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13 Staff Report - Town Manager Transition Considerations~pW N 0 COUNCIL AGENDA REPORT °S Cato DATE: May 17, 2007 MEETING DATE: 5/21/07 ITEM NO: TO: MAYOR AND TOWN COUNCIL FROM: DEBRA J. FIGONE, TOWN MANAGER SUBJECT: TOWN MANAGER TRANSITION CONSIDERATIONS PURPOSE: The purpose of this memorandum is to provide the Town Council with considerations and recommendations for how the Council might proceed now that I have announced my resignation with the Town effective July 20, 2007. Since I have been through many similar transitions over the course of my career, my goal through this memorandum is to provide you with professional advice on what you can anticipate and should plan for during this transition period. I will assist you in any way that I can to ensure a smooth transition. I do not intend to operate as a "short timer" nor would I like to be viewed as one. In this regard, we should expect that all of the normal roles and relationships under our Council- Manager form of government remain in tact. This can be an unsettling time for an organization. The Council is key in setting the tone for ensuring a productive environment moving forward. A question for Council is if you would like to hold yourselves to any special standards and expectations during this period. The answer to this question might become clearer as the process unfolds. The following are key elements of transition planning for your consideration and determination. Recommendations are identified as they apply. TRANSITON PLANNING: Initiate the Search for a New Town Manager Recruitment Firm: This recruitment of a high level manager can be handled in-house by the Human Resources Department but is more typically conducted by an experienced executive recruiter who has conducted similar searches and who has an extensive network of contacts. Costs for these searches generally run in the N:AMGR\AdminWorkFi1es\2007 Council Reports\TownManaaerTran sit ion. doe Reviewed by: f , ssistant "town Manager Town Attorney Clerk Administrator Finance Community Development PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: TOWN MANAGER TRANSITION CONSIDERATIONS May 17, 2007 range of $15,000-$20,000 plus expenses. There are a number of reasons for employing an experienced recruiter. Recruitments, in particular high level executive recruitments, require confidentiality and special handling. As such there will need to be protocols in place for referring candidates to the selected recruiter. Other areas that the recruiter can help the Council determine are how the candidate profile will be developed, recruitment timeline, outreach and marketing plan, selection process, etc. Once a preferred candidate is selected the recruiter can be very helpful in facilitating salary negotiations and developing final contract terms. Because of his experience with the Town, in consultation with the Mayor, I asked Bill Avery of Avery and Associates to provide a preliminary proposal for the Council to consider. As a reminder, Avery and Associates is a local Los Gatos firm. It has successfully conducted all executive level searches for the Town since 2000. Placements have included the Town Manager, Assistant Town Manager, Police Chief, Finance Director, Human Resources Director, former Parks and Public Works Director and the current director recruitment underway, Assistant Director of Community Development and Economic Vitality Manager. They are very familiar with the community, Town government, Council expectations and organizational culture. Bill Avery has indicated that he is available to begin this search process immediately. Process Management: The proposal from Avery and Associates is attached for your information. It provides a sense of the level of service the Council could expect and the key decisions that will need to be made. A contract under $25,000 could be entered into under the Town Manager's contracting authority. As an alternative, the Council has the option of approving the contract in open session. A process to find another search firm could take 4 to 6 weeks. The Council might consider appointing an ad hoc subcommittee of the Council to interview Avery and Associates and make a recommendation on how to proceed, perhaps as early as your June 4th meeting. A subcommittee could also serve as your liaison to the recruiter in the Town Manager selection process. After a discussion with Avery, the subcommittee will better understand the areas that the Council will want to ensure are well managed. Recommendation: I recommend that the Council hire a recruiter who will provide the full array of recruitment services to the Town. This is a very competitive market and I'm sure that the Council will want every opportunity to find the best candidates possible. I suggest that a process be developed that would facilitate having the new Town Manager in place by your November 5"' Council meeting. This is an aggressive but realistic timeline. It's similar to the one that unfolded when I was hired in 2000. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: TOWN MANAGER TRANSITION CONSIDERATIONS May 17, 2007 Interim Town Manager An interim Town Manager should be selected. This is a personnel matter that can be discussed in closed session. The following comments on work plan should assist the Council in determining options for an interim structure. I am confident that the entire organization is ready to step up and support the Council during this period. The Executive Team is solid and professional. They will not let you down. You can expect business as usual. Work Plan As you know the Town has a significant work plan. At your March 9th and I Oth retreat, Council acknowledged the importance of completing priority projects by staying focused and not adding low priority items to the work plan. It is particularly important that this objective continue during the transition. There are several items that I would like to bring to closure, or get very close to closure, before I leave. Of course anything could cause a project to slow down or get off track. I would not sacrifice good work or decisions for expediency. That said, unless the Council has alternative direction, the following are the areas I intend to focus on before I leave. • Vasona Land Sale- recommendation • Civic Center Master Plan- recommendation on final master plan and next steps • Verizon Building Purchase for Police Facility - recommendation and next steps • Parks and Public Works Director- complete hiring decision • Labor Relations - complete key labor negotiations in process or anticipated; complete management performance reviews • Climate Control Study Session -a study session will be developed to raise awareness on green gas emissions issues and programs that the Council should be aware • General Plan Update- develop options for a structure to manage the process • Town Hall in the Neighborhood- set dates and develop key topics framework • Community Bus Transition to a Paid Fare System- although this is a VTA responsibility, like to ensure that VTA has communicated effectively with the public about this change There are many important projects, large and small, planned for 2007-08. The current work plan is attached. CONCLUSION: This is an important transition for the Town. Staff is available to assist the Council as it determines. Attachments: 1. Proposal from Avery and Associates 2. Work Plan AVE_~Y c 1 e( Los Gatos Santa Cruz ♦ San Luis Obispo ♦ Bend, OR May 15, 2007 Joe Pirzynski, Mayor Town of Los Gatos 110 E. Main St. Los Gatos, CA 95031 Dear Joe: Thank you for the opportunity to submit our proposal for the recruitment of a new Town Manager for the Town of Los Gatos. We take great pride in providing our clients exceptional service and excellent results. These successful client partnerships result from an active and comprehensive level of Principal involvement leading to positive business relationships and highly satisfied clients. We feel exceptionally suited to perform this recruitment on your behalf. Over the years we've had extensive interaction with City Managers based on our successful Labor Relations and Executive Search practices. Previous executive level recruitments for City Managers (which are listed in our proposal) and GM/CEOs, have also allowed us to create an extensive and current database of potential candidates for this role. During the past 15 months, we've also completed City Manager recruitments for the cities of Redding, Hanford, Los Altos Hills, King City, Vallejo, Half Moon Bay, Belmont, Rancho Palos Verdes and Emeryville. And, of course, we conducted the very successful recruitment for your outgoing Town Manager some years back. We feel our direct experience in city manager recruitments, our knowledge of the Town of Los Gatos and the hands-on involvement by our firm Principals with all aspects of the project would be of great value to you in this recruitment. Enclosed you will find the following information: • Overview of our Proposed Process • Recruitment Timeline • Company Profile and Firm Qualifications • Recruitment Work Plan • Consulting Fee, Billing Assignment and Guarantees & Ethics William Avery & Associates, Inc. Labor Relations/Executive Search 3-1/2 N. Santa Cruz Ave., Suite A Los Gatos. CA 95030 408.399.4424 Fax: 408.399.4423 wtivw.averyassoc.net ATTACHMENT 1 Thank you again for the opportunity to be considered for this recruitment. If you have any questions, please do not hesitate to call Paul Kimura or me at 408-399-4424. Sincerely, William H. Avery WHA.jmc PROPOSAL FOR THE TOWN OF LOS GATOS RECRUITMENT FOR THE NEW TOWN MANAGER Avery Associates - Profile Avery Associates is a Los Gatos, California based Management Consulting firm incorporated in 1982. We specialize in Executive Search and Human Resources/Management Consulting. Our firm currently has two Principals and several key Consultants. Bill Avery heads the Firm and the Management/Labor Relations practice in addition to participating in key searches. Paul Kimura is the Principal who oversees the Search and Recruitment practice. Ann Slate, Cris Piaseeki and Gary Rogers form the core recruitment team for the firm. Jackie Collins and Leah Jakusovszky handle administrative support. We offer a unique recruitment service as the background and capabilities of our firm Consultants gives us the ability to provide recruitment services that positively differentiates us from other strictly public sector search firms. We do so by incorporating private sector search methodologies into our public sector recruitment process, and combining "best" practices from each of the sectors in which we operate. Firm Qualifications The majority of the recruitment activity is completed by our firm Principals. This hands-on involvement includes client interface, development of position profile and announcement, candidate identification, interviewing and assessment, candidate presentation, facilitation of the final interview process, and if desired, assistance in negotiating the offer of employment with the selected candidate. Among the city management recruitments we've completed include: Town Manager for the Towns of Atherton and Los Gatos; City Manager for the cities of Emeryville, Rancho Palos Verdes, Belmont, Vallejo, Half Moon Bay, Culver City, Redding, Hanford, Pittsburg, Sanger, Avalon, Reedley, Los Altos Hills and Suisun City; CAO for the County of San Bernardino and the City of Culver City; CEO for the Community Redevelopment Agency for the City of Los Angeles; General Manager for the City of Los Angeles Community Development Department; Assistant City Managers for the cities of Riverside, San Leandro, Vacaville and Lodi; and Assistant CAO for Culver City. Currently, we are assisting the City of Los Altos in their recruitment for a City Manager. Mr. Avery, having served in the past as a City Manager, provides the direct experience and knowledge of city administration. Mr. Kimura's expertise in executive, technical and business recruitment, which he gained during his nineteen years of advanced technology experience, provides the basis for many of the recruitment strategies and tactics utilized by the firm. Collectively, the firms Principals offer exceptional expertise in the area of executive recruitment. We're pleased that each of our recruitments has resulted in a successful closure within the projected timeframe. More importantly, our clients have expressed a high degree of satisfaction in the quality and depth of our service. Recruitment Team for the Town of Los Gatos Bill Avery will serve as the Project Lead and will be assisted by Ann Slate in this assignment. Mr. Avery will be personally involved in the initial client discussions, strategy development, outreach, interview and assessment of candidates, presentation of final candidates and will be available throughout the search process to provide other related consulting services. Recruitment Plan and Services Provided I. Position Profile and Organizational Assessment The initial assessment phase is a critical component of the search process. Mr. Avery will meet with the key decision makers to discuss the organizational needs and position requirements and to formalize the job description. In this assignment we would anticipate individual meetings with the Town Council in addition to various department heads as designated by the Town. If desired, we would also be prepared to meet with community groups identified by you. Our goal for this aspect of the recruitment process is to: • Understand the Council and Town priorities for this position. • Develop a clear understanding and consensus on the expertise, experience, education, performance attributes and operational style of the ideal candidate. • Discuss the goals, objectives, deliverables, and challenges related to this position. • Gain insight of the various organizational dynamics and departmental issues that exist within the organization. • Identify the compelling aspects to this opportunity. The formal position description and a subsequent ideal candidate profile would be developed from the above discussions and incorporated into the formal position announcement. The candidate profile is also utilized in various other means as a marketing tool, for advertising copy, postings, and for other announcements. II. Development of the Search Strategy The search strategy is developed in conjunction with the organizational assessment. The final approach is based on your input and considerations during the assessment activity. For this assignment, we feel it is critical to develop a high level of visibility with a comprehensive outreach program supplemented by a focused targeted recruitment approach. We would incorporate the following elements into this search: • Original research, which consists of identification and contact of current incumbents or other candidates who meet the profile, but are not actively seeking other employment. • Development of a targeted candidate list based on our extensive database of key executive contacts, referrals and recommendations from key sources, and other current and former City Management personnel who have extensive contacts and networks in this area. • Public information sources that include various membership listings such as the California League of Cities, ICMA and the various municipal organizations within the State. • An extensive mailing campaign to current city managers throughout the State. • Print advertising in Western City and Jobs Available magazines. • Internet job postings on national public sector employment bulletin boards, City Management and Municipal Assistant association-based web sites, and our company website. • Utilization of our extensive key executive contacts included in our recruitment database. III. Candidate Assessment Our assessment process involves several "tiers" of evaluation. All candidates responding to this position will initially, be evaluated based on their resume and if appropriate, an extensive phone "screening" by a firm Consultant. Candidates who pass the initial "qualifying" criteria are then scheduled for a formal interview with the Principal in charge of the project. These extended personal interviews typically take one hour and a thorough discussion of their experience, accomplishments, management philosophy and interpersonal style takes place. Those individuals who best fit the position requirements will have a Candidate Assessment Report developed by the Principal who conducted the interview. Additionally, two initial reference interviews are performed on these candidates. 1 IV. Candidate Presentation Upon completion of formal interviews, a selection of candidates for presentation is made. Typically, the number of final candidates requested by our clients range from four to seven. We feel our extensive qualification, interview, and reference interviewing process and the knowledge gained during our initial assessment period, enable our client to proceed with fewer rather than more finalists. The final candidates are presented in our in depth candidate presentation "book". Each finalist will have a file consisting of a candidate summary sheet, a resume, the Candidate Assessment Report (based on the formal interview), and two candidate reference interviews. Candidate summary sheets for everyone else who submitted a resume will also be included. This provides the client an insight to the level and nature of response for their position. V. Selection Process Once the final candidate interview group is identified, we will assist in the structuring of the interview process and coordinate the interview scheduling activity. Our firm will also provide candidates with guidance related to travel planning, hotel accommodations, as well as other interview planning issues. Upon request, our firm will also arrange a summary background evaluation on the Town's final one or two candidates. A copy of these confidential reports can be provided to you. VI. Position Closure and Follow-Up Based on the firm's experience in human resource management and executive search, we are able to assist our clients in formulating appropriate compensation and other employment arrangements. We will be available throughout our retention to assist in this process. As a matter of policy, Avery Associates monitors the transition and progress of any executive we place with a client. Within the first three to six months following the hired individual joining the Town, we will speak with that individual to ensure the transition has effectively occurred. During the same period we will also review the individual's status with your office. Consulting Fee Based on the services described in our proposal, the professional services consulting fee for this recruitment will be $16,900. If awarded the search, we would request an initial retainer of $6,900 at the outset of the search. The final balance of $10,000 would be invoiced at the completion of the search. In addition to the Professional Services Fee, normal and direct out-of-pocket expenses associated with the search are charged back to the client. Expenses for this assignment would be a not-to- exceed amount of $7,000. These expenses include: advertising, clerical time, supplies, printing, telephone, postage, summary background evaluations, and consultant travel for client discussions, meetings and local and out-of-area candidate interviews. All expense items will be detailed and billed on a monthly basis. The consulting fee will be inclusive of all services defined within this proposal unless otherwise stated. Guarantees and Ethics Whenever William Avery & Associates, Inc. is retained, we make several guarantees and commitments to a client. Due to our experience, knowledge and success within the management consulting field, we assure a client that we will only present candidates who meet a substantial majority of the ideal qualifications that you have outlined. We are also committed to continue our search efforts until a successful candidate is employed. It is also our practice to replace a candidate who may voluntarily resign during the first year of his/her employment. This same commitment applies if the client finds it necessary to terminate or to request the resignation of the selected individual in the first year for reasons which would have precluded his/her employment had they been known at the time employment started. 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