City Council Agenda Report
Meeting Date: October 7, 2025
From: Brian Saeki, City Administrator
Department: City Administration
Submitted by: Lilia Hernandez, Assistant to the City Administrator Subject
Report on Services Agreement with Shuster Advisory Group, LLC Approved by the City Administrator
Recommendation
Receive and file the report on the award of a Services Agreement to Shuster Advisory Group, LLC for deferred compensation plan consulting and fiduciary services, for a total not-to-exceed $96,000 over a three-year term, as approved by the City Administrator pursuant to Vernon Municipal Code Sections 3.32.110(B)(2) and 3.32.110(B)(3).
Background
The City offers deferred compensation plans to support employee retirement savings. As plan sponsor, the City has a fiduciary obligation to act in the best interest of plan participants by prudently administering deferred compensation plans and investing plan assets. To fulfill such responsibilities, the City may contract with third-party service providers to assist with plan administration and oversight. Accordingly, on July 15, 2025, the City Administrator approved a Services Agreement with Shuster Advisory Group, LLC (Shuster) for certain fiduciary services and plan consulting related to the City’s deferred compensation plans for a term of three years.
Section 3.32.110(B) of the Vernon Municipal Code (VMC) authorizes the City Administrator to exempt contracts from the competitive selection process when the best interests of the City are served by a direct award of the contract. The Services Agreement with Shuster was awarded based on Shuster’s specialized expertise in fiduciary oversight, retirement plan consulting, and successful track record serving over 50 Southern California public agencies. Since retaining Shuster’s services, the implementation of their recommendations has resulted in a significant reduction in total plan and investment fees, enhanced investment options, and has increased the blended fixed interest rate available to employees. The Services Agreement with Shuster is for a total of $96,000 ($32,000 annually) for a term of three years. Fees are paid from plan assets, resulting in no direct fiscal impact to the City. This report to City Council is provided as required pursuant to VMC Section 3.32.110(B)(3).
Fiscal Impact
There is no direct fiscal impact to the City, as fees are paid by plan assets.
Attachments
None.