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Staff Report with attachments 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: 01/17/2023 ITEM NO: 9 DATE: January 10, 2023 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Authorize the Town Manager to Execute a Third Amendment to a Consultant Agreement for Executive Recruitment Services with Teri Black & Company, LLC for an Additional Amount of $31,000 with a Total Amount Not to Exceed $170,500 and Authorize an Expenditure Budget Adjustment from Available General Fund Capital/Special Projects Reserve RECOMMENDATION: Authorize the Town Manager to execute a Third Amendment (Attachment 4) to a Consultant Agreement for executive recruitment services with Teri Black & Company, LLC (TB&Co) for an additional amount of $31,000 with a total amount not to exceed $170,500 and authorize an expenditure budget adjustment from available General Fund Capital/Special Projects Reserve. BACKGROUND: On October 19, 2021, the Town Council authorized the Town Manager to execute an Agreement with TB&Co for executive recruitment services (Attachment 1). On November 16, 2021, the Town Council authorized the Town Manager to execute a First Amendment to the Agreement for three Director recruitments (Attachment 2). On May 17, 2022, the Town Council authorized the Town Manager to execute a Second Amendment to the Agreement for two additional Director recruitments (Attachment 3). DISCUSSION: The candidate pool for executive level positions is typically smaller, so it is not unusual for public sector agencies to outsource recruitment processes to executive recruitment 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. PAGE 2 OF 2 SUBJECT: Third Amendment to Agreement with Teri Black & Company, LLC DATE: January 10, 2023 CONCLUSION: Based on TB&Co.’s expertise related to successfully completing several director level recruitments for the Town, staff is requesting authorization for the Town Manager to execute a Third Amendment to the current Agreement for services. Given the competition for talent within the public sector, the Town needs to be positioned to move swiftly if and when an executive vacancy occurs. Staff recommends that the Town Council authorize the Town Manager to execute a Third Amendment to add $31,000 to this Agreement and approve the associated budget adjustment as described under the Fiscal Impact section below. COORDINATION: The preparation of this report was coordinated with the Human Resources and Finance Departments, and the Town Attorney’s Office. FISCAL IMPACT: The additional cost of $31,000 brings the total not to exceed amount to $170,500. Staff recommends using a portion of 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. Agreement for Consultant Services 2. First Amendment 3. Second Amendment 4. Proposed Third Amendment This Page Intentionally Left Blank ATTACHMENT 3 This Page Intentionally Left Blank THIRD AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES THIS THIRD AMENDMENT TO AGREEMENT is entered into this 17th day of January, 2023, 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 one additional executive recruitment. 2. Compensation by the Town for the Consultant’s services shall increase by an additional $31,000 of which $21,000 is the professional fee and expenses are not to exceed $10,000. The new not- to-exceed total amount for the Agreement is $170,500. The Agreement is here by amended from $139,500 to $170,500. 3. Term. Extend the term through December 31, 2023. 4. 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 Third Amendment to Agreement. 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: _____________________________________ _____________________________________ Gabrielle Whelan Wendy Wood Town Attorney Town Clerk ATTACHMENT 4