9.e) Agreement with Springsted for City Administrator Search Meeting Date: 4/17/2012
Agenda Item: � Q�
City Council Agenda Report
City of Scandia
14727 209`" St. North
Scandia, MN 55073 (651) 433-2274
Action Requested: Approve and agreement with Springsted, Incorporated for executive
search services for replacement of the City Administrator.
Deadline/ Timeline: The proposed timelines will allow for hiring a new Administrator in
October or November.
Background: • At the April 10 meeting the Council reviewed two consultant
proposals for the City Administrator search: one from Springsted
and one from Brimeyer Fursman LLC. Springsted Vice President
Sharon Klumpp was present at the meeting. Staff was directed
staff to place an agreement with Springsted on the April 17
Council agenda for further discussion.
• Springsted, including consultant Sharon Klumpp, assisted with the
studies that preceded the city's incorporation and is very familiar
with the community. She worked with the former New Scandia
Town Board in the first (and last) Administrator search.
• The cost of the Springsted proposal is $7,800 excluding out-of-
pocket costs, which are estimated at about $500. The cost of
background checks would be additional. The proposal was
tailored to include only the basic level of services needed. The fee
is less than the cost of the 2006 search (which totaled $9,132.51.)
• Should the agreement be approved, the next step would be a work
session with the Council (May 8)to discuss desired qualifications
and expectations for the City Administrator, to review the current
job description and other information needed to prepare a job
announcement.
• The City Attorney has reviewed the agreement. It includes a 14-
day termination clause, and includes the proposal work plan as an
attachment.
Recommendation: I recommend that the Council accept the Springsted proposal. Staff
does not have time to conduct this search. My limited time is better
used on other work, including helping the new Maintenance
Superintendent get started with his new position. Even if the time
Page 1 of 2
04/13/12
were available, given the current relationships with the Council it
would be difficult for me to work with you to establish the
expectations and job description. The consultant will also be able to
help the Council establish the right salary range and help recruit
candidates.
Attachments/ • Draft Agreement
Materials provided:
Contact(s): Sharon Klumpp, Senior Vice President
Springsted Incorporated (651 223-3053)
Prepared by: Anne Hurlburt, Administrator
(springsted agreement search)
Page 2 of 2
04/13/12
AGREEMENT FOR EXECUTIVE SEARCH SERVICES
THIS AGREEMENT is made as of the day of 2012, by and between, the City of Scandia, Minnesota
("Client")and Springsted Incorporated("Consultant").
WHEREAS, the Client wishes to retain the services of the Consultant on the terms and conditions set forth herein,
and the Consultant wishes to provide such services;
NOW,THEREFORE,the parties hereto agree as follows:
1. Seroices. Consultant shall provide executive search services to assist the Client with the recruitment and
selection of a City Administrator consistent with the scope of services contained in ConsultanYs work plan dated
April 2, 2012. The work plan is provided in Attachment A and hereby made a part of this Agreement.
2. Compensation. The Client shall compensate the Consultant for these services at a professional fee of$7,800
and out of pocket expenses in the manner set forth in the April 2, 2012 work plan.
3. Term and Termination. This Agreement shall commence as of the date hereof, and shall continue until
terminated by either party by written notice given at least 60 days before the effective date of such termination,
provided that no such termination shall affect or terminate the rights and obligations of each of the parties hereto
with respect to any project, whether or not complete,for which the Consultant has provided seroices prior to the
date that it received such notice.
4. Indemnification; Sole Remedv. The Client and the Consultant each hereby agree to indemnify and hold the
other harmless from and against any and all losses, claims, damages, expenses, including without limitation,
reasonable attorney's fees, costs, liabilities, demands and cause of action (collectively referred to herein as
"Damages")which the other may suffer or be subjected to as a consequence of any act, error or omission of the
indemnifying party in connection with the performance or nonperformance of its obligations hereunder, less any
payment for damages made to the indemnified party by a third party. Notwithstanding the foregoing, no party
hereto shall be liabie to the other for Damages suffered by the other to the extent that those Damages are the
consequence of: (a) events or conditions beyond the control of the indemnifying party, including without
limitation changes in economic conditions; (b) actions of the indemnifying party which were reasonable based
on facts and circumstances existing at the time and known to the indemnifying party at the time the service was
provided; or(c) errors made by the indemnifying party due to its reliance on facts and materials provided to the
indemnifying party by the indemnified party. Whenever the Client or the Consultant becomes aware of a claim
with respect to which it may be entitled to indemnification hereunder, it shall promptly advise the other in writing
of the nature of the claim. If the claim arises from a claim made against the indemnified party by a third party,
the indemnifying party shall have the right, at its expense, to contest any such claim, to assume the defense
thereof, to employ legal counsel in connection therewith, and to compromise or settle the same, provided that
any compromise or settlement by the indemnifying party of such claim shall be tleemed an admission of liability
hereunder. The remedies set forth in this paragraph shall be the sole remedies available to either party against
the other in connection with any Damages suffered by it.
5. Confidentialitv; Disclosure of Information.
a. Client Information. All information,files, records, memoranda and other data of the Client which the Client
provides to the Consultant or which the Consultant becomes aware of in the performance of its duties
hereunder ("Client Information") shall be deemed by the parties to be the property of the Client. The
Consultant may disclose the Client Information to third parties in connection with the performance by it of
its duties hereunder,
b. Consultant Information. The Client acknowledges that in connection with the performance by the
Consultant of its duties hereunder, the Client may become aware of intemal files, records, memoranda
and other data, including without limitation computer programs of the Consultant ("Consultant
Information"). The Client acknowledges that all Consultant Information, except reports prepared by the
Consultant for the Client, is confidential and proprietary to the Consultant, and agrees that the Client will
� Springsted Public Sector Advisors
Page 2
not, directly or indirectly, disclose the same or any part thereof to any person or entity except upon the
express written consent of the Consultant.
6. Miscellaneous.
a. DeleQation of Duties. The Consultant shall not delegate its duties hereunder to any third party without the
express written consent of the Client.
b. No Third Partv Beneficiarv. No third party shall have any rights or remedies under this Agreement.
c. Entire Contract: Amendment. This Agreement constitutes the entire agreement between the parties with
respect to the subject matter hereof, and supersedes all prior written or oral negotiations, understandings
or agreements with respect hereto. This Agreement may be amended in whole or in part by mutual
consent of the parties, and this Agreement shall not preclude the Client and the Consultant from entering
into separate agreements for other projects.
d. GoverninQ Law. This Agreement shall be governed by and construed in accordance with the laws of the
State of Minnesota.
e. Severabilitv. To the extent any provision of this Agreement shall be determined invalid or unenforceable,
the invalid or unenforceable portion shall be deleted from this Agreement, and the validity antl
enforceability of the remainder shall be unaffected.
f. Notice. All notices required hereunder shall be in writing and shall be deemed to have been given when
delivered, transmitted by first class, registered or certified mail, postage prepaid and addressed as
follows:
If to the Client: If to the Consultant,to:
City of Scandia Springsted Incorporated
380 Jackson Street
14727 209th Street N. Suite 300
Scandia, MN 55073 St. Paul, MN 55101-2887
Attention: Managing Principal
The foregoing Agreement is hereby entered into on behalf of the respective parties by signature of the following
persons each of whom is duly authorized to bind the parties indicated.
FOR CLiENT SPRINGSTED Incorporated
Ms. Sharon Klumpp, Senior Vice President
ATTACHMENT A
4/212012 Work Plan
Springsted Incorporated
380 Jackson Street, Suite 300
Saint Paul,MN 55101-2887
S 1�I I"I 5 t e(� Tei: 651-223-3000
p g Fax: 651-223-3002
wwuv.springsted.com
LETTER OF TRANSMITTAL
Apri12,2012
Ms.Anne Hurlburt,City Administrator
City of Scandia
14727 209�' Street N
Scandia,Minnesota 55073
Dear Ms. Hurlburt:
We understand that you will be retiring as Scandia City Administrator in October. As requested,we have
prepared a proposal to assist the City Council in its search for a City Administrator. The attached
proposal outlines our recommended approach to have the new City Administrator on board by September
24,2012. This target date ensures that the City will have some overlap in the position,if desired,to
ensure a smooth transition. The proposal also includes a tentative project schedule that begins with a City
Council workshop and ends with the appointment of a City Administrator.
We appreciate the opportunity to submit a proposal for the CiTy Council's consideration. It is our goal to
establish a trusted working relationship with the City Council and to provide two-way communication
throughout the project.
Feel free to contact me if you have any questions at 651-223-3053. We look forward to assisting the City
of Scandia in the recruitment and selection of a new City Administrator.
Sincerely,
C
r
Sharon G.Klumpp, Senior Vice nt
Consultant
ldr/kmd
Public Sector Advisors
City of Scandia, Minnesota
Proposal to Provide
Executive Search Services for a City Adminisirator
� � • �
Objectives
Objectives for the City Administrator search include:
• Determination of the desired qualifications for the City Administrator
. Recruitment of applicants by advertising the position and contacting prospective applicants
• Assisting the City Council in its evaluation of candidates
. Interview coordination and attendance
. Assisting the City Council in negotiations with the top candidate
Springsted recommends an eight-step process for recruiting and selecting a City Administrator:
1. City Council workshop—Springsted will meet with the City Council in a warkshop to
discuss desired qualifications and expectations for the City Administrator and to review the
current job description. The workshop will assist the City Council in determining the most
important skills and qualities desired in the City Administrator. The workshop agenda will
include a review of all information needed to prepare a job announcement. We will also
review and revise the project schedule if needed.
2. Recruitment and targeted outreach—Based on the results of the City Council workshop,
Springsted will work with City staff to prepare a job announcement and coordinate placement
of the ad with professional associations. We recommend that ads be placed as follows:
• City of Scandia website
• League of Minnesota Cities
• Minnesota City/County Management Association(MCMA)
• League of Wisconsin Municipalities
. Wisconsin City/County Management Association(WCMA)
• Other publications and web sites identified in consultation with the City of Scandia
• Springsted.com
Springsted's recruitment efforts will emphasize personal contacts with qualified individuals
to present this position to them and discuss the reasons they should apply for this position.
These efforts will ensure that qualified individuals who are not necessarily looking for a job
will be aware of the City of Scandia position and encouraged to apply.
3. Serve as Point of Contact—Springsted will receive and document all applicant materials
and inquiries for the position.We will acknowledge each application received and keep
applicants inforxned of their status in the process. Periodic updates will be provided to the
City Council throughout the recruitment process to keep officials informed of the response to
the job announcement.
4. Applicant screening and evaluation—Springsted conducts an impartial and objective
review of each application to determine those applicants who most closely meet the City's
: S�)t�1 Cl Q S t�C� City of Scandia,Minnesota. Proposal to Provide Executive Search Services for a City Administrator ��2.
desired qualifications. We will conduct an internet search of the most highly qualified
applicants and invite up to 12 of them to complete a questionnaire that will provide detailed
information on their experience, skills and qualifications in areas of importance to the City.
Use of a questionnaire assures the City that it receives comparable information on all of the
applicants. We will review the completed questionnaires and conduct a brief screening
interview to clarify candidate information and to affirm the candidate's interest in the Scandia
position.
5. Selection of finalists—Springsted will compile a written report including candidate materials
and submit it to the City Council for review. The written materials will also note any
information found through Internet searches. Springsted will meet with the City Council to
present the candidates and answer questions. The City Council will select up to six
candidates who will be invited to interview.
6. Reference and Background Records Checks—After the City Council has selected the
finalists, Springsted will conduct reference checks for all candidates who have been invited to
interview and provide the City Council with a supplemental report outlining information
obtained from references. We will coordinate the background records check with Setter&
Associates,a company that specializes in pre-employment screening. The background records
check consists of a review of driver's licenses and criminal histories,educational verification,a
credit check and a review of civil judgments. Background checks may be conducted for all of
the finalists prior to their interviews with the City Council or the City Council can make its
hiring decision contingent upon a satisfactory background records check.
7. Develop Interview Process—Springsted will develop interview questions with input from
the City Council. Interview questions will be structured to learn more about the candidate's
experience,his/her understanding of the City of Scandia and its current projects and issues,
his/her approach to building an effective working relationship with the City Council and
his/her management style. Springsted will also be responsible for scheduling candidate
interviews.
Before the interviews, Springsted will brief the City Council on interviewing techniques and
review the types of questions that are not legal to ask in an interview. We will also provide
the City Council with an assessment tool that can be used to evaluate the candidates.
Springsted will be in attendance at all interviews.
We can assist the City in coordinating an informal tour of municipal facilities and the
community prior to conducting the interviews,if requested.
S. Employment negoNations—After the City Council has identified its top candidate,
Springsted will assist in developing an employment offer. We will negotiate an employment
agreement with the successful candidate in accordance with direction received from the City
Council and its legal counsel. Springsted will continue to keep all finalists apprised of this
last phase of the selection process. This step in the process becomes extremely important if,
for any reason,the top finalist declines the offer. Once the successful candidate has accepted
an employment offer, Springsted will notify all other finalists of the appointment.
�prir��st�� r1
City of Scandia,Minnesota. Proposal to Provide Executive Search Services for a City Administrator �3i
Post Selection Services.
If the City of Scandia retains Springsted to conduct a full search,we will offer the following
ongoing services described below.
• Performance Facilitation—Immediately after the selection,all of the parties may feel
confident that they share a mutual understanding of each person's roles,responsibilities and
expectations. However,with time these expectations may lose their focus. If requested,
within approximately 90 to 180 days of the City Administrator's service date, Springsted will
return to the City of Scandia to facilitate a discussion with the appropriate parties to review
expectations and performance.
• Guarantee--Springsted also commits to performing another executive search if the new City
Administrator voluntarily resigns or is dismissed for cause,absent the request of or
suggestion of any members of the City Council,during the first year of employment.
• No Solicitation Polic,y—Springsted will not actively recruit anyone whom we have placed
with a client during their employment with that client. Springsted strongly believes that
candidates who have accepted a public position have an obligation to serve the public entity
for an appropriate period of time.
. � . �
A tentative project timetable is provided below to illustrate the time allowed for each step of the
process. We are happy to revise this schedule as needed to meet the City's needs.
.____.___._- -- _ --- --.. _ _--- _._ _ -- _ . _ ____ _,,_____.___ ___ _ _ _ _ . _. ._.._ _.__.___ . _ _
E
Project Milestone � Proposed Date `.
_.,._____..__ __.______ __ .__._:__ _ __.._..__.___. __ _ ._____._., __.S__._
Notice to proceed April 17,2012
City Council Workshop May 8,2012
City approves job announcement May 15,2012
Recruitment and candidate outreach May 16-June 13,2012
Applicant screening June 13-18,2012
Candidates complete questionnaire,Springsted conducts brief ,lune 19-July 6,2012
screening interviews
Written candidate report submitted to the City Council July 13,2012
Candidate presentation I selection of finalists July 24,2012
Springsted conducts reference checks July 25-Aug.7,2012
City Council interviews candidates Aug 8-10,2012
City Council authorizes employment offer contingent on
background report/City Council enters into an agreement with Aug 10-24,2012
the successful candidate
Effective start date(estimated 30 day notice) Sept.24,2012
���r i n g S t f(� City of Scandia,Minnesota. Proposal to Provide Executive Search Services for a City Administrator �4�
' � • � � 1 � ' � �
Springsted will provide the full executive search services listed above for a professional fee of
$7,800,excluding out-of-pocket costs. Out-of-pocket costs,which include miscellaneous expenses
for such things as advertising,mileage,postage,overnight delivery and copying,are estimated to be
approximately$500. The cost for a background records check is$400 each.
. .
Contact information is provided on some of our recent searches. Additional references are
available on request.
City of Willmar,Minnesota Pierce County,Wisconsin
CityAdministrator Administrative Coordinator
Mr. Frank Yanish,Mayor Mr. Rod Rommel, Supervisor
320-235-4913 715-273-6851
City of Elk River, Minnesota City of Decorah, lowa
City Administrator City Manage�
Mr.Nick Zerwas,Council Member Mr. Don Arendt,Mayor
763-635-1005 563-382-3651 (City Manager's Office)
Village of Osceola,Wisconsin
Village Administrator
Mr. Gary Beckmann,Village President
715-294-3498
Sharon G.Klumpp
Senior Vice President and Consultant
Ms. Sharon Klumpp,who specializes in organizational and management
consulting for public agencies,will be the lead consultant on this project.
,� Since joining Springsted eight years ago, she has conducted over 50
.� executive searches and a broad array of organizational management studies.
',� In addition,Ms. Klumpp has extensive government experience,having held
' a variety of positions including Executive Director of the Metropolitan
Council,Associate Executive Director for the League of Minnesota Cities,
City Administrator for Oakdale,Minnesota and Assistant City Manager in St. Louis Park,
Minnesota and Saginaw,Michigan. Ms. Klumpp is a member of the International City/County
Management Association(ICMA)and has served as the chair of the Ramsey County Charter
Commission. She holds a master's in public administration from the University of Kansas and a
bachelor's degree in political science from Miami University(Ohio).
��r����t�� City of Scandia,Minnesota. Propasal to Provide Executive Search Services for a City Administrator �5j