MINUTES OF A WORK SESSION HELD BY THE MAYOR AND COUNCIL OF

THE TOWN OF CHAPEL HILL, WEDNESDAY, DECEMBER 13, 1989,

      7:30 A.M., OMNI EUROPA HOTEL, ZURICH ROOM

 

Mayor Howes called the meeting to order.

 

Council Members in attendance were:

 

          Julie Andresen       James C. Wallace

          Joyce Brown        Arthur Werner

          Joe Herzenberg         Roosevelt Wilkerson, Jr.

          Nancy Preston

 

Council Member Alan Rimer was unable to attend.

 

Also in attendance were: William Hansell, Executive Director, International City Management Association, and Town Clerk Peter Richardson.

 

COUNCIL MEMBER PRESTON MOVED, SECONDED BY COUNCIL MEMBER HERZENBERG, TO RECONVENE THE COUNCIL'S MEETING. THE MOTION WAS ADOPTED UNANIMOUSLY.

 

Mayor Howes noted that the departing Town Manager, David Taylor, had previously served as President of the International City Management Association. Mayor Howes indicated that this morning' session of the Council had resulted from a recent conversation with Mr. Hansell. Mayor Howes added that the City of Phoenix, Arizona had also recently consulted with the International City Management Association in efforts to replace Marvin Andrews, the recently retired Manager.

 

Mayor Howes said that the Council had last embarked on a Town Manager selection process in 1981. Mayor Howes observed that the Council had examined announcements for the last three Town Manager recruitment processes.

 

Additionally, Mayor Howes noted that the Council had not formally set a detailed strategy for the current recruitment process.

 

Mr. Hansell said he appreciated the opportunity to visit with the Council this morning. Mr. Hansell indicated that the International City Management Association had recently discussed Manager recruitments processes with the City of Phoenix, Arizona and Prince William County, Virginia.

 

Mr. Hansell noted that statistics compiled by his association indicate that the average Council Member serving six or seven years selects one Manager during this period. Mr. Hansell indicated that although the Manager selection process can be a somewhat intimidating process, but should not be something that is suffered through. Mr. Hansell noted that the Town's departing Manager, David Taylor, is arguably one of the best City or Town Managers in the nation. Mr. Hansell stressed that the Manager selection process should strengthen both the community and the candidates.

 

Mr. Hansell gave a brief description of publications and the International City Management Association Newsletter.

Mr. Hansell indicated that the newsletter is distributed to approximately 10,000 subscribers and lists fifteen to twenty Manager vacancies on a bi‑weekly basis.

 

Mr. Hansell continued that it is important for the Council to maintain control of the selection process. Mr. Hansell cautioned that it is easy to lose control to other actors in the community, include candidate search firms. Mr. Hansell stated that the development of a position profile is the first and most difficult step in the selection process. Mr. Hansell indicated that the profile would identify the characteristics, traits and skills that the next Manager should possess.

 

Mr. Hansell noted that individual Managers are stronger in some areas than others, with some specializing in finance, planning, human resources or other vital areas. He added that leadership styles are similarly varied. Mr. Hansell also noted that some Councils feel that the Manager should serve as a Town spokesperson, while other Councils regard this role as more appropriate for the Mayor and Council.

 

Mr. Hansell added that a person who would be a good Manager in the community may not be actively seeking a new position.

 

Council Member Werner inquired how long the process should take. Mr. Hansell said the initial stages would take three months, with the entire process lasting between four and six months.

 

Mr. Hansell noted that organizational change, particularly the appointment of interim and permanent Managers, can cause anxiety. Mr. Hansell encouraged the Council to pay attention to the Town staff morale. Mr. Hansell stated that the Council's action of appointing an interim Manager was a very good first step.

 

Mr. Hansell said the Council should make it clear that internal and outside candidates will compete equally for the position. Mr. Hansell noted the importance of dealing with the process openly for internal candidates. Mr. Hansell cautioned that some candidates are very good researchers who will play to the individual Council Member's issue sensitivities.

 

Council Member Wilkerson inquired about the merits of initiating the process as a committee versus the Council as a whole.

 

Mayor Howes, citing a recent personnel recruitment process at the University, inquired how potential candidates could be approached ethically.

 

Council Member Werner sought guidance concerning an appropriate salary range for the new Manager. Council Member Werner said he perceived that the Town was paying the current Town Manager a lot for a community of this size.

 

Mr. Hansell stated that the entire Council needed to work out an agreeable salary range. He noted that the national average for a Manager is approximately $50,000, with several communities paying their Managers over $100,000. Mr. Hansell said it was not unusual for University towns to pay higher than average salaries to the Manager.

 

Council Member Andresen inquired whether it was a good idea to identify a salary range at the beginning of the process. Mr. Hansell said yes, encouraging the Council not to come in with a range that was too low, since this might filter out some good candidates. Mr. Hansell suggested that the Personnel Department might research Manager compensation in similar communities.

 

Mayor Howes noted that the Council specified Manager experience of seven to ten years during its last recruitment. Council Member Andresen asked Mr. Hansell to comment on the communities who had chosen to recruit Manager candidates with three to four years Manager's or CEO experience. Mr. Hansell said that maturity had developed in the City Management career field. Mr. Hansel stated that twenty‑five years ago, approximately one‑third of Managers were outside the City Management career path. Mr. Hansell said most communities will not tolerate the learning curve for private sector individuals. Mr. Hansell added that department heads have a hard time accepting people from outside the public sector.

 

Mr. Hansell stated that the Town is a magnificent place to live. Mr. Hansell observed that most Managers prefer to work in small to medium‑sized communities. Mr. Hansell also stated that the State of North Carolina has a very good reputation in the City Management profession due to supportive local governments and the good state of the economy. Mr. Hansell said that seven to ten years experience would be a good benchmark, although four to five years would not be bad either. Mayor Howes said a large number of applications were anticipated.

 

Mr. Hansell said he would have to postulate on whether a subcommittee or Council as a whole would be a better mechanism, since the number of applications was uncertain. Mr. Hansell stated that some Councils compose a small committee on resume review. After the review, a list of candidates meeting minimum criteria is forwarded to the Council. Mr. Hansell said a target number of semi‑finalists can also be established by the Council. Mr. Hansell noted that all Council Members can read through the list and identify which candidates to interview. Mr. Hansell said that without any type of outreach, the Council could expect to hear from fifty to two hundred applicants, due to the reputation of the community and its leaders.

 

Mr. Hansell suggested that the Council should talk about the matter of outreach as a group, identifying the types of applicants who will be encouraged to participate. Mr. Hansell stated that several persons affiliated with organizations such as the National League of Cities could assist in this effort. Mr. Hansell noted that some communities use booklets about their community to recruit applicants. Mr. Hansell said the Personnel Director could assist in the recruitment process.

 

Council Member Andresen inquired whether individual recruiting efforts should be centralized or handled by individual Council Members. Mr. Hansell said the best approach would be to place all names together. Council Member Andresen inquired whether the recruitment profile mirrored the advertisements for the position. Mr. Hansell said this was essentially correct. Council Member Andresen inquired whether the advertisement should contain the type of expertise being sought. Mr. Hansell responded that the two or three most critical skills should be highlighted.

Mr. Hansell stated that he would forward the ICMA "Manager Selection Process" book to Mayor Howes and the Council as soon as possible.

 

Council Member Andresen observed that during the last Manager recruitment process, the Assistant to the Mayor called not only listed references but other members of the candidate's respective communities. Mr. Hansell said this was absolutely essential.

 

Mr. Hansell said it was important for the Council to openly discuss the number of candidates to interview. Mr. Hansell said some Councils select as many as twenty to thirty semi‑finalists, while other Councils require candidates to write essays about the recruiting Town. Mr. Hansell said this approach tended to favor applicants living closer to the recruiting community.

 

Mr. Hansell stated that interviewing is hard work. He suggested that the Council may want to utilize a search firm to reduce the candidate field to five or seven candidates. Mr. Hansell noted that it may be necessary to interview ten or fifteen candidates if a search firm is not used. Mr. Hansell said that Don Hayman might be willing to assist the Council in structuring the interviewing process.

 

Council Member Andresen said that selling the Town to candidates was part of the selection/recruitment process. Mr. Hansell stated that this was a good point, since candidates can sometimes be uncertain about whether or not they want to accept a job.

 

Mr. Hansell stated that the Council should be analytical in terms of matching candidates to the Town. Mr. Hansell added that the Council needed to be minimally emotional. Mr. Hansell noted that doing reference checks when the field has been narrowed to one or two candidates can be extremely difficult. Mr. Hansell said if one candidate was selected, the Mayor and member of the Council could visit the candidate's community. He added that if two candidates were being compared, Town staff could handle this function more objectively. Mayor Howes noted that the Town had used videotapes to recruit its Public Safety Director and Assistant Town Manager.

 

Council Member Preston inquired how the job profile should be developed by the Council. Mr. Hansell suggested undertaking this task as the Council as a whole with a facilitator. Mr. Hansell also said that the consultant/facilitator could talk to Mr. Taylor, Town staff or members of the community about qualities desirable in the next Manager. Mr. Hansell stated that it was critical that the Council agree on the candidate profile.

 

Council Member Brown inquired whether managerial skills were the most important trait of any candidate. Mr. Hansell said managerial skills were more critical than technical skills in areas such as planning, finance or human resources.

 

Mayor Howes raised the subject of good meeting times to discuss the Town Manager selection process. He noted that the Council had found that breakfast meetings were not good for this type of discussion. Mayor Howes inquired whether the Council would like to start meeting at 6:30 instead of 7:30 to have discussions about the process prior to each Council meeting. Mr. Hansell observed that it was not a good idea to hold the meetings in relation to other Council meetings. Mr. Hansell said many Councils commit to doing a certain number of extra meetings over several weeks. Mr. Hansell also noted that moods of Councils can swing easily. Mr. Hansell said if the profile were developed, recruitment could begin in mid‑January, with a committee doing a screening in early to mid‑February and interviews in late February or early March. Under this scenario, Mr. Hansell said it would be possible to have a new Manager on board by May 1st.

 

Mayor Howes inquired whether there were any critical points or questions which the Council had not raised. Mr. Hansell said no.

 

Council Member Wallace inquired how many towns or cities with populations over 25,000 have Managers. Mr. Hansell said that there are approximately one thousand Managers, Administrators or Chief Administrative Officers in communities of various sizes around the nation, approximately one‑half of whom are in communities over 25,000.

 

Council Member Wallace inquired about turnover rates in this group. Mr. Hansell said the average tenure for Managers is 5.8 years, reflecting an annual turnover rate of 16‑20%.

 

Council Member Wallace observed that the Town's voting Population is altered at the rate of 10‑15% per year. Mr. Hansell stated that University towns have a reputation in the city management business as being more difficult to manage, although he added that university communities have relative stability from a management perspective.

 

Council Member Wallace stated that Mr. Taylor had been paid $34,000 plus a car at Tarboro. He noted that Mr. Taylor started his Chapel Hill position at $52,000, effectively losing money, since he had to buy a house in Town.

 

Mr. Hansell said Manager salaries in local government have begun to reflect the critical nature of the job. Mr. Hansell stated that it is important to keep salaries in the context of the private sector.

 

Mayor Howes thanked Mr. Hansell for his expertise in this morning's session with the Council.

 

Mr. Hansell said that the recruitment process does not need to be agony producing. Mayor Howes assured Mr. Hansell that the Council would have fun with the process. Council Member Andresen said it appeared to be e a good idea to secure the assistance of faculty members of the Institute of Government in moving ahead with the process. Mr. Hansell said the Council should feel no pressure in the selection process, since the Town has a good management team in place.

 

Mayor Howes suggested that the Council could discuss the selection process at their meeting on Tuesday, December 19th. Council Member Andresen said she would like to meet at another time on the Manager situation. Mayor Howes said a meeting time would be worked out. Mayor Howes suggested that Don Hayman could assist with the process.

 

Council Member Wallace said the Council was very fortunate that there was no pressure to name a successor during the current selection process.

 

COUNCIL MEMBER WALLACE MOVED, SECONDED BY COUNCIL MEMBER WILKERSON, TO ADJOURN THE COUNCIL'S MEETING. THE MOTION WAS ADOPTED UNANIMOUSLY (8‑0).