Agenda Cover Memorandum

Agenda Cover Memorandum Meeting Date: 1/14/13 Item Title: Action Requested: Provide Staff Direction On Hiring A Search Firm To Find A City Manager Approval For discussion Feedback requested For your information Staff Contact: Kent Oliven, Jim Testin, Mike Suppan Phone Number: 847-318-5216 Email Address: Background: Recommendation: koliven@parkridge.us, jtestin@parkridge.us, msuppan@parkridge.us At the October 22, 2012 Committee of the Whole (COW) meeting the Council discussed directing the Interim City Manager to assemble a request for proposal (RFP) to hire a search firm for a permanent City Manager. Subsequently, an RFP was put out for an executive recruiting firm with expertise in government work. Seven (7) bids came back. At the November 19, 2012 Regular Council meeting, the Council charged Finance Manager Kent Oliven, CP&D Director Jim Testin, and Human Resource Manager Mike Suppan to take a thoughtful, professional approach with the RFP evaluation process so that the Council could discuss the selections at the January 28, 2013 COW. This memo and the supporting documents summarize the bids, outline some of the issues needed to determine whether to hire an executive search firm, and make a recommendation between the search firms if it is determined that a firm should be hired. [Note that the accompanying City Manager Recruitment Comparison Table oversimplifies some data and that the original bids should be reviewed to clarify some details.] Provide Staff Direction On Hiring A Search Firm To Find A City Manager Budget Implications: Does Action Require an Expenditure of Funds: Yes No If Yes, Total Cost: (No cost at present) If Yes, is this a Budgeted Item: Yes No Requires Budget Transfer If Budgeted, Budget Code (Fund, Dept, Object) Attachments: 2013 01-14 City Manager Recruitment Comparison Table 2013 01-14 Recommendation On Hiring A Search Firm For The City Manager Position Rev 04/18/12

Permanent City Manager Hiring Options & The Committee s Recruitment Firm Recommendation I. Introduction At the October 22, 2012 Committee of the Whole (COW) meeting the Council discussed directing the Acting City Manager to assemble a request for proposal (RFP) to hire a search firm for a permanent City Manager. Subsequently, an RFP was put out for an executive recruiting firm with expertise in government work. Seven (7) bids came back. At the November 19, 2012 Regular Council meeting, the Council charged Finance Manager Kent Oliven, CP&D Director Jim Testin, and Human Resource Manager Mike Suppan to take a thoughtful, professional approach with the RFP evaluation process so that the Council could discuss the selections at the January 28, 2013 COW. On Tuesday, January 8, 2012 the ad hoc committee of Kent Oliven, Jim Testin, and Mike Suppan met to review their summary of the bids for a hiring an executive recruiter to locate a City Manager. [Note that the accompanying City Manager Recruitment Comparison Table oversimplifies some data and that the original bids should be reviewed to clarify some details.] What follows is an outline of some of the issues that Council will need to consider in order to determine whether to hire an executive search firm, and a recommendation between the search firms if it is determined that a firm should be hired. [For the record: at no time did any member of the ad hoc committee discuss the number of bidders, who bid, or what was in the bids with the Acting City Manager, who had declared in the November 19, 2012 regular Council meeting his intent to be the first person to apply for the permanent position as City Manager should the Council hire a search firm.] II. Should A Search Be Conducted? This committee is not going to weigh in on whether or not a search for a City Manager should happen. That is a decision for the City Council. However, there are some items that the Council may want to consider in weighing that decision. A. Timing i. Pre Search Before an executive recruiting firm can conduct a search, but not necessarily before that firm is hired, the Council must take some time to address the answers to many questions, including the following ones: What is the attraction of the community for a potential applicant? What is the job description of the Manager? What is expected of the Manager in the next few years? What are the big issues facing the community? What is the salary range and what are the benefits, such as vacation, administration time, vehicle or vehicle stipend, housing allowance, residency requirement, severance, etc.? Note: benchmarking to other communities would bring the search to the market rate of salaries and benefits, but would take additional time. ii. Search Firm Time The search firms range from 50 days to 16 weeks to conduct a search. [The 50 day search firm only gives a list of candidates to interview, it is not until a contract is signed.] iii. Post Search Firm Time After a candidate has been selected and a contract negotiated and signed, it will take 30-60 days before the candidate reports for work (according to the detail in one of the bids).

B. Candidate Quality Concerns The conclusion of the above timetable approximately coincides with the quadrennial mayoral election which may limit the applicant pool. C. Cost Most of the firms have fees that range from $12,500, before expenses, to $23,500, after most expenses. Additionally, municipalities are expected to reimburse candidates travel or interviews. Most of these fees would come from the current FY13 budget where it is unbudgeted. The fees not paid in FY13 would need to be budgeted in FY14. III. Search Firm Recommendation (If It Is Determined That One Should Be Hired) All seven firms that bid appear to have the qualifications and experience to conduct a thorough national search. All have similar pricing. All would probably make a good choice and the Council may want to examine the comparisons themselves. However, the Council has directed this committee to make a recommendation and here is how the committee picked their recommended firm. Three firms have no recent recruitments for Illinois governments. Two of the remaining four firms not only have a process that can take four months until a hire date, but they also do not state a two year guarantee. Of the remaining two firms, one firm had a firm inception of 2009 with 92 placements, while the other firm had been in business for 18 more years and had over 750 placements. That firm, Slavin Management Consultants, is the committee s recommendation. IV. Conclusion Finding A Permanent City Manager Should A Search Be Conducted? Should A Search Be Conducted? Yes Further Steps Review Documents & Committee's Recommendation. Hire a Recruiting Firm. No

Address Voorhees Associates, LLC Slavin Management Consultants 500 E. Lake Cook Road Suite 350 Deerfield, IL 60015 3040 Holcomb Bridge Road Suite A-1 Norcross, GA 30071 The Mercer Group, Inc. Neher & Associates Novak Consulting Group Austin Peters Group Waters Consulting Group 5579B Chamblee Dunwoody Rd. Suite 511 Atlanta, GA 30338 3970 Millerton Place Suite 100 West Sacramento, CA 95691 210 Glenmary Ave. Cincinnati, OH 45220 P.O. Box 27196 Overland Park, KS 66225 5050 Quorum Drive Suite 625 Dallas, TX 75254 Phone Contact 847-580-4246 Heidi Voorhees 770-449-4656 Robert Slavin 770-551-0403 James Mercer 916-443-2421 Robert Neher, Jr. 513-221-0500 Julia Novak 913-851-7530 Rebecca Crowder 972-481-1950 Chuck Anderson Firm Inception 2009 1991 2007? 5 years of data provided 2007 2009 2008 1976, incorporated in 1988 Placement History 92 since 2009 31 for City Manager positions Has placed over 750 government executives More than 95% of placements have remained in their position for more than 5 years. The firm conducts 60-65 searches per year James Mercer has been part of over 2,000 searches in recent years 245 executive searches including numerous city and county managers. 10 listed for this specific recruiter 12 cities and counties in Kansas and Missouri in the past 4 years. A small, Kansas-based consulting firm 200 executive level positions in the past few years Lead Recruiter Assigned and Personal/Firm Experience Greg Ford, VP 36 years of experience working in local government administration and public sector human resources. A relatively young firm, but extensive experience of employees behind it Bob Slavin, -assistance from David Krings and Paul Wenbert, both with extensive experience. Government career since 1967, 12 years working directly for local governments and 7 as a principal consultant for the largest private sector search firm in the world James Mercer, with assistance from Gary Holland and Karolyn Prince Mercer. He was previous president of Mercer Slavin Nevins. 25 years of experience in executive search and management consulting Robert Neher, Jr. - with the help of associates 30 years experience in executive management and consulting Catherine Tuck Parrish 20 years experience serving local governments, 3 years consulting Rebecca Crowder 15 years of local government management experience and 10 years consulting and human resources Jim Holgerson Joined the firm in 2012. Seasoned city manager with 35 years in the public sector Recent Local Recruitments for this Firm Process City Manager, Carbondale, IL Executive Director, Oak Park Park District, IL Community Development Director, Franklin Park, IL Position assessment, job announcement and brochure development Advertising, candidate recruitment and outreach Candidate evaluation and screening Presentation of recommended candidates Appointment of candidate Executive Director, Metra Rail, Chicago IL Village Manager, Oak Park, IL (active) County Admin, Peoria, IL Develop position profile Identify qualified candidates Evaluate prospective candidates Selection and employment Village Manager, Villa Park, IL City Manager, Peoria, IL City Manager, Decatur, IL Asst. City Manager, Champaign, IL Position analysis Recruitment process Resume review Candidate screening Background investigation Negotiation and Follow up City Manager, Naperville, IL City Manager, Crystal Lake, IL City Manager, Oak Park, IL (partial*) *Slavin now lists it as active Scope of service Key meetings Initial candidate screening Recruitment brochure Advertising and networking Candidate screening Reference and background screening Selection process Search closure/sign off None in Illinois Many large cities in Ohio, Michigan and Maryland Develop recruitment plan and position profile Conduct aggressive recruitment Support candidate selection None in Illinois Primarily Kansas and Missouri Prepare recruitment profile Develop position announcement Conduct recruitment Screen applicants Conduct reference interviews and background checks None in Illinois. Lists Oak Park, IL as a reference Recruitment brochure/advertising Execute strategy and identify candidates Screen applicants and recommend semi finalists Conduct background checks Final interview process Candidates Presented Sources used 5 candidates to interview in the first round and then 2 or 3 for the second round. They will be present for all interviews. Professional publications (print and on line) Linkedin Other private sector resources Outreach through U.S. mail and telephone contacts 12 semifinalists and about 5 finalists are presented for interviews with City Council. They do not rank the candidates as it is a matter of personal chemistry. Relies heavily on their own contacts in the city manager field networking. Prof publications Classified ads Provides a matrix display of the top candidates for review based on criteria. Then they interview everyone personally. Top candidates are then interviewed by City Council. Relies heavily on their own contacts in the city manager field networking. Prof journals On-line Websites Pool of about 40-200. Narrowed to 10-15. 5-6 is the average number of finalists invited to interview. Summary information provided on the leading candidates. Local, state, and national advertising Job profile/brochure Aggressive networking After they conduct preliminary interviews, will present 3-5 candidates for City to interview. State and national publications, on-line sites, target networks. Social media, targeted mailings Screen and reduce to a group of semi finalists via resume review. Help prepare ad copy. Ad placement and payment is the City s responsibility. Will initiate calls to cultivate interest 10-15 semifinalists for the City to review. National, state and local elements. Their own highly accessed website

Voorhees Associates, LLC Slavin Management Consultants The Mercer Group, Inc. Neher & Associates Novak Consulting Group Austin Peters Group Waters Consulting Group Start (Hire Firm) to Finish (Hire Candidate) Timetable Estimate Fees 90 days 60-90 days 90-120 days 120 days 16 weeks 12 weeks Will deliver a group of finalists In 50 days $12,500 Plus consultant expenses not to exceed $5,000. $19,900 Payment Billed in 3 equal payment 4 payments: 10% Follow up 6 months of telephone consultation following the recruit $13,865 Plus consultant travel, office costs and classified advertising not to exceed $7,626. $21,429 1 year to assist with any adjustments that may be necessary. $15,000 Plus out of pocket expenses not to exceed $8,000. $23,000 Billed in 3 payments 1 year to assist with any adjustments that may be necessary. $12,500 Plus direct expenses not to exceed $5000. $19,900 Upon presentation of receipts and itemized statements Follow up over the next year for feedback and consultation. Total fee not to exceed $17,900. Does not include advertising costs or candidates travel or accommodations Invoices sent monthly base on completed tasks Follow up with the new hire throughout first year on the job $18,500 Does not include any direct costs such as advertising, background checks or candidates travel or accommodations One half due up front, balance due upon delivery of written findings. None mentioned $23,500 All-inclusive 4 payments: 10% Performance appraisal after 12 months for project costs only. Guarantee If candidate leaves within 24 months either on their own or by the wishes of the City, they will conduct another search for the cost of expenses and announcements only. Notes Will not actively recruit the placed employee for 5 years. Heidi Voorhees spent 8 years with the PAR group. She has conducted 130 recruitments in her career. If candidates leaves within 2 years of the employment date for any reason, will re-do the search. Won t actively recruit a candidate who they have placed, nor will they actively recruit any employee of the client for at least 2 years from assignment. Impressive client list and staff resumes. Guarantee not mentioned 1 year replacement guarantee. If the City chooses to terminate the candidate for certain reasons, they will reopen the search and replace the person for no additional professional fee. Guarantee not mentioned Guarantee not mentioned 24 months if candidate is terminated for cause. Within the first year, replacement for only project related expenses. During the second year cost if 50% of prof fees plus project related expenses. Will not solicit candidate selected while candidate is employed with the City. The overall approach is more advice driven with the City assuming much more of the work. Please note that in order to compile this table some details had to be summarized. Please refer to the bids for additional details.