REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize City Manager to Execute Amendment No. 1 to the Teri Black & Co., LLC. Agreement to Increase the Maximum Compensation and Delegate Authority to Approve Future Similar Amendments to all Existing Master Recruiting Agreements for Services through 2028
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
The City currently has a vacancy rate of approximately 14%. The majority of the recruitments to fill these vacancies are facilitated by the Human Resources Department.
In late 2022, staff issued a Request for Proposal (RFP) to establish a master list of recruitment firms to assist in the recruiting process for classified, unclassified, and sworn positions. The selected firms would be primarily used to assist with harder to fill, specialized recruitments.
Sixteen proposals were received and evaluated by a panel of Human Resource professionals. Based on the evaluation, six firms were selected to enter into master agreements to provide full-service recruitment support for vacancies on an as-required basis.
These master agreements lay out all of the City’s terms and conditions, general scope of work, pricing and insurance requirements, thus expediting the process by not having to establish separate agreements for each individual recruitment. Task orders are issued by Human Resources to notify the vendor of specific assignments and initiate work. Each agreement has a five-year term through 2028 and a maximum compensation of $250,000, which falls within the City Manager’s signature authority. The six selected recruiting firms are:
1. All Star Talent Consulting
2. Berkeley Search Consultants
3. CPS HR Consulting
4. J. Powers Recruiting, Inc.
5. Peckham and McKenney
6. Teri Black & Co., LLC
Due to the number of vacancies city-wide and the challenges in recruiting for certain positions, the City has utilized Teri Black & Co., LLC. to recruit for several high level and specialized positions in the City Attorney’s Office, City Manager’s Office, Electric Utility Department, and Water & Sewer Utilities Department. Teri Black & Co., LLC. has been successful in finding candidates that were ultimately selected for some of the City’s positions, including the positions of Assistant City Attorney and Deputy City Attorney. Teri Black & Co., LLC. is currently recruiting for the Director of Water & Sewer Utilities, Assistant Director of Water & Sewer Utilities, and Assistant City Manager positions.
DISCUSSION
To date, $224,200 of the available $250,000 under the agreement with Teri Black & Co., LLC has been allocated. Staff recommends approving Amendment No. 1 to increase the agreement’s maximum compensation from $250,000 to $500,000 to support ongoing and future recruitment needs through 2028.
While this amendment addresses the immediate need for additional funds on the Teri & Black Co., LLC, agreement, it is anticipated that other firms on the master list may also exceed their original $250,000 limits due to future recruiting demands.
To streamline the process and avoid the need to return to Council for each amendment, staff also recommends delegating to the City Manager the authority to approve future amendments within appropriated amounts to increase the maximum compensation for any or all of the master recruiting agreements, subject to pricing set forth in the master agreements, provided that no individual agreement exceeds a total maximum compensation of $500,000 over the contract term ending in 2028. On December 12, 2023, Council approved an amendment to the J. Powers Recruiting, Inc. contract not to exceed $500,000.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The cost of a full-service or referral-based recruitments varies by recruiting firm. The decision to utilize an external recruiting firm to conduct a recruitment is coordinated with the hiring Department. The hiring Department is responsible for the full cost of the recruitment. This cost is absorbed by those departments using existing funding, typically vacancy savings from the positions being recruited.
For the recommended amendment to the Teri Black & Co., LLC. Agreement, the additional compensation of $250,000 may be split between various Departments, if Departments opt to use this recruiting firm.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to execute Amendment No. 1 to the agreement with Teri Black & Co., LLC. for recruitment services to increase the maximum compensation from $250,000 to $500,000, subject to the appropriation of funds and review and approval as to form by the City Attorney;
2. Authorize the City Manager or designee to execute future amendment(s) to the recruitment services master agreements with All Star Talent Consulting, Berkeley Search Consultants, CPS HR Consulting, J. Powers Recruiting, Inc., and Peckham and McKenney to increase the maximum compensation, not to exceed $500,000 per agreement, through the term ending in 2028, subject to the existing pricing models, the appropriation of funds, and review and approval as to form by the City Attorney.
Staff
Reviewed by: Aracely Azevedo, Director of Human Resources
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Amendment No.1
2. Original Agreement Between the City and Teri Black & Co., LLC.