Rancho Palos Verdes City Council
   

AUGUST 15, 2006 RANCHO PALOS VERDES CITY COUNCIL AGENDA-CITY MANAGER RECRUITMENT AUGUST 15, 2006 RANCHO PALOS VERDES CITY COUNCIL AGENDACITY MANAGER RECRUITMENT AUGUST 15, 2006 RANCHO PALOS VERDES CITY COUNCIL AGENDA-CITY MANAGER RECRUITMENT

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: ASSISTANT CITY MANAGER/CITY CLERK

DATE: AUGUST 15, 2006

SUBJECT: CITY MANAGER RECRUITMENT

RECOMMENDATION

1) Authorize the Mayor to execute the professional services agreement with Avery Associates; and, 2) ADOPT RESOLUTION NO. 2006- , A RESOLUTION OF THE CITY OF RANCHO PALOS VERDES AMENDING RESOLUTION NO. 2006-41, THE BUDGET APPROPRIATION FOR FISCL YEAR 2006-07, FOR A BUDGET ADJUSTMENT TO THE CITY’S GENERAL FUND.

BACKGROUND

In June 2006, City Manager Les Evans announced that he would be retiring on December 21, 2006. On July 8 and July 22, 2006, Council interviewed three executive recruitment firms to assist in the search and selection process for a new City Manager:

- Bob Murray & Associates
- Ralph Andersen & Associates
- Avery Associates

On August 1, 2006, Council selected the firm of Avery and Associates to conduct the recruitment and directed staff to bring back a contract for Council’s review this evening.

DISCUSSION

The attached contract has been reviewed and modified by the City Attorney to include the City’s standard professional services agreement provisions. In addition, per Council’s direction at the July 22nd interviews, a provision has been added as Part 3 of Section III stipulating that Avery Associates will assist the City in conducting a new recruitment at no additional cost, except direct expenses, if the new City Manager resigns or is terminated within one year of being hired.

Consistent with Avery Associates’ June 23, 2006 proposal, the fixed cost of the contract is $18,900, with additional expenses (such as advertising, printing and binding, and long-distance telephone charges) not to exceed $8,500. Therefore, the maximum contract amount is $27,400. The City's personnel budget for FY 06-07 contains $4,500 for professional/technical services. However, these funds are needed for routine expenses that are expected to accrue to this account by the end of the fiscal year. As a result, a budget adjustment is needed to make the necessary funds available for the contract with Avery Associates, if approved by Council.

FISCAL IMPACT

The recommended action requires adoption of the attached Resolution amending the FY 06-07 budget appropriation and will decrease the General fund reserve by a maximum of $27,400. After the adjustment, the estimated unreserved General Fund balance on June 30, 2007 will be $10,552,438.

Respectfully submitted,

Carolynn Petru
Assistant City Manager/City Clerk

Attachments:

Resolution No. 2006 -
FY 06-07 Statement of Estimated General Fund Reserves
Draft Contract with Avery Associates

RESOLUTION NO. 2006-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AMENDING RESOLUTION NO. 2006-41, THE BUDGET APPROPRIATION FOR FISCAL YEAR 06-07, FOR A BUDGET ADJUSTMENT TO THE CITY'S GENERAL FUND

WHEREAS, on June 6, 2006 the City Council of the City of Rancho Palos Verdes adopted Resolution No. 2006-41, approving a spending plan and authorizing a budget appropriation for the 2006-2007 fiscal year; and,

WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council; and,

WHEREAS, additional funds are needed in the Administration Personnel budget to complete the recruitment for a new City Manager which were not accounted for in the adopted FY 06-07 Budget.

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

Section 1: The following increase be made to the fiscal year 2006-2007 General Fund budget:

General Fund:

Professional/Technical Services #101-1011-411-32-00 $27,400

PASSED, APPROVED, and ADOPTED this 15th day of August 2006.

 

___________________________
MAYOR
ATTEST:

______________________
CITY CLERK

State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )

I, Carolynn Petru, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2006-___ was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on August 15, 2006.

 

___________________________
CITY CLERK

 

AGREEMENT BETWEEN

THE CITY OF RANCHO PALOS VERDES

AND

WILLIAM AVERY & ASSOCIATES

This agreement, effective immediately, is entered into by and between WILLIAM AVERY & ASSOCIATES, INC. (hereinafter referred to as CONSULTANT) at 3 1/2 N. Santa Cruz Avenue, Suite A, Los Gatos, California 95030 and the CITY OF RANCHO PALOS VERDES (hereinafter referred to as CITY).

WITNESSETH:

WHEREAS, CITY has need for specialized consultant services; and

WHEREAS, CONSULTANT has the training, experience and competence to perform the specialized services required by the CITY; and

WHEREAS, CITY has the authority under state law to retain CONSULTANT;

NOW THEREFORE, the parties to this agreement do hereby mutually agree as follows:

I.

DUTIES OF CONSULTANT

1. CONSULTANT will perform any and all necessary work in order to assist the CITY in recruiting and hiring a qualified City Manager. Work to be performed includes:

o CONSULTANT to meet with CITY Officials and others deemed appropriate by the CITY.

o CONSULTANT will develop recruitment materials (including the candidate profile, job announcement, and employment ads) for the CITY.

o CONSULTANT will conduct outreach to seek out and recruit qualified candidates for the position.

o CONSULTANT will conduct preliminary screening to eliminate candidates who do not possess minimum required qualifications.

CONSULTANT will work with the CITY to provide a recommended list of finalists. In performing the screening, CONSULTANT will utilize a combination of the following techniques:

1. Resume review
2. Phone interviews
3. Formal interviews
4. Initial reference interviews

o CONSULTANT will, along with a City Council Subcommittee, present the CITY with the recommended list of finalists accompanied by detailed written reports. CONSULTANT will work with the CITY to arrange for interviews, suggest interview questions, and if requested, attend interview sessions.

o CONSULTANT will notify all unsuccessful candidates.

o CONSULTANT will, if requested, assist with final reference checks, compensation negotiations, etc.

o All work on this assignment will be performed by Bill Avery of William Avery & Associates. He will be assisted by Ann Slate or Gary Rogers.

o Attached hereto and incorporated herein by this reference is a document entitled Scope of Services, which details the work to be performed by CONSULTANT and the process to be followed.

2. Time is of the Essence. Time is of the essence for the performance of the services pursuant to this Agreement. CONSULTANT shall not be deemed to be in default where failure or delay in the performance of any of its obligations under this Agreement is caused by floods, earthquakes, fires, wars, riots or other hostilities or causes that are beyond CONSULTANT’s control.

3. Independent Contractor. CONSULTANT is and shall at all times remain, as to City, a wholly independent contractor. Neither City nor any of its agents shall have control over the conduct of CONSULTANT or any of CONSULTANT 's employees, except as herein set forth. CONSULTANT shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of CITY.

4. Assignment. This agreement may not be assigned by CONSULTANT, in whole or in part, without the prior written consent of CITY.

5. Interests of Consultant. CONSULTANT affirms that it presently has no interest and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of the services contemplated by this Agreement. No person having any such interest shall be employed by or be associated with CONSULTANT.

II.

DUTIES OF CITY

1. CITY shall cooperate with CONSULTANT in the performance of this agreement as follows:

a) Providing all information reasonably accessible to CITY which may be helpful to CONSULTANT in the performance of its services, and

b) Making staff available for interviews/consultation, etc.

c) Providing clerical and stenographic assistance as CONSULTANT may reasonably require at City Hall, and

d) Providing a suitable location where interview sessions may be conducted.

III.

CONSIDERATION

1. For the services described above, the CITY shall pay CONSULTANT the sum of Eighteen Thousand Nine Hundred ($18,900) Dollars, Seven Thousand Nine Hundred ($7,900) Dollars to be due and payable upon commencement of work. The balance will be due upon completion of work and the hiring of a new City Manager by CITY.

2. CONSULTANT shall bill CITY for direct expenses for advertisement, clerical time, long distance telephone calls, travel, etc. Total billings for expenses shall not exceed Eight Thousand Five Hundred ($8,500) Dollars. Expenses will be detailed and billed monthly.

3. If the individual who is hired by CITY as the City Manager either resigns or is terminated within the first year of his or her employment, then CONSULTANT will conduct a new recruitment at no additional charge to CITY, except that CONSULTANT may bill CITY for its direct expenses in conducting the recruitment in accordance with paragraph 2 of this Section III.

IV.

INDEMNITY

CONSULTANT shall indemnify, defend, and hold harmless the CITY, its officers, agents and employees against any and all liability, claims, actions, causes of actions or demands whatsoever against them, or any of them, for injury to or death of persons or damage to property arising out of, connected with, or caused by CONSULTANT, CONSULTANT’S employees, agents or independent contractors or companies in the performance of (or in any way arising from) the terms and provisions of this Agreement.

V.

INSURANCE

1. CONSULTANT shall at all time during the term of this Agreement carry, maintain, and keep in full force and effect, with an insurance company admitted to do business in California with a minimum rating of A in the latest edition of Best’s Insurance Guide: (1) a policy or policies of broad-form comprehensive general liability insurance with minimum limits of $1,000,000.00 combined single limit coverage against any injury, death, loss or damage as a result of wrongful or negligent acts by CONSULTANT, its officers, employees, agents, and independent contractors in performance of services under this Agreement; (2) property damage insurance with a minimum limit of $1,000,000.00; (3) automotive liability insurance with a minimum combined single limits coverage of $1,000,000.00; and (4) worker's compensation insurance with a minimum limit of $1,000,000.00 or the amount required by law, whichever is greater. CONSULTANT agrees that it will not cancel, reduce or otherwise modify said insurance coverage.

2. CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect, and such insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay the premium thereon, and the repayment thereof shall be deemed an obligation of CONSULTANT and the cost of such insurance may be deducted, at the option of CITY, from payments due CONSULTANT.

3. The insurance provided by CONSULTANT shall be primary to any coverage available to CITY. The policies of insurance required by this Agreement shall include provisions for waiver of subrogation.

VI.

GENERAL PROVISIONS

This Agreement shall in all respects be interpreted, enforced and governed by and under the laws of the State of California applicable to instruments, persons, transactions and subject matter which have legal contacts and relationships solely within the County of Los Angeles, State of California. Venue and jurisdiction with respect to any action, claim or other proceeding arising under or in relation to this Agreement shall be exclusively in the State Courts located within the County of Los Angeles, State of California.

In the event of any dispute, action, proceeding or controversy regarding the existence, validity, interpretation, performance, enforcement or claimed breach of this Agreement, the prevailing party shall be entitled to recover all of the prevailing party’s costs, including reasonable attorneys’ fees incurred in connection therewith.
This Agreement shall be binding on and inure to the benefit of the Parties and their respective successors and assigns.

None of the Parties hereto shall be deemed to be the drafter of this Agreement, but it shall be deemed that this Agreement was jointly drafted by each of the Parties hereto. The terms of this Agreement shall not be interpreted or construed in favor of, or against, any Party hereto. Should any provision of this Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement in favor of or against any Party herein, but rather by construing the terms of this Agreement as a whole according to their fair meaning.

This Agreement cannot be modified or changed except by written instrument signed by both of the Parties hereto.

No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.

In the event that any provision hereof is deemed to be illegal or unenforceable, such a determination shall not affect the validity or enforceability of the remaining provisions thereof, all of which shall remain in full force and effect. In the event that any such provision shall be deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope or breadth permitted by law.
This Agreement, and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between CONSULTANT AND CITY. This Agreement supersedes all prior oral or written negotiations, representations or agreements.

This Agreement may be canceled by CITY at any time without penalty upon thirty (30) days' written notice to CONSULTANT. CONSULTANT may terminate this Agreement due to CITY’s failure to pay for CONSULTANT’s services, as specified herein, provided that CONSULTANT first shall provide thirty days advance written notice to CITY and an opportunity to cure the default.

Any notice required to be given to CONSULTANT shall be deemed duly and properly given upon delivery, if sent to CONSULTANT, postage prepaid, to the address provided to CITY in writing by CONSULTANT or personally delivered to CONSULTANT at such address or any other address subsequently provided to CITY in writing by CONSULTANT. Any notice required to be given to CITY shall be deemed duly and properly given upon delivery, if sent to CITY, postage prepaid, to the address provided to CONSULTANT in writing by CITY or personally delivered to CITY at such address or any other address subsequently provided by CITY in writing to CONSULTANT.

 

WILLIAM AVERY & ASSOCIATES CITY OF RANCHO PALOS VERDES

 

William Avery, President Mayor

Dated:__ ___________
Dated:______________________________

ATTEST:

__________________________________
City Clerk

SCOPE OF SERVICES
FOR THE
CITY MANAGER RECRUITMENT
FOR THE CITY OF RANCHO PALOS VERDES

Bill Avery will serve as the Project Lead and will be assisted by Gary Rogers and/or Ann Slate in this assignment. Mr. Avery will be personally involved in the initial client discussions, strategy development, outreach, interview and assessment of candidates, presentation of final candidates and will be available throughout the search process to provide other related consulting services.

Recruitment Plan and Services Provided

I. Position Profile and Organizational Assessment

The initial assessment phase is a critical component of the search process. Mr. Avery will meet with the key decision makers to discuss the organizational needs and position requirements and to formalize the job description. In this assignment we would anticipate individual meetings with the City Council in addition to various department heads as designated by the City. If desired, we would also be prepared to meet with community groups identified by the City. Our goal for this aspect of the recruitment process is to:

- Understand the Council and City priorities for this position.

- Develop a clear understanding and consensus on the expertise, experience, education, performance attributes and operational style of the ideal candidate.

- Discuss the goals, objectives, deliverables, and challenges related to this position.

- Gain insight of the various organizational dynamics and departmental issues that exist within the organization.

- Identify the compelling aspects to this opportunity.

The formal position description and a subsequent ideal candidate profile would be developed from the above discussions and incorporated into the formal position announcement. The candidate profile is also utilized in various other means as a marketing tool, for advertising copy, postings, and for other announcements.

II. Development of the Search Strategy

The search strategy is developed in conjunction with the organizational assessment. The final approach is based on your input and considerations during the assessment activity. For this assignment, we feel it is critical to develop a high level of visibility with a comprehensive outreach program supplemented by a focused targeted recruitment approach. We would incorporate the following elements into this search:

• Original research, which consists of identification and contact of current incumbents or other candidates who meet the profile, but are not actively seeking other employment.

• Development of a targeted candidate list based on our extensive database of key executive contacts, referrals and recommendations from key sources, and other current and former City Management personnel who have extensive contacts and networks in this area.

• Public information sources that include various membership listings such as the California League of Cities, ICMA and the various municipal organizations within the State.

• An extensive mailing campaign to current city managers throughout the State.

• Print advertising in Western City and Jobs Available magazines, and the ICMA newsletter.

• Internet job postings on national public sector employment bulletin boards, City Management and Municipal Assistant association-based web sites, and our company website.

• Utilization of our extensive key executive contacts included in our recruitment database.

III. Candidate Assessment

Our assessment process involves several “tiers” of evaluation. All candidates responding to this position will initially be evaluated based on their resume and, if appropriate, an extensive phone “screening” by a firm Consultant. We understand the Council Subcommittee would actively participate in the initial interview portion of the process. We would coordinate candidate interviews with the Subcommittee (potentially between 12 to 15 interviews) to ensure mutually convenient dates.

These extended personal interviews typically take one hour and a thorough discussion of their experience, accomplishments, management philosophy and interpersonal style takes place. Those individuals who best fit the position requirements will have a Candidate Assessment Report developed by the Principal who conducted the interview. We also conduct initial reference interviews on candidates selected for presentation to our clients.

IV. Candidate Presentation

Upon completion of formal interviews, a selection of candidates for presentation is made. Here we would anticipate the Subcommittee would take an active role in the final selection of candidates to present to the full Council.

Typically, the number of final candidates requested by our clients range from four to seven. We feel our extensive qualification, interview, and reference interviewing process and the knowledge gained during our initial assessment period, enable our client to proceed with fewer rather than more finalists.

The final candidates are presented in our candidate presentation “book”. Each finalist will have a file consisting of a candidate summary sheet, a resume, the Candidate Assessment Report (based on the formal interview), and two candidate reference interviews.

V. Selection Process

Once the final candidate interview group is identified, we will assist in the structuring of the interview process and coordinate the interview scheduling activity. Our firm will also provide candidates with guidance related to travel planning, hotel accommodations, as well as other interview planning issues.

Upon request, our firm will also arrange a summary background evaluation on the City’s final one or two candidates. A copy of these confidential reports can be provided to you.

VI. Position Closure and Follow-Up

Based on the firm’s experience in human resource management and executive search, we are able to assist our clients in formulating appropriate compensation and other employment arrangements. We will be available throughout our retention to assist in this process.

As a matter of policy, Avery Associates monitors the transition and progress of any executive we place with a client. Within the first three to six months following the hired individual joining the City, we will speak with that individual to ensure the transition has effectively occurred. During the same period we will also review the individual’s status with the City Council.