the services of FCG. FCG is an expert in this process, is aware of all recordkeepers currently providing comparable services, and is a fiduciary to the County’s plan. The Deferred Compensation Board is confident FCG will be unbiased and will have the best interest of the County and participants as their top priority and is recommending an amendment to their contract to include this additional service.
Therefore, the County now seeks to adopt Amendment No. 1 to the Agreement to adjust the scope of work and fee schedule so that Fiduciary Consulting Group can assist the Deferred Compensation Board of Control with its RFP for record keeping services for the County’s Plans. The amendment will also increase the Agreement by a maximum of $35,000. The revenue share from the Plans are restricted to administering and maintaining the employee plans. These funds will pay for the cost increase of the Agreement, and is currently included in the recommended budget for Fiscal Year 2026-27.
Requested Action: Approve and authorize Amendment No. 1 to Agreement 230103B with Hyas Group, LLC now doing business as Fiduciary Consulting Group, adjusting the scope and increasing the contract maximum by $35,000.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Fund 2190 - Deferred Compensation Board of Control |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The Deferred Compensation Plan receives revenue share from the plan to cover administrative costs. These funds are restricted to administering and maintaining the employee plan and are held in Fund 2190. Utilizing a subject matter expert for this complex service is part of the fiduciary responsibility of the Board of Control. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
This cost is reflected in the fiscal year 2026-27 recommended budget. |
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Consequences if not approved: |
The County would have to conduct an RFP without the subject matter expertise and could possibly miss some very key components to a future recordkeeper of the County Deferred Compensation Plans |
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Additional Information |
Strategic Initiative: Elevate County Service and Workforce Excellence |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.