Report No: Meeting Date:
1S-115b August 19, 2015
Alameda-Contra Costa Transit District
STAFF REPORT TO:
AC Transit Board of Directors
FROM:
Kathleen Kelly, Interim General Manager
SUBJECT:
Contract Amendment for Executive Search Services
ACTION ITEM RECOMMENDED ACTION(S):
Consider amending the existing contract with Krauthamer & Associates to extend the period of performance and include executive search services for recruitment of a Chief Financial Officer. EXECUTIVE SUMMARY:
The District issued a Request for Proposals to solicit qualified and experienced executive search firms to support the Board of Directors in the recruitment and hiring of a new General Manager. Krauthamer & Associates was selected as the executive search firm for the recruitment and was awarded a contract to perform these services during the period of April 29 to September 1, 2015. The Chief Financial Officer position has been vacant for an extended period, and there is a need to fill this vacancy. Krauthamer & Associates has performed effectively in the executive search for a General Manager; therefore, the District is interested in amending the existing contract with Krauthamer & Associates to include the recruitment of a Chief Financial Officer. The Procurement Department, in conjunction with the General Counsel's Office, has determined that utilization ofthis existing contractual vehicle is permitted based upon the language initially included in the solicitation for the General Manager recruitment. BUDGETARY/FISCAL IMPACT:
The budgetary/fiscal impact for the recruitment of the Chief Financial Officer is estimated at an amount not to exceed $55,287. BACKGROUND/RATIONALE:
On March 31, 2015, the District issued a competitive procurement for an executive search firm to assist the Board in the recruitment of a new General Manager. Ten proposals were received and a Board subcommittee evaluated the proposals based upon the qualifications of the firms, assigned staff, references, and cost. Based on the evaluation of these proposals, Krauthamer & Associates was selected as the executive search firm for the recruitment of a new General Manager and was awarded a contract to perform these services during the period of April 29 to September 1, 2015.
Report No. 15-llSa Page 2 of 2 The Chief Financial Officer position has been vacant for an extended period, and there is a need to fill this vacancy. The responsibilities of the Chief Financial Officer have been fulfilled on an interim basis by the Chief Operating Officer since April 2014; however, the oversight and management of the District's capital and operating finances requires a full time executive in this position. Krauthamer & Associates has performed effectively in the executive search for a General Manager; therefore, the District is interested in amending the existing contract to include the recruitment of a Chief Financial Officer. The Procurement Department, in conjunction with the General Counsel's Office, has determined that utilization of this contractual vehicle is permitted based upon the language initially included in the solicitation for the General Manager recruitment. ADVANTAGES/DISADVANTAGES:
The advantage of amending the current executive search contract with Krauthamer & Associates to include the recruitment for the Chief Financial Officer position is the assurance of a qualified firm to be assigned to complete the recruitment within a more immediate timeline. The disadvantage of not amending the contract will cause further delay in filling the Chief Financial Officer position on a full time basis. ALTERNATIVES ANALYSIS:
The alternative to amending the contract with Krauthamer & Associates would be to initiate a full procurement process; however, that course of action is not recommended since the Chief Financial Officer position would remain vacant for several more months. PRIOR RELEVANT BOARD ACTIONS/POLICIES:
Staff Report No. 15-115 -Issuance of RFP for Executive Search Services Staff Report No. 15-115a- Contract Award for Executive Search Services Board Policy 350- Procurement Policy
Reviewed by:
Prepared by:
Denise C. Standridge, General Counsel James D. Pachan, Interim Chief Financial Officer Linda A. Nemeroff, District Secretary Jon Medwin, Procurement and Materials Director
