5.2.A. SR HANDOUT 06-06-2011-tlar~lou,-- ~:a,2
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AGREEMENT FOR EXECUTIVE SEARCH SERVICES
THIS AGREEMENT is made as of the 6th day of June 2011, by and between, the City of Elk River, 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. Services. 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 Consultant's proposal/work
plan dated June 6, 2011. 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 $16,900
and anot-to-exceed price of $19,300 in the manner set forth in the attached 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 14 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 services prior to the
date that it received such notice.
4. Indemnification; Sole Remedy. 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 parry
hereto shall be liable 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 parry,
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 deemed 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. Confidentiality; 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 internal 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
Pubiic 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. Delegation 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 Party Beneficiary. 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. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the
State of Minnesota.
Severability. 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 and
enforceability of the remainder shall be unaffected.
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:
Springsted Incorporated
380 Jackson Street
Suite 300
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
Name, Title Ms. Sharon Klumpp, Senior Vice President
Springsted
ATTACHMENT A
June 6, 2011
Springsted
The Honorable John Dietz, Mayor and Members of the Elk River City Council
City of Elk River
13065 Orono Parkway
Elk River, Minnesota 55330
RE: Executive Search Services
Dear Mayor Dietz and Members of the Elk River City Council:
Springsted Incorporated
380 Jackson Street, Suite 300
Saint Paul, MN 55101-2887
Tel: 651-223-3000
Fax: 651-223-3002
www.springsted.com
Hiring a city administrator has always been one of the important decisions a city council makes, but today
this decision carries even more weight given the financial and service delivery challenges facing local
governments and the demand for creative thinking and results-oriented collaboration. In our role as
executive search consultants, Springsted is committed to working closely with the City of Elk River to
conduct a thorough, well-executed search that identifies qualified candidates with proven leadership
experience and management talent for your consideration. We can assist the City in its identification of
an interim administrator who can provide oversight of municipal programs and services, assist in the
development of the 2012 budget, and guide the City through the transition to a new City Administrator.
Springsted has extensive experience consulting with governing bodies and conducting local government
executive searches. We approach every project by establishing good two-way communication and trust
with the governing body; understanding the city's current needs and future goals; and providing elected
officials with thorough candidate research.
The Springsted consultant team assigned to the Elk River project includes Sharon Klumpp and David
Unmacht. Both consultants have awell-established track record of helping local governments recruit and
select experienced administrators and department heads.
A description of the general search process follows. Being responsive to your needs is important to us;
we would be happy to meet with you to refine this proposal as needed.
We look forward to working with the City of Elk River on this important project.
Sincerely,
Sharon G. Klumpp, Senior Vice President
Consultant
David J. Unmacht, Senior Vice President
Director
ldr
City of Elk River, Minnesota
June 6, 2011
Page 4
City Of Elk River
Proposal Eor
Executive Search Consulting Services
In The Hiring Of a City Administrator
Organization
Firm name and contact information:
Springsted Incorporated
380 Jackson Street, Suite, 300
Saint Paul, Minnesota 55101-4705
651-223-3000
651-223-3002 fax
Sharon G. Klumpp, Senior Vice President
651-223-3053
651-268-5053 fax
651-270-6856 cell
sklumppna,sprin~sted. com
David J. Unmacht, Senior Vice President
651-223-3047
651-268-5047 fax
612-202-2391 cell
dunmacht(a)springsted.com
Sharon G. Klumpp
Senior Vice President and Consultant
Ms. Klumpp, who specializes in organizational and management consulting for
public agencies, will be the lead consultant on this project. Since joining
Springsted seven years ago, she has conducted numerous executive searches and a
'~ broad array of organizational management studies. In addition, Ms. Klumpp has
-,"~+r 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).
David J. Unmacht
Senior Vice President and Director
Mr. Unmacht is the director of Springsted's Organizational Management Group.
Mr. Unmacht will assist Ms. Klumpp in the recruitment and evaluation of candidates
,~' and serve as Ms. Klumpp's backup on the project. Mr. Unmacht brings more than
two decades of local government administration experience, having worked for Scott
and Dakota Counties in Minnesota and as City Manager in Prior Lake and City
Administrator in Belle Plaine, Minnesota. He guides local governments in
organizational and leadership development; staff/elected official relations;
intergovernmental collaborations; facilitation services; and strategic planning. Mr. Unmacht is a
member of the International City/County Management Association (ICMA). He has a master's in
public administration from Drake University in Iowa and a bachelor's degree in business
administration and political science from Wartburg College in Iowa.
Sprirtgsted
City of Elk River, Minnesota
June 6, 2011
Page 5
II. Process
Springsted's search process is described below. We would be happy to refine this process as needed
to meet the City's goals and objectives.
1. Trust and working relationship-Springsted commits to meeting and exceeding the
expectations of the City from the beginning to the end of the search. We will create strong lines
of communication, be open to ideas and develop a strong partnership with the City Council and
staff. We do not bring any preconceived notions or expectations about the City and prospective
candidates. Our work with the City is open and transparent.
2. Selection of an interim administrator-Springsted will assist the City in selecting an interim
administrator and negotiating an employment agreement with the individual selected by the City
Council. We recommend that the individual selected to serve as the interim administrator not be
an applicant for the permanent position. Springsted will conduct the position review detailed in
Step 3 concurrent with the selection of an interim administrator to assist the City Council in
establishing short-range goals and objectives for the interim administrator.
3. Position review-Springsted works with the City to facilitate an evaluation of the City
Administrator position based on the City's existing and future organization, operations, programs,
activities and financial position. Within this framework we meet individually with each City
Council member to define the experience, skills, knowledge and abilities the ideal candidate will
need to be successful as Elk River City Administrator and identify the priorities and challenges
the new Administrator will be facing, both internally and in the external environment. We also
conduct a focus group meeting with department heads as part of our inclusive process to
understand all of the dimensions of the City Administrator position. Using this information, we
prepare a position announcement that explains the qualifications the City desires in its next
administrator and profiles the Elk River community. The position review also includes a salary
survey of comparable positions to assist the City Council in advertising compensation.
4. Recruitment and targeted outreach-Springsted develops a customized recruitment strategy
for the City that includes placing job ads with professional local government associations, such as
the League of Minnesota Cities, the Minnesota City/County Management Association, the
International City/County Management Association (ICMA), and schools of public
administration that regularly provide information about job openings to alumni. We also work
with neighboring state municipal leagues and state ICMA chapters to increase the exposure of
each search. Our outreach includes personal contacts with prospective local, regional and
national candidates to inform them of this position, answer their questions, and encourage them to
apply. Springsted sets up a special a-mail for each search and encourages an electronic
submission of applications. Applications received by mail or by fax are scanned to ensure that
we have an electronic record of all materials received. The City receives regular updates on the
status of the search.
5. Applicant screening and evaluation-applicant screening is based on criteria established by the
City Council. Using these criteria, Springsted conducts an objective and systematic review of
each application to determine those applicants who most closely meet the City's desired
qualifications. We conduct in-depth telephone screening interviews, typically with 10 applicants,
to expand upon each candidate's background and experience, particularly in those areas important
to the City, and affirm the candidate's interest in the position.
Springsted
City of Elk River, Minnesota
June 6, 2011
Page 6
6. Presentation ofcandidates-Springsted prepares up to 10 written candidate reports explaining
how each candidate meets the City's established qualifications and why the candidate is seeking
the position. Written candidate reports also include a review of information found through
Internet searches and preliminary references. The identity of candidates remains confidential
throughout this step; we label all reports as confidential, a reminder that the written candidate
reports are not to be distributed or discussed publicly.
7. Selection offinalists-Springsted meets with the City Council to present the written reports on
the recommended candidates and to answer questions. Each candidate is assigned a number so
the City Council can discuss the candidates in an open meeting without disclosing the candidate's
identity. The City Council selects the candidates who will be invited to interview. We generally
recommend inviting 4 to 6 candidates to interview.
8. Reference and background records checks-Springsted contacts references and provides a
reference report for each candidate participating in the interviews. We also conduct a thorough
background records check, which includes state and national criminal and civil history, driver's
license review, educational verification and a credit check. The timing and number of the
background records checks are coordinated with the City. To date, we have never had an issue
with any Springsted placement.
9. Interviews-Springsted develops the interview schedule in consultation with the City Council.
Typically, this process includes a tour of the City and an informal opportunity to meet department
heads and City Council members. Springsted coordinates the interview schedule with the
candidates. We work with the City Council to develop interview questions; we also provide the
City Council with a candidate evaluation tool and structure a process for the Council to receive
feedback from others who have contact with the candidates. A Springsted consultant is in
attendance at the interviews and will assist the City Council in narrowing the field of candidates
who could be invited to a second interview or in selecting the top candidate(s).
10. Employment negotiations-after the City Council identifies 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 input from
the City Council's legal counsel.
11. Ongoing services-Springsted's commitment to the City of Elk River does not stop after the
appointment of a City Administrator. We are available throughout the first year to facilitate a
discussion about performance issues, should they arise.
12. Guarantee-if Springsted is retained to do a complete search (items 1-10 above); we will
provide the City of Elk River with a 12-month guarantee. This guarantee commits Springsted to
performing another executive search if the new City Administrator voluntarily resigns or is
dismissed for cause during the first 12 months of employment. The guarantee search and other
ongoing services are provided at no additional cost to the City, other than reimbursement for
actual direct expenses we incur.
Springsted
City of Elk River, Minnesota
June 6, 2011
Page 7
III. Project Costs and Timeline
Project costs-Springsted's professional fee to provide the search services outlined above,
including the guarantee, is $16,900, exclusive of out-of-pocket costs. Out-of-pocket costs for this
project are invoiced at the actual amount incurred; project expenses include but are not limited to
advertising, background records checks for up to three candidates, overnight messenger deliveries,
photocopying and mileage for five on-site visits will not exceed $2,400. The not-to-exceed price for
these services is $19,300.
The City will be invoiced for these services as follows:
• 50 percent of the professional services fee and expenses to date, following the presentation
of candidates
• 50 percent of the professional services fee and the balance of expenses upon the adoption
of an employment agreement with the successful candidate.
Project timeline-we are available to begin the Elk River City Administrator search immediately.
This timetable provides a tentative schedule for project milestones based on a June 6 notice to
proceed. We are happy to modify this timetable as needed to meet the City's needs. Milestones and
dates shown in bold involve City Council participation.
- - - _ __
f Project Milestone
Proposed Date i
-- - - -i
Notice to proceed June 6, 2011
Selection of an interim administrator (could include a Council workshop) June 13 - 27, 2011
Position review and analysis
(Input from City Council members, department heads and
Others as designated)
June 13- 30, 2011
Profile deve%pment completed/approved by the City Council July 5, 2011
Recruitment and placement of ads/candidate outreach July 6, 2011
Applicant screening /telephone interviews begin August 3, 2011
City Council receives 8-10 candidate reports August 12, 2011
City Council se%cts final candidates August 15, 2011
Reference checks/backgrounds completed August 25, 2011
Candidate tours and interviews (City Council, department heads
and others as designated) August 25-27, 2011
Candidate interviews (second round optional) Week of August 29, 2011
Offer made/accepted, special City Council meeting September 6, 2011
Effective start date (estimated 30 day notice) October 7, 2011
5pringsted
City of Elk River, Minnesota
June 6, 2011
Page 8
IV. References
All of the searches listed below reflect a complete search in accordance with the process outlined in
this proposal. Additional references are available on request.
City of Shorewood, Minnesota
City Administrator (2008)
Ms. Chris Lizee, Mayor
952-960-7900
City of Lake Elmo, Minnesota
City Administrator (2009)
Mr. Dean Johnston, Mayor
651-777-4444
City of Watertown, Minnesota
City Administrator (2010)
Mr. K. J. MacDonald, Mayor
952-955-2681
City of Brooklyn Park, Minnesota
City Manager (2008)
Mr. Mike Trepanier, Council Member
763-425-1822
City of Coon Rapids, Minnesota
City Manager (2006)
Mr. Tim Howe, Mayor
763-755-8850
Springsfied