HomeMy WebLinkAbout16 Executive Service Recruit FirmA endaltem#16
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ACTION
To:Board of Directors
From:Michael D.Holley
Date:December 04,2019
Subject:Consideration for the Approval of a Professional Services Contract
for the Recruitment of the District’s New Chief Financial Officer and
General Manager
1.WHY THIS MATTER IS BEFORE THE BOARD
Board authorization is required for procurements in excess of $15,000.
2.HISTORY
Michael Holley,the District’s General Manager has announced his intention to retire at
the end of July,2020.In May 2019,in preparation for his retirement and the
recruitment of the next General Manager,the Board approved a professional services
contract with Pamela Hurt Associates to facilitate the District’s transition and
succession planning.Additionally,the Board appointed Director Laliotis and Director
Finn to serve as members of the General Manager Succession Ad Hoc Committee.
Joe Horvath,Electric Utility Director and Brian Wright,Assistant Water Utility Directoi
were nominated to represent staff to the Ad Hoc Committee.
On September 23,2019,the District publicly advertised a Request for Proposal from
executive search firms for the recruitment of the District’s next General Manager.On
October 21,2019,the District received 9 proposals from qualified executive search
firms.Following a high level review of each of the proposals,the Ad Hoc Committee
interviewed representatives from the following 7 firms:
Executive Search Firm Location
Peckham and McKenney Roseville,CA
Korn Ferry Los Angeles,CA
CPS HR Sacramento,CA
Avery Associates Los Gatos,CA
Ralph Andersen and Associates Rocklin,CA
Slavin Management Consultants Norcross,CA
Koff and Associates Berkley,CA
Following the interviews and score assessments,the Ad Hoc Committee determined
that Peckham and McKenney Executive Search and their project lead,Andrew
Gorgey,would be the most beneficial to the District.At the November 20,2019
meeting,the Board approved the Ad Hoc Committee’s recommendation to negotiate a
professional services contract with Peckham and McKenney Executive Search for the
recruitment of the District’s next General Manager.
3.NEW INFORMATION
The District has two executive management positions that will require recruitment and
placement in 2020.These positions include the General Manager and Chief Financial
Officer.As previously discussed,the General Manager position will require
recruitment and placement upon Michael Holley’s retirement at the end of July 2020.
The Chief Financial Officer (CEO),formerly the Administrative Services Director,was
left unfilled following the departure of the previous Administrative Services Director,
Lisa Hall.Staff has identified the need to recruit and fill this position in 2020 to
complete the Executive Leadership Team succession planning and effectively support
the District’s Administrative and Financial Services teams.
During negotiations for the professional services contract with Peckham and
McKenney,staff was asked to consider a proposal to include the recruitment of the
CEO with the recruitment of the General Manager under one professional services
contract.Through the negotiation of terms and associated costs with Peckham and
McKenney,staff identified the benefit of combining the recruitments in terms of
utilizing aligned executive core competencies and cultural skill sets in each of the
candidate pools.Additionally,the District would benefit from costs reductions with the
ability to utilize Peckham and McKenney’s on-site meetings and workshops for both
recruitments.
Following the negotiations and review of terms,the District has received the following
proposal from Peckham and McKenney Executive Search:
Professional Services Price
General Manager Recruitment $26,000.00
Chief Financial Officer Recrutiment $23,400.00
10%Change Order Authorization $4,940.00
total $54,34O~OC
With approval from the Baird,the tentative recruiting time line proposed by Peckham
and McKenney is as follows:
Upon Board approval Project Organization
December Development of candidate profile
December -January Recruitment
January -February Preliminary interviews/Recommendations
February -March Final Interviews/Selection
•February -March Qualifications/Backgrounds/Negotiations
I nis is a nign level,tentative time line subject to avaiia~iiity or me board ana start.~s
previously discussed,the recruitment of the General Manager and CFO will have
overlapping time lines with the intention filling the CEO position in March 2020,and
the General Manager in the summer of 2020.A more formal time line would be
developed following Board approval of the professional services contract and initial
on-site meetings with Mr.Gorgey.
4.FISCAL IMPACT
The recruitment of the General Manager was included in the Board approved EY20
Board of Directors Operations Budget.Sufficient funds do exist for the additional
expense associated with the recruitment of the Chief Einancial Officer.
5.RECOMMENDATION
Authorize the General Manager to execute a professional services contract with
Peckham and McKenney for the recruitment of the District’s new General Manager
and Chief Einancial Officer,in the amount of $49,400,plus a 10%change order
authorization,for a total not to exceed amount of $54,340.
Michael D.Holley
General Manager