CC 2016-09-27_12b City Manager Recruitment
MEMORANDUM
TO: CITY COUNCIL
FROM: ROBERT K. MCFALL, INTERIM CITY MANAGER
SUBJECT: CONSIDERATION OF PROCUREMENT OF CONSULTANT SERVICES
FOR CITY MANAGER RECRUITMENT
DATE: SEPTEMBER 27, 2017
RECOMMENDATION:
It is recommended the City Council: 1) authorize the Interim City Manager to distribute
Request for Proposals (RFPs) to executive recruitment firms to coordinate the City Manager
recruitment and selection process; and 2) designate two (2) Councilmembers to interview the
recruitment firm applicants and provide a recommendation to the City Council for
consideration.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Specific funding is not being requested at this time; however the cost is estimated to be
approximately $30,000. The contract will be funded from savings in the City Manager
program budget and will be specifically requested when Council considers awarding the
consulting contract.
BACKGROUND:
The position of City Manager became vacant in June 2016, with the duties now temporarily
performed by an interim City Manager. The recommended action will initiate the process to
select a new permanent City Manager.
ANALYSIS OF ISSUES:
The most typical approach to recruiting a new City Manager involves the use of a
professional executive search firm. Qualified firms keep themselves apprised of
professionals that would make suitable candidates, 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 work directly for the Council, to whom the
City Manager directly reports. While such a recruitment could conceivably be accomplished
with in-house staff, on-going project loads and limited contact with the executive city
management community could hamper the success of the recruitment. The Administrative
Services/HR Department can provide any staff support requested by the consultant or the
Council.
Item 12.b. - Page 1
CITY COUNCIL
CONSIDERATION OF CONSULTANT SERVICES FOR CITY MANAGER RECRUITMENT
SEPTEMBER 27, 2016
PAGE 2
A request for proposal (RFP) will be distributed to qualified firms. Once proposals are
received by the City, the ad hoc subcommittee appointed by City Council 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.
In order to re-establish permanent organizational leadership in a judicious manner, it is
important the recruitment process begin quickly as several months are typically
required. The following schedule will be shared with potential consultants to ensure they are
available to support the City’s goal of a smooth and timely transition:
Phase 1 November/December - Candidate Profile, Recruitment Strategy and Brochure
Phase 2 December/January - Outreach and Advertising Campaign
Phase 3 February - Candidate screening and Interviews
Phase 4 February/March - Candidate selection, background, and offer
Phase 5 March - Appointment
Start Date April
Recognizing that the City Council Reorganization meeting occurs on December 12, 2016,
and some desirability could be assumed in having the new Council initiate the process, it is
nonetheless recommended to initiate the RFP process now as outlined above in order to
cause the timely appointment of the new City Manager. An alternate initiation date of
January would likely result in the appointment not being made until June or July, 2017. The
recommended schedule has been developed such that all key decisions in the process will
occur with the newly seated Council.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
- Approve staff’s recommendations;
- Direct staff to perform the process in-house;
- Modify and approve the proposed scope of services; and
- 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 expenditure of funds for the recruitment that could otherwise be used for other purposes.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted in front of City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. RFP
Item 12.b. - Page 2
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Item 12.b. - Page 3
City of Arroyo Grande
Request for Proposals
City Manager Recruitment and Selection Process
September 28, 2016
2
CITY OF ARROYO GRANDE
REQUEST FOR PROPOSALS
CITY MANAGER RECRUITMENT AND SELECTION PROCESS
September 28, 2016
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, demonstrated experience and expertise to advise Council on the
recruitment and selection process, employ methods to ensure highly qualified candidates are
attracted to the community and the ability to effectively involve key stakeholders.
Proposals must be responsive to the City’s request. The City shall determine the most responsive
and qualified Consultant at a reasonable cost. Cost alone shall not be the determinative factor.
The City reserves the right in its absolute discretion to make no award or contract.
ABOUT ARROYO GRANDE
Arroyo Grande is located in beautiful San Luis Obispo County, halfway between Los Angeles and
San Francisco. Known as one of the “Five Cities,” Arroyo Grande is surrounded by Grover Beach,
Oceano, Shell Beach, and Pismo Beach along California’s Central Coast, just south of San Luis
Obispo. Arroyo Grande provides an extraordinary quality of life to its 17,395 residents. The
community’s friendly, small-town atmosphere; outstanding climate; beautiful environment; and
excellent recreation and entertainment opportunities make Arroyo Grande a very desirable place
to live and work. The City comprises 5.86 square miles and includes acres of agriculturally
productive land in a valley created by the Arroyo Grande Creek. Within the City, residents enjoy a
unique combination of rural and urban qualities. Excellent neighborhoods, a variety of shopping
experiences, quality parks and sports facilities, a performing arts center, local hospital, and an
outstanding school system all contribute to the community’s outstanding quality of life. Arroyo
Grande also offers award-winning wines, family-friendly festivals, and summertime concerts. The
region’s year-round Mediterranean and mild climate provides the ideal environment for taking
advantage of the vintage California atmosphere. The summer months are naturally air
conditioned by ocean breezes with occasional light fog, and the winters offer delightful and
refreshing crispness. Arroyo Grande is within minutes of spectacular ocean beaches, Lopez Lake
recreation area, campgrounds, hiking trails and several noted wineries.
Founded in 1862 and incorporated in 1911, the City of Arroyo Grande has a Council-Manager
form of government. The citizens of Arroyo Grande elect a mayor and four council members at
large. Council members serve staggered, four-year terms, and the mayor is elected every two
years. The City Council appoints the City Manager as well as the City Attorney.
Arroyo Grande is a full-service city, including police, recreation, community development, parks,
streets, sewer and water utility operations. Fire services are provided by the Five Cities Fire
Authority, which contracts with the City for financial and personnel support. The City’s existing
budget is $42 million, including a $16 million general fund. There are currently 86 full-time and 70
part-time employees. The city has maintained a stable financial condition due to a number of
Item 12.b. - Page 4
City of Arroyo Grande
Request for Proposals
City Manager Recruitment and Selection Process
September 28, 2016
3
proactive efficiency measures implemented in response to recent financial challenges and has
continued to fund a comprehensive capital improvement program.
The City offers a highly professional, stable, and friendly work environment. City staff maintain an
outstanding relationship with the community, the City Council, and each other. Employees are
committed to commonly shared values that were established through an organization-wide
process. As a result, employment with the City provides a rewarding environment working with
individuals that care about each other and the community they serve.
BACKGROUND OF PREVIOUS CITY MANAGERS
The recent City Manager separated services after a one year engagement with the City. The
previous City Manager served for 14 years prior to his resignation.
SCOPE OF WORK
The City anticipates the search will involve five phases:
Phase 1 November/December Candidate Profile, Recruitment Strategy and Brochure
Phase 2 December/January Outreach and Advertising Campaign
Phase 3 February Candidate screening and Interviews
Phase 4 February/March Candidate selection, background, and offer
Phase 5 March Appointment
Start Date April 2017
The core services required include the following:
Being the primary contact with Council, guiding and advising them through the recruitment
and selection process.
Meet with the City Council to facilitate discussion and to develop the City Manager
candidate profile.
Interview the Executive Team and key stakeholders to determine desired characteristics
of the City Manager.
Advise Council on all phases of the recruitment, including who should be involved and to
what extent. This may include input regarding participation from key stakeholders,
department heads, other staff and the community.
Develop recruitment materials.
Conduct a national outreach and advertising campaign aimed at producing the highest
quality City Manager candidates.
Review and screen candidates. Personally meet with top candidates prior to presenting to
Council.
Meet with the City Council to review recommendations for final candidates.
Recommend final selection process including meeting with the City Council to facilitate
process to review final candidates.
Contact references and former employers and colleagues of the candidates.
Conduct background on final candidates by independent investigator.
Negotiate compensation package with final candidate if requested.
Item 12.b. - Page 5
City of Arroyo Grande
Request for Proposals
City Manager Recruitment and Selection Process
September 28, 2016
4
The consultant or the City may propose additional tasks as deemed necessary to complete the
assignment. Any additional work shall be compensated as agreed upon as defined in the
Consultant’s contract with the City.
PROPOSAL FORMAT AND CONTENT
Proposals should be concise and limited to the information requested. Each proposal shall
include the following information in this format:
Introduction
A cover letter introducing the company and the individual who will assume the primary
responsibility for the recruitment and be the contact with City Council.
Understanding of Proposal
Statement of your firm’s understanding of the services to be performed and your commitment to
provide the services as indicated in the RFP.
Insurance
A statement that the Consultant can meet the City’s mandatory insurance requirements: The City
requires Commercial General Liability Insurance with limits of not less than $1,000,000 per
occurrence, Professional Liability Insurance with limits of not less than $1,000,000 per occurrence
if available to a professional engaged in Consultant’s regular course of business, and Worker’s
Compensation Insurance as required by the State of California.
Qualifications and Experience
Specific qualifications regarding your firm’s experience in conducting an executive search for a
City Manager, including resumes of the key personnel to be assigned to this project listing City
Manager recruitment processes that they have coordinated over the past three years. Provide an
estimated proportion of work to be performed by principal, associates and/or support staff.
Work Plan
Provide a brief description of the work plan, methodologies and approach proposed to carry out
the tasks set forth in the Scope of Work.
Costs
Submit a flat fee proposal to complete the entire scope of work, including travel and incidental
expenses. 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.
Schedule
Provide a detailed timeline with proposed payment schedule, assuming the work will begin by
December 2016.
References
Provide a minimum of three municipal references for City Manager recruitments conducted within
the past five years. The references must be for searches conducted using the principal being
recommended as a part of this proposal. Include with the name, entity, address, and daytime
telephone number of the reference.
Item 12.b. - Page 6
City of Arroyo Grande
Request for Proposals
City Manager Recruitment and Selection Process
September 28, 2016
5
The proposal must include an authorized signature binding the firm to the proposal for a ninety
(90) day period.
SELECTION PROCESS
Each of the proposals received will be evaluated and determined if they meet the stated
requirements of the Request for Proposal. Failure to meet these requirements will be a cause to
eliminate the Consultant from further consideration.
The City will not be liable for any costs incurred in the preparation of the proposal nor for obtaining
the required insurance.
The City reserves the right to reject any and all proposals, to waive any technicalities, to accept or
reject the proposal and to be the sole judge of the suitability of the proposals submitted.
The review committee, comprised of the Interim City Manager and City Council Ad Hoc
Subcommittee, will evaluate the proposals. In addition to evaluating the written materials, oral
interviews may be requested. A recommendation to the full City Council will be prepared generally
based upon the following criteria, which is neither weighted nor prioritized:
Demonstrated understanding of the services requested.
Prior and recent experience in successfully performing similar work.
Qualifications of the firm and the assigned individuals.
Methodology and proposed approach in completing the work.
Background and related experience of the primary and other individuals assigned to this
engagement.
Fees to be charged and overall cost effectiveness of the proposal.
Outcome of reference checks.
SUBMITTAL
Submit a total of 7 copies to:
Robert K. McFall
Interim City Manager
300 E. Branch Street
Arroyo Grande, CA 93420
Show the following information on the outside of the package:
Consultant’s name and address
City Manager Recruitment Proposal
Closing Date: All proposals must be received by Friday, October 28, 2016 at 5:00 p.m. Any
proposals received after that time will not be considered.
For questions or additional information, please contact Robert K. McFall at
bmcfall@arroyogrande.org or 805.473.5408.
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