HomeMy WebLinkAboutStaff Report 14808 (2)
City of Palo Alto (ID # 14808)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approve and authorize the City Manager or their designee to execute
Amendment No. 2 to contract No. C19174515 with Municipal Resource Group
for Organizational Development, Succession Planning and Talent Acquisition
Services for one additional year.
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends that the City Council approve and authorize the City Manager or their
designee to execute Amendment No. 2 to contract No. C19174515 with the Municipal
Resource Group, for one additional year.
Background
In 2018 a Request for Proposal (RFP) was conducted for professional services in the
areas of organizational development, coaching, counseling and leadership development
training, as well as succession planning, recruiting, and talent management. The RFP
process resulted in the selection of four vendors as resources City departments could
utilize under this agreement for these professional services with a not to exceed
amount of $450,000. To date a total of $270,000 has been utilized across the four
approved vendors.
These services have been crucial to various City departments experiencing multiple
transitions at all levels within our organization. The Municipal Resource Group has
demonstrated the ability to provide timely response and excellent professional services.
Discussion
The City continues to experience the impacts of the pandemic and the great resignation
which have strained traditional approaches for conducting these organizational needs.
The unprecedented labor market has also resulted in a high number of vacancies
throughout various City departments. The services provided by Municipal Resource
Group are needed to address urgent organizational development needs, coaching and
recruitment services.
These services are especially needed during a time when the Human Resources
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Department capacity is impacted by several vacancies as well as handling numerous
organizational priorities. This 12-month extension will allow time for the HR team to
conduct an RFP process for a new term and establish a new contract.
It is important to acknowledge even fully staffed that the City would need professional
services like this agreement to provide departments with the level of organizational
development and leadership training currently being requested. Succession planning is
also expected to be a focus as numerous promotions have occurred during the last 12
months resulting in need to continue strengthening the bench. The professional
services provided by MRG will be deployed as needed to continue addressing these
organizational challenges.
Resource Impact
Staff is not requesting any increase to the not-to-exceed amount. This action only
extends the duration of the agreement for 12 months to provide urgent service delivery
needs until which time a new RFP is conducted and a new contract for these services is
in place.
Stakeholder Engagement
This contract continues to be a valuable resource that departments throughout the
organization have drawn on to assist in various organizational needs. Departments
such as Utilites, Human Resources, and Administrative Services are coordinating
internally to manage needs and contract authority.
Environmental Review
Approval of the Contracts does not require review under the California Environmental
Quality Act (“CEQA”) because the scope of work of these consulting contracts is not a
project under CEQA.
Attachments:
• Attachment A: Amendment No. 2 to C19174515 Professional Services AGreement with
MRG
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 2 TO CONTRACT NO. C19174515
BETWEEN THE CITY OF PALO ALTO AND
MUNICIPAL RESOURCE GROUP, LLC
This Amendment No. 2 (this “Amendment”) to Contract No. C19174515 (the “Contract”
as defined below) is entered into as of September 4, 2022, by and between the CITY OF PALO
ALTO, a California chartered municipal corporation (“CITY”), and MUNICIPAL RESOURCE GROUP,
LLC, a California limited liability company, located at 675 Hartz Avenue, Suite 300, Danville,
California 94526 (“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 to
provide organizational development services, as detailed therein.
B. The Parties entered into Amendment No. 1 to in order to extend the contract
term by six (6) additional months, through September 4, 2022, with no additional cost to the City,
as detailed therein.
C. The Parties now wish to amend the Contract in order to extend the contract term
by twelve (12) additional months, through September 4, 2023, with no increase to the not to
exceed amount, as detailed herein.
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. C19174515
between CONSULTANT and CITY, dated March 4, 2019.
Amendment No. 1, dated February 25, 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 September 4,
2023, unless terminated earlier pursuant to Section 19 of this Agreement.
DocuSign Envelope ID: C15A8572-B467-4C70-BCCC-1EA44E5131AD
Vers.: Aug. 5, 2019
Page 2 of 3
SECTION 3. 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 4. 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.)
DocuSign Envelope ID: C15A8572-B467-4C70-BCCC-1EA44E5131AD
Vers.: Aug. 5, 2019
Page 3 of 3
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
MUNICIPAL RESOURCE GROUP, LLC
By:__________________________
Name:_______________________
Title:________________________
DocuSign Envelope ID: C15A8572-B467-4C70-BCCC-1EA44E5131AD
Managing Partner
Mary Egan