COUNCIL APPOINTED OFFICERS
Staff Report
Report Type: ACTION ITEMS
From: Human Resources
Meeting Date: November 26, 2024
Report #:2411-3814
TITLE
Discussion and debrief of the FY2023-2024 Council Appointed Officer (CAO) Performance Evaluation Process and Recommendation from the CAO Committee on Next Steps for CAO Performance Evaluation Services Contract - CEQA status – not a project
RECOMMENDATION
This item is for the CAO Committee to discuss and debrief of the FY2023-2024 CAO performance evaluation process, and to review and recommend to the City Council next steps for the CAO performance evaluation services contract that ends June 20, 2025.
BACKGROUND/ANALYSIS
The City Council has completed the annual performance evaluation process to ensure that the Council Appointed Officers are meeting City Council objectives and priorities. The purpose of this agenda item is to debrief on the process so that any desired adjustments for next year can be discussed and if needed, incorporated into next year’s CAO performance evaluation process.
A summary of the FY 23-24 CAO evaluation performance process was prepared by MRG consultant, Daniel Rich who facilitated this year’s process. The summary memo and timeline are attached (Attachment A). Any recommended adjustment from the CAO Committee will then be brought to City Council for review and approval.
In addition, this report outlines the options available to the CAO Committee for their review in determining the future direction for this contract and the scope of services. On June 25, 2018, the Council approved a one-year contract (#C18172268) with Municipal Resources Group (MRG) for CAO performance evaluation services for a one-year term through June 20, 2019.1 This contract provided the option to extend the term for up to two additional years through 2022. Council then subsequently approved a three-year contract extension (#C22185281) with this current contract ending June 20, 2025 with a total annual cost of $51,200. 1 City Council, ID#9148, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2018/id-9148.pdf
The CAO Committee will review and discuss next steps regarding the current contract ending June 20, 2025 and provide City Council a recommendation. Next steps for consideration include renewing the contract, renegotiating terms, and/or conduct a RFP to explore alternative service providers. These are not mutually exclusive options.
• Renew the Contract: Continue the current contract and service arrangement with MRG.
Some considerations may include: the effectiveness of the current contract terms; scope of services; performance, price, and length of time for the renewed contract. • Renegotiate the Contract: Modify the terms and conditions of the existing contract.
Some considerations may include: assessing the feasibility of renegotiation and timeframe for this step; price; and, addressing any concerns or issues with current contract.
• Explore Alternative Service Providers: Issue a Request for Proposals (RFP) to solicit bids from industry providers. Some considerations may include: the time and resources required for the procurement process, potential disruptions in service, access to new service options, and potential increase in cost. This step will require several CAO Committee meetings to complete the procurement process.
FISCAL/RESOURCE IMPACT
Funding for the annual CAO performance evaluation facilitation services is budgeted in the Office of the City Clerk operating budget. Depending on the Committee’s recommendation, additional resources may be needed to support the process.
ENVIRONMENTAL REVIEW
Committee action on this item is not a project as defined by CEQA because CAO Committee direction on the CAO performance evaluation process and CAO performance evaluation facilitation services contract is a continuing administrative or maintenance activity. CEQA Guidelines section 15378(b)(2).
ATTACHMENTS
Attachment A: MRG memo - Summary of the FY23-24 CAO Performance Evaluation Process Attachment B: Contract #C22185281 - Agreement for Professional Services between the City of Palo Alto and Municipal Resource Group
APPROVED BY
Sandra Blanch, Human Resources Director