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Home My WebLink About9C City Manager Executive Search ReportPhone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: AUGUST 6, 2018 AGENDA #: 9C PREPARED BY: LORI OLSON, ASSISTANT CITY MANAGER PRESENTED BY: LORI OLSON, ASSISTANT CITY MANAGER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE EXECUTION OF THE CITY’S STANDARD PROFESSIONAL SERVICES CONTRACT FOR AN EXECUTIVE SEARCH TO FILL THE CITY MANAGER POSITION VACANCY IN 2019 DISCUSSION: Introduction The purpose of this agenda item is to request City Council approval to enter into a contract in the not to exceed amount of $18,000 with DDA Human Resources, Inc. to complete a comprehensive executive search for a city manager. After 26 years of service, the current city manager will retire on March 1, 2019. He is only the third city manager to serve the city since 1973. History City Manager Frank Boyles submitted his retirement notice in July 2018 to provide ample time for the city to conduct a thorough search to find the new city manager. As the city’s top executive, the city manager is responsible for the management oversight of all city departments and services. The city manager is the only position the city council appoints and the only person the city council supervises. The city manager is responsible for $34 million in budgeted funds and $33 million in the city’s investment portfolio each year. More than $11 million of this annual amount is in personnel service costs and equates to 94 full and part-time employees. The position is also responsible for $400 million in total city infrastructure. That is a considerable amount of responsibility in one position, but that is how the city council-city manager form of government is legally constituted. Considering these factors, the council should make every effort to ensure the most qualified candidates considered for this position. Accordingly, the city council should have the expert assistance to complete this important endeavor. Having a qualified consultant conduct the search for this important position is in the best interests of the city for many reasons. First, a consultant has the expertise in executive recruitment. Current staff do not have the capacity nor the knowledge to conduct such a large and thorough process without assistance. Second, a professional recruiter can help the city define the characteristics and attributes for the next city manager of Prior Lake by matching city needs to the candidate’s experience. Third, a professional recruiter has the broadest reach to help identify the best possible candidates through their networks, websites and established relationships. The city developed an executive search proposal which was sent to two well- regarded public sector search firms, Springsted/Waters and DDA Human Resources, Inc. The scope of the proposed work includes: • Developing a comprehensive project timetable • Creating a job description and promotional brochure • Interviewing stakeholders to determine characteristics and traits desired for the new city manager • Identifying and recruiting strong candidates • Conducing initial applicant screening and interviews • Developing offer • Conducting background investigation • Serving as a liaison for negotiations between candidate and City Council Current Circumstances The city received proposals from two firms, Springsted/Waters and DDA Human Resources, Inc.; both firms are local and specialize in public sector leadership recruitment. A working group comprised of Mayor Briggs, Council Member McGuire, City Manager Boyles and Assistant City Manager Olson convened to review the proposals and conducted interviews with a representative from each firm. Each firm provided detailed proposals that outlined their approach to executive recruitment, including the process by which applicants are vetted to move forward. Each firm has significant experience recruiting for public leadership positions and would be capable of recruiting Prior Lake’s new city manager. Both provide a 24-month guarantee. Springsted/Waters submitted a proposal in the amount of $21,560. DDA Human Resources, Inc. proposal was $18,000. In the public sector, recruitment agencies do not receive any percentage of the appointee’s first year salary. Based on the working group’s feedback and discussion, the recommendation is to select DDA Human Resources, Inc. as the consultant to lead the new city manager search. The working group recommends DDA Human Resources, Inc. based upon the merits of the proposal, the capacity of the firm to focus their efforts on the City of Prior Lake exclusively, the volume of recruitment work in Minnesota, and the proposal cost. In addition, the working group felt DDA Human Resources, Inc. would be a good fit for the organization in facilitating the search process. A copy of Request for Proposal and both executive search proposals submitted are available in my office. FINANCIAL IMPACT: The total not to exceed cost to retain DDA, Inc. for the city manager search process is $18,000. This expenditure will be paid through General Fund reserves. Considering the responsibility of the position and the number of years the city manager is likely to serve, this is a reasonable investment to assure that the city council hires the best possible person for the position. ALTERNATIVES: 1. Motion and second approving a resolution to (1) authorize the mayor and city manager to enter into a standardized professional services contract with DDA Human Resources, Inc. in the amount not to exceed $18,000 for an executive search and (2) approve a 2018 budget amendment to fund this professional service contract from General Fund reserves with the expenditure coded to 101-41820.00-53100.80. 2. Motion and a second to table action and/or provide further direction to city staff. RECOMMENDED MOTION: The working group recommends alternative number 1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 18-___ A RESOLUTION AUTHORIZING THE EXECUTION OF THE CITY’S STANDARD PROFESSIONAL SERVICES CONTRACT FOR AN EXECUTIVE SEARCH TO FILL THE CITY MANAGER VACANCY IN 2019 Motion By: Second By: WHEREAS, After 26 years of service, the current city manager, Frank Boyles, will retire on March 1, 2019; and WHEREAS, The city manager is the city’s top executive, responsible for the management oversight of all city departments and services; and WHEREAS, Having a qualified consultant conduct the search for this position is in the best interests of the city in order to find the highest caliber candidates; and WHEREAS, The city solicited executive recruitment proposals from well-regarded public sector search firms and received two proposals; and WHEREAS, WHEREAS, WHEREAS, The recommendation is to select DDA Human Resources, Inc. as the consultant to lead the new city manager search; and The total cost to retain DDA, Inc. for the city manager search process is not to exceed $18,000; and The 2018 budget is to be amended to fund this professional services contract from General Fund reserves with the expenditure coded to 101-41820.00-53100.80 (Human Resources). NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Mayor and City Manager are hereby authorized to enter into a standardized professional services contract with DDA Human Resources, Inc. in the amount not to exceed $18,000 for an executive search. 3. The 2018 budget is amended to fund this professional services contract from General Fund reserves with the expenditure coded to 101-41820.00-53100.80 (Human Resources). Passed and adopted by the Prior Lake City Council this 6th day of August 2018. VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager