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HomeMy WebLinkAbout16 - GM and CFO Executive Recruitment Contract ACTION ITEM #16 District’s New General Manager and Chief Services Contract for the Recruitment of the Consideration for the Approval of a Professional District’s New General Manager and Chief Services Contract for the Recruitment of the Consideration for the Approval of a Professional December 4, 2019 Professional Services Contract for New GM and CFO Brian Wright, Assistant Water Utility Director (representing staff)•Joe Horvath, Electric Utility Director (representing staff)•Christa Finn, Board of Directors•, Board of DirectorsLaliotisTony •Hoc CommitteeAdditionally, the Board appointed a General Manager Succession Ad •facilitate the District’s transition and succession planning professional services contract with Pamela Hurt Associates to In May 2019, in preparation for his retirement, the Board approved a •intention to retire at the end of July 2020.Michael Holley, the District's General Manager has announced his •BACKGROUND / HISTORY Professional Services Contract for New GM and CFO Professional Services Contract for New GM and CFO Committee interviewed 7 prospective executive search firmsFollowing a high level review of each of the proposals, the Ad Hoc •executive search firmsOn October 21, 2019, the District received 9 proposals from qualified •District's next General Manager Proposal (RFP) from executive search firms for the recruitment of the On September 23, 2019, the District publicly advertised a Request for •BACKGROUND / HISTORY Professional Services Contract for New GM and CFO Professional Services Contract for New GM and CFO CABerkley,and AssociatesKoffNorcross, GAManagement ConsultantsSlavinRocklin, CARalph Andersen and AssociatesLos Gatos, CAAvery and AssociatesSacramen to, CACPS HRCALos Angeles,FerryKornRoseville, CAMcKenneyand PeckhamLocationSearch FirmExecutive BACKGROUND / HISTORY Professional Services Contract for New GM and CFO Professional Services Contract for New GM and CFO recruitment of the District’s next General ManagerExecutive Search for the McKenneyand Peckhamcontract with Committee’s recommendation to negotiate a professional services At the November 20, 2019 meeting, the Board approved the Ad Hoc •, would be most beneficial to the DistrictGorgeyAndrew Executive Search and their project lead, McKenneyand Peckhamthe General Manager Succession Ad Hoc Committee determined Following interviews and score assessments of each of the 7 firms, •BACKGROUND / HISTORY Professional Services Contract for New GM and CFO NEW INFORMATION preparation for Michael Holley’s intended retirementGeneral Manager position will require selection by July 2020, in •Chief Financial Officer (CFO) •General Manager (GM)•These positions include•recruitment and placement in 2020The District has two executive management positions that will require •Professional Services Contract for New GM and CFOProfessional Services Contract for New GM and CFO NEW INFORMATION Financial Services teamsEffectively and efficiently support the District's Administrative and •Complete the Executive Leadership Team succession planning•Staff has identified the need to recruit and fill the position in 2020•Services Director in the first quarter of 2019unfilled following the departure of the previous Administrative The CFO, formerly the Administrative Services Director, was left •Professional Services Contract for New GM and CFOProfessional Services Contract for New GM and CFO NEW INFORMATION both recruitmentssite visits and consultations for -Reduced costs attributed to utilizing on•candidate poolAligned executive core competencies and cultural skillsets for each •professional services contract, including, staff considered several benefits of a combined McKenneyand PeckhamDuring the negotiation of terms and associated costs with •of the District's new GMunder the same professional services agreement with the recruitment New proposal to include the recruitment of the District's new CFO •Professional Services Contract for New GM and CFOProfessional Services Contract for New GM and CFO NEW INFORMATION$54,340Total$4,94010% Change Order Authorization$23,400Chief Financial Officer Recruitment$26,000General Manager RecruitmentPriceProfessional Services Executive SearchMcKenneyand Peckhamreceived a proposal from has DistrcitFollowing the negotiations and review of terms, the •Professional Services Contract for New GM and CFOProfessional Services Contract for New GM and CFO NEW INFORMATION Qualifications/Backgrounds/NegotiationsMarch 2020Final Interviews/SelectionMarch 2020–February 2020 Preliminary Interviews/RecommendationsFebruary 2020–January 2020 Candidate RecruitmentJanuary 2020–December 2019 Development of Candidate ProfileDecember 2019Project OrganizationUpon Board Approval GM and CFO Recruitment Timeline is as follows:McKenneyand Peckhamproposed by Pending approval by the Board, the tentative recruiting time line •Professional Services Contract for New GM and CFOProfessional Services Contract for New GM and CFO FISCAL IMPACT recruitment of the Chief Financial OfficerSufficient funds exist for the additional expense associated with the •approved FY20 Board of Directors Operations BudgetThe recruitment of the General Manager was included in the Board •Professional Services Contract for New GM and CFOProfessional Services Contract for New GM and CFO RECOMMENDATION not exceed contract amount of $54,340amount of $49,400, plus a 10% change order authorization, for a total District's new General Manager and Chief Financial Officer, in the for the recruitment of the McKenneyand Peckhamcontract with Authorize the General Manager to execute a professional services •Professional Services Contract for New GM and CFOProfessional Services Contract for New GM and CFO