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Item 10FCity of Southlake, Texas MEMORANDUM March 9, 2005 TO: Shana Yelverton, City Manager FROM: Chuck Kiefer, Interim Deputy City Manager SUBJECT: Executive Recruitment Services. Action Requested: Authorize the City Manager to enter into a professional services agreement with Mercer Group, Inc. for executive recruitment services. Background Information: One of the initiatives of the City Manager's transition plan is to conduct a competitive selection process for key executive positions. This will produce a pool of candidates with strong management and leadership skills to select from. The purpose for engaging the services of an executive search firm is to seek out and recruit experienced candidates on a national level and to assist the City in selecting highly qualified individuals who meet the position profile. The Mercer Group, Inc. has vast experience in recruiting for the positions of Assistant City Manager and Police Chief, with which we currently have vacancies. This agreement is for the recruitment of both positions. Financial Considerations: The total cost for the two executive recruitments is $28,000.00. Financial Impact: The Director of Finance has identified savings from staffing vacancies since the beginning of the year to cover the cost of recruitment services. Citizen Input/ Board Review: N /A. Legal Review: The attached agreement is currently being reviewed by Debra Drayovitch with TOASE. Alternatives: Alternatives that exist are; (1) Seek another recruitment firm, or (2) conduct the recruitment in house through the Human Resources Department. Supporting Documents: Letter of Agreement between The Mercer Group, Inc. and the City of Southlake. Shana Yelverton March 9, 2005 Page 2 Staff Recommendation: Authorize the City Manager to enter into agreement with The Mercer Group, Inc. for executive recruitment services. CK Shana Yelverton March 9, 2005 Page 2 C ity of SontMake Letter Agreement for Executive Recruitment Services for the Positions of Assistant City Manager And Police Chief Febrllaly LS, 2005 THE MERCER GROUP, INC. 405 Sommerville Court Arlington, TX 76013 972.740.3519 817.275.0897 FAX Shana Yelverton March 9, 2005 Page 2 February 28, 2005 Cos�suZtcznts Ta hlanczg�yrresat Ms. Shan K. Yelverton, City Manager City of Southlake 1400 Main Street, Suite 270 Southlake, TX 76092 Dear Ms. Yelverton The Mercer Group, Inc. is most pleased to submit this proposal to assist the City of Southlake to recruit nationally and to develop exceptionally well - qualified candidates for the positions of Assistant City Manager and Police Chief. We are most interested in assisting the City of Southlake with this critical project, and if selected to conduct the search, would have no difficulty beginning the project immediately and expediting our work to ensure a smooth process. The purpose for engaging the services of an executive search firm is to seek out and recruit experienced candidates and to assist the City of Southlake in selecting highly qualified individuals who meet the profile and needs of the City and who might not otherwise apply. The Mercer Group, Inc. is exceptionally well - qualified to assist the City with this project. We have conducted over 200 searches in the last two years, including 87 searches for City Managers in such communities as: Wylie, TX Plainview, TX El Paso, TX Temple, TX League City, TX The Mercer Group has also conducted 18 searches for Police Chiefs since 2000 including: Bryan, Texas - Chief of Police — 2003 Edmond, Oklahoma - Chief of Police - 2003 North Port, Florida - Fire Chief - 2002 Riverdale, Georgia - Chief of Police - 2000 Owosso, Michigan - Chief of Police - 2003 Northglenn, Colorado - Chief of Police — 2001 I personally conducted the Bryan Police Chief search. The mission of The Mercer Group, Inc. is to make our clients proud that they engaged us to provide executive recruitment services for them. The Mercer Group, Inc. also makes extensive use of the Internet both with our own web page which can be located at www.mercergroupinc.com and through e -mail. We post positions with other Internet providers and make information available to a number of people who are Internet users. We also make extensive use of the Internet to review newspaper articles on top candidates, etc., from the community in which they are currently employed or were employed in the past. Our Approach After reviewing written materials provided by the City and meeting with you and others of your choice to determine their objectives relative to the search, we would conduct the following steps: Shana Yelverton March 9, 2005 Page 2 1. Analyze of the position and draft a Position Profile. 2. Recruit for the position on a regional and national basis. 3. Invite potential candidates to apply who meet the criteria established by the client. 4. Review and screen applications. 5. Conduct interviews and background checks of selected candidates. 6. Recommend a list of final candidates with a write up, suggested questions and forms. 7. Coordinate final interviews, conduct final background checks, negotiation and follow -up. Our approach is highly interactive and significantly involves the client in all important steps of the process. Guarantees We offer several guarantees of our work. The four most important are: 1. We will keep working until the placement is made. 2. We will not recruit the placement for other positions without your permission. 3. We will not recruit any of your staff for two years from the date of the placement, without your permission. 4. If the selected candidate leaves your employ within the first two years, we will redo the search for expenses only. Reasonable Fees Our fees to conduct a search these two recruitments would be $28,000 plus actual out of pocket expenses not to exceed $14,000. References We would be delighted to provide local and national references of our work We have a number of minority and women placements in key executive positions and are proud of that record. In the last two (2) years we have placed seventeen (17) minority candidates in various positions across the country. Of those placements, three (3) were Hispanics. One was placed in a City Manager position, one as a Director of Information Services position and one in a City Engineer position. We have also placed fourteen (14) African American candidates in the following positions, City Manager, Assistant City Manager, Director of Planning, Solid Waster Superintendent, Library Director and many other Assistant City Manager level positions. These placements have been in communities such as District of Columbia, Avondale, AZ, Coral Springs, FL, Norfolk, VA and Richmond, VA. Our corporate headquarters is in Atlanta, Georgia, and we have branch offices in Dallas, Texas, Santa Fe, New Mexico; Lansing, Michigan; Greeley, Colorado; Winter Haven, Florida, Phoenix, Arizona; Weimar, California and Raleigh, North Carolina. We will work on the assignment from our Dallas Office. The Mercer Group, Inc. has the resources and time currently available to do these searches and avoid untimely delays in the process. This search will be personally conducted by Jim C. Blagg in the Dallas Office. Shana Yelverton March 9, 2005 Page 2 Thank you for the opportunity to respond to this important assignment. This proposal is valid for ninety (90) days from receipt by the City of Southlake. We are looking forward to discussing this proposal with you personally. We can move very quickly to do so. Please call me at 972.740.2519 if you have any questions. Sincerely yours, THE MERCER GROUP, INC. T i . enior Vice President Enclosures ACCEPTANCE This proposal is incorporated into this acceptance agreement by reference and is accepted for the City of Southlake, TX by: The City of Southlake The Mercer Group, Inc. Date Jim C. Blagg, Sr. Vice President Date