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HomeMy WebLinkAboutStaff Report 237-07City Manage ’ TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE:MAY 7, 2007 SUBJECT: CMR: 237:07 RECOMMENDATION OF THE COUNCIL/COUNCIL APPOINTED OFFICERS COMMITTEE REGARDING CONTRACT AMENDMENT WITH CPS EXECUTIVE SEARCH FOR COUNCIL APPOINTED OFFICER EVALUATIONS RECOMMENDATION The Council/Council Appointed Officers Committee (CAO Committee) recommends that the Council direct the City Manager to increase by $26,200 the amount of the existing agreement with CPS Executive Search for the Council Appointed Officer (CAO) evaluations for the upcoming year in order to be able to proceed expeditiously with this year’s evaluation process. In addition, the Committee recommends that funding for this year’s contract be appropriated from the Council contingency fund. BACKGROUND The base amount of last year’s contract with CPS Executive Search was $17,500. The Council CAO Committee is recomlnending an increase in the current contract amount due to the additional hours required to complete the evaluation process last year for the four Council Appointed Officers. Having reviewed the tasks and schedule with John Shannon, who represents CPS Executive Search, the CAO Committee determined the proposed dollar amounts to be reasonable and appropriate. DISCUSSION The work plan and project costs are contained in Attachment 1 and the work schedule is contained in Attachment 2. The work schedule provides Mr. Shannon’ s estimate of the time required for each of the agreed-upon tasks in the evaluation process. CMR: 237:07 Page lof2 RESOURCE IMPACT The proposed amendment to the contract provides for an amount not-to-exceed $26,200 for all services related to tile completion of the performance evaluation process for all four CAOs; including reimbursement of direct expenses and any additional needed assistance as specified in the attached scope of services. Attachment 1: Attachment 2: Work plan and project costs Work schedule PREPARED BY: SANDRA BLANCH Manager, Risk & Benefits DEPARTMENT HEAD: RUSS CARLSEN Director of Human Resources CITY MANAGER APPROVAL: HARRISON Assistant City Manager CMR: 237:07 Page 2of2 ATTACHMENT 1 DRAFT CONFIDENTIAL April 9, 2007 TO: FROM: SUBJECT: CAO Committee City of Palo Alto John Shannon CAO Evaluation and Compensation Process As requested, the following presents a proposed work program, schedule, and budget to facilitate the evaluation and compensation process for the City Manager, City Attorney, City Auditor and City Clerk. SCOPE OF SERVICES Our proposal is based on the scope of services outlined below. CAO Performance Evaluations will be conducted in accordance with the CAO Performance Evaluation System that was developed in consultation with the Committee and CAOs (Exhibit A). Consultant will be available to assist the Committee and the Council in making modifications to each CAOs compensation and employment agreement. This assistance may include the review and analysis of compensation information, preparation of proposals, and consultation with the Committee, CAOs and Council. WORK PROGRAM AND SCHEDULE The proposed work program and schedule is enclosed as Exhibit B. It assumes that the CAO evaluation and compensation process will be completed by the end of June. PROJECT COST The project cost proposal is divided into three components: City of Palo Alto April 9, 2007 Page Two CAO Performance Evaluation Process The professional fee for all services related to the completion of the performance evaluation process for all four CAOs is $19,200. Compensation and Emp!oyment Agreement Advice All professional services associated with assistance and advice on compensation and employment agreement .modification will be provided at our standard hourly billing rates. These fees will not exceed $2,000. These rates are as follows: o John Shannon o Senior Consultant $200 per hour $125 per hour Expenses In addition to professional fees, the City will reimburse the consultant for all direct expenses including travel, printing/production, postage/delivery, and long distance telephone. Expenses will not exceed $5,000. PROJECT STAFF John Shannon will serve as the project manager and lead consultant and will be assisted, when required, by other senior level consulting staff. R E V I S E D EXHIBIT A April 9, 2007 TO: FROM: SUBJECT: CAO Committee Council Appointed Officials City of Palo Alto John Shannon CPS Human Resource Services CAO Performance Evaluation System This memorandum, along with the attached draft performance evaluation procedure and form, present the framework for the CAO performance evaluation system. This proposal reflects the direction of the CAO Committee and includes a discussion of: >Roles of the participants >Desired outcomes of the evaluation process >Evaluation process and procedures >Relationship of compensation and performance ROLES OF THE PARTICIPANTS The roles of the various participants are as follows: CAO Committee - serves as a facilitator for the Council and in this role is responsible for: > Review evaluation system and modify as appropriate >Annual oversight of the performance evaluation and compensation adjustment process :> Liaison with the CAOs and key City staff (e.g. Human Resources Director) City ofPalo Alto Council - is ultimately responsible for the evaluation process including: >Confirmation of the evaluation system including the procedure, process, criteria and forms > Each Council Member provides facilitator with input on each CAO evaluation > Participate in the evaluation and setting of annual goals for each CAO > Approve salary adjustments for each CAO CAOs - actively participate in all phases of the evaluation process including: >Input regarding the evaluation process and criteria :>Submittal of a self assessment to the Council >Submittal of annual performance goals to the Council for discussion and approval :>Participate in the evaluation process with the Council Human Resources Director- provides technical assistance and advice to the Council on compensation related issues. Facilitator - is accountable to the Council and is responsible for: >Support periodic review of the performance evaluation procedure, process, criteria and forms > Provide advice and assistance to the CAO Committee :>Work with each Council member to solicit input regarding the evaluation of each CAO >Facilitate a "closed session" discussion of performance between the Council and each CAO :~Prepare a consensus evaluation by the Council for each CAO >Meet with each CAO to discuss the Council’s evaluation >Serve as the Council’s negotiator in discussions regarding compensation DESIRED OUTCOMES OF THE EVALUATION PROCESS The desired outcomes of the evaluation process include: City of Palo Alto Consensus evaluation by the Council with provision for the discussion of minority opinions Written evaluation adopted by the majority of the Council Clarifying the role and responsibilities of each CAO Strengthening the relationship between each CAO and the Council Provide performance feedback to each CAO and to identify strengths and areas where improvement may be needed Establish and evaluate achievement of personal performance goals for each CAO Provide a basis for a compensation adjustment EVALUATION PROCESS AND PROCEDURE Overall, the evaluation process and procedure will: >Provide for an annual evaluation or more often, as needed >Self assessment and the development of performance goals for each CAO >Utilize global performance dimensions that are applicable to all CAOs >Utilize an evaluation form that is easy to use and can be tailored to each CAO RELATIONSHIP OF COMPENSATION AND PERFORMANCE All CAOs will receive the same Council-approved control point increases as the City’s Management and Professional Employees. The Council may also grant individual incentive awards to each CAO based on performance. 2~The Council retains the discretion to grant special labor market and/or internal equity adjustments to individual CAOs. When comparing compensation either against the labor market or internally this comparison will be done on a total compensation basis. (Total compensation identified as the sum of all salary and benefits paid). Incentive award that is directly linked to the achievement of each CAO’s personal performance goals City of Palo Alto 3 EVALUATION PROCEDURE AND FORM Consistent with the discussion above, the enclosed evaluation procedure and form incorporate the following features: ~Annual evaluation ~Submittal of a self assessment and personal performance goals by each ~Utilization of a limited number of universal performance dimensions ~>Relatively easy to use evaluation form that can be tailored to each CAO City of Palo Alto 4 0 0 o LL0 d C o :~OE oOo~IJ_ (D IJ_ 0 u_ eoo oo