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Staff Report.Second Amendment to an Agreement with Teri Black & Company PREPARED BY: Salina Flores Human Resources Director Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 05/17/2022 ITEM NO: 4 DATE: May 11, 2022 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Authorize the Town Manager to Execute a Second Amendment to a Consultant Agreement for Executive Recruitment Services with Teri Black & Company, LLC. in an Amount Not to Exceed $139,500 and Authorize an Expenditure Budget Adjustment in the Amount of $40,000 from Available General Fund Capital/Special Project Reserve. RECOMMENDATION: Authorize the Town Manager to execute a Second Amendment (Attachment 1) to a Consultant Agreement for executive recruitment services with Teri Black & Company, LLC. (TB&Co.) in an amount not to exceed $139,500 and authorize an expenditure budget adjustment in the amount of $40,000 from available General Fund Capital/Special Project Reserve. BACKGROUND: In anticipation of executive retirements, the Town Council authorized the Town Manager to execute an agreement with TB&Co. on October 19, 2021 (Attachment 3). During the November 16, 2021, Council meeting, the Town Manager received additional authorization to execute a first amendment with TB&Co. for the purpose of facilitating up to three Director level recruitments (Attachment 2). Since then, the Parks and Public Works Director and Town Clerk have also submitted their resignations. Based on TB&Co.’s recent successful recruitment processes for the Town, the company was selected to conduct the Parks and Public Works Director and Town Clerk recruitments. DISCUSSION: The candidate pool for executive level positions is typically smaller, so it is not unusual for public sector agencies to outsource these recruitment processes to executive recruitment PAGE 2 OF 2 SUBJECT: Authorize the Town Manager to Execute a Second Amendment to an Agreement for Consultant Services with Teri Black & Company, LLC. DATE: May 11, 2022 DISCUSSION (continued): search firms. Because executive search firms focus solely on recruitments, they have a vast number of contacts. They also have the resources and relationships to proactively contact candidates directly that may not be actively searching for a new opportunity and encourage those candidates to compete in a specific recruitment. CONCLUSION: Based on TB&Co.’s expertise related to successfully completing director level recruitments, staff is requesting authorization for the Town Manager to execute an amendment to the current agreement for services to increase the not to exceed amount to $139,500. A budget adjustment is also needed as described under the Fiscal Impact section below. FISCAL IMPACT: The additional cost of $56,000 brings the total not to exceed amount to $139,500. The Human Resources Department can absorb $16,000 of the $56,000 based on the Adopted FY 2021/22 Operating Budget and remaining $40,000 is needed from the available balance in the Town’s Capital/Special Projects Reserve. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachments: 1. Second Amendment - TB&Co. 2. First Amendment – TB&Co. 3. Agreement for Consultant Services – TB&Co. SECOND AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES THIS SECOND AMENDMENT TO AGREEMENT is entered into this 17th day of May, 2022, by and between the Town of Los Gatos, State of California, herein called the “Town,” and Teri Black & Company, LLC (“Consultant”), herein called the “Consultant.” RECITALS Town and Consultant entered into a Consultant Services Agreement on October 20, 2021, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Attachment 3 to this Amendment. AMENDMENT 1. Scope of Services of the Agreement is hereby amended to provide executive recruitment services for two additional recruitments: Parks and Public Works Director and Town Clerk. 2. Compensation by the Town for the Consultant’s services shall increase by an additional $56,000. The new not-to-exceed total amount for the agreement is $139,500. The Agreement is here by amended from $83,500 to $139,500. 3. All other terms and conditions of the Agreement dated October 20, 2021, remain in full force and effect. IN WITNESS WHEREOF, the Town and Consultant have executed the Second Amendment to Agreement as of the date indicated on page one (1). Town of Los Gatos: Consultant: By: ______________________________ By: ______________________________ Laurel Prevetti Teri Black, President Town Manager Teri Black & Company, LLC Department Approval: __________________________ Salina Flores Human Resources Director Approved as to Form: Approved as to Form: _____________________________________ _____________________________________ Robert Schultz Shelley Neis, MMC, CPMC Town Attorney Town Clerk ATTACHMENT 1 This Page Intentionally Left Blank