HomeMy WebLinkAboutStaff Report 14140
City of Palo Alto (ID # 14140)
City Council Staff Report
Meeting Date: 4/11/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Amendment No. 1 to Professional Services Contract
Number S22183902 Teri Black and Company, LLC to Increase the Not-to-
Exceed Compensation by $180,000 (to $265,000) and to Extend the Term of
the Contract to January 2024 for City Wide Executive Recruitments and
Approve a Budget Amendment in the General Fund
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends that the City Council:
1) Authorize the City Manager or their designee to execute Amendment 1 to
S22183902 (Attachment A) with Teri Black and Company, LLC to provide
professional executive recruitment services, increasing the existing contract by
$180,000 for a total amount not to exceed $265,000 through January 2024; and
2) Amend the Fiscal Year 2022 Budget Appropriation (by a majority vote) for the
General Fund by:
a. Increasing the Human Resources Department contractual services
appropriation in the amount of $200,000; and
b. Decreasing the General Fund Transition Reserve in the amount of
$200,000.
Background
The City of Palo Alto’s Human Resources Department is organized into five major
divisions with 16 full-time staff who provide citywide support for recruitment, benefits,
employee and labor relations, training, personnel transactions and workers’
compensation. Recruiting firms are retained to be used on an as-needed basis to assist
when the City’s internal recruitment team is at capacity and to conduct recruitments
that require specialized outreach.
Staff identified the need for contractual recruitment services in the Preliminary Q1 FY
2022 (CMR 13439) and Midyear FY 2022 (CMR 13801) reports to support recommended
actions that restored services, including 20 full-time and three part-time positions in
City of Palo Alto Page 2
various departments throughout the City.
Currently the City of Palo Alto has contract (S22183902) with Teri Black and Company,
LLC, for executive recruitment services in the amount of $85,000. This contract was
established to conduct approximately three (3) executive recruitments, along with
consultation that is billed on an hourly basis. The addition of Amendment One will
increase the contract by $180,000 to a new amount not to exceed $265,000.
Discussion
This amendment is needed due to constrained staffing resources and additional critical
current and anticipated executive vacancies for the City of Palo Alto. Executive
recruitments are approximately $30,000 per recruitment and this amendment will
extend the scope of the contract to include approximately six additional recruitments for
a total of nine. The amendment extends the total not-to-exceed amount an additional
$180,000 to a total of $265,000 over three years.
In accordance with the Palo Alto Municipal Code, professional service contracts in
certain subject matter expertise are exempt from competitive solicitation.
Professional services contracts in relation to personnel matters for: recruitment
consultants, workplace investigations, threat assessments, conflict intervention,
and industrial safety are exempt from solicitation, under Section 21, 2.30.360(t)
of Ordinance 5494.
The contract for Teri Black and Company, LLC, includes a comprehensive recruitment
package, including a phased approach for the development of candidate profiles,
advertising, outreach, screening, client reporting, interview facilitation and coaching,
deliberation assistance, background and reference checks and negotiations.
Consistent with the practices of executive recruitment firms that serve the municipal
sector, Teri Black and Company, LLC, provides services to the hiring agency and does
not represent applicants or collect fees from candidates.
Resource Impact
Actions outlined in this report require an increase of the appropriation for contract
services by $200,000 and are offset by the use of Transition Reserve as previously
outlined, resulting in a remaining reserve of approximately $300,000. The remaining
contract costs of $65,000 will be absorbed through FY 2022 funding for the full expense
of the contract. The Transition Reserve was established in FY 2021 to support service
changes that could not be implemented immediately.
Environmental Review
City of Palo Alto Page 3
Approval of this contract is exempt under the California Environmental Quality Act
(CEQA) Guidelines section 15061(b) (3), because it can be seen with certainty that
there is no possibility that the activity in question may have a significant effect on the
environment.
Attachments:
• Attachment A: Teri Black and Company, LLC Contract; S22183902 Amendment #1
Vers.: Aug. 5, 2019
Page 1 of 8
AMENDMENT NO. 1 TO CONTRACT NO. S22183902
BETWEEN THE CITY OF PALO ALTO AND
TERI BLACK & COMPANY, LLC.
This Amendment No. 1 (this “Amendment”) to Contract No. S22183902 (the “Contract” as
defined below) is entered into as of March 15, 2022, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and TERI BLACL & COMPANY, LLC., a California
corporation, located at 25500 Hawthorne Boulevard (“CONSULTANT”). CITY and CONSULTANT are
referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of providing comprehensive recruitment work and support services, as detailed
therein.
B. The Parties now wish to amend the Contract in order to add scope of services,
extend the term of the contract by one year, and increase compensation by $180,000, from
$85,000 to $265,000.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. S22183902 between
CONSULTANT and CITY, dated January 12, 2022.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2. TERM. of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through December 31, 2023
unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.”
SECTION 3. Section 4. NOT TO EXCEED COMPENSATION. of the Contract is hereby amended
to read as follows:
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“The compensation to be paid to CONSULTANT for performance of the Services shall be based on
the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any
reimbursable expenses specified therein, and the maximum total compensation shall not exceed
Two Hundred Forty Three Thousand Seven Hundred Dollars ($243,700). The hourly schedule of
rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or
expenses incurred for which payment would result in a total exceeding the maximum
compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed
compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-
exceed compensation amount of Twenty-One Thousand Three Hundred Dollars ($21,300.00) for
the performance of Additional Services (as defined below). The total compensation for
performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit
C, shall not exceed Two Hundred Sixty Five Thousand Dollars ($265,000), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the proper
completion of the Project, but which is not included within the Scope of Services described at
Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the
maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT
shall provide Additional Services only by advanced, written authorization from CITY as detailed in
this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and
authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task
Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES
TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance
and maximum compensation amount, in accordance with the provisions of this Agreement.
Compensation for Additional Services shall be specified by CITY in the Task Order, based on
whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in
Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project
Manager within the time specified by the Project Manager, and upon authorization by CITY
(defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall
become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task
Orders authorized under this Agreement shall not exceed the amount of compensation set forth for
Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional
Services performed under an authorized Task Order and only up to the maximum amount of
compensation set forth for Additional Services in this Section 4. Performance of and payment for
any Additional Services are subject to all requirements and restrictions in this Agreement.”
SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as
indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby
incorporated in full into this Amendment and into the Contract by this reference:
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a. Exhibit “A” entitled “SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS.
b. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS.
SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
TERI BLACK & COMPANY, LLC
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments:
Exhibit A: SCOPE OF SERVICES, ADDED / AMENDED, REPLACES PREVIOUS
Exhibit C: COMPENSATION, ADDED / AMENDED, REPLACES PREVIOUS
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Teri Black
President/Secretary
Joseph E. Brann
Chairman/CEO
Vers.: Aug. 5, 2019
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EXHIBIT A
SCOPE OF SERVICES
AMENDED, REPLACES PREVIOUS
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”.
The scope of work presented represents comprehensive recruitments that includes the
following services:
Phase I
• Develop ideal candidate profile in partnership with the Client
• Design and execute advertising, marketing, and social media campaigns
Phase II
• Produce and distribute recruitment brochure (traditional & electronic mail)
• Conduct extensive personal outreach activities
Phase III
• Conduct screening interviews
• Develop and deliver written report to Client (highlighting the results of the recruitment
and subsequent screening interviews)
Phase IV
• Design and facilitate candidate interviews with the Client (in-person or via Zoom)
• Offer interview coaching sessions and debriefing opportunities to Finalists
• Assist Client with final selection deliberations
• Perform background check and assist with reference checks (top candidate)
• Facilitate negotiations and transition details
AMENDMENT NO. 1
Amendment No. 1 shall add six additional Executive Recruitments (inclusive of
reimbursements) by Task Orders.
Task Orders
Consultant will perform services on a task order basis. Task orders will be developed for specific
comprehensive recruitment services.
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EXHIBIT C
COMPENSATION
AMENDED, REPLACES PREVIOUS
CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms
and conditions of this Agreement, and as set forth in the budget schedule below. Compensation
shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed
budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of
the tasks or categories listed below, provided that the total compensation for the Services,
including any specified reimbursable expenses, and the total compensation for Additional
Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section
4 of this Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and
Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or
expenses incurred for which payment would result in a total exceeding the maximum amount
of compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
TASK NOT TO EXCEED AMOUNT
Task 1
(Recruitment for Assistant City Attorney for Phases I-IV)
$20,000
Task 2
(Recruitment for two Assistant to the City Manager for
Phases I-IV)
$25,000
ADDITIONAL SERVICES
Task 3
(Recruitment for 6 additional Executive Recruitments for
Phases I-IV, inclusive of reimbursements)
$180,000
Sub-total for Services $225,000
Reimbursable Expenses (if any) $18,700
Total for Services and Reimbursable Expenses $243,700
Additional Services (if any, per Section 4) $21,300
Maximum Total Compensation $265,000
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative
support time/overtime, information systems, software and hardware, photocopying,
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telecommunications (telephone, internet), in-house printing, insurance and other ordinary
business expenses, are included within the scope of payment for Services and are not
reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be
reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be
reimbursed up to the not-to-exceed amount of: $18,700 NTE as follows.
ASSISTANT CITY ATTORNEY REIMBURSABLE EXPENSES
Advertising $2,200
Recruitment Brochure & mailing $1,500
Administrative support $2,800
Shipping & FedEx $ 600
Background & records checks $ 600
Consultant Travel (mileage + 1 night hotel) $ 800
Project expenses (NTE) $ 8,500
ASSISTANT TO THE CITY MANAGER REIMBURSABLE EXPENSES
Advertising $2,200
Recruitment Brochure & mailing $1,500
Administrative support $3,000
Shipping & FedEx $ 600
Background & records checks $1,200
Consultant Travel (mileage + 1 night hotel) $1,700
Project expenses (NTE) $ 10,200
A. Travel outside the San Francisco Bay Area, including transportation and meals, if
specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo
Alto’s policy for reimbursement of travel and meal expenses.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges, if specified as reimbursable, will be reimbursed at
actual cost.
All requests for reimbursement of expenses, if any are specified as reimbursable under this
section, shall be accompanied by appropriate backup documentation and information.
Placement Guarantee (FULL SEARCH)
If candidates selected and appointed by the City of Palo Alto terminates employment for any
reason before the completion of the first year of service as a result of a comprehensive TBC
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recruitment, the firm will provide Palo Alto with the necessary consulting services required to
secure a replacement. Depending on the nature of the departure, professional consulting
services will be provided at no charge or a discounted rate of 25-50% of the original fee.
Expenses will be covered by the Client.
Fee for Additional Placements & Discounts (FULL SEARCH)
Because of the challenging market for top talent, our clients are increasingly taking advantage
of selecting more than one outstanding candidate from a single recruitment that will benefit
the organization in a different capacity. In these instances, a $3,500 placement fee per
additional candidate placed will apply and will include completion of background check records
review as well as reference checking.
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