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sr-051011-3dCity Of ~+'`y V®~iiV~I ^\~p®ii Santa Monica City Council Meeting: May 10, 2011 Agenda Item: 3-D To: Mayor and City Council From: Donna Peter, Director of Human Resources Subject: Modification to a Professional Services Agreement with KL Executive Search, LLC Recommended Action Staff recommends that City Council authorize the City Manager to negotiate and execute a first modification to a professional services agreement with KL Executive Search, LLC aMaryland-based firm, in the amount of $35,800 to provide executive recruitment services in the nationwide search for a new Director of Transit Services for the Big Blue Bus Department, for a new contract total of $75,000. Executive Summary The City currently has a contract with KL Executive Search, LLC to provide executive recruitment services for the position of Chief Operations Officer at the Big Blue Bus Department. Staff recommends that KL Executive Search, LLC also conduct the recruitment for the Director of Transit Services at a cost of $35,800 and to provide additional executive management recruitment services through the remainder of this current fiscal year (FY10-11) and for FY 2011-12 for a total amount not to exceed $75,000. Discussion The Human Resources Department contracts with executive search firms to assist with the recruitment of high-level management vacancies. Hiring such firms provides for industry specific professionals to conduct recruitments that are of a complex and/or difficult to fill nature. The positions of Chief Operations Officer and Director of Transit Services fall into these categories due to the intricate facets of the transit industry. The initial contract with KL Executive Search, LLC for the position of Chief Operations Officer at the Big Blue Bus Department was for a total amount not to exceed $39,000. The proposed modification to the agreement with KL Executive Search, LLC, for the 1 recruitment for the Director of Transit Services, is for an amount not to exceed $35,800. The $75,000 total amount is now presented to Council for authorization. Contractor/Consultant Selection In October 2010, staff solicited informal proposals from three executive search firms specializing in the transit industry for recruitment services for the position of Chief Operations Officer. KL Executive Search, LLC was chosen based on availability, experience, expertise and cost. During the initial solicitation process the City was not aware of the need to provide recruitment services for the position of Director of Transit Services. Additional services are now required for this recruitment. Based upon the experience KL Executive Search, LLC has had with the City during the recruitment process for the Chief Operations Officer, in addition to the discount offered for a second recruitment; it is proposed that KL Executive Search, LLC also provide recruitment services for the position of Director of Transit Services. KL Executive Search's strength is in their experience and knowledge of the transit industry. The firm is made up of former transit executives who have had successful careers in the transit industry. KL Executive Search, LLC possesses a wealth of knowledge of the industry, maintains a vast network of contacts, and has access to industry databases and organizations. Financial Impacts & Budget Actions The modification to the contract amount to be awarded to K~ Executive Search, LLC will not exceed $35,800, for a total amount of $75,000. 2 Funds are included in the FY 2010-2011 budget at account number 41640.577064. Budget authority for subsequent years will be requested in each biennial budget cycle for Council approval. Prepared by: Donna Peter, Director of Human Resources Approved: Donna Peter Director of Human Resources Forwarded to Council: --~~. s~ Rod Gould City Manager 3 Reference Contract No. 9367 (CCS).