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04 Staff Report.Teri Black Fourth Amendment 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: 12/19/2023 ITEM NO: 4 DATE: December 1, 2023 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Authorize the Town Manager to Execute a Fourth Amendment to a Consultant Agreement for Executive Recruitment Services with Teri Black & Company, LLC for an Additional Amount of $35,000 with a Total Amount Not to Exceed $205,500 and Authorize an Expenditure Budget Adjustment from Available General Fund Capital/Special Projects Reserve RECOMMENDATION: Authorize the Town Manager to execute a Fourth Amendment (Attachment 5) to a Consultant Agreement for executive recruitment services with Teri Black & Company, LLC (TB&Co) for an additional amount of $35,000 with a total amount not to exceed $205,500 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 executive 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 executive recruitments (Attachment 3). On January 17, 2023, the Town Council authorized the Town Manager to execute a Third Amendment to the Agreement for two additional executive recruitments (Attachment 4). 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 PAGE 2 OF 2 SUBJECT: Fourth Amendment to Agreement with Teri Black & Company, LLC DATE: December 1, 2023 DISCUSSION (Continued): directly that may not be actively searching for a new opportunity and encourage those candidates to compete in a specific recruitment. 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 Fourth 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 to fill executive positions. The Town’s Human Resources Director recently submitted their resignation. The cost of this executive recruitment is estimated to cost $33,000. Therefore, the Town has an immediate need for the services of TB&Co. CONCLUSION: Staff recommends that the Town Council authorize the Town Manager to execute a Fourth Amendment to add $35,000 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 $35,000 brings the total not to exceed amount to $205,500. 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. Third Amendment 5. Proposed Fourth Amendment