SR-11-25-2014-3LCity Council Meeting: November 25, 2014
Agenda Item: 7"
To: Mayor and City Council
From: Donna Peter, Human Resources Director
Subject: Agreement with Alliance Resource Consulting, LLC for City Manager
Executive Recruitment
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a professional services agreement with Alliance Resource Consulting LLC., a
California -based company, in the amount not to exceed $47,500, to provide executive
recruitment services in the search for a new City Manager.
Executive Summary
The municipal code states that the City Manager shall be chosen based upon their
executive and administrative qualifications. The City Manager serves as the chief
executive officer and head of the administrative branch of the City government. It is a
high - profile position that is appointed by the City Council. As such, staff recommends
engaging an executive recruitment firm to conduct a nationwide search to identify
candidates to fill the vacancy that will occur when the incumbent City Manager retires in
January. Alliance Resource Consulting LLC. is recommended to provide executive
search and recruitment services for an amount not to exceed $47,500.
Background
On August 1, 2014 the City's current City Manager, Rod Gould, announced his intention
to retire in January 2015. Subsequently, the Council directed staff to engage in a
nationwide search to recruit candidates for the position.
Discussion
The City contracts with executive search firms to assist with identifying candidates for
high -level management vacancies that require customized recruitment strategies and
approaches. Executive search firms assist in the creation of a recruitment profile which
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details the desired qualifications and characteristics for the position. The firm then uses
professional contacts, relationships, industry- specific and non - traditional outreach to
find qualified candidates. Once an applicant pool is created, the firm assesses and
evaluates candidates, verifies degrees and certifications, monitors news sources,
conducts preliminary interviews, and checks references. A selection panel interviews a
group of candidates. The top qualified candidates are then interviewed by the hiring
authority that makes the final selection.
Staff is recommending engaging such a firm to assist with the recruitment of a new City
Manager, a leadership position with a significant public profile and a broad spectrum of
duties and responsibilities. The firm would work with the Council and appropriate staff
to develop a recruitment profile, implement the recruitment methodology, and narrow
the applicant pool to the top candidates. City Council members would interview the top
candidates and make the final selection.
Through the City's Charter, Section 704, the City Manager is charged with:
• Serving as the chief executive officer and the head of the administrative branch of
the City government.
• Serve as the administrator of all affairs of the City
• The appointment and removal, subject to the Civil Service provisions of this Charter,
all department heads of the City except as otherwise provided by this Charter
• Review and approval of all proposed appointments and removals of subordinate
employees by department heads
• Preparation of the budget annually and submission to the City Council with
responsibility for its administration after adoption
• Preparation and submission to the City Council as of the end of the fiscal year a
complete report on the finances and administrative activities of the City for the
preceding year;
• Keeping the City Council advised of the financial condition and future needs of the
City and making such recommendations as may seem desirable
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® Performing such other duties as maybe prescribed by this Charter or required of the
City Manager by the City Council, not inconsistent with this Charter
While the City Manager is appointed by and reports to the City Council, the City
Manager serves as the executive leader of the organization and directs and
collaborates with the City's Executive Team while working in close partnership with the
other Council- appointed staff, the City Attorney and City Clerk.
Contractor /Consultant Selection
On October 15, 2014, the City issued a Request for Proposals (RFP) inviting qualified
persons or firms to submit a proposal to conduct a full - service recruitment for the
position of City Manager for the City of Santa Monica. The RFP was posted on the
City's online bidding website. Fifteen vendors were notified, 16 vendors downloaded
the RFP. Five proposals were received and all proposals were equally evaluated.
Staff recommends entering into an agreement with Alliance Resource Consulting, LLC
for an amount not to exceed $47,500 ($38,000 for recruitment services and up to
$9,500 for expenses.) While this amount is under the threshold for Council approval of
professional services agreements, the importance of the Council- appointed position and
its high - profile and public role calls for consideration within a public forum.
Alliance Resource Consulting has nationwide experience recruiting senior executives
for a variety of local governments. In their comprehensive proposal the firm outlined in
detail how they would approach this type of recruitment based upon their previous
recruitments for City Managers for over 41 cities in the states of California, Washington,
Oregon and Virginia. In addition, Alliance, and specifically Lisa Mills who will be on the
proposed team for Alliance, have conducted City Manager recruitments for the City of
Santa Monica. They are well versed in the depth and breadth of our organization and
the community that we serve, which will result in a more expeditious process. This
understanding of the City of Santa Monica will assist in conducting a targeted
recruitment for the best possible City Manager to serve as the chief executive officer for
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the City of Santa Monica. By drawing on past experience recruiting both traditional and
non - traditional candidates, for the City of Santa Monica and other organizations, the
process will likely result in a strong and diverse candidate pool for Council to consider.
Alternatives
Should the Council instead decide not to engage the above recommended firm, the
Council may appoint a sub - committee to review all respondents before making a final
recommendation to Council.
Next Steps
Contingent on Council approval, the following activities would be conducted during the
estimated 14 week recruitment timeline:
• Development of candidate recruitment profile, prepare and place advertisements
. Active recruitment - solicit, receive and acknowledge resumes
• Alliance staff evaluate candidate pool, meet with Council to review leading
candidates
® Alliance staff to conduct preliminary interview
• Council interviews top candidates during a special Council meeting.
Financial Impacts & Budget Actions
The agreement to be awarded to Alliance Resource Consulting, LLC is for an amount
not to exceed $47,500. Funds are available in the FY 2014 -15 budget in division 01202.
The agreement will be charged to account 01202.555060.
Prepared by: Donna Peter, Director, Human Resources
Approved:
Donna Peter
Director, Human Resources
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Forwarded to Council:
Rod Gould
City Manager
Reference:
Agreement No. 10005
(CCS)