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APPROVE A MOTION TO ENTER AN AGREEMENT FOR ADMINISTRATIVE SERVICES DEPARTMENT RECRUITMENT THROUGH PECKHAM & MCKENNEY
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize a contract with Peckham & McKenney for executive recruitment support services to the Administrative Services Department for a total not-to-exceed amount of $137,500; and
2. Authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The Administrative Services Department (ASD) currently has six high level executive vacancies during a time when executive needs for essential City operations are at an unprecedented high. To address the City’s needs, ASD requires staff augmentation acquisition support services.
The ASD, in coordination with the Procurement Division, conducted a formal Request for Proposal (RFP) on May 5, 2025, for a nationwide executive level recruitment service for the six vacancies currently in ASD. All received proposals, deemed responsive and responsible, have been evaluated in a competitive review process by City staff.
DISCUSSION
Background
Peckham & McKenney was founded in 2004 and has been providing executive search services to public agencies for more than two decades. This California-based company has extensive experience in providing staff augmentation services at the senior and executive management level for California cities.
The Chief Financial Officer position was vacated in May 2024, creating an immediate need for staff augmentation of this critical position in a crucial period for the ASD. In addition, five other positions have been vacated throughout the past two years without successful hiring. Thus, the City of Stockton wishes to contract with Peckham & McKenney for these executive level searches.
Competition for qualified applicants in key financial positions is very high, and the recruitment is taking longer than anticipated. Additionally, the City’s finances are complex and have a budget of $954 million in Fiscal Year (FY) 2024, which in turn raises the expectations of new key financially centered employees.
Present Situation
Due to the extended vacancies, there continues to be a need for staff augmentation services. Six total executive level positions have been vacant over the last two years, in all including: (1) Chief Financial Officer, (2) Assistant Chief Financial Officers, (1) Budget Officer, (1) Assistant Budget Officer, and (1) Procurement Manager.
FINANCIAL SUMMARY
The total amount for the contract with Peckham & McKenney will not exceed $137,500.
Peckham & McKenney’s all-inclusive fixed rate is as follows (See Attachment A):
• $28,000 - (1) Chief Financial Officer
• $33,000 - (2) Assistant Chief Financial Officers
• $26,000 - (1) Budget Officer
• $26,000 - (1) Assistant Budget Officer
• $24,500 - (1) Procurement Manager
The Proponent has also offered three days of virtual meetings to develop the candidate profiles, present the recommended candidates, and facilitate panel interviews.
The City intends to award an initial six-month contract with the option to renew it for up to six additional months. However, the total term of the agreement shall not exceed one year.
In addition, Peckham & McKenney will also provide two guarantees included in the contract amendment.
1. If initial recruitment yields no qualified candidates as a result of the search efforts, and it is mutually agreed upon that the result is due to the search effort and/or process, a second search will be conducted for a reduced fee of $19,000 for each position.
2. If qualified applicants are not selected OR the selected candidate is separated from employment within one year after accepting the offer, a second search will be conducted for the discounted fixed fee of $24,000 for the CFO & $20,000 for each of the five (5) positions.
Attachment A - Standard Agreement with Peckham and McKenney