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CC 2014-10-28_11.a. Agreement for City Manager Recruitment PRROYO INCORPORATED 9 h Z V O Fri JULY 10. 1911 ,f c444ORN�P MEMORANDUM TO: CITY COUNCIL FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: CONSIDERATION OF CONSULTANT SERVICES FOR CITY MANAGER RECRUITMENT DATE: OCTOBER 28, 2014 RECOMMENDATION: It is recommended the City Council: 1) approve use of $26,000 in contingency funds for consultant services to coordinate the City Manager recruitment and selection process; and 2) designate Mayor Ferrara and Mayor Pro Tern Guthrie to interview and recommend a consultant after proposals are received. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The contract will be funded from existing contingency funds budgeted for unanticipated expenses. The estimate of $26,000 is based on the actual cost of the last two city manager recruitments performed by consultants in San Luis Obispo County. BACKGROUND: The City Manager has announced his resignation and will leave his position once a replacement has been hired and begins work. Therefore, the recruitment process should commence immediately. The first step is to select a consultant firm to coordinate the process. ANALYSIS OF ISSUES: The most typical approach to recruiting for a new city manager involves the use of a professional firm. Given other workload, it would be difficult to perform the process in-house. In addition, professional firms are able to offer unique outreach services to individuals that might not otherwise apply for the position, help to reduce any perception that the process is not impartial, and they work directly for the Council. The Administrative Services Department can provide any staff support requested by the consultant or the Council. Item 11.a. - Page 1 CITY COUNCIL CONSIDERATION OF CONSULTANT SERVICES FOR CITY MANAGER RECRUITMENT OCTOBER 28, 2014 PAGE 2 A request for proposal (RFP) will be distributed to qualified firms. Once the proposals are received, the subcommittee will meet, select finalists to interview and make a recommendation to the full Council for award of the contract. A copy of the RFP is attached, which includes the proposed scope of services. It is imperative the recruitment process begin quickly. The following timeline will be shared with potential consultants to ensure they are available to support the City's goal of a smooth transition: 1. Phase 1: Development of Candidate Profile and Recruitment Strategy (December) 2. Phase 2: Outreach and Advertising Campaign (December - January) 3. Phase 3: Candidate screening (February) 4. Phase 4: Candidate selection, background, and offer (February) 5. Phase 5: Appointment (March) 6. Start Date (March/April) This timeline is extremely aggressive, but can be achieved. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staffs recommendations; - Direct staff to perform the process in-house; - Modify the proposed scope of services; - Provide other direction to staff. ADVANTAGES: Use of a professional firm will provide the most effective approach to attracting the highest quality applicants for the position. DISADVANTAGES: The only disadvantage of using professional services is the additional cost. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The agenda was posted in front of City Hall on Thursday, October 23, 2014 and the agenda and staff report were posted on the City's website on Friday, October 24, 2014. Attachments: 1. Request For Proposals (RFP) Item 11.a. - Page 2 CITY OF ARROYO GRANDE REQUEST FOR PROPOSALS CITY MANAGER RECRUITMENT AND SELECTION PROCESS I. PROPOSAL INTENT The City of Arroyo Grande, California is seeking the services of a highly qualified executive search firm to manage the recruitment and selection of its City Manager. The consultant should have the knowledge and expertise to advise Council on the recruitment and selection process, how to involve key stakeholders and staff, and attract highly qualified candidates. II. BACKGROUND The existing City Manager has announced he will be resigning after over 14 years in the position once a new City Manager is selected and begins work. The City of Arroyo Grande currently comprises 5.45 square miles with a population of 17,291 residents. Arroyo Grande is a full-service city. There are currently 86 full-time and 45 part-time employees. Fire service is provided by the Five Cities Fire Authority, but Arroyo Grande provides finance and personnel services for the Fire Authority. III. SCOPE OF WORK The City anticipates the search will involve five phases: A. Phase 1: Development of Candidate Profile and Recruitment Strategy (December) B. Phase 2: Outreach and Advertising Campaign (December - January) C. Phase 3: Candidate screening (February) D. Phase 4: Candidate selection, background, and offer (February) E. Phase 5: Appointment (March) F. Phase 6: Start Date (March/April) The core services required include the following: A. Primary contact with Council, guiding and advising them through the recruitment and selection process. B. Interview Council Members to determine desired characteristics of the City Manager. C. Advise Council on all phases of the recruitment, including who should be involved and to what extent. This will include input regarding participation from key stakeholders, department heads, and other staff. D. Develop recruitment materials. E. Conduct a statewide outreach and advertising campaign aimed at producing the highest quality City Manager candidates. F. Review and screen candidates. Personally meet with top candidates prior to presenting to Council. G. Recommend final selection process and facilitate process with Council to review final candidates. H. Conduct background on final candidates. I. Negotiate compensation package with final candidate if requested. Item 1 1.a. - Page 3 IV. PROPOSAL FORMAT AND CONTENT Proposals should be concise and limited to the information requested. Each proposal shall include the following information in this format: A. Qualifications Provide resumes of the key personnel to be assigned to this project and list City Manager recruitment processes that they have coordinated over the past three years. B. Work Plan Provide a brief description of the work plan proposed to carry out the tasks set forth in Section III - Scope of Work. C. Costs Submit a cost proposal, which includes a proposed amount for each task and the overall cost proposal to complete the entire scope of work. Proposals shall also include a list of personnel proposed to work on the project, allocations of time each person is to work on the project, and hourly rates for those personnel. Cost proposals are to include all costs to the City. D. Schedule Provide a schedule summary assuming the work will begin by December 2014. E. References Please provide three professional references. Include with each reference, the name, entity, address, and daytime telephone number of the reference. V. SELECTION PROCESS A Council Subcommittee committee will make a recommendation to the full City Council based upon the following criteria: A. Relative experience and qualifications B. Ability of proposed approach to meet the needs of the City C. Cost effectiveness VI. SUBMITTAL A. Submit a total of 6 copies to: Debbie Malicoat Director of Administrative Services 300 E. Branch Street Arroyo Grande, CA 93420 B. Show the following information on the outside of the package: • Consultant's name and address • City Manager Recruitment Proposal 2 Item 11.a. - Page 4 C. Closing Date: All proposals must be received by Thursday, November 20, 2014 at 5:00 p.m. D. The City reserves the right to reject any or all proposals for any or no reason. Item 11.a. - Page 5 THIS PAGE INTENTIONALLY LEFT BLANK Item 1 1.a. - Page 6