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HomeMy WebLinkAbout2012-02-28 Council Appointed Officer Agenda Packet Council Appointed Officers Committee 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. 5:00 PM Special Meeting Tuesday, February 28, 2012 Council Conference Room Palo Alto City Hall 250 Hamilton Avenue Palo Alto, CA Call to Order Oral Communications Agenda Items 1.Consideration of a Recommendation by the CAO Committee to the City Council to Approve the Contract with Sherry Lund Associates for the Amount of Not to Exceed $35,050 to Complete the Four CAO Evaluations for the 2011-2012 Performance Review Cycle Adjournment PUBLIC COMMENT Members of the Public are entitled to directly address the City Council/Committee concerning any item that is described in the notice of this meeting, before or during consideration of that item. If you wish to address the Council/Committee on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers or by the City Clerk, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council/Committee, but it is very helpful. AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. CITY OF PALO ALTO OFFICE OF THE CITY CLERK February 28, 2012 The Honorable City Council Palo Alto, California Consideration of a Recommendation by the CAO Committee to the City Council to Approve the Contract with Sherry Lund Associates for the Amount of Not to Exceed $35,050 to Complete the Four CAO Evaluations for the 2011-2012 Performance Review Cycle Purpose of the Meeting The purpose of the CAO Committee meeting on February 28, 2012 is to review and reaffirm the CAO performance evaluation process by recommending to the City Council approval of a contract with Sherry Lund Associates for the amount not to exceed $35,050 to provide consulting services to support the completion of the four CAO evaluations for the 2011-2012 CAO evaluation cycles. The CAO (Council Appointed Officers) include the City Manager, City Clerk, City Attorney, and City Auditor. A proposal from Sherry Lund of Sherry Lund Associates outlining the scope of the services is attached in Attachment A. Background The annual CAO (Council Appointed Officers) performance evaluation process has been guided by the CAO Committee in partnership with Sherry Lund of Sherry Lund Associates since 2007. Last year three of the four CAOs were evaluated with the exception of the City Auditor since there was an interim City Auditor in place. In lieu of an annual evaluation for the City Auditor, Council asked Ms. Lund to interview employees in the Auditor’s office to provide additional information that would inform the recruitment for the new City Auditor. With the hiring of Jim Pelletier as the new City Auditor in early 2012, his evaluation will be conducted this year. During the scheduled Closed Session on March 27, 2012, the City Council will have a discussion with Mr. Pelletier in order to establish his goals for the remainder of the year. The consulting services required for this meeting are part of the approved contract for the 2010-2011 1 Packet Pg. 2 Updated: 2/23/2012 12:52 PM by Beth Minor Page 2 CAO evaluation cycle. Last year, the City Council approved a contract for the amount of $32,550 which included $2,500 for additional billable hours needed to complete the work, subject to the approval of the CAO Committee Chair. The Proposal for Consulting Services (Attachment A) Ms. Sherry Lund, the consultant, has prepared a proposal for consulting services for the CAO evaluations. This proposal is similar to the process conducted last year. It will consist of two project elements: Element 1: CAO Annual Evaluations (June/July 2012) for all four CAO’s, and Element 2: Mid-Year Check-in and Alignment Discussion for the City Manager, City Attorney, and City Auditor (November/December 2012). The proposed consulting services fee for the two phases is not to exceed $35,050 assuming the full annual performance review for all four CAO’s and Mid-Year Discussions for the City Manager, City Attorney, and City Auditor. The $35,050 could be reduced by up to $4,000, which includes a reduction of: 1) $2,500 in additional contract hours needed if City Council Members do not complete the evaluation forms in a timely fashion (and thus requiring rework) in order to complete the project and 2) $1,500 discount for completing the evaluation work prior to July 23, 2012. Since the City Auditor Jim Pelletier will have only been with the City of Palo Alto for a few months, it is anticipated that his review will provide feedback on his first half-year in areas such as leadership, communication and relationship with the Council, colleagues, the public, and the quality of the audit reports. Since the Council summer break begins on July 24th, it will be imperative that the schedule of meetings is established soon for the annual review cycle. If you have any questions, please contact me prior to the meeting. Gail A. Price CAO Committee Chair City Council Member ATTACHMENTS: -:FINAL Lund CAO Annual Eval Proposal 2-22-12 (3)(DOCX) -:Sherry Lund Contract Last Year (PDF) -:Sherry Lund ACTION JUNE 6 2011 (DOC) 1 Packet Pg. 3 Updated: 2/23/2012 12:52 PM by Beth Minor Page 3 Department Head:Donna Grider, City Clerk 1 Packet Pg. 4 Updated: 2/23/2012 12:52 PM by Beth Minor Page 4 1 Packet Pg. 5 Sherry L. Lund Associates, Portola Valley, CA (650) 619-5500 Page 1 of 5 247 La Cuesta Drive Portola Valley, CA 94028 (650) 619-5500 fax (650) 561-8414 sherrylund@aol.com February 22, 2012 Councilmember Gail Price Chairperson, Council CAO Committee City of Palo Alto City Council 250 Hamilton Avenue Palo Alto, CA 94301 Dear Councilmember Price: Following is my proposal for this year’s CAO performance review process. It includes the project description; timeline;what’s different this year;benefits; project phases;tasks and consultant responsibilities;client responsibilities;project cost and assumptions; consultant qualifications;and next steps for the CAO Committee. Project Description and Timeline At the end of FY 2011-2012, the Council will evaluate the four Council Appointed Officers (CAOs): the City Manager, City Clerk, City Attorney,and City Auditor.The four CAOs control the major financial and human resources in executing the Council’s vision and priorities. Performance evaluation is an important opportunity to get feedback on the past year. More importantly, it is an opportunity to get fully aligned with the Council about expectations of performance going forward. What’s Different This Year Performance evaluation criteria for all four CAO positions will have been refined and approved by Council prior to the beginning of this performance cycle.I propose the process proceed similarly to that of FY 2010-11. Ideally, the CAO evaluations would be completed before the Council’s summer meeting break, depending on Councilmembers’ schedules, which begins on July 24th this year. The City Auditor will have been on the job for nearly half a year. As part of last year’s contract, I am working with him on refining his performance criteria. He, Council, and I are scheduled for a one-hour March 27 closed session to set goals for him. By June, in the nearly half-year he will have been on the job, Council will be able to provide feedback on the quality of audit reports; his leadership style in the organization and with his staff; and communication with Council, staff, and the community. Council will also be able to make early course corrections as needed and answer questions about early implementation of the goals set in March. Suggested Changes in Scheduling, Subject to Availability of All Parties.I’d like to propose that we schedule July Council closed sessions for annual reviews as follows: §Closed Session #1: CC closed session to agree on performance reviews for City Clerk and City Manager §Closed Session #2: CC closed session to agree on performance reviews for City Attorney and City Auditor 1.a Packet Pg. 6 -: F I N A L L u n d C A O A n n u a l E v a l P r o p o s a l 2 - 2 2 - 1 2 ( 3 ) ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 2 §Closed Session #3: CC/CAO closed session to present review for City Clerk and City Manager and discuss §Closed Session #4: CC/CAO closed session to present review for City Attorney and City Auditor and discuss The advantages: We can present and discuss reviews at more predictable times, do that earlier in the evening when everyone’s energy is fresher, and keep those evenings a manageable length. We have attempted to do this in previous years, but were unable to do so due to CAO and Council travel schedules. Starting this process earlier gives us all a much better chance at improving scheduling. Benefits of a Facilitated Review Cycle The primary benefits I bring to the process are as follows: 1.The ability to leverage Council’s time to best use. Council has a exceptionally heavy work load with major budgetary and other issues in front of you. 2.Knowledge of your Council objectives, your unique City culture, your CAOs, plus technical expertise in executive evaluation and work with Councils and Boards. 3.As a result of items #1 and #2, the ability to be efficient in helping Council deliver a quality process and outcome. 4.Assurance of a safe, professional, and mutually respectful environment for review discussions/feedback. I serve as an advocate for all points of view being heard within a professional and respectful environment. I have worked the previous four years in customizing a process and approach that has produced good results for the Council and CAOs. I can work flexibly with you to make any changes in the process that you may desire within the framework of maintaining a quality process. Project Phases, Tasks,and Consultant Responsibilities In addition to the specific project steps listed below, I, as Consultant, will do the following: prepare for all meetings, assure necessary communications occur, serve as project manager, and assure a sound methodology for the process. The following performance evaluation project steps correspond to the last year’s review cycle: PROJECT ELEMENT #1: CAO Annual Performance Evaluations (June/July Timeframe) Phase I –Preparation for Review Session Consultant: §Works with internal liaison to develop contract and schedule project meetings and milestones. §Solicits CAO self-evaluations, reviews them and provides feedback and advice. §Assures CAO questions are clarified and raised with Council. §Prepares and distributes binders to Council, including instructions, CAO self-evaluations and blank evaluation hard copies. Distributes soft copies of forms on the same day. §Reviews Council evaluation feedback; meets with each Council member in person or by phone to refine and clarify written feedback prior to performance review session. §Compiles written comments and numerical feedback from Council and develops a written evaluation summary for each CAO. Prepares and sends confidential hardcopy packet with this information prior to each CAO review session. §Prepares information for closed review sessions that enable Councilmembers to focus their discussion efficiently. Phase II –Performance Review Session Consultant: §Provides facilitation and technical assistance as needed during closed session Council performance review meetings with each CAO. 1.a Packet Pg. 7 -: F I N A L L u n d C A O A n n u a l E v a l P r o p o s a l 2 - 2 2 - 1 2 ( 3 ) ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 3 Phase III -Post-Session Wrap-Up Consultant: §Documents agreed-upon unified Council feedback for written reviews. §Meets with each CAO to debrief evaluation meetings. §Prepares final evaluation file copies and obtains necessary signatures. Copies are given to CAO Committee Chair for filing and to each individual CAO. Final action on Council agenda is scheduled with Liaison. §Follows up with CAO Chair to debrief and solicit any additional process improvements. PROJECT ELEMENT #2: Mid-Year Check-In Performance Discussions (Nov./Dec. Timeframe) The Mid-Year is a simpler, more streamlined process than the annual review, and it has a different purpose. Mid-Year discussions allow CAOs and Council to do four things:1) Provide answers to CAOs’ performance-based questions from the entire Council; 2) Address any misalignments in expectations; 3) Discuss goals that require mutual involvement and participation; and 4) Address emergent issues. They allow Council to more actively support and manage performance rather than letting a goal potentially drift for an entire year. Consultant: §Gathers feedback from CAOs and Councilmembers in advance. §Creates a summary of key issues for discussion and distributes it to Council and CAOs in advance. §Facilitates closed session meetings. §Provides post-meeting summaries. Due to the highly confidential nature of this assignment, I personally perform all work on this contract. Client Responsibilities In order to support the success of the project and to stay within quoted costs, Client agrees to: §Assure involved parties a)are available for one-on-one and group meetings;and b) complete evaluations on time in order to meet project milestones. §Identify an internal liaison who can schedule appointments and provide support in getting evaluation items on Council agendas. §Provide an efficient and coordinated contracting process through a single liaison. §Provide meeting space and A-V equipment required. §Commit to a professional and respectful process. Proposed Timeline (subject to Council and CAO schedules) §March12 –CAO Recommendations on proposal to Council, modified Auditor review criteria to Council §March 13 –April 3 –Contract development §May 1-13: Consultant works with CAOs on self-evaluations §May 14: Final CAO self-evaluations due §May 16:Binder and solicitation of feedback materials to Council §June 22:City Manager and City Clerk input due from Council §June 29:City Attorney and City Auditor input due from Council §Week of July 9:Closed session Council meetings to discuss/agree on CAO performance reviews (2 per evening x 2 evenings). §Week of July 16:Closed session review meetings for all four CAOs (2 per evening x 2 evenings) §July 23:Get CAO and Council signatures on final review documents §Nov.(dates TBD)–Gather feedback from CAOs and Council for Mid-Year Performance Discussions §Dec. (dates TBD)–Facilitate Mid-Year Performance Discussions 1.a Packet Pg. 8 -: F I N A L L u n d C A O A n n u a l E v a l P r o p o s a l 2 - 2 2 - 1 2 ( 3 ) ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 4 Project Cost and Assumptions The total project can be completed for a project fee NTE $35,050**,which includes the following: §$26,000 for four CAO annual performance reviews (Project Element One). A $1,500 discount is applied if this work (Project Element One) can be completed by July 23, 2012*; *This discount reflects the ability to capture some economies of scale when the project is contained within a shorter timeframe vs. spreading out the work before and after Council’s summer meeting break. To qualify for this discount assumes that the project begins in early April and that Council commits to scheduling review meetings accordingly. §$6,550 for Mid-Year Check-In Performance Discussions for three CAOs:the City Manager, City Attorney, and City Auditor.** **To add a Mid-Year Performance Discussion for the City Clerk, add $ 950.00 to the project NTE amount. §A $2,500 contingency (up to 10 hours @ $250/hour) is included in the above project fee, subject to approval by the CAO Chair. Re-work that results from Council members not submitting evaluation forms in a timely fashion (thus requiring re-work in order to complete the project),meetings missed without 24 hours notice, and/or expansion of project scope will be billed at discounted public sector rate of $250/hr. (private sector rate is $375/hr.). §There is no compensation work required this year. Consultant Qualifications: For the benefit of new Council members who do not know me, I believe my skills and experience have been and are a good match for this work. I offer: §An insider’s understanding of City culture and citizen expectations with the outsider’s ability to be fully objective about the process and relationships. §Deep and broad experience in performance management (including executive evaluation), executive coaching, negotiation, interpersonal communication, rewards and recognition, and career development –all important components of this project. §Thirty-seven years experience in organizational consulting with twenty-five years consulting experience in my own firm—for a broad variety of organizations in the public and private sector: o Public sector/non-profit experience examples include:Cities of Fremont, Santa Rosa, Dublin,Mission Viejo, San Ramon, Chula Vista,Tracy, Fairfield, Union City, CA, plus the City of Tualatin, OR; Counties of San Mateo, Santa Clara, Alameda, San Joaquin, and Riverside,CA;BAAQMD, Carnegie Mellon University (Provost), the Dr. Susan Love Research Foundation, the S. H. Cowell Foundation, the University of California; o Global private sector examples include:Intel, HP, Acco Brands, Seagate, The Gap, Levi Strauss, Driscoll’s, Xoma, Genelabs, among many others. This broad experience allows me to collect best practices from many sources and to avoid getting locked into the paradigms and traditions of a single type of organization. Next Steps Upon acceptance of this proposal by the CAO Committee and Council, the next steps are to: 1.Execute a contract per your internal procedure. 1.a Packet Pg. 9 -: F I N A L L u n d C A O A n n u a l E v a l P r o p o s a l 2 - 2 2 - 1 2 ( 3 ) ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) Sherry L. Lund Associates Proposal: 2011-2012 CAO Performance Management Page 5 2.Develop a project schedule, based on availability of all parties; revise it, as necessary, with Council at the earliest meeting possible.Please note that a schedule cannot be confirmed until the contracting process is complete. I would enjoy the opportunity to work with the Council and the CAOs again in the next evaluation cycle. Please let me know if I may provide additional information. Best regards, Sherry Lund Principal 1.a Packet Pg. 10 -: F I N A L L u n d C A O A n n u a l E v a l P r o p o s a l 2 - 2 2 - 1 2 ( 3 ) ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 11 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 12 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 13 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 14 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 15 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 16 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 17 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 18 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 19 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 20 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 21 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 22 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 23 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 24 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 25 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) 1.b Packet Pg. 27 -: S h e r r y L u n d C o n t r a c t L a s t Y e a r ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) ACTION MINUTES FROM CITY COUNCIL MEETING OF JUNE 6, 2011 ACTION ITEMS 4.Approval of an Amendment to the Agreement with Sherry L. Lund Associates in an Amount of $7,450 for Mid-Year Check-In and Alignment for Council Appointed Officers, and Review and Approval of Revised Criteria for City Attorney Performance Evaluation. MOTION: Council Member Schmid moved, seconded by Council Member Scharff to approve Staff recommendation to: 1) authorize the Mayor to enter into an amendment to the contract with Sherry L. Lund and Associates in an amount of $7,450 (subject to 10% standard contingency) for facilitation of Council Appointed Officer Mid-Year Check-ins, and 2) approval of revised criteria for the City Attorney performance evaluation. AMENDMENT: Council Member Klein moved, seconded by Council Member Shepherd to not authorize an amendment to the contract with Sherry L. Lund and Associates in an amount of $7,450 for facilitation of Council Appointed Officer Mid-Year Check-ins. AMENDMENT FAILED: 3-6 Burt, Klein, Shepherd yes INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to delete the Mid-Year Check-in of the City Clerk and to reduce the contract amendment for Mid-year Check- ins with Sherry L. Lund and Associates by $900. AMENDMENT: Council Member Holman moved, seconded by Council Member XXX to add $4,550 to the Council budget to do the Mid-Year Check-ins. AMENDMENT FAILED DUE TO THE LACK OF A SECOND AMENDMENT: Council Member Shepherd moved, seconded by Council Member Klein to delete the Mid-Year Check-in of the City Auditor. AMENDMENT FAILED: 3-6 Burt, Klein, Shepherd Yes 1.c Packet Pg. 29 -: S h e r r y L u n d A C T I O N J U N E 6 2 0 1 1 ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t ) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add $4,550 to the Council budget for the Mid-Year Check-ins. MOTION AS AMENDED PASSED: 6-3 Klein, Price, Shepherd no 1.c Packet Pg. 30 -: S h e r r y L u n d A C T I O N J U N E 6 2 0 1 1 ( 2 5 9 6 : S h e r r y L u n d C o n t r a c t )