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HomeMy WebLinkAbout4.D.4. Approval of contract with Waters & Co. for Finance Director search process Consent Business 4. D. 4. SHAKOI'EF TO: Mayor and City Council FROM: Kris Wilson, Assistant City Administrator DATE: 08/18/2015 SUBJECT: Approval of Contract with Waters & Co. for Finance Director Search Process (F) Action Sought The Council is asked to authorize the hiring of Waters & Company Executive Recruitment to conduct executive recruitment services for the position of Finance Director, at a cost not to exceed $15,300. Background The City currently has several vacant positions among the authorized full-time staff, including the key position of Finance Director. Based on the experience of other cities in the metro area, we do not expect to find a large applicant pool and expect filling the position with a well qualified candidate will require significant and active recruitment efforts. Therefore, Council is asked to authorize the hiring of Ms. Sharon Klumpp of Waters & Company Executive Recruitment to conduct the recruitment and screening process. This is expected to increase the size and quality of the applicant pool and will also allow internal HR staff to focus on filling other vacant positions. A proposal and price quote for Water & Company's services is attached and includes an overview of the scope of services to be provided as well as an estimated timeline. The timeline calls for an offer to be made to the selected candidate in December, with a likely start date in early January. Budget Impact The cost of these services has been quoted at $15,300, which is listed as "Option #2" on the attached proposal. This is a slightly less expensive option that will focus Ms. Klumpp's efforts on recruitment and screening of the applicants while having in-house staff take over once the interview process begins. This amount can be funded from the adopted operating budget for the Administration Department, due the significant unspent wage and benefit dollars that have resulted from position vacancies this year. Recommendation I recommend that Council authorize the hiring of Waters & Company Executive Recruitment to conduct executive recruitment services for the position of Finance Director. Requested Action The Council is asked to authorize the hiring of Waters & Company Executive Recruitment to conduct executive recruitment services for the position of Finance Director, at a cost not to exceed $15,300. Attachments: Waters & Company Proposal , , -414,1 / �&ter � fi , ,h, r rc....• c Yz�►,.. 'fid #-.:; . . .,,,,17- .b f � 4y'cP 1 y • � � fir.,. w T" 'p �?` :: x 04 4 a P. �." as 6_4 , t . / 011111 Proposal City of Shakopee, Minnesota Proposal to Provide Finance Director Executive Search Services July 28, 2015 W C Waters&Company Executive Recruitment A springsted Company CI Waters&Company Executive Recruitment A Springsted Company LETTER OF TRANSMITTAL July 28,2015 Mr. Bill Reynolds, City Administrator Ms. Kris Wilson,Assistant City Administrator City of Shakopee 129 South Holmes Street Shakopee,Minnesota 55379-1376 Re: Proposal to Provide Finance Director Executive Search Services Dear Mr. Reynolds and Ms. Wilson: Thank you very much for the opportunity to submit a proposal to assist in conducting an executive recruitment for the position of Finance Director. Hiring a Finance Director is one of the most important decisions a city makes. In our role and partnership as executive search consultants,Waters&Company, a Springsted Company, is committed to working closely with all the City to conduct a thorough,well- executed search that identifies qualified candidates with proven financial and management experience that matches the needs and expectations of the City. Collectively, our model and business strategy is to provide you with a strong process while remaining flexible to adapt to the City's needs and desires. We approach each search by establishing positive and effective communication and trust with everyone. We will work hard to understand the City's issues, challenges and future goals. We will use this information to recommend effective recruitment strategies, prepare professional materials and thoroughly evaluate candidate credentials. We understand our proposal is subject to review and discussion. Please contact me at 651-223-3053 if you have any questions on our proposal. Thank you very much for your consideration. Respectfully submitted, Sharon G. Klumpp, Senior Vice 'resident Consultant sml City of Shakopee, Minnesota Proposal to Provide Finance Director Executive Search Services I. General Information Waters&Company Executive Recruitment(WCER)recently merged with Springsted Incorporated, establishing one of the largest public sector executive search and organizational management firms in the United States. Our company combines the executive search expertise and resources of two highly respected firms,Waters&Company and Springsted Incorporated. WCER and Springsted are Women's Business Enterprise("WBE")firms. Springsted,the parent corporation, is a certified WBE by the City of Saint Paul,Minnesota. Three employee-owners lead the firms and their 70-member staff. Our headquarters are located in Saint Paul,Minnesota,with offices strategically located throughout the United States. Our regional offices include Dallas, Texas;Milwaukee,Wisconsin; Des Moines,Iowa; Kansas City,Missouri; Richmond,Virginia; Denver,Colorado and Los Angeles,California. WCER has a team of seven primary search consultants available to meet your executive search needs. Each consultant assigned to this recruitment has experience working with local governments and appreciates the demands of the finance director position. Our consultants bring an experienced, participatory and energetic perspective to each engagement; our unique approach and personal touch are reflected in our internal standard to provide outstanding services that exceed the City's expectations. The WCER recruitment project team will partner with the City Administrator,Assistant City Administrator and others as your technical advisor to ensure that the recruitment process for your next Finance Director is conducted in a thorough and professional manner. Our objective is to generate high- quality candidates and assist you with the screening and evaluation of these candidates. We have structured the WCER recruitment project team to draw upon Springsted's 50-plus years of service to Minnesota cities and to leverage WCER's ability to expand national recruitment for this position. The breadth and knowledge of the recruitment project team includes a variety of sizes and communities served, familiarity with potential candidates from Minnesota and beyond and the experience and understanding needed to evaluate each candidate's"fit"with the City's established qualifications. Physical Address Waters&Company,A Springsted Company 380 Jackson St., Suite 300 Saint Paul,MN 55101 Office: 651-223-3000 Fax: 651-223-3002 Respectfully submitted, )1/4‘ Rollie Waters,Executive Vice President Consultant C I Waters ve&RecrjCompany trent A Springsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Executive Search. i1 II. Statement of Qualifications and Relevant Experience Principals/Owners: Bonnie C. Matson,Principal Kathleen A. Aho,President David N. MacGillivray, Chairman Executive Search Philosophy Our executi ve recrui tment phi I osophy begi ns with a d ear partnership objective which i s: To administer a participatory and interactive process that results in the best candidate for the Finance Director position. Vlt will earn your trust from our initial meetings through the end of the search. We will work to create an excellent partnership with all City officials. This includes helping the City think strategically and deliberately throughout each critical step of the process. This emphasis is an important component of the early stages of this process as we work to reach consensus on the qualities and characteristics you desire in the successful candidate. WCER team members will remain unbiased and fair in all communications and interactions. Ms. Klumpp and her team will deliberately and methodically work to understand the desired qualifications for this position as well as the City's issues and priorities. We will meet with the City officials to discuss the City's recruitment goals and the desired Finance Director qualifications and expectations. In partnership with City officials,we will identify best practices in the overall search process, including ensuring compliance with applicable Minnesota laws,finalizing a recruitment plan and a schedule of all activities and evaluating candidate qualifications in accordance with the competencies and management skills specifically identified by the City of Shakopee. The WCER team's previous experience in local government will provide a solid foundation for the City of Shakopee. Our previous consulting work and experience with the City will give elected officials and staff the confidence needed to move forward to hire the best qualified candidate for the position. Knowledge of the Profession and Search Market The WCER team is very active in Minnesota and across the country in executive recruitment. We are active in the Minnesota City/County Management Association,the League of Minnesota Cities, Association of Minnesota Counties,the International City/County Managers Association,the National Forum of Black Public Administrators and other Midwest and nationally based professional public management associations. Springsted has a long history of involvement with the Government Finance Officers and will use those contacts as a large part of our outreach to prospective candidates. We expand our professional network by working in collaboration with staff in our regional offices to identify and recruit qualified candidates for the position. Our key staff members in these offices are former local government administrators and managers that are active in the profession, in their region and in assisting in search processes. This"bench strength"will ensure that our recruitment strategy and results are thorough and comprehensive. Ultimately our goal is to recruit qualified candidates that are a strong match for the desired qualities and skills of the City. Wc Iae ters&Compacutive Recruarnennyt A Springsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Executive Search. 2 III. Recruitment Team The Recruitment Team assigned to this search are listed below;their resumes appear on the following pages. Mr. Rollie Waters, Executive Vice President Direct Phone: (214)466-2424 Email: rwaters@waters-company.com Recruitment Project Team Leader Ms. Sharon Klumpp, Senior Vice President Direct Phone: (651)223-3053 Email: sklumppnswaters-company.com Ms. Sara Haselbauer,HR Analyst Direct Phone: (651)223-3006 Email: shaselbauer@springsted.com `�I Waters&Company xecutive RecrJ„-enr A Sprinqsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Executive Search. 3 Rollie Waters Executive Vice President Rollie O. Waters is an Executive Vice President of Waters&Company Executive Recruitment,a Springsted Company. Since 1976,Rollie has been a management consultant to private and public sector clients. He has consulted with national and international clients in the area of HR Management system design and strategic management. He has given various lectures and seminars for organizations in the areas of compensation as it relates to performance management. He is viewed on a national level as one of the foremost authorities in succession planning and performance management system design for the public sector. He has spoken before such organizations as the International City/County Managers Association,American Management Association,The Alliance for innovation, Southern Methodist University,the University of Maryland,National Forum of Black Public Administrators,California Institute of Technology,the Texas Municipal League(TML),the International Personnel Management Association(IPMA-HR),several international companies in Great Britain, and various other U.S. public and private sector agencies and organizations. Rollie has been actively involved in the development of competency-based knowledge selection and development tools over the past twenty years. He has been instrumental in ensuring the proprietary profiles that he has designed attract the right candidates that fit the organization's needs. In addition, Rollie's extensive knowledge of performance management solidifies matching the management style most compatible with the organization's success. His research on succession planning has led him and his team to be able to help shape the future of organizations through their executive recruitment activities. Rollie has been widely published in national journals and magazines focusing on human resource challenges. His publications include a research article in the Public Personnel Management Journal titled "The Impact of Behavioral Traits on Performance Appraisal." Prior to founding W&C,Rollie held an executive position with Dun&Bradstreet Co.,Inc.,and a management position with Owens Corning Fiberglass. Areas of Expertise • Executive Recruitment • Web-Based Compensation Support • Management Development • Organizational Strategy • Mentoring Programs • Performance Management • Competency-based Systems and Development Systems • Succession Planning Professional Accomplishments and Education Rollie is a member of Mensa, a Strategic Partner with the International City/County Managers Association,International Management Consultants,and Alliance for Innovation,a member of the National Corporation Advisory Council of the National Forum for Black Public Administrators,and numerous other professional groups. He has also appeared in several professional directories such as Who's Who in the World,Who's Who in Finance and History, and many others. Rollie has an extensive background in the behavioral sciences and strategic planning. He received his MBA at Pepperdine University and his Bachelor of Science degree in Psychology from the University of South Carolina. In '( T C ( Wateexecutivers&Company V V RecruiCment A Springsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Executive Search. 4 addition, he is a Certified Management Consultant(CMC); CMC is a certification mark awarded by the Institute of Management Consultants USA and represents evidence of the highest standards in consulting and adherence to the ethical canons of the profession. W C I waters&Recrj Company xec:3gent A Springsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Executive Search. 5', Sharon G. Klumpp Senior Vice President Sharon Klumpp is a Senior Vice President of Waters&Company Executive Recruitment,a Springsted Company. Sharon has extensive experience specializing in organizational and departmental studies, human resource management,and executive search for public agencies. She also assists governing bodies and senior-level managers in the development, execution and evaluation of strategic plans. Sharon has extensive experience in serving government. She has served as Executive Director of the Metropolitan Council, a seven-county regional planning agency for the Minneapolis-Saint Paul metropolitan area,and as Associate Executive Director for the League of Minnesota Cities. Her experience also includes serving as City Administrator in Oakdale, Minnesota and as Assistant City Manager in both St. Louis Park,Minnesota and Saginaw,Michigan. Her private sector experience includes serving as the chief administrative officer for the Minneapolis office of a major global engineering and design firm. Sharon also served as an adjunct instructor at Walden University,where she taught public administration and organizational change in the University's School of Management. She served two terms on the Ramsey County Charter Commission and was chair for two years. Professional Accomplishments and Education Education Affiliations University of Kansas,Lawrence,Kansas International City/County Management Association Masters of Public Administration International Public Management Association for Miami University,Oxford,Ohio Human Resources Bachelor of Arts in Political Science WC I Wat &Cm-xecutiveers Recrouitmenpanyt A Springsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Executive Search. 6 Sara Haselbauer,J.D. HR Analyst Ms. Sara Haselbauer is a Human Resources Analyst with the Organizational Management and Human Resources Team. Ms. Haselbauer started as an Administrative Assistant to the Project Management team in 2007. In August 2009,Ms. Haselbauer left Springsted to attend law school before returning in November 2014 as an independent contractor. Ms. Haselbauer has experience with analyzing data from various NRMSIRs to determine whether or not all material events had been timely filed in accordance with previous and current SEC regulations. She is fluent in legal research and drafting documents. Education University of North Dakota School of Law,Grand Forks,North Dakota Juris Doctor Certificate in Indian Law University of St. Thomas, St. Paul,Minnesota Bachelor of Arts in Art History and Sociology C 1 Waters&Company .;rve Recr .ment A Springsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Recruitment Services. 7 IV. References We are providing various references for you to contact. These references will give you an excellent understanding of our executive search work. Please feel free to contact any one of these individuals. City of Hutchinson, Minnesota City of Elk River, Minnesota Mr. Marc Sebora, City Attorney Honorable John Dietz,Mayor 320-587-5151 763-441-2210 msebora@ci.hutchinson.mn.us shortshots17@aol.com Position: City Administrator Position: City Administrator City of Big Lake, Minnesota City of East Grand Forks, Minnesota Honorable Raeanne Danielowski, Mayor Mr. Craig Buckalew, Council President 763-263-3801 218-791-5004 cook113@aol.com cbuckalew@eastgrandforks.net Position: City Administrator Position: City Administrator City of Bemidji, Minnesota Chippewa County,Wisconsin Ms. Kay Murphy, City Clerk Mr. Frank Pascarella, County Administrator 218-759-3570 715-726-7981 kay.murphv@ci.bemidji.mn.us FPascarella@co.chippewa.wi.us Position: City Manager Position: Finance Director W c I Waters&CRecruompany -xe '�n�ent A Springsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Recruitment Services. '$1 V. Work Plan Relating to Scope of Work Requested The following is a listing of the major steps and work tasks in a search process. We will work in close contact and cooperation with the City's Assistant City Administrator from the beginning to the end of the search. We will provide written and verbal reports to the City as often as needed. The proposed dates are estimated and subject to discussion and change. Project Milestone Deliverables Proposed Date • Contact with the City Administrator and Position review and analysis designated staff August 10 - 14 • Prepare recruitment brochure Approve profile and job • Recruitment brochure announcement • Job announcement Week of August 17 • Placement of job announcement Recruitment and candidate • Contact with prospective candidates September 15—October 15 outreach • Acceptance of applications • Regular status reports to the City Applicant screening and telephone • Supplemental questionnaire October 15—• Management Style Assessment interviews • Candidate screening interviews November 6 • Meeting with the City Administrator and Candidate presentation and Assistant City Administrator to select finalists Week of November 9 selection of applicants to interview • Notification to applicants not advancing in the selection process Interview design • Interview design, questions, and schedule November 11 —20 References • Reference summary on final candidates November 11 —20 Comprehensive background check • Candidate background report November 11 —20 completed for finalist Interviews • Consultant attendance at interviews Week of November 30 • Organized and structured interviews Offer made/accepted • Draft employment offer and agreement Week of December 7 • Thank you letter to candidates not selected • W c I Wate&Compa, _ executive Recruitment A 5pringsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Executive Search. 9 VI. Specific Services to be Provided We understand that the City seeks a Finance Director who possesses strong financial management skills and demonstrates the ability to partner strategically with the City's management team. WCER's search process is described below. We are happy to refine this process as needed to meet the City's goals and objectives. 1. Trust and Working Relationship—WCER commits to meeting and exceeding the expectations of the City from the beginning to the end of the process. We will create strong lines of communication,be open to ideas and develop a strong partnership with City staff. Our work with the City is open and transparent. We have a strong working knowledge of Minnesota laws that must be observed throughout the hiring process. We make sure that the City and candidates understand how these laws affect the hiring process. Our strong regard for conducting a process that follows the requirements of the Data Practices Act and the Open Meeting laws is a critical aspect of our relationship with the City. 2. Project Initiation—WCER meets with the City to define working relationships,determine preferred methods of communications and refine the project schedule. The revised schedule is distributed to ensure that everyone involved with the search process understands the process and schedule. Ms. Klumpp maintains a strong and open line of communication with the City throughout the search. 3. Position Analysis and Development of the Recruitment Brochure—We meetwith the City Administrator and Assistant City Administrator to broaden our understanding of the position's leadership,management and technical requirements,current issues and strategic priorities and to identify expectations for the next Finance Director. We also obtain input from others as needed to increase our understanding of the City's strengths and needs. Information obtained from these meetings,our review of the job description and other City documents,is used to prepare a recruitment brochure. The completed brochure and job announcement will be approved by the City before recruitment begins. The recruitment brochure is central to our marketing of this position and our outreach to prospective candidates. The brochure used for the recent recruitment of the City Administrator will be used as the template for the Finance Director recruitment. 4. Identification and Recruitment of Qualified Candidates—In consultation with the City,we will develop a customized recruitment strategy for the Finance Director position that includes placing job ads with professional local government associations such as the League of Minnesota Cities, the Minnesota Government Finance Officers Association and other organizations we identify in consultation with the City. We anticipate job postings to be placed in the International City/County Management Association(ICMA), Government Finance Officers Association (GFOA)and other national recruitment sites. To increase the exposure of this position,we will strategically place the job posting with other Midwest and regional state municipal leagues,state finance officer associations and public administration schools that are in regular contact with alumni regarding job opportunities. We will discuss and determine the overall strategy(state, region,national)with you prior to advertising the position. \NT CI Watersv&Company Recr,,;trrrent _ A Springsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Executive Search. 10 Our recruitment outreach emphasizes personal contacts with prospective candidates. We also contact Minnesota GFOA members and develop a regional list of propective candidates who may not actively be looking for a new position. Finally,we draw upon our knowledge of qualified local government managers from our extensive database that allows us to sort by specific demographics critical to this position and from the professional network of our team. Applicants are directed to a highly-accessed website(waters-company.com)that has a special location attracting many potential candidates to upload their resumes. The City receives timely updates on the status of the search. We also maintain open and professional communication with the applicants to acknowledge receipt of their resume,to keep them informed about the status of the search and their candidacy for the position and to track developments in their job search activities. 5. Candidate Screening—Applicant screening is based on position requirements and hiring criteria established by the City in the position description and recruitment brochure. Once we have identified the top candidates we ask them to complete a questionnaire that addresses their professional and personal qualities so we can assess their fit with the characteristics identified in the position profile. Along with substantive information provided in the answers to the questionnaire,we evaluate the candidates' writing and comprehension skills. We ask each of the top candidates to complete a Management Style Analysis providing information on the candidate's behavioral traits,competencies critical to the position, and work values. Upon review of these materials,we conduct telephone screening interviews with the top candidates to expand upon their experience and to learn about their management and leadership style. Through the telephone screening interviews,we also learn about their professional expectations for the position and determine the candidate's level of interest and motivation for seeking the position. 6. List of Top Candidates—We meet with the City to present the written candidate reports, a summary of the Management Style Analysis and a list of the top candidates. We don't target a number ahead of time;we will work with the City to identify how many candidates they wish to interview and evaluate. Each candidate report includes: (1)a summary of the screening interview; (2)the candidate's resume; (3)the completed questionnaire; and(4)relevant information from an internet search. The City Council selects the candidates who will be invited to interview. In a professional and respectful manner,WCER informs all applicants of their status in the selection process; in particular those that are not moving forward to the interview stage. 7. Reference Checks—We contact references and provide a thorough reference outline for each candidate participating in the interviews. It is our practice to contact at least four references per candidate: an elected official,someone who supervised the applicant,a direct report to the applicant and a professional peer. We believe that a more comprehensive reference profile can be compiled if we seek input from a representative of each of these areas. 8. Background Check—We conduct a thorough background records check on the final candidates invited to interview with the City,which includes state and national criminal and civil history, driver's license review and a credit check. 9. Interviews—We work with the City to design and coordinate the interview process. We find that each city is different, so before we organize an interview process we seek your expectations and desires. Based on city preferences,we develop a structured interview process that maximizes the input of all participants and we coordinate the interview schedule with the candidates. The WV `�] C l Water"xectve Beta.:s&Company ! mens A Springsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Executive Search 11 interview process is structured in a way that helps the City assess the candidates' leadership skills, their ability to communicate,their approach to making decisions,their interpersonal skills and other preferred qualifications. We also provide a template to help the City evaluate the candidates on an equitable basis. Ms. Klumpp will be in attendance at the interviews to provide support as needed while the City narrows the field of candidates who could be invited to a second interview. For the second interview,we will design a different candidate engagement process. 10. Employment Offer—We will assist the City in developing an employment offer with the successful candidate, if requested. `X j f I Waters&Company V V xecutive Recruitment A Springsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Executive Search. 12 VII. Price Proposal Option 1 Full Service Search Services WCER's all-inclusive professional fee to conduct the recruitment outlined in this proposal is$17,500. This fee covers the cost of professional services by the Project Team Leader,the project support staff and all project-related expenses such as advertising, printing,candidate background and reference checks. Travel expenses incurred by candidates for on-site interviews with the client are not the responsibility of WCER and are handled directly by the client organization. Option 2 Full Service Search Services WCER's all-inclusive professional fee to conduct the recruitment outlined in this proposal is$15,300. This fee covers the cost of professional services outlined in Tasks 1-8, including the Project Team Leader,the project support staff and all project-related expenses such as advertising,printing, candidate background and reference checks. Payment schedule Based on the option you select,the all-inclusive professional fee will be billed in three installments: 40%of the fee will be billed when recruitment for the position begins;40%at the implementation of Phase III; and 20%upon acceptance of offer by the candidate. We are open to negotiate an alternative payment schedule if selected for this search. Additional work Additional work related to the search process and as specifically requested by the City that is outside of the scope of this project will be billed at$220 per hour. All questions regarding the professional fees and project-related expenses should be directed to Sharon Klumpp, Senior Vice President at sklumpp@waters-company.com or via phone at 651-223-3053. Triple Guarantee Our Triple Guarantee is defined as: (1)A commitment to remain with the recruitment assignment until you have made an appointment for the fees and tasks quoted in this proposal. If you are unable to make a selection from the initial group of finalists,WCER will work to identify a supplemental group until you find a candidate to hire. (2)Your executive recruitment is guaranteed for 24 months against termination or resignation. The replacement recruitment will be repeated with no additional professional fee,but only for project-related expenses. Candidates appointed from within your organization do not qualify for this guarantee. This guarantee is subject to further limitations and restrictions of your state laws. (3)WCER will not directly solicit any candidates selected under this contract for any other position while the candidate is employed with your organization. WCWaters& om xecuiive t<ecrj;pany rent A 5pringsted Company City of Shakopee,Minnesota. Proposal to Provide Finance Director Executive Search. A