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HomeMy WebLinkAbout02-20-02 Admin Com. MinutesDublin City Council Administrative Committee of the Whole February 20, 2002 Attendiu~: Mr. Kranstuber Ms. Chinnici-Zuercher Mr. Reiner Mr. Lecklider Mrs. Boring Mayor McCash (arrived later) Ms. Salay (excused) Mr. Kraushiber called the meeting to order at 7:45 p.m. in the Council conference room, noting that tonight's meeting has been scheduled to discuss the City Manager search proposal with a representative of Paul Reaume (PAR Cn~oup). Mr. Harding introduced Dr. Greg Kulur, a principal of the Paul Reaume fine. Dr. Greg Kuhn stated that he is a Managing Vice President with the firm acid is attending tonight's meeting due to the fact that Mr. Reaume's wife is recovering from pneumonia. He then provided background on his experience and credentials, as outlined in the bio sheet provided previously. He has worked as a City Manager and as a consultant, and recently completed doctoral work in public administration, organizational behavior and development, and public policy. The firm employs seven consultants as outlined in the materials provided last fall. Mr. Kranstuber asked if Dr. Kuhn has been given the materials which Mr. Slavin has prepared on the search process to date, and if he is aware of the history of the process to date. Dr. Kuhn responded that he met with Mr. Harding today and has been briefed on the status of the search process. Mr. Reaume spoke with Mr. Harding recently by telephone. Dr. Kuhn noted that he has not reviewed the materials produced from the first search. News regarding the search has also traveled on the "grapevine" -people have called with various rumors. Mr. Kranstuber stated that Council was not overly impressed with the quality and quantity of the product produced by Mr. Slavin for Council. For this reason, a decision was made to discontinue the work with Mr. Slavin and to retain another firm. He asked if Dr. Kuhn has had an opportunity to view the community. Dr. Kuhn responded that he has briefly toured the community by car and on-lice and was very impressed with the high quality. His reference points are elements of Lake Forest, Oak Brook and Naperville, Illinois all combined in one place. In general, his observation is that in terms of the long-term fiscal health of the conmiunity, Council has done a good job in balurcing the commercial and residential development. The commercial development helps to pay for the services the residents desire to have. Mr. Kranstuber asked how Dr. Kuhn would approach the assignment of finding a new City Manager for Dublin. Dr. Kuhn stated that in the past couple of years, he has completed a couple of searches in similar growth communities in Bend, Oregon acid Colleyville, Texas - a suburb of Fort Worth. Experience in growth management was a key criteria for candidates. H added that often an Assistant City Administrative Committee of the Whole February 20, 2002 Page 2 Manager in a larger growth community may be a good candidate as well as City Managers in smaller growth communities. He noted that first there must be an effort to overcome some of the trepidation in the marketplace due to the fact that the first search firm was replaced -candidates who applied will want to know particulars of what went wrong and the air will need to be cleared. Secondly, they plan to target and identify candidates currently working in similar communities or who have this background. These candidates will be solicited directly and encouraged to apply. At the same time, they will place ads in professional publications and generally get the word out in the profession that the search has been reactivated. Mr. Kranstuber suggested That Dublin's Community Relations Division be utilized in assembling the profile. The last consultant did not do so, urd this resource should be used. Ms. Chinnici-Zuercher commented that Ms. Puslcarcik has actually reworked some of the profile already, at the request of Council. Dr. Kulur noted that any assistance provided from Dublin's staff is welcome -most communities don't have the resources to provide this type of support. This piece is critical in developing a pool of candidates at the level Council is seeking and deserves. In Bend, Oregon, for example, the City retained a public relations consultant who assisted with the profile -adding some descriptions of local amenities to enhance the profile. His firm would want to review it to make sure that critical points are included. He then asked where Council is in terms of compensation to be offered. In this field, a matter of $10-15,000 brings an entirely different level of candidate. As a high power organization with high expectations, Council wants that type of talent and there is a national marketplace in which Dublin will be competing for this type of candidate. The salary was previously announced as "negotiable", but including a salary range demonstrates a seriousness and willingness to compete in the marketplace. When appropriate tonight, he would like to discuss this item further. It is as much a tool to draw a candidate as the amenities in Dublin. In the end, for candidates to make a career move, they must be enticed -and compensation translates to obtaining the kind of candidates that Cowicil desires. Ms. Chinnici-Zuercher stated that the absence of the salary range could have been a factor in the current pool of candidates which included some with very limited experience. Council has discussed this in terms of upper limits of the range they would be willing to pay. She personally believes that, in general, an organization pays more in compensation for the next person than was paid to the person who left. In govermnentjobs, there are incremental increases in compensation. Where the City is developmentally can also create an expectation that the new person will have the qualifications, experience and talent to lead the City through the next growth cycle. Mayor McCash arrived at this point, and Mr. I{ranstuber briefed him on the discussion to this point. Dr. Kuhn stated that in 99 percent of the searches they have done at the manager or department head level, the candidate coming in is generally paid at the Level of the person who left or higher. Mr. Kranstuber stated that the former City Murager was paid $103,000 plus @$10,000 in housing allowance. He assumes the consultant is focusing on a range of $110-120,000. Administrative Committee of the Whole February 20, 2002 Page 3 Dr. Kuhn responded that his sense is that $110-125,000 would probably be an appropriate range. Ocher things may come into play for candidates beyond that, such as a City residency requirement which may impact a housing subsidy. It is important to be prepared for candidates who would be required to move to Dublin from another market. Mr. Kranstuber stated that in the former City Manager's situation, the housing allowance was provided due to some unique circumstances. He would prefer to provide this in compensation versus adding a housing allowance. Mr. Reiner asked if the range of $110-125,000 is appropriate for a city such asDublin - is this the low end or high end? Dr. Kuhn stated that there are candidates out there who may test that range. Assistant Managers in large cities are already at the $100-105,000 level, and top managers' compensation ranges from $125-155,000. Some are base salaries with additional items such as deferred comp. But these are general parameters, and it is a matter of competing in the marketplace. To persuade someone to uproot their family in the prime of their career requires a certain level of compensation in today's marketplace. Mrs. Boring suggested that there may be talented people in smaller communities who currently are paid in the $80,000 range. Dr. Kuhn stated that the disclaimer is always included that the end salary is negotiable. The range merely indicates to the field the level of compensation Council expects to pay. The years of experience and track record will always impact the final salary level. The candidate may feel that if the City and region feel that the job is worth "x" and he is the preferred candidate, he should be paid in that same range. Mayor McCash stated that he is less concerned with the salary issue at this immediate level. He knows what the previous manager was paid, and knows the general range Council is looking at. He wants to know that when Council takes the list of finalists to the public that they've done their best job in trying to identify the best prospects, from wherever, for the City Manager of Dublin. Perhaps the present range paid to the Manager could also include the demographics of the Dublin area, the cost of living, and such information which would assist the candidates in evaluating the opportunity. While it is important to be sensitive to the salary range, obtaining the right person is the key. Someone coming from a high cost of living City can live very well in Dublin on $105,000. A candidate who everyone agrees is outstanding may desire a much higher salary, but perhaps Council would then have to settle for a candidate willing to work in the range offered. Ms. Chinnici-Zuercher stated that different types of candidates are attracted based on the range. Offering a substantially higher range than what was paid to the manager who retired would have to be a decision defensible to the public -that the candidate's credentials and experience warrant this. Mr. Kranstuber stated that, conversely, advertising for a candidate in the range of $110-125,000 will not appeal to those who want substantially higher salaries. Dublin lost a talented Assistant City Manager a few years ago because he was offered a substantially higher salary from another Administrative Committee of the Whole February 20,2002 Page 4 organization where he filled ahigh-raiilcing position. Politically, Dublin cannot compete with those types of salaries being offered. Ms. Chinnici-Zuercher stated that Dublin must determine what the value of the position is to the City. Mayor McCash asked if the consultant is recommending that the salary be listed as "negotiable" in the profile. Ms. Chinnici-Zuercher reiterated that not providing a salary range may explain the somewhat disparate group of candidates who applied. Mr. Kranstuber added that Dr. ICulm is recommending that Council "bite the bullet" and specify $110-125,000, knowing that this may at the same time discourage some of the candidates who are earning well beyond that. Mrs. Boring stated that Dublin is a great place, and from discussion at NLC, Council has learned that other cities do not have the saine opportunities. Compared to a city such as Chicago, Dublin would be a great place to work. Council should not in any way believe they need to "grovel" - Dublin is a very nice situation for someone. Council wants someone dynamic, but the City has a lot to offer as well. Dr. Kuhn stated that all of the communities where he has done searches recently were ath~active. The message to send out to the profession is that this is an opporttimity to work with a f rst class organization and community. hi this profession, all of this matters immensely, but the manager must look to meet his or her family's needs as well In Bend's case, the candidate came from North Carolina and wanted to move west where he grew up. Bend had to come up with a package to attract their candidate. While he is sensitive to the fiscal issues, he is trying to give Council the benefit of his professional advice. This search has already come to a halt, and there are some hurdles to overcome in the profession. He is trying to be direct on this issue so that Council can attract the kind of candidates that they desire. In the end, Council will still negotiate the salary package. Mr. Kranstuber asked if the consultant feels comfortable with advertising a range of $110-125. Dr. Kuhn responded that he does. Mr. Kranstuber confirmed that, at the same time, he will bring a candidate who is looking for a higher salary if he is someone Council should consider. Mr. Reiner stated that he appreciates Dr. Kuhn being direct. People will not relocate for less than a reasonable salary in the marketplace. Ms. Chinnici-Zuercher asked what he needs firom Council other than establishing the salary range. Dr. Kuhn stated that he requests flrat Council review the previous profile, including the personality traits, management traits listed, issues, challenges, and opportunities. Ordinarily, he would schedule interviews/workshops with Council to develop this profile, so he wants to feel comfortable that the profile reflects Council's desires. Mr. Reiner asked if the range of salary is appropriate to draw the best candidates Administrative Committee of the Whole February 20, 2002 Page 5 Dr. Kuhn responded that the range makes Dublin competitive without overselling the position. If a qualified candidate is looking for $135,000 and this is the person Dublin wants, Dublin has the ability to pay this, if desired. Mrs. Boring asked about the timeframe necessary. Dr. Kelm responded that their general ru]e of thumb is that once the profile is completed and approved and announcements have been published in the professional journals, they plan to return to Council in approximately 60 days with reconunendations. This would include the best 10 or 11 candidates, acid PAR will have interviewed them and done preliminary reference checks. Council would then narrow that list to approximately five, plus an alternate or two, and he will facilitate the interview process. In Oregon, there was extensive community involvement; the Council appointed a community search committee. While it was somewhat cumbersome, it did work, as the Chair was the Vice President of a local college and had been through such a process. If Dublin wants to do something beyond traditional interviews with Council and department heads, etc. he would like to Irnow very soon. Some candidates have withdrawn based on having to participate in community forums where questions are asked of candidates; sometimes, when there are factions in a City, these forums can be very uncomfortable for a candidate. Mayor McCash stated that in Dublin, there is an active citizen and business group. Everyone wants to contribute and be involved. Personally, he would advocate the approach the school board used - narrowing the list to 3 candidates, and scheduling a series of public meetings where people could ask questions. The school board members were present to see the interaction, and to see how the candidate related to the various groups -staff, business, connnwrity. Dublin would be looking for a candidate who can interact with all groups and be responsive in the dialogue. It would not be about the questions per se, but how they interact. Mr. Lecldider aslted if there is a procedure that Dr. Kuhn recommends. Dr. Kuhn states that, at a minimum, Council needs to schedule at least two interviews with each of the candidates. The second interview is very important to confirm the impressions of the first interview. From there, the process must fit with the culture of the community - if Council is leaning toward a public forum, he would like to know as soon as possible so that it can be conveyed to candidates. As the process becomes more public, the risk increases for the candidates. For City Managers looking for a new opportunity, everything is done in the public view. However, the candidates are still employed and City Councils react negatively to this news -relationships can change and are sometimes never the same. The process used will impact the pool of candidates - the more open the process, the more risk to the candidate at his present job. Mayor McCash stated that somewhere in the process, perhaps closer to the end, some type of community forum is needed. Ms. Chinnici-Zuercher stated that at first, she was supportive of such forums. After further consideration, if the public meets the candidates, an expectation would be created that another forum will be scheduled to give their feedback to Cowrcil regarding the candidates. Administrative Committee of the Whole February 20, 2002 Page 6 Mayor McCash stated that he doesn't believe the school board had an official forum -they simply observed the interaction between the candidates and the public at receptions. Mr. Kranstuber suggested that perhaps a compromise would be to have iufonnal receptions for individual candidates, with the Chamber and the citizens present for interaction with no formal program. In any case, they will provide feedback to Council. But in the end, the most important factor is the relationship between the City Manager and the Council who hires the candidate. Mayor McCash stated that he's not proposing deferring the decision on the City Manager to the public via these forums. He does believe that as part of the decision process, there is some benefit in having them. He is concerned with having someone is selected and hired without bringing the citizens and businesses into the process. Mr. Kranstuber suggested a reception at the Rec Center. Dr. Kuhn suggested that all of the candidates could be brought together on one night for such a reception - it is not unusual in the profession. Mr. I{ranstuber agreed with this suggestion, noting that it would allow a good interchange among all who attend. Dr. Kuhn stated that each candidate could be asked to introduce himself or herself at the reception; this has been done in practice over the years. The final interviews would follow very closely in terms of timeframe. Ivls. Chim~ici-Zuercher noted that having one night set aside for this would encourage better attendance. Dr. Kuhn added that this type of reception allows Council to observe the candidates while they interact with the cormnunity. It was the consensus of Council to use this process. Mr. ICranstuber asked if Dublin would pay For transportation for the candidates for the two visits. Dr. Kuhn responded that this is customary. Mr. Reiner noted that it would be important to have the consultant make Council aware of an individual candidate's situation -and not to jeopardize their current position anymore than necessary. Ms. Chinnici-Zuercher commented that one local newspaper, the Dublin Villager, did publish the applicants' names. The consultant should be aware of this possibility. At the point the reference checks are done on candidates, it would be important to let them know of this possibility. Dr. Kuhn stated that other states are very aggressive in their application of the open meeting law acid Freedom of Information Act. He has an obligation to forewarn candidates of the statutes in Ohio so they can decide if they want to pursue the candidacy. hi other cities, the consultant has worked with the publishers of local newspapers to persuade them of the logic of not releasing naives until the finalists are determined. There is a need for the public to know, but this must be Administrative Committee of the Whole February 20, 2002 Page 7 balanced with responsible journalism. The point is not to hide anything, but there must be respect for the candidates. They will try to work with the local press to address this. Ms. Chinnici-Zuercher summarized that the consultant will bring 10 ca~ididate names to Council; Council then will narrow that list Co @ five for interviews; a public reception will be scheduled, followed by second interviews and the selection. Dr. Kuhn stated that the process can be done in any manner. In Bend, a reception was held for the candidates and spouses, believing that it is important for the spouse or significant other to come to the first interview. A commitment is a family commihnent, and when Council is ready to make a decision, it is important that the candidate and family are ready as well. b~ other communities, the schools have accommodated the candidates on weekends and have done whatever it takes to attract and showcase the City. Ms. Chinnici-Zuercher stated that her assumption has always been that the spouse would attend with the candidate. She is certain that the schools and businesses would support Council's efforts to attract good candidates. Dr. Kuhn stated that he prefers to discuss the end of the process at the outset so that Council can deliberate on all of this and then be ready to make a decision. Ms. Chinnici-Zuercher noted that Comicil received a copy of the draft profile last night -what are the expectations for review? Dr. Kuhn suggested that Council review this by next week. In the meantime, he will take a copy back and do some minor tweaking and clarification, if needed. Mr. Harding added that the document was not changed in substance, only in style. The next ICMA Newsletter deadline is February 28 for the March I 1 issue. Council agreed that it is important to meet this deadline. Dr. Kuhn suggested that Council first focus on the amrouncement for the professional journals (page 3) and then focus on the remainder of the prof le. It was the consensus of Council to have feedback by Monday to Mr. Harding. Mr. Kranstuber, Mayor McCash, Mr. Reiner stated that the draft is fine. The other members agreed to have feedback by Monday to Mr. Harding. Mrs. Boring commented that tonight, Council is focusing on the hiring process, but she hopes that Dr. Kuhn will be direct and help Council to stay on task. Dr. Kuhn agreed to be diplomatic, but acknowledged that his role is to offer advice and be direct with Council Members. Ms. Chinnici-Zuercher suggested that Council spend some time tonight in discussion of what they are not seeking in a City Manager, i.e., she is not interested in someone who has not had some type of management career already. She is not opposed to young candidates, but personally not interested in coaching or mentoring someone in this position. Age is not a number to her, but relates to life experience that gives them the emotional stability to handle crisis situations. Administrative Committee of the Whole February 20, 2002 Page 8 Mr. McCash offered that the Manager must interact with CEO's who are 50-55, so if the candidate hired is 35, they must be a mature and experienced 35. They would have a challenge to overcome in terms of being that much younger than the executives of the community. Mrs. Boring noted that, conversely, she is not interested in a candidate who is looking to "double dip" or obtain years in the Ohio PERS system. She would expect that the candidate would have a family with high school ormiddle-school aged children; not someone looking to "job hop," as someone younger may want to do. Mr. Kranstuber asked if a candidate from California or Illnrois can buy retirement time when they come to Ohio. Mr. Harding stated that, generally, there is reciprocity to some degree between the states. Mr. Kranstuber asked if these are questions that Council can legally ask. Dr. Kuhn responded that they can be asked about what type of retirement planning they have -what is their current system offering. He predicts that 75 to 80 percent of the field of candidates are already serving as City Managers, but maybe 20 to 25 percent are serving as Assistant City Managers in larger communities. They would also be well qualified for a City such as Dublin. There will likely be a mix in the candidates of seasoned professionals and "rising stars." Mr. Kranstuber noted that Dublin has had very qualified Assistant City Managers who could have stepped into the City Manager position. Mayor McCash agreed, noting that the candidate does not necessarily have to be a City Manager presently. Ms. Chinnici-Zuercher added that the experience they have had is the key factor. She agrees with Mrs. Boring that she is not interested in someone looking to put in his or her last years before retirement. She wants someone with energy and vision who is working toward a goal they have not yet reached - someone who is willing to put forth effort. On the other hand, she is not looking for a "revolutionist" -things are going well in Dublin, and a 180-degree change in direction is not what she is seeking. Mayor McCash stated that he is not interested in a candidate who wants to bring his or her own department heads to Dublin. Dublin has a very hard working and talented staff; Council is not seeking someone who wants to move out the existing staff. Some adjustments can be made in operations, but Dublin has a good staff. Dr. Kuhn stated that reconunended candidates will all be good managers. In this profession, there is not much freedom to change the management staff wiles they are complete non-performers. The candidate will evaluate and look for matches in style. He read in a Dublin newsletter that the former City Manager's strongest asset was his ability to attract great staff. The quality staff in place will help to attract a good manager. Mr. Lecklider stated that in terms of age, he doesn't want to set an artificial lower limit on age. Someone who is 37-38 and has all of the qualifications should be given consideration. Administrative Committee of the Whole February 20, 2002 Page 9 Mayor McCash agreed, noting that it would be important to recognize the other challenges associated with having a young manager who would be working with more senior staff and corporate CEO's. Ms. Chinnici-Zuercher stated that she also expects adiversity ofcandidates -not all white males. Mr. Reiner commented that he wants the best candidates; he is not concerned with other factors. Dr. Kuhn stated that in terms of diversity, he conducted a study a year ago. The results showed that 12 percent of city managers in the Chicago area are female; less than that are a minority. The percentages are fairly consistent in other areas. He emphasized that there is a limited pool of applicants; diversity is not present in the profession. For many females in the profession, they self select themselves out of the top job for family reasons. The prime of their career is the same time they are having families. He will make every endeavor, however, to ensure that the pool is diverse, assuming those candidates are qualified, interested and available. Mr. Lecklider asked if there are other aspects of the compensation package which should be discussed at this time. Dr. Kuhn noted that for candidates coming from outside the area, it is customary to pay relocation expenses. Generally, three bids are obtained on this. He assumes that Dublin is a frst class operation and would be willing to do this. It was the consensus of Council that relocation expenses be included. Dr. Kuhn stated that the most important items in the compensation package are auto allowance, deferred compensation, base compensation, and an employment agreement. Some candidates may be receiving deferred compensation of $8,000 or more in their present job and may be unwilling to give that up. City Managers are a mobile profession, and for many the 401K is the only retirement plam~ing available. He wants to make Council aware of this factor. Mr. Lecklider asked if there is a way to factor deferred compensation into the base salary, i.e., $115,000 in base salary and $7-8,000 in deferred compensation. Dr. Kuhn stated that he would defer this discussion until the time negotiations are underway with the preferred candidate. Mr. Lecklider asked about severance provisions. He assumes this would be negotiated upfront. Mr. Harding responded that a typical severance provision is for 4-5 months salary if the contract is terminated. Mr. Kranstuber moved to authorize the Interim City Manager to execute a contract with PAR Group for the City Manager search. Ms. Chinnici-Zuercher seconded the motion. Mr. Kranstuber noted that his assumption is that the terms of the contract would be similar to what was proposed by PAR previously. Dr. Kuhn stated that there maybe some additional mailing costs associated with the larger profile being used. Administrative Committee of the Whole February 20,2002 Page 10 It was suggested that the profile be placed on the City's web site. Dr. Kuhn stated that this could be used as an additional tool. They would still recommend that a candidate receive the profile by mail. Vote on the motion -Mrs. Boring, yes; Mr. Kraiistuber, yes; Ms. Chimiici-Zuercher, yes; Mr. Reiner, yes; Mayor McCash, yes; NIr. Lecklider, yes. Discussion followed about dates for the outdoor pool meeting and board and commission interviews. The outdoor pool meeting was set for Tuesday, March 12 at 7 p.m. in Council Chambers. Board and commission candidate interviews will beheld on Thursday, March 14 beginning at 6 p.m. at City Hall. Discussion followed about goal setting. Mr. Reiner is unable to attend the March 1-2 session, and in order to have everyone present, altenlate dates were considered. The consensus was to consider March 22 and 23. Council members are to provide feedback tomorrow regarding the possibility of rescheduling on these dates. The meeting was adjourned at 9:30 p.m Clerk of Council