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HomeMy WebLinkAbout04/05/2011 Special Meeting 464 YAKIMA CITY COUNCIL APRIL 5, 2011 COUNCIL CHAMBERS, YAKIMA CITY HALL 12:00 NOON — SPECIAL MEETING 1. RoII CaII Present: Council: Mayor Micah Cawley, presiding, Assistant Mayor Kathy Coffey, Council Members Maureen Adkison, Rick Ensey, Dave Ettl and Bill Lover Staff: Deputy City Clerk Watkins Absent: Council Member Dave Edler 2. Adjourn to a working lunch to prepare for interviews of executive search firms for City Manager— City Manager's Conference Room Cawley reviewed the information he supplied in the packet regarding references he received from other mayors who had used the various firms. Council reviewed the }questions they would be asking. Council Member Adkison emphasized the importance of addressing the strong mayor issue that may possibly return. Cawley said we need to find out what fits Yakima's personality. We are looking for someone who can articulate the positive points of our city and someone who wants a challenge. We need someone who is going to show a different style of leadership than we have had, which is picking up the ball, running and being out front. In our form of government we set policy and we need someone that will challenge us and push us. Adkison suggested they need to visit with the public safety groups to regarding contract negotiations. We can't hire someone that doesn't have the knowledge of a full service city. We don't want someone with training wheels. We are a full - service city and we need to hire someone who has that knowledge and experience. Coffey was concerned with how the firm would recruit based on the strong mayor issue pending. Adkison raised the issue of how long the process will take. She noted that the only company that addressed it was Baenziger who said their searches were always finished in 90 days. Cawley said that everyone he spoke with said it took four to six months based on the pressure you put on the firm. Ettl mentioned determining how their expenses are set up. He also asked what the two or three characteristics we want most are and how do we go about deciding that. 465 APRIL 5, 2011 SPECIAL MEETING — INTERVIEWS OF SEARCH FIRMS It was noted that Waldron said they like access to senior team members and managers. Cawley likes the idea of them coming in knowing who the staff is. Ettl asked whether we can we say we prefer candidates that have had to deal with gangs in the past? The question was asked if there are any statistics that reflect how many city managers are women. Deputy Clerk Watkins was excused at 12:45 p.m. 3. Reconvene for interviews with executive search firms — City Council Chambers Present: Council: Mayor Micah Cawley, presiding, Assistant Mayor Kathy Coffey, Council Members Maureen Adkison, Rick Ensey, Dave Edler, Dave Ettl and Bill Lover Staff: City Clerk Kloster 1:00 — 1:45 p.m. Colin Baenziger and Associates Colin Baenziger, owner and principal of the firm, made the presentation. He said they will bring the right people to the area and that Council should expect five finalists. It is their goal to make it difficult for Council to choose because of their excellent qualifications. His firm offers a problem -free search, and claims they have never missed a project milestone nor asked for any increase in cost. He said they do the best background checks in the business. They are a national recruiting firm. He suggested they probably would not be looking on the west side of the state but would look at areas that are more like Yakima. They have never been involved in any litigation and have never been fired. He then reviewed their approach. The first step is to meet with Council to discuss priorities and determine what they are looking for in a manager, as well as get a sense of who they are. Part of his job is to market the city. He plans to produce a recruitment profile that advises candidates of the advantages and disadvantages of the area. They do an extensive screening process to select the most qualified candidates. He then reviewed their method of background checks. He will interview the candidates first, and if they move on from there, a formal written interview will be conducted. They then prepare a notebook on each candidate for Council review to select who they would like to interview. They like to hold a reception where Council may meet the candidates in a social setting to see how they network and handle themselves in a crowd. Council will then conduct the one -on -one interviews. After the selection is made, they will assist in negotiating the manager's contract, if requested. Mr. Baenziger referred to his proposed project schedule and reiterated that they have never missed a project milestone. He did say they could possibly cut 30 days off the schedule, but they prefer the 90 -day time frame. They charge a flat fee of $23,500. The only expenses beyond that are the costs to bring the 2 466 APRIL 5, 2011 SPECIAL MEETING — INTERVIEWS OF SEARCH FIRMS candidates to Yakima for interviews. Their guarantee they will keep looking for candidates until Council is satisfied. If the manager leaves in the first year, they will repeat the search for free; if the manager leaves in the second year, they will redo the search for their expenses only. He added they will never approach the candidate they have placed for any other job as long as they are employed by the City. Questions from Council: Council Member Adkison explained that Yakima recently voted on a strong mayor form of government. Although it was turned down, there are rumors that it may be brought back for reconsideration. Since we are a full - service city, do you think that is a big challenge? Answer: I don't think it's a major challenge. All managers think they can go into a position and do an outstanding job. Council Member Ettl asked how they secure the right person for the job compared to those people who are just looking for work. How do they know the right person for Yakima? Answer: By knowing which cities are comparable and then talking to the city managers and assistant city managers about Yakima. It is literally a lot of elbow grease and telephone calls. Assistant Mayor Coffey asked about questioning council members individually. Answer: He meets with them and then returns the next day and reviews their comments. Coffey asked what he does when the Council cannot agree on what the candidate should look like? Answer: The democracy of 4 out of 7. Mayor Cawley asked about the problem of bringing people from other states that don't understand the state laws of Washington? Answer: With regard to collective bargaining, in most states there are unions and the basics are the same, but they do have to spend time reading the law with our labor attorney and come to understand it. Typically, a fair percentage of candidates will come from in- state. He also looks for candidates from out -of -state who have been through the process of reviewing and learning state law. Council Member Ettl expressed concern about a sense of the progression in the profession — getting a foot in door and then moving to bigger communities. Answer: The first thing in the screening process is that we look for longevity and their employment history. Yakima should be a desirable because there are not many cities in the country bigger than you are. Ettl then asked who would want to come to Yakima if they were already in a comparable job. Answer: That is • always an issue but there are many things to consider. People who are a little older with more experience may be locked in where they are because of pensions or family. Council Member Adkison asked about interviewing people in the community and some City staff. Both our police chief and fire chief are interim, which will be a challenge. In terms of the community, where are you going to get that list of people? Answer: We like to have community meetings and target particular groups who will have different perspectives. They will talk with the educational community, maybe the medical community, and neighborhood organizations. 3 467 APRIL 5, 2011 SPECIAL MEETING — INTERVIEWS OF SEARCH FIRMS They would depend on Council and staff to make suggestions. They would also hold a general community meeting for anyone to attend. 2:00 — 2:45 p.m. The Mercer Group Clark Wurzberger, Sr. Vice President from their Sacrament, California office, gave the presentation. He quoted the total cost of their comprehensive professional services at $16,500 for the 3 -4 month proposed period. There would be a not -to- exceed expense budget of $9,000 for direct advertising, report preparation, travel, per diem, etc. The Group is comprised of seasoned experienced management professionals. They have twelve offices nationwide and are considered a national leader in public sector executive recruitment selection. They have an exceptional record of success with many hundreds of city manager /city administrator recruitments. They work in a collaborative way with the Council and community as much as possible. They are careful to provide critical decision points for Council with consolidated steps and minimal slack time. They will conduct in -depth interviews to develop the position profile which Council must all agree upon before it is distributed. They will market the assets and positive traits of Yakima on a state and national level. Mayor Cawley asked if the current City Manager's retirement date of July 5 was something they could work with. Answer: Yes, if they started soon, within the next few weeks. They do feel a 90 -day period to conduct the search and selection process is important. The development of the position profile is critical and Council must agree it meets the requirements of the city. I would be meeting individually with each of you and any other stakeholders of your choice. We're aware of the opportunities and challenges that you are facing. My sense is you won't have a problem finding a candidate pool. Mayor Cawley asked what happens if we don't all agree on the profile? Answer: It must be agreed upon before we can recruit. In my experience, it is a comprehensive approach of the position. It is not just a description of the duties, but a sense of the community, council priorities, compensation benefit information and organizational information. We wouldn't anticipate a problem on getting approval from the council because it is generic enough that it appropriately describes the kind of person you're seeking. There should be nothing in the content of the profile to stop the process. The clock doesn't start until that profile is prepared and approved which typically takes about two weeks. Assistant Mayor Coffey raised the issue of the recent vote for a strong mayor and, although defeated, there has been discussion that it is coming back for a vote. How would that impact the recruitment? Answer: We would incorporate that into our dialogue with candidates. The effect would depend on the individual, but I don't think that every candidate would avoid that scenario. Obviously, the operation control of the city manager is important to most professional managers. That is their ability to implement programs and policies of the council and to provide successful leadership to the staff. It's not a situation that could be explained right away, but something we would have to determine in our dialogue with the candidates. The candidates that would eventually be presented to you for consideration would obviously not consider it a problem. 4 • 468 APRIL 5, 2011 SPECIAL MEETING — INTERVIEWS OF SEARCH FIRMS Assistant Mayor Coffey: Would you anticipate it would have to be addressed in their compensation package? Answer: Not necessarily; we provide a salary range depending on experience and qualifications. It should be spelled out in the position profile so potential candidates can determine whether or not to apply. It is important that it is a transparent process with integrity and is managed carefully from beginning to end. Assistant Mayor Coffey: If a strong mayor vote were to succeed a year after hiring a new city manager, would the compensation be expected to have some kind of "golden parachute" or something to protect them? Answer: I don't think it would be problematic; we don't anticipate it would be a deal killer. Even if it were problematic to the final candidate, we would continue working until we find the right candidate. Council Member Ensey stated that the current city manager has been an at -will employee with no contract, and apparently that is not typical. Is it correct that there usually is some sort of buy -out clause? Answer: It can be. We have a guarantee with our services. If the candidate leaves in the first two years for any reason, we would give our services at no charge. I don't think that would be a problem at this stage for finding candidates. I think you are going to have a fairly impressive pool from which to choose. Council Member Adkison said this is a full - service city which has built -in challenges. We have a budget that is struggling and we need someone with experience. This cannot be a training ground. We are going to be looking for someone who will have an absolute understanding of what is in place here and what the people of this city expect. Answer: There are some cities that can benefit from a senior level manager from a larger organization that could become a city manager, but I don't view this as a learning -on- the -job type of experience and would not expect to recommend candidates that have not had the range of experience necessary to be successful here. You want someone fiscally conservative, skilled in finance, who can deal with issues beyond budgeting like monitoring economic trends and developing longer range financial direction. These are the kind of skills that younger candidates won't necessarily bring to the table. We also don't want this viewed as a stepping stone to another career opportunity. Reference checking is also very critical. We use our collective knowledge and experience in speaking with references to discern the character and traits of the candidates. Council Member Ettl mentioned Yakima's adoption of priorities of government budgeting model and asked how prevalent is that experience out there? Are those candidates easy to find? Answer: I have seen that information out there, although the cities I deal with typically have goal- oriented objectives that are achievable and take into consideration a broader set of goals that will bring the organization up to the best practices. The council uses their power as the policy - making authority to direct the city manager in the allocation of those resources. Council Member Lover asked if they do community outreach? Answer: Collaboration is critical at the beginning of this process and we would involve as many stakeholders as you feel is appropriate. They have had some experience with assessment centers where candidates are evaluated in standardized settings and community leaders are involved as panel members. That is an extra service that costs about $6,000 if you are interested. 5 :..... 469 APRIL 5, 2011 SPECIAL MEETING — INTERVIEWS OF SEARCH FIRMS Mayor Cawley referred to the collective bargaining and labor laws in our state. If the candidate comes from out of state, how do they deal with it? Answer: In the position profile, it would claim they would have to have some experience in labor negotiations. We'II make certain in my interviews that all that information is covered. 3:00 — 3:45 p.m. Waldron & Company Laura Cunningham, the Managing Director in Oregon, gave the presentation. The firm was founded in 1938, as a western - states -based consulting firm. She has conducted over 800 searches and has extensive experience with councils who have not used a search firm before or have had very long tenured positions. She also gave the backgrounds of other coordinators who would be involved. They would conduct extensive up -front interviews across the city to determine what Council is looking for and what our unique needs are. They partner with their clients and help determine what Council wants next in a city manager. They are recognized for creating customized approaches. They pride themselves on customer service and satisfaction. Although they have a database they have compiled over the last thirty years, for every community they do a large amount of extra research in finding new candidates. They believe in diversity and at least half of their pool is candidates in a protected class with diverse skill sets and diverse thoughts. They are very conscientious about controlling pass- through costs. As to their guarantee, they do not have to redo a search as they are very good at finding the right fit the first time. Their long -term placements speak to that as their average tenure is between 6 -20 years. She described their process. First they will talk to as many key individuals as possible to get a feel for needs. They will then develop a position profile, and come up with a plan that excites candidates. The profile describes what makes Yakima unique and why someone would want to come here. It has to be compelling. Next is making hundreds of recruiting calls. They begin the initial background search on each applicant, reviewing press releases in their communities and any other information they can obtain on each candidate. They screen out many candidates as a result of the first initial Google search. Before they present any candidates, they have screened them at least by phone, hopefully by Skype or in person. They will have done preliminary background checks and some reference checks. Their target is to present the top ten candidates. As a body, including Council, they decide how to proceed. There might be a semi -final round, or it may go right to the final interview round if there are a smaller number of acceptable candidates. They will collaborate with Council to determine the final process incorporating best practices they have learned and also incorporating Yakima's culture and business practices. They can create various panels to provide input, but it is the Council's final decision. They do all of the logistics and develop interview questions Council Member Adkison noted that Yakima is a first class, full service city that requires a special person with managerial skills and financial background. The 6 470 APRIL 5, 2011 SPECIAL MEETING — INTERVIEWS OF SEARCH FIRMS position is not meant to be a training area for anyone and it will be a high priority that the candidate has a wide range of experience. She asked about the fee schedule? Answer: 25% of mid point of the salary or $30,000 minimum, whichever is less. Council Member Edler asked what their timing was from start to finish. Answer: Between 75 -90 days. The critical point is presentation. Presenting the top ten will define when we can get to the finals. Mayor Cawley spoke about the possibility of the strong mayor issue recurring. Does that affect the search process and, if so, how would they work with it? Answer: It is a risk that would impact the search. If we do a search now that is completed 90 days before the November ballot, than there is no certainty that the candidate would continue on in the position. In order for the high caliber, seasoned individual to commit, they have to have some guarantee for a period of time; usually that is three to six years. To put that on top of an already difficult time to recruit in terms of this recession and getting people excited to move here, it is going to be a tougher sell. Can we do it? Probably. Our philosophy is to be up front and honest. Council Member Ettl asked if they ever tap their own appointments 6 -9 years down the road for a job? Answer: We try not to. If I know in their community they have achieved what they set out to achieve and they are in maintenance mode, maybe; but we really do try not to because we want the track record of over 10 years. Ettl asked what about the people who are not currently looking but yet have qualifications that would fit our city; how do you get them into the process? Answer: It depends on what your wish list is. If you are looking for a seasoned city manager or a seasoned assistant city manager of a large agency, I am going to contact them. It also depends on the kinds of issues, priorities, and goals that you have. We will focus our research on communities that we know have those types of individuals. Council Member Adkison asked if they have a guarantee for two years or if they have to do another search at the end of the year, do we pay for it again? Answer: Our fee structure is split into three parts. Upon engagement is the first third, when we deliver candidates is the second third, and when the agreement is signed with the new city manager the final third is paid. The guarantee is for one year. We have been negotiating that with clients up to two years. If the person leaves within that timeframe for whatever reason, we would do the search again for no professional fee. We have not had to do that. Mayor Cawley asked how they dealt with Council conflict. Answer: Very carefully and we have had to do it a number of times. She hasn't met a council that had total consensus at the beginning. In the discovery phase, we try to meet with the Council individually to determine what they are looking for in a candidate. We will then come back together as a group and talk about the common themes we heard; help facilitate the process of reaching consensus. If there are inconsistencies, we will bring it to your attention as a group and have an open discussion. 7 .47 \1 APRIL 5, 2011 SPECIAL MEETING — INTERVIEWS OF SEARCH FIRMS Mayor Cawley pointed out that they are the most expensive and asked why? Answer: You get what you pay for with us and we take on a limited number of clients. DELIBERATIONS: Council Member Adkison felt they all presented very well but thought Colin Baenziger was more thorough than the other two in terms of a program he would bring to us and how it would work. She said she thought community input was going to be very important since it has been well over thirty years since we have hired a city manager. She thought the Mercer Group did not have as good a plan for that component as Mr. Baenziger had. She referred to the Waldron Company's cost being the most expensive and didn't get feel we would get that much more from them than the others. She liked Mr. Baenziger's demeanor and felt he would be proactive for us. Mayor Cawley said he thinks any of them could do the job. From The Mercer Group packet and presentation, they seemed to be recruiting in cities about our range that have a lot of the complexities that we have. His preferred choice was The Mercer Group. Council Member Ettl agrees that all three are capable. He said he did not get the sense that there was anything in Waldron's service that warrants the significant additional cost. If they are all comparable, Waldron is at the high end. Baenziger was his first choice based on the paper presentation; there was nothing in any of the presentations to alter that choice. There was a certain degree of thoroughness and clearly a sense that the timeframe would work with them and, as a result, he would tend to lean towards them. Council Member Lover agreed they all did a good job and that he also has not changed his mind. He liked the timetable and the fact that Baenziger was going to stick with the timetable. Council Member Edler, agreed with what has been said. Assistant Mayor Coffey liked the candid nature of the Waldron Group. She didn't • think $5,000 makes much difference in making a decision that would impact a city of this size for at least six years. She said they hadn't been on her radar based on their paper presentation but made an impact in their personal presentation. She still has a challenge with Baenziger, because he is based in Florida. Council Member Ensey said his choice was Baenziger and there was nothing said that changed his mind. Mayor Cawley suggested Council members think about it and then see if a motion can be made tonight at the council meeting. 8 472 APRIL 5, 2011 SPECIAL MEETING — INTERVIEWS OF SEARCH FIRMS 3. Adjournment ENSEY MOVED AND COFFEY SECONDED TO ADJOURN TO THE REGULARLY SCHEDULED BUSINESS MEETING AT 4 :00 P.M. TONIGHT. The motion carried by unanimous voice vote. The meeting adjourned at 3:47 P.m. READ AND CERTIFIED ACCURATE BY /COUNCIL MEMBER DATE /‘' COUNCIL MEMBER DATE ATTEST: CITY CLERK MICAH CAWLEY, AYOR Minutes prepared by Linda Watkins. A CD and DVD of this meeting are available in the City Clerk's Office 9