03-0616_DAVIS COMPANY, THE_Professional Services Agreement6
Professional Services Agreement
For Executive Recruitment Services
The City of San Juan Capistrano (City, hereinafter) hereby agrees to retain The Davis Company
(Consultant, hereinafter) to provide executive recruitment services for the position of City Manager as
described in Section 1. Scope of Services.
Section 1. Scope of Services: Consultant agrees to provide the services that are described in the attached
letter and proposal to the City of San Juan Capistrano dated June 16, 2003 which is included as
Attachment A and is a part of this agreement. This agreement includes all of the services for which
Consultant is being retained.
Section 2. Compensation: As compensation for providing the services described in Section 1 above, City
agrees to pay Consultant a lump sum professional fee of $ 15,500 as follows.
Professional Fee Installments *
Amount
Upon being retained (i.e. retention fee)
$1,550.00 - 10% of fee
Phase I: Upon completion of Steps 1-4 which coincides
with the "filing date"
$6,200.00 - 40% of fee
Phase II: Upon completion of Tasks 5 & 6 — upon
presentation of candidates to City Council.
$4,650.00 - 30% of fee
Phase III: Upon completion of Steps 7 - 10 through
selection interviews by City Council.
$3,100.00 - 20 % of fee
* See AttachmentA for detailed list of Recruitment Steps
In addition to the professional fee City shall reimburse Consultant's actual cost for expenses such as
advertising design and placement, printing, telephone/fax, and travel. Reimbursable expenses shall not
exceed $5,000 except upon City's written approval to exceed said amount. Fees and expenses shall be
invoiced monthly and paid by City within thirty days of receiving an invoice from consultant. Further,
Consultant shall also be compensated at the rate of $170.00 plus reimbursement for expenses for any
optional or additional services that are required by the City Council. Such additional services shall be
provided by Consultant only upon written notice provided by City.
Section 3. Term: The agreement is effective upon the date that it is executed by City and shall continue
in force until all work is completed. City may terminate the agreement for any reason upon providing
five days written notice of such termination to The Davis Company, c/o Michael Davis at 11150 Santa
Monica Boulevard, #230, Los Angeles, CA 90025. In the event City terminates consultant's services for
reasons unrelated to consultant's performance, City shall pay Consultant for his services, including the
retention fee and actual expenses, through the phase of work in which the consultant is engaged as of the
date of termination. The balance of the fee is then waived.
Professional Services Agreement — City of San Juan Capistrano Page /
Section 4. Insurance: Consultant warrants to City that he currently has and shall keep in force without
interruption at his own expense during the term of this agreement, the following insurance: (1) workers'
compensation and employers' liability insurance, in accordance with the laws of the State of California;
(2) broad form comprehensive public liability and property damage insurance with a limit of not less than
$1,000,000.00, and (3) automobile public liability and property damage insurance, including owned,
hired, and non -owned automobiles.
Upon City's request Consultant shall immediately furnish City with appropriate certificates naming the
City as and additional insured.
Section 5. Indemnity: Consultant agrees to indemnify and hold harmless City and its officers, officials,
employees and volunteers from and against all claims, damages, losses and expenses resulting from
Consultant's negligent performance of the work described herein, caused in whole or in part by any
negligent act or omission of consultant, any subcontractors, anyone directly or indirectly employed by any
of them or anyone for whose acts any of them may be liable, except whereby the active negligence, sole
negligence, or willful misconduct of the City.
Section 6. Non — Assignment: Consultant agrees not to assign, transfer or convey any interests, rights or
responsibilities applicable to this contract to other parties without the City's written consent.
Signature of Consultant:
Michael Davis
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Date
Approved as to Form:
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John Shav , City Attorney
Date
Date
Attest:
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Margaret R. Monahan, City Clerk Date
Recruitment Proposal for the City of San Juan Capistrano
Page 2
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Attachment A
City Manager — City of San Juan Capistrano, CA
Recruitment & Selection Process Work Plan
The recruitment engagement is organized into ten discreet steps. Each step of the process is
reviewed and confirmed with the City Council at the beginning of the engagement.
Step 1: Prepare Position & Ideal Candidate Requirements — It is critical that we fully understand
the city's operating environment, the full scope of responsibilities for the manager, important
challenges that are on the horizon, and key personal and professional attributes that will be
needed for success. In this regard, we will:
• conduct individual interviews with council members
• confirm and finalize all aspects of the recruitment with the entire City Council
• interview key senior managers, if appropriate, to gain a full and complete understanding of
the organizational framework, the city budget, emerging projects and needs, and current
business practices.
Thereafter, we will keep the City Council informed about recruitment status every two weeks.
Personal visits will be scheduled as needed.
Step 2 — Initiate Advertising: Professionally designed advertisements will be placed in
appropriate professional journals and association newsletters, and also with a variety of internet
based recruitment advertising sources. A professionally designed position offering statement
describing the city and the career opportunity will also be prepared and distributed to prospective
candidates.
Step 3 — Conduct a Personal Search: Our recruitment process does not rely solely on advertising.
We will personally contact as many potential referral sources and prospective applicants as
needed to obtain a strong applicant pool.
Step 4 — Manage the Application Process: We will receive process and evaluate all applications
and resumes; respond to all inquiries about the position and screen applicants to establish a list of
the strongest potential candidates.
Step 5 — Identify the Strongest Candidates: This is accomplished through a three-step process
that includes:
Recruitment Proposal for the City of San Juan Capistrano Page 1
• careful screening of all applications and resumes, taking into consideration the specific
position and candidate attributes that have been established with the city.
• personal interviews with the strongest candidates in order to identify those candidates that are
most likely to be an "outstanding fit" with the City Council, the community and the
organization.
• preliminary background checks to more fully examine the applicant's suitability for the
position.
Step 6 — Brief City Council on the Candidate Pool and Present Recommended Finalists: Once
preliminary screening and reference checks are completed, we will meet with the City Council to
review the backgrounds of all candidates, and to recommend finalists.
Step 7 — Arrange & Facilitate City — Candidate Interviews: We will arrange a date(s) for the
City Council to interview candidates for the position; coordinate the logistics of the interview
and selection process, and facilitate on-site interviews if desired by the client. We will also
recommend and obtain commitments from outside professional interview panel participants if
desired by the City Council.
Step 8 — Conduct Final Professional Background Checks: Once a tentative selection decision has
been made, we will conduct additional background and reference checks.
Step 9 — Assist the City With The Employment Offering: Once interviews are completed, we will
assist in coordinating any follow-up interviews that might be necessary, and will notify the
finalists of interview results. We also assist with the details of making and finalizing the
employment offering, if desired by the City Council.
Step 10 — Notify All Applicants of Recruitment Process Results: All applicants will receive
written notice of the recruitment and selection process results within ten days following an
appointment. Verbal confirmation will be made with finalist candidates by telephone as soon as
a selection decision has been made and accepted.
Recruitment Proposal for the City of San Juan Capistrano Page 2