AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: PATRICIA AHUMADA
HUMAN RESOURCES MANAGER
SUBJECT:
title
CONTRACT SERVICES AGREEMENT FOR ON-CALL CITYWIDE EXECUTIVE RECRUITMENT SERVICES
summary
Summary:
City staff has identified a need for specialized support to recruit executive-level positions and attract strong, experienced candidates to maintain high standards in public service delivery. Given the competitive nature of executive recruitment and the importance of finding qualified candidates who align with its mission and values, the City seeks to establish on-call consulting services to provide targeted recruitment expertise. This approach allowed the City to access skilled recruitment professionals with broad access to professional networks and ensure flexibility and timely responses to upcoming vacancies.
The City Council will consider authorizing the City Manager to execute three (3) Professional Consultant Services Agreements with qualified firms to provide on-call Citywide Executive Recruitment Services, for a not-to-exceed amount of $75,000 for each firm. The contract authority limit for each proposed contract is intended to provide the City with the opportunity to use one or more of the firms to perform the services. Staff will monitor spending associated with each contract to ensure expenditure remains within the City Council’s approved budget allocation.
Strategic Plan Goal(s):
Goal No. 5 High Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services
recommendation
Recommendations:
1. Authorize the City Manager to enter into a three-year Professional Services Agreement, with two additional one-year extensions, with Bob Hall & Associates, to provide on-call executive recruitment services, for a not-to-exceed amount of $75,000 for the term of the agreement, in a form approved by the City Attorney.
2. Authorize the City Manager to enter into a three-year Professional Services Agreement, with two additional one-year extensions, with Gallagher Benefits Services, Incorporated, to provide on-call executive recruitment services, for a not-to-exceed amount of $75,000 for the term of the agreement, in a form approved by the City Attorney.
3. Authorize the City Manager to enter into a three-year Professional Services Agreement, with two additional one-year extensions, with Raftelis Financial Consultants, Incorporated, to provide on-call executive recruitment services, for a not-to-exceed amount of $75,000 for the term of the agreement, in a form approved by the City Attorney.
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Fiscal Impact:
The Fiscal Year 2024-25 adopted budget includes an appropriation for Executive Recruitment Services which is budgeted within the Human Resources Division (46). The proposed Professional Services Agreements are for a contract amount not-to-exceed $75,000 over the three-year term.
Background:
The City issued a Request for Proposals (RFP) for executive recruitment services to be provided on an as-needed basis (Attachment A). The City anticipates requiring one to two executive recruitments annually. The selected consultant must comply with all applicable federal, state, and local equal opportunity requirements and take affirmative action to ensure equal employment opportunities throughout the recruitment process.
The consultant’s scope of work includes the following executive search services:
a. Job Profile/Recruitment Brochure: The consultant will develop a candidate profile and recruitment strategy; conduct individual interviews with the Deputy City Manager (or their designee); develop a recruitment brochure of the ideal candidate; place advertisements for the open position(s); and prepare mailing lists of referral sources and potential candidates. The consultant is responsible for target marketing and controlling costs associated with such marketing.
b. Recruitment/Search, Advertising Campaign, Networking, and Screening: The consultant will conduct an aggressive national search for top candidates; reach out to referral sources and potential candidates; conduct targeted social media and industry-specific advertising; and develop a preliminary list of 10-15 candidates whose experience and background most closely fit the requirements of the position based on the candidate profile. Consultant must (i) ensure availability and interests of candidates and (ii) review credentials of each applicant based on resume, referral sources, and telephone interviews. The consultant will conduct preliminary telephone interviews and prepare a written report with the profile of each of the top 10-15 candidates.
c. Semi-Finalist Interviews/Candidate List: The consultant will conduct in-depth interviews with each semi-finalist. The consultant will meet with the City Manager (or designee) to discuss the profiles of each semi-finalist and assist in deciding which candidates to invite for final interviews and condense the list to 5-6 total candidates. The consultant must provide the City with (i) well-written, detailed evaluations of each candidate including academic and professional credentials and (ii) a well-rounded profile on each finalist.
d. Final Reference Checks: The consultant must assist, as needed by the City, in conducting interviews of finalist candidates. The consultant must make all arrangements for necessary candidate travel, lodging, and meals. The consultant will complete a detailed reference check on the top-ranked, selected candidates and will submit all findings in writing to the City Manager (or designee).
e. Negotiation and Approved Contract with Final Choice Candidate: The consultant will assist in the final evaluation of all candidate data and in the selection of the final candidate who will receive the job offer. The City will negotiate a compensation and benefits package with the selected candidate. Should the final candidate decline the job offer, the consultant will assist with identifying additional finalists until a final employment contract is reached or final acceptance of employment is received, as applicable.
f. Termination of the Candidate’s Employment: If the final candidate selected for employment by the City terminates their employment for any reason within one (1) year after the initial date of employment, the consultant must provide the City with the recruitment services described above as needed to appoint a replacement employee at no additional cost to the City.
Analysis:
In response to the RFP, the City received nine (9) proposals. Staff conducted an evaluation of proposals and interviews of the top firms. Staff evaluated the proposals based on the following criteria:
• Qualifications for the Firm: Qualifications to be considered include but are not limited to technical experience in performing work of a closely similar nature; experience working with other public agencies; record of completing work on schedule; strength and stability of firm; technical experience and strength and stability and stability of proposed sub-contractors; and assessments by client references. Qualifications of project staff will also be considered, particularly key personnel, and, especially, the project manager. Other factors to be considered include but are not limited to key personnel’s level of involvement in performing related work, logic of project organization; adequacy of labor commitment, and concurrence in the restrictions on changes in key personnel.
• Methodology of Plan/Project Understanding: The firm has a demonstrated understanding of project requirements, potential problem areas and project approach.
• Cost: Reasonableness of the fee and costs and competitiveness of this amount with other proposals received; adequacy of data in support of figures quoted; basis on which prices are quoted.
Following the initial review, staff invited the top-rated firms to participate in the interview process. Staff interviewed Bob Hall & Associates, Gallagher Benefits Services Incorporated (also known as Koff & Associates), and Raftelis Financial Consultants, Incorporated.
• Bob Hall & Associates, based out of Newport Beach, was formed in 2019 and has recruiters with more than 30 years of experience in city government. As former local government executives, recruiters from Bob Hall & Associates have a wide network throughout Southern California (Attachment B).
• Gallagher Benefits Services, Incorporated, formerly Koff & Associates, merged with Arthur J. Gallagher in 2021, and is based in Berkeley, California. Gallagher Benefits Services, Incorporated, is a full spectrum, public-sector human resources and recruiting services firm with nearly 40 years of experience assisting cities, counties, special districts and other public agencies (Attachment C).
• Raftelis Financial Consultants, Incorporated, based out of Los Angeles, has a project team comprised of skilled professionals, who are seasoned in local government management and have a nationwide network. Raftelis provides management consulting services, including executive search, to local governments and the utility industry. The company’s Executive Search team has conducted more than 350 searches nationwide (Attachment C).
Staff completed a comprehensive evaluation and reference checks for Bob Hall & Associates, Gallagher Benefits Services Incorporated, and Raftelis Financial Consultants Incorporated. Based on this review, staff believes all three firms meet the requirements of the proposal. The three firms demonstrated extensive professional experience recruiting for executive management positions for municipal government, a proven track record of success with executive management placement, a customized approach to understand and meet our needs, and a commitment to recruit with integrity.
Staff recommends the City Council authorize the City Manager to enter into a three-year Professional Services Agreement, with each firm, for on-call Executive Recruitment Services, for a not-to-exceed amount of $75,000, with two additional one-year extensions.
Reviewed for Fiscal Impact:
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Sharon del Rosario
Attachments:
A. Request for Proposals
B. Professional Services Agreement with Bob Hall & Associates
C. Professional Services Agreement with Gallagher Benefits Services, Inc
D. Professional Services Agreement with Raftelis Financial Consultants, Inc.