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COUNCIL - AGENDA ITEM - 06/15/2004 - CITY MANAGER SEARCH PROCESS
DATE: June 15, 2004 STUDY SESSION ITEM STAFF: Rick DeLaCastro FORT COLLINS CITY COUNCIL SUBJECT FOR DISCUSSION City Manager Search Process. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Review proposed City Manager search process and give direction on specific questions regarding the process. Staff recommends that Council define a process for conducting the search for a new City Manager at its June 15 Council Study Session. Council has requested that staff prepare a Study Session Item to discuss the process for selecting a new City Manager. The hiring of a City Manager is a very important project to the City Council and a successful outcome will require a substantial investment of time and resources by both Council and staff. As the first stage of this process, staff would like to discuss the following items with Council at its June 15 Study Session. I. Review Proposed Executive Search Process 11. Define Process: Address three questions A. Will an executive search firm be hired? B. Will a Council Committee be appointed to participate in the process? What will its role be? C. Will a Citizen's Advisory Committee and/or an Employee Advisory Committee be appointed? How? What will the roles be? III. Follow-up action items? ATTACHMENTS Attachment A- Memo to Council re: Pros and Cons of an Executive Search Firm Attachment B - Proposed Executive Search Process 6aAdministrative Services Attachment A Human Resources Department City of Fort Collins MEMORANDUM TO,: Mayor and City Council Members FROM: Rick DeLaCastro, Human Resources Director Wynette Cerciello,Assistant Human Resources Director 4\c RE: City Manager Search Process DATE: June 2, 2004 With John Fischbach's resignation, the City will need to conduct a recruitment and selection process for the City Manager position. I have developed three general alternative approaches to conducting this process, and have outlined the advantages and disadvantages of each. The staff of the Human Resources Department looks forward to working with Council to develop a process for filling this important position. Please contact me at 221-6845 for information or assistance. Alternative 1: Contract with an executive search firm to conduct the recruitment process for the City Manager position. The City would contract with an executive search firm to conduct the majority of the search process, to include working closely with the Council to develop consensus regarding the qualifications of successful candidates,recruiting and screening candidates, and coordinating the interview and selection process. The firm would also be available to assist in the hiring and contract negotiation process, if necessary. PROS: • The consultant provides Council with objective assistance in developing consensus about the qualifications for the position. This can include gathering input from a wide variety of sources in the organization and the community. This is a key phase of the process because the greater the consensus about the qualifications for a successful candidate, the more likely there will be agreement regarding whom to hire. • Provides active recruitment of candidates, rather than relying just on advertisements. This may include candidates who are not seeking new positions but may be good matches for the organization. 215 North Mason • P.O.Box 580 • Fort Collins,CO 80522-0580 • (970)221-6535 • TDD(970)224-6004 • www.fcgov.com Mayor and City Council Members Re: City Manager Search Process Alternatives June 2, 2004 Page 2 • Provides a resource to potential candidates who have questions about the position,but wish to inquire confidentially. • Provides expertise in applicant screening and conducting background checks of City Manager candidates. The consultant would be experienced in evaluating candidates and assessing what would make candidates successful in the City Manager position. • Manages the process to keep it on track and on schedule. Expertise may allow the process to be completed more rapidly. • Can provide Council with a resource in negotiating an employment agreement. • Candidates may be more likely to apply with a search firm because they perceive that such processes are better run and that finalist candidates are more likely to match the Council's desired profile. Candidates may also perceive that Position Profiles developed by search firms are an accurate reflection of a consensus of Council and the community. CONS: • Public may have the perception that Council is not involved in the process if they believe that it is being conducted by someone outside the community. • Cost—The 1995 process cost approximately$18,000 for the executive search services. Estimation by Purchasing is that the cost could be between $30-40,000. This does not include the cost of bringing finalist candidates to Fort Collins for interviews or site visits by Council members. • Some search firms have a reputation of presenting the same group of candidates to all employers, regardless of the Position Profile. • It is unlikely that a local firm would have expertise in City Management executive searches or extensive contacts in the City Management field. Alternative 2: Conduct search process using City staff, and outside assistance as necessary. City staff would work with Council or a Council committee to develop a search process and a job description. Staff would place advertisements in appropriate publications, and contact any candidates who are known to Council or City staff. Council or a Council committee would review all applications and select some for either preliminary interviews or background checks to be conducted by either staff or Council. Staff would coordinate the interview process with Council and other interested parties. Council would negotiate the employment contract directly with the final candidate. A local facilitator or staff member could be used to develop consensus on the Position Profile. Mayor and City Council Members Re: City Manager Search Process Alternatives June 2, 2004 Page 3 PROS: • Cost savings of the fees for the executive search services. • Community perception that Council is very involved in the selection process for an important position. • Staff would have no preconceived idea of the best candidate, so all applicants would have an equal opportunity. • Local facilitator could be used to develop consensus regarding candidate qualifications. • Staff has experience with executive searches, including City Manager searches and other executive level positions. CONS: • Expertise of the search firm is not utilized in developing the Position Profile and developing consensus among Council and other community members. • Contacts in the City Management field are lost, and some potential high-quality candidates may not choose to apply if they are not recruited. • Candidates would be screened by either Council, City staff or a combination. It is likely that we could receive 200 or more applications for this position. This would require a significant commitment of time by both Council and staff. Alternative 3: Combination process,with executive search firm involved with the process up to the point of reviewing semi-finalists. A process could be developed,working with an executive search firm,which would combine the previous two approaches. Council could contract with a search firm to work with Council, the organization and the community to develop the Position Profile, and to recruit candidates. The search firm may provide some screening of applications,but they would turn over the applications to the Council for review and screening. Staff would coordinate the interview and selection process. Council would negotiate the contract directly with the successful candidate. PROS: • Utilizes the strengths of the search firm in developing consensus on the Position Profile, and in recruiting. Mayor and City Council Members Re: City Manager Search Process Alternatives June 2, 2004 Page 4 • The community may perceive that Council would be more actively involved in the process, and not relying on someone from outside the community to evaluate candidates. • Some cost savings may result from the limited use of the search firm's services. CONS: • Cost savings may be minimal since the majority of the search firm's services are in the early stages of the process. • The expertise of the search firm in evaluating candidates would not be used. • Candidates may be confused about who to contact at various stages of the process. We look forward to discussing these options at the Council Study Session at 4 p.m. on June 15, 2004. 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