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HomeMy WebLinkAbout2010-01-25 Finance Committee Minutes FINANCE COMMITTEE January 25, 2010 Minutes Councilor Attendees: Bronson, Blanchette, Hawes, Gratwick, Palmer, Stone, Weston, Nealley Staff Attendees: Cyr, Farrar, Hupp Others: Eric Russell 1. Consent Agenda A motion was made and seconded to approve Consent Agenda items. a. Resolve 10-048, Accepting & Appropriating $80,000 Federal Aviation Administration and $2,000 MDOT Grant Funds for Completion of a Wildlife Management Study b. Quitclaim Deed – 20 Brown Street c. Quitclaim Deed – 129 Cedar Falls d. Quitclaim Deed – 279 Clyde Road e. Quitclaim Deed – 61 Cumberland Street f. Quitclaim Deed – 17 Fieldstone Drive g. Quitclaim Deed – 5A Pray’s Park h. Workout Agreement – 169 Hudson Road 2. Bids/Purchasing a. Executive Search Services for the Recruitment of a City Manager – The Mercer Group - $24,500 Cyr noted that the Committee’s agenda packet included a memorandum relating to this item. When the City requested proposals for an Executive Search and Recruitment Firm, it received 11 responses. A selection committee comprised of five individuals (Councilor Blanchette, Gratwick and Wheeler, Bob Farrar, and Deb Cyr) reviewed all 11 submissions. There were three clear frontrunners and th the three were invited back for an in person interview on January 14. The three were: The Mercer Group, Slavin Management and Municipal Resources, Inc. Questions specific to each proposal were asked by the Committee as well as reviewing areas within the RFP identified as areas of importance; i.e. experience and qualifications, dependability and responsiveness. A summary of each interview was provided. Many had similar approaches, they all emphasized that one of the key elements for a successful placement is networking and outreach to potential clients not just waiting for individuals to apply, They all post advertisements and notices, but most often noted that frequently employed individuals must be sought out and encouraged to apply. The role of the selection firm is to first listen to the direction of the City Council, craft a process that works best for the City’s identified needs, provide feedback and opinion as to the best practices and to facilitate the process as directed by the Council. While skill set is a major factor in finding a candidate, the right fit is critical to the success of the placement and to that end most felt that the best candidate might already be located in the New England area but that the search should not be so narrowly focused. After all interviews were concluded, the Committee recommended that the contract be awarded to The Mercer Group. Jim Mercer was present at the interview and he has proposed to be the project manager on this assignment. He presented a well thought out and comprehensive approach to the scope of services. He has a demonstrated great deal of experience and qualifications as well as dependability and responsibleness. He came across as approachable, confident and assured in his abilities and a good listener. He defined how he would learn, interpret and define the Council’s goals. He has a significant amount of experience related to the placement of city managers. The overall cost of The Mercer Group proposal is in line with other responses. The proposed fee for the service is $16,500 plus out of pocket expenses not to exceed $8,000. Out of pocket expenses include Mercer’s travel, lodging, per diem, telephone, advertising, reference and background checks. The types of expenses not included in this particular total are newspaper advertising, cost for final candidates to travel to Bangor for interviews, and/or any travel that Councilors or that the Council may want Mercer to do to the finalist’s worksite. Blanchette noted that The Mercer Group and Mr. Mercer have experience in hiring executives for the City of Bangor; i.e. Airport Director Hupp and Economic Development Director Daniels. There was a very minor difference between The Mercer Group and Slavin except that the individual who would be managing this search from the Slavin group was not present for the interview. Mercer is very level headed and listens very well. If the chosen candidate leaves of their own will within two years, The Mercer Group will return to perform another search for out of pocket expenses only. Blanchette stressed that a vision and plan needs to be in place before candidates are brought to Bangor. Gratwick said that he found several things enormously reassuring. The average city manager stays roughly 7 years in a position. To have someone in Bangor’s position for 22 years is remarkable. Because of the circumstance regarding Barrett’s departure, Gratwick had been concerned that this might make it more difficult to find a replacement. But having someone in the position for 22 years provides a good reference in itself for anyone interested in the vacant position. Secondly, Mercer has been in business for 32 years. There are six municipalities in which Mercer has placed three city managers every 10-12 years. Gratwick is convinced that The Mercer Group is worth the cost. The cost of not performing the search well would be horrific. Farrar added that he has had the pleasure of working with Mr. Mercer on two occasions in Bangor and has found him to be professional, he sticks to his proposed schedule, and feels he would make a good selection for the process to be undertaken. He was pleased with the overall responses feeling that the Interview Committee interviewed three top notch firms. Palmer asked about the timeframe proposed by The Mercer Group. Cyr said that Mercer’s estimate timeframe from the start of the process; i.e. when the City and Mercer have a contract, until the selection of the final candidate is 90-120 days. It will depend on where the candidate is currently located and their current situation as to when the finalist would be on the job. Responding to Palmer, Cyr said she would contact Mercer tomorrow if the Committee approves the recommendation. Nealley expressed concern about the $8,000 out of pocket expenses as well as other expenses not included in Mercer’s proposal. He suggested there might be room for negotiation once a firm is selected. Cyr clarified that the $8,000 does include advertising. The only type of advertising it does not include would be an ad in the Bangor Daily and Portland Press Herald. Mercer will use the ICMA publications, the city manager publications, etc. for advertisements. Blanchette said the expenses were ‘up to’ $8,000 noting that Cyr would keep an eye on expenses. Weston agreed with Nealley’s concern asking if the City has final say what ‘out of pocket expenses does not include.’ Cyr said it would be at the Council’s discretion. Weston did commend the Interview Committee for its work. Wheeler said he is looking at the proposed cost as a reasonable one. The initial estimate was $50,000 to engage a consultant and to proceed through the process. Blanchette said that the Council can rest assured that The Mercer Group will not come in and destroy their reputation as being excessive in expenses. This group has been called back to several communities three times to hire new managers after they have served 7-11 years. It makes a statement. Blanchette stated that it is completely and totally within the realm of the Council to control expenses. She stressed, however, that the Council needs to know and to agree as to what it wants before bringing Mercer to Bangor. A motion was made and seconded to approve staff recommendation. The item will appear on the upcoming Council agenda for final action. The Committee adjourned at 5:20 pm.