88-051Shannon Associates, Inc., Professional Services for Executive Search for a City Manager • AGREEMENT l70- 8' --773"
CITY OF CUPERTINO
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'boob' P.O. Box 580 9 0 0
ammo'• Cupertino, CA 95015 0 1
i. 252-4505 NO.
BY THIS AGREEMENT made and entered into on the 26 day of July 19 88
by and between the CITY OF CUPERTINO (Hereinafter referred to as CITY) and
Name (1) Shannon Associates, Inc. (2)
Address1400 City Phone916-
(Hereinafter referred as CONTRACTOR), in consideration of their mutual covenants, the parties hereto agree as follows:
CONTRACTOR Shall provide or furnish the following specified services and/or materials:
Do an executive search for a City Manager for the
City of Cupertino as per attached proposal.
EXHIBITS:The following attached exhibits hereby are made part of this Agreement:
1. Proposal to recruit a City Manager.
TERMS The services and/or materials furnished under this Agreement shall commence on 7/26/88
and shall be completed before 1/2/89
COMPENSATION For the full performance of this Agreement,CITY shall pay CONTRACTOR: Base $12,500
plus additional expenses as per page 18 of proposal and approved by Personnel Officer.
GENERAL TERMS AND CONDITIONS
Hold Harmless. Contractor agrees to save and hold harmless the City, its officers,agents and employees from any and
all damage and liability of every nature, including all costs of defending any claim,caused by or arising out of the per-
formance of this agreement.City shall not be liable for acts of Contractor in performing services described herein.
Insurance. Should the City require evidence of insurability Contractor shall file with City a Certificate of Insurance
before commencing any services under this agreement.Said Certificate shall be subject to the approval of City's
Director of Administrative Services.
Non-Discrimination. No discrimination shall be made in the employment of persons under this agreement because of
the race, color, national origin,ancestry, religion or sex of such person.
Interest of Contractor. It is understoodand agreed that this agreement is not a contract of employment in the sense
that the relation of master and servant exists between City and undersigned. At all times Contractor shall be deemed to
be an independent contractor and Contractor is not authorized to bind the City to any contracts or other obligations in
executing this agreement.Contractor certifies that no one who has or will have any financial interest under this
agreement is an officer or employee of City.
Changes. This agreement shall not be assigned or transferred without the written consent of the City.No changes or
variations of any kind are authorized without the written consent of the City.
CONTRACT CO-ORDINATOR and representative for CITY shall be:
NAME BARBARA K- BROWN DEPARTMENT GENERAL ADMINISTRATION
ASSISTANT TO THE CITY MANAGER
This Agreement shall become effective upon its execution by CITY, in witness thereof, the parties have executed this
Agreement the day and year first written above.
CO ACTOR: CITY OF CUPERTINO:
By ROBERT W. QUINLAN
Aire P/�/CC/n/sw7 Title CITY MANAGER
�oc. Sec. ,
APPROVALS
Depa -' ens ead Date Cit Date
er
White-City Clerk Copy Creen-Finance Canary-Contractor's Copy Pink-A: eiving Copy Goldenrod-Department Copy
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• S'HANNONOASSOCIATES
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A PROPOSAL
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TO
CITY OF CUPERTINO • • •
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FOR •
• EXECUTIVE SEARCH •
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>F[ \\\o`.c \b$OLI. \
June 13 , 1988
Barbara K. Brown
Assistant to the City Manager
City of Cupertino
10300 Torre Avenue
Cupertino, California 95014
Dear Ms. Brown:
Thank you very much for the opportunity to submit a proposal to
assist the city in the recruitment of a new City Manager.
Our proposal is based on:
Your request for proposal
An indepth knowledge of California cities.
A comprehensive background in human resource management
including executive search, assessment centers, strategic
planning and organizational development, compensation, and
performance appraisal.
Shannon Associates was formed as a California corporation in July,
1986 to provide human resource consulting services to governmental
clients. While the Firm is new, John Shannon has over seventeen
years of professional experience including nearly eleven years as a
consultant to local, regional, and state government. During this
time over 300 consulting engagements were successfully completed for
cities, counties, educational organizations, and special districts.
For a representative list of past clients please see Section III-
References.
3550Wart.aye . ,..:e ISO. Sacranerro, CA 93321 .slk -_
Barbara Brown
June 13, 1988
Page 2
This proposal has been organized as follows to facilitate the
City' s review:
Section I - Assignment in Perspective
Section II - Executive Search Process
Section III - References
Section IV - Project Timing and Cost
Section V - Corporate Qualifications
Again, thank you for the opportunity to submit this proposal. If
you need additional information, please call:
Sincerely,/
k 1i4n, ?h. CJ2r tivn i7L/
/John M. Shannon
President
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TABLE OF CONTENTS
Page
Section I - Assignment in Perspective
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Section II - Executive Search Process
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Section III - References
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Section IV - Project Timing and Cost
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Section V - Corporate Qualifications
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SECTION I - ASSIGNMENT IN PERSPECTIVE
The City is about to make one of the most significant decisions it
can make - the selection of a new City Manager. This decision will
have a dramatic and direct impact on the development and
implementation of the City's public policy for years to come.
Because this decision is so critical, we have developed the most
comprehensive and sophisticated executive search service available
to cities today.
OUR APPROACH
Our unique approach to executive search includes the following
features:
COUNCIL INVOLVEMENT - The Council must be intimately involved in
the search for a new City Manager. For this reason, our approach
assumes the Council 's direct participation in every phase of the
search process.
CITY NEEDS - A critical first step in a successful executive search
is for the City Council to .collectively define the personal and
professional qualities required of their City Manager. To be
certain this occurs we have developed esus
effective consensus
b ildinq rocess that will permit the City to clarify the preferred
future vision for the City; the specific challenges the City is
likely to face in achieving this future vision; the working style
and organizational climate the City Council wishes to establish with
its management team; and ultimately, the personal and professional
qualities of the new City Manager that will be required to implement
the City-Council 's vision.
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AGGRESSIVE RECRUITMENT - The very best City Manager candidates are
typically not looking for a job. They are usually satisfied with
their current position and will only consider a change if a more
attractive career opportunity is presented to them. This is why we
take a very aggressive approach to identifying and recruiting the
best available candidates.
SELECTION - The selection of the best available candidate requires
the use of assessment tools that have been specifically designed to
e aluat each candidate against the personal and professional
qualities identified by the City Council. For this reason, we
tailor our selection techniques to the City ' s specific
requirements. In addition, we also assume responsibility for
administering the selection process. '
EMPLOYMENT AGREEMENT' - One of the most sensitive parts of the
selection process is frequently the negotiation of an employment
agreement with the new City Manager. If this isn't done with care
and precision, it can result in either loosing the preferred
candidate or getting off on the wrong foot with the new City
Manager. To preclude this from occurring we are -available to
assist the City Council and the city Manager in developing an
agreement which is acceptable to both parties.
SPOUSE PLACEMENT - Often the best candidate for the job is married
to a working spouse and the decision to accept the position will be
heavily influenced by the employment opportunities available to the
spouse. This can be critical for
two reasons. First, the spouse may have a very successful career
which he pr she wants to continue. Second, the spouse's salary
may be a significant part of the family income. Therefore, even if
the City offers a competitive compensation package, the family
income may go down if the spouse does not find employment. For
these reasons, we offer an optional spouse placement program. This
program is designed to evaluate the spouse's career . objectives and
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background, identify employment opportunities, and develop a
specific placement strategy.
PERFORMANCE EVALUATION - Once the City Council has selected a City
Manager their relationship is just beginning, and how it begins can
affect the relationship for years to come. To be sure this
relationship begins on a constructive basis, we will assist. the City
Council and the City Manager in developing a performance evaluation
process that will assure that tha rity rm»cil and City Manager are
clear about mutual expertfl ions. Specific activities include the
development of performance objectives, the clarification of
boundaries of action, and the development of the performance
evaluation system.
EXECUTIVE SEARCH 'PROCESS
In summary, our executive search process is divided into four
distinct but inter-related phases (.see Exhibit A on the following
page for a graphic illustration of the search process) .
PHASE I - ESTABLISH JOB REQUIREMENTS. This phase of the process
will enable the City Council to identify .three - critical inputs to
the recruitment and selection process. 1. The City Council's
collective vision of the City'ss future (the "Preferred Future") .
2 . The specific conditions and challenges the City is likely to
face in achieving this vision. 3 . The type of working
relationship the City Council wishes to establish with its
management team. Analyzing the above information will enable the
City Council to identify the personal and professional attributes
required of the new City Manager. Based on the results of this
process the consultants can then design a specific recruitment
strategy and assessment process that is tailored to the City's
specific needs. All tasks in this phase are designed to be
accomplished during a day long planning session involving the full •
Council and the consultants. •
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EXHIBIT A
. -- - EXECUTIVE SEARCH PROCESS
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PHASE. I - ESTABLISH JOB REQUIREMENTS
IN CONSULTATION WITH COUNCIL -
Develop short and long-term vision
for the City
PHASE II - RECRUITMENT
Identify conditions and challenges IN CONSULTATION WITH COUNCIL
involved in achieving the City's
vision
Aggressively identify and pursue
Describe preferred leadership style potential candidates
of new City Manager
1 / Review resumes, conduct background
Identify specific competencies, checks, and interview best candidates
experiences, and personal attributes
needed by new City Manager Recommend best candidates to Council for
evaluation
Select specific recruitment strategy Council selects finalists for further
and assessment process evaluation
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PHASE III - SELECTION
IN CONSULTATION WITH COUNCIL
OPTIONAL SPOUSE PLACEMENT
Tailor selection process and develop
Assess spouse's career needs and assessment tools
background
- Administer selection process
Assess local labor market
Council select new City Manager
' Develop placement strategy
Assist Council in negotiating employment
agreement
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PHASE IV - PERFORMANCE EVALUATION
IN CONSULTATION WITH COUNCIL
Clarify performance expectations and
develop specific goals and objectives
Develop performance evaluation process
Prepare evaluation forms and guidelines
• Finalize evaluation criteria, process,
and forms with Council and City Manager ,.
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PHASE II - RECRUITMENT. This phase of the process includes a
variety of aggressive recruitment strategies designed to attract
the best available candidates. In addition to traditional
recruitment techniques such as nlac ng ads in professional
journals, the consultants will make direct contact with outstanding
potential candidates to explain the career opportunity, answer
questions, and encourage them to submit a. resume. This phase also
includes a detailed evaluation of resumes, indepth background
checks, and personal interviews with the most promising candidates.
The results of these recruitment efforts are summarized and
presented to the City Council for consideration. The City Council,
with the assistance of the consultants, will then select those
candidates they wish to consider further.
PHASE III - SELECTION. This phase of the process includes all
those tasks associated with the assessment of the best candidates
and the ultimate selection by the City Council of a new City
Manager. Specific activities include the design and_ administration
of the sel- • • • • - - • • 9 9 - - • s of the
employment agreement with the new City Manager. Also included in
this phase, at the option of the City Council, is the spouse
placement program.
PHASE IV - PERFORMANCE EVALUATION. This phase of the process will
assure that both the City Council and the City Manager are clear
about mutual expectations. This clarity is achieved through a
series of activities culminating in a day long planning session
involving the new City Manager, the City Council, and consultants.
The results of this phase include the development of performance
objectives, the clarification of boundaries of action and
responsibility (e.g. policy/administration) , and the development of
a performance evaluation system.
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THE TEAM
We have assembled a uniquely qualified team of professionals to
assist the City Council in their selection of a new City Manager.
This team possesses both extensive consulting experience and a
direct, indepth understanding of California cities.
JOHN SHANNON. Mr. Shannon serves as President of Shannon
Associates and will assume overall responsibility for this
engagement. He has over seventeen years of human resource
management experience including nearly eleven years experience as a
consultant to local, regional and state government. During this
time over 300 consulting engagements were successfully completed for
cities, counties, educational institutions, special districts, and
regional and state agencies.
Mr. Shannon received his Bachelor's Degree from the University of
California, Santa Barbara and Master's Degree from the University
of California, Los Angeles.
STEVE KINGSFORD. Mr. Kingsford serves as a special consultant to
Shannon Associates in the recruitment of local government
executives. He has over twenty-four years of experience both as an
administrator and as a consultant. During this time he has
provided consulting services in organizational assessment,
strategic planning, meeting design and facilitation, conflict
resolution, training design, and organization culture to more than
eighty public and private sector organizations. In addition to his
administrative and consulting experience, Mr. Kingsford has
previously served as a school board member and vice-president of the
Association of California School Administrators, Region XIII, and
currently is President of the American Society for Training and
Development, Los Padres Chapter. He also teaches graduate level
courses in administration at California Lutheran University.
Mr. Kingsford received his Bachelor's Degree and Master's Degree
from California State University.
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SECTION II - EXECUTIVE SEARCH PROCESS
The executive search process presented below is designed to provide
the City Council with the full range of services required to assure
the ultimate selection of a new City Manager that is uniquely suited
to the City's needs.
PHASE I - ESTABLISH JOB REQUIREMENTS. This phase of the process
will enable the City Council to identify three critical inputs to
the recruitment and selection process: 1) The City Council 's
collective vision of the City's future (the "Preferred Future") .
2) The specific conditions and challenges the City is likely to
face in achieving this vision. 3) The type of working
relationship the City Council wishes to establish with its
management team. Analyzing the above information will enable the
City Council to identify the personal and professional attributes
required of the new City Manager. Based on the results of this
process the consultant can then design a specific recruitment
strategy and assessment process that is tailored to the City's
specific needs. All tasks in this phase are designed to be
accomplished during a day long planning session involving the full
Council and the consultants.
Task 1 - Review and Finalize Executive Search Process and Schedule.
A critical first step in the engagement is a thorough review of the
search process and schedule with the City Council. This will
insure that the City's needs are met in the most complete manner
possible:_
Task 2 - Meet Individually With Each Council Member
As a prelude to the day long planning session, the consultants will
meet individually with each Council member. The purpose of these
meetings is to develop some initial insights regarding the
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community' s needs and the personal and professional characteristics
desired in a new City Manager.
Task 3 - Establish Job Requirements
This task will be accomplished during a day long planning session
involving the full Council and the consultants. This task will
result in the identification of the personal and professional
attributes required of the new City Manager and include the
following activities:
Using a dynamic strategic planning process known as "Preferred
Futuring, " the City Council will clarify and refine a
comprehensive vision of what it wants the City to be like in the
near and long-range future.
Using Force-Field Analysis the City Council and consultants will
identify the conditions and challenges likely to be encountered
in building toward the "Preferred Future. "
Using a consensus-building process, the City Council will
describe the style of working relationship it wishes to
establish with the City Manager and the rest of the management
team.
Using factoring techniques, the City Council and consultants
will generate a list of specific competencies, experiences and
personal attributes needed by the new City Manager in light of
the analyses conducted above.
The consultants will present several recruitment and selection
strategies for the City Council's consideration. After assessing
the benefits and liabilities of each technique, the City Council
will select the recruitment and selection process most likely to
produce the intended results.
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Task 4 - Prepare Summary Report
Following the completion of the off-site retreat, a report
summarizing the data and • decisions generated during the retreat
will be prepared and presented to the City Council for review.
This document will provide the basic parameters within which each
step of the search process will be conducted.
PHASE II - RECRUITMENT
Task 1 - Identify and Contact Potential Candidates
This task will include a variety of activities designed to attract
the best available candidates. In addition to the placement of ads
in the appropriate professional journals, the consultants will:
Contact leading local government executives throughout
California to identify outstanding potential candidates.
Provide each potential candidate with an indepth written
description of the City and the personal and professional
attributes the City Council is seeking in a new City Manager.
Personally contact each potential candidate to explain the
career opportunity, answer questions, and encourage them to
submit a resume.
Task 2 - Conduct Initial Screening
All resumes will be submitted directly to the consultants for
initial screening. This screening process is specifically designed
to assess the personal and professional attributes the City Council
is seeking and will include:
A thorough review of each candidate's resume and other
supporting materials.
Preliminary background checks.
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Screening interviews with those candidates that appear to best
meet the City's needs.
Task 3 - Indepth Background Checks
Following the completion of the above task the consultants will
conduct indepth background checks on those candidates who appear to
best meet the City's needs. Typical areas explored in the
background checks include:
Verification of information furnished by the prospective
candidate through the resume and personal interview.
Written and oral communication skills.
Ability to analyze and solve problems.
Planning and organization skills.
Management skills and leadership skills.
Interpersonal sensitivity.
Composure and self control.
Flexibility.
Technical knowledge.
The candidate's fit with the City's organizational culture.
The candidate's career potential.
Task 4 - City Council Selects Finalists
At the conclusion of the previous task, the consultants will
prepare a report summarizing the results of the recruitment process
including the identification of those candidates which appear to
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best meet the City's needs. The consultants will meet with the City
Council to review this report and to assist the City Council in
selecting a group of finalists for further evaluation.
PHASE III - SELECTION
Task 1 - Design Selection Process
Based on the results of the off-site retreat conducted in Phase I,
the consultants will design the selection process to be utilized by
the City Council in assessing the finalist candidates. This process
will typically include an in-depth interview with each candidate but
may also include other assessment tools such as group discussions,
preparation of written reports, and problem solving exercises.
Task 2 - Administer Selection Process
The consultants will coordinate all aspects of the selection
process for the City Council. This includes scheduling interviews,
contacting both the successful and unsuccessful candidates,
preparing the appropriate assessment materials for the City Council,
and facilitating the assessment process.
Task 3 - Assist City Council in Negotiating Employment Agreement
Once the City Council has made a selection, the consultants will
assist the City Council and new City Manager in developing the
terms of the employment agreement.
Task 4 - Spouse Placement (Optional)
This is an optional feature of the searchprocess, and is designed
to facilitate the smooth transition of the City Manager's spouse to
a new job. Specific activities include:
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An interview with the spouse to evaluate his or her. career
objectives and background. -
An assessment of employment opportunities in the local area.
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Development of specific placement strategy tailored to the needs
of the spouse.
PHASE IV - PERFORMANCE EVALUATION
Task 1 - Conduct Planning Meeting
Since it is essential that the new City Manager participate in the
decision making process as soon as possible, the first task of this
phase is to hold a planning meeting with the City Council and City
Manager to design the balance of the process. This meeting will
take two or three hours and is facilitated by the consultants.
Task 2 - Conduct Planning Session
Based on the parameters established in Task 1, the consultants will
facilitate a planning session involving the full
Council and the City Manager. This process is designed to assure
that the City Council and City Manager are clear about mutual
expectations and will include:
The development of performance objectives .
The clarification of boundaries of action ( e . g .
policy/administration.
The development •of the performance evaluation system.
Task 3 - Document the Results of the Planning Session
Following the completion of the planning session, the consultants
will prepare a report that documents:
Performance Objectives '
Clarification of Boundaries of Action
Performance Evaluation System
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SECTION III - REFERENCES
As indicated previously, Mr. Shannon and Mr. Kingsford have
provided the full range of human resource consulting services to a
wide variety of clients. A representative list of past and current
clients include the following:
CLIENT CONTACT
City of Brea Denise Ovrum
Assistant City Manager
• (714) 990-7600
City of Monterey , Lee Riordan
City Manager
(408) 646-3760
City of Oceanside William Talley
Interim City Manger
(619) 439-7300
City of Orinda Tom Sinclair
City Manager
(415) 254-6130
City of Pleasant Hill Paul Cooper
Vice-Mayor
(415) 464-6234
City of Rancho Cucamonga Robert Rizzo
Asst. City Manager
(714) 989-1851
City of Riverside Larry Paulsen
Assistant City Manger
(714,) 787-7553
City of Sacramento Michael M. Davis
Community Develop. Dir.
(916 449-5571
City of Sunnyvale Izetta Birch
Human Resource Director
(408) 730-7495
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Don Benninghoven
League of California Cities Executive Director
(916) 444-5790
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SECTION IV - PROJECT TIMING AND COST
TIMING
We are prepared to begin immediately and can complete all search
activities up to and including the selection of a new City Manager
in approximately 12 to 16 weeks. The precise schedule will depend
on the placement of advertising in the appropriate professional
journals. The timing associated with the spouse placement program
and the development of the performance evaluation system for the new
City Manager will be determined in consultation with the City
Council.
COST
Fees for professional services, excluding the s ouse placement
program, would amount to a fixed price o 12,500. The additional
professional fees for the spouse placement program would be 2, 000.
The only additional charges would be for reimbursement of direct
related expenses for such items as travel, advertis_n�g
distance telephone, printin. and .osta.e delive char.es. These
expenses will ranger betweenf$3,500 and $4,500'\ depending on the
approach to the search. Professi eesand reimbursable expenses
will be billed monthly.
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SECTION V - CORPORATE OUALIFICATIONS
THE FIRM
Shannon Associates, Inc. , was formed as a California Corporation _
in July, 1986 to provide the full range of human resource
consulting services to governmental clients. The Firm's scope and
approach to consulting are based on a solid foundation of over
seventeen years of professional experience including nearly eleven
years as a consultant to local, regional, and state governments.
During this time over 300 consulting engagements were successfully
completed for cities, counties, educational organizations and state
and regional agencies.
SERVICES
The Firm offers a comprehensive range of human resource consulting
services including:
EXECUTIVE SEARCH - This service is designed to assist clients in
the recruitment and selection of critical executive, management,.
professional, and technical staff. Our recruitment process has
been carefully designed to accurately define the position to be
filled; identify and recruit top quality candidates; thoroughly
review and evaluate each candidate's qualifications; and to
recommend a fully qualified group of candidates to the client.
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CLASSIFICATION AND COMPENSATION - This area of the practice
includes the development, installation, and modification of all or
part of an agency's classification plan- and compensation program.
Typical study- results include compensation policy development; the
preparation of class specifications and-' career ladders; internal
relationship analysis; external compensation surveys; and the
development of a revised compensation plan. An area of particular
expertise is the development of tailored compensation programs for
executive, management, and professional staff.
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PERSONNEL SYSTEMS 4- Typical assignments in this area result in the
`.. development or modification of the basic policy and administrative
framework for the agency's personnel management system. Study
results include the preparation of charter amendments, ordinances,
and personnel rules, policies, procedures, and employee handbooks.
PERFORMANCE APPRAISAL - This service area' involves the development
and installation of comprehensive performance appraisal systems for
both management and non-management staff. These systems are
complete and include the necessary forms, procedures manuals, and
the training of management and supervisory staff.
ORGANIZATION ANALYSIS - Assignments in this area result in the
development and implementation of efficient and effective
organization structures, staffing plans, administrative systems and
procedures, and service delivery methods:
APPROACH - The Firm's approach to consulting is anchored in nearly
eleven years of.. very successful and practical consulting experience
and emphasizes:
CLIENT INVOLVEMENT - Every consulting . assignment involves the
client in the development of the study objectives and workplan and
the thorough review of all findings and recommendations. This
approach assures that a solid consensus_ is built around the study
results so that they can be implemented.
QUALITY AND SERVICE - The Firm has a strong commitment to providing
the highest quality consulting service available in a responsive and
timely fashion. To insure this commitment .is met, Mr. Shannon is
personally involved .in every consulting assignment.
VALUE - The Firm's professional fees are designed to provide the
client the greatest value for each dollar spent on consulting
assistance. ' This is possible because of our technical expertise,
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extensive experience, and efficient operations featuring the most
up-to=date automated systems and procedures.
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