Title
Adoption of Resolution Amending Fiscal Year 2026-27 Human Resources Operating Budget to Appropriate $250,000 for Additional Consulting Services and Recommendation to Authorize the City Manager to Execute a Service Provider Agreement with Nicholson Strategic Services LLC for Executive Human Resources Services through June 30, 2027, with Total Compensation Not-To-Exceed $250,000. (Human Resources Department 10025060)
Body
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
Due to a planned absence, the City of Alameda (City) Human Resources Department has an upcoming need for interim executive services to manage and facilitate high-profile projects, including labor negotiations, executive recruitment, professional development support, and participation in the City’s budget process.
After interviewing three firms and evaluating availability, expertise, and fit for the City, staff determined Nicholson Strategic Services LLC (Nicholson) to be the best qualified to meet the City's needs.
Staff recommends that City Council authorize the City Manager to execute an agreement with Nicholson at an hourly rate of $250, for a total not-to-exceed amount of $250,000, and adopt a resolution amending the Fiscal Year (FY) 2026-27 Human Resources operating budget to appropriate one-time funds for these additional consulting services.
BACKGROUND
The Human Resources Department is responsible for a variety of personnel functions, actions, and matters. This includes labor negotiations, recruitment, leave administration, professional and workforce development, and classification and compensation. The Human Resources Director oversees all departmental activities, serves as the City's Chief Negotiator, and facilitates executive functions and initiatives, including management recruitment and the City’s budget process.
The City’s current Human Resources Director will be on planned leave from October 2026 to May 2027, necessitating the City's engagement of external resources to provide executive human resources services and support.
DISCUSSION
Within the next few months, the Human Resources department will be:
- Opening seven (7) contracts for labor negotiations
- Collaborating with Finance and the City Manager’s Office, as well as peer departments, on the City’s mid-year and biannual budget processes
- Managing executive recruitment
- Providing support to the City Manager’s Office on multiple workforce development initiatives
In anticipation of the City’s Human Resources Director's planned absence, staff began evaluating options to provide temporary executive-level leadership and capacity for several significant Human Resources projects and initiatives. The Human Resources Department has historically addressed similar temporary staffing needs by hiring experienced former public-sector professionals as part-time City employees. Unable to find a human resources professional available for part-time employment, the City expanded its search to include professional consulting firms that provide interim executive-level human resources services. A formal Request for Proposal or Qualifications was not conducted; however, the City Manager and Staff evaluated potential providers based on their qualifications, relevant public-sector experience, ability to perform the required services, and availability to meet the City's timeframe.
The evaluation included a review of candidates' education, qualifications, and professional experience; pre-screening interviews; and interviews with the City Manager. Based on this process, staff determined that Angela Nicholson of Nicholson was the most qualified and best suited to serve as the interim Human Resources Director.
Angela brings over 25 years of government and human resources experience, having recently served as the interim Human Resources Director for the City of Petaluma and Mariposa County. She also holds a Juris Doctor from UC College of the Law San Francisco (formerly UC Hastings) and maintains an active attorney license. She has negotiated over 30 labor agreements, led Enterprise Resource Planning (ERP) implementation, served as Director of Emergency Operations during COVID, Fire, and PSPS activations at Mariposa County, and led the implementation of high-performing organizations (HPO) concepts and tools with several executive leadership teams.
Staff recommends that City Council authorize the City Manager to execute an agreement with Nicholson at an hourly rate of $250, for a total not-to-exceed amount of $250,000, and adopt a resolution amending the (FY 2026-27 Human Resources operating budget to appropriate one-time funds for these additional consulting services.
ALTERNATIVES
• Approve the proposed agreement with an adjusted scope and/or not-to-exceed amount. The proposed agreement is based on an estimated 30 hours of service per week for the duration of the Human Resources Director’s absence, which staff believes is necessary to provide the anticipated level of support.
• Direct staff to conduct a formal Request for Proposals or Qualifications before returning to the City Council with a recommended firm. This alternative would delay the start of consulting services and could create a gap in the additional Human Resources capacity required during the Human Resources Director’s absence.
• Do not approve the proposed agreement and provide staff with an alternative direction.
FINANCIAL IMPACT
The proposed agreement has a total not-to-exceed amount of $250,000. Nicholson will bill the City only for actual hours worked at the contracted hourly rate of $250.
The Fiscal Year 2026-27 Human Resources operating budget does not currently include funding for these services. Accordingly, a budget amendment is required. The proposed resolution appropriates $250,000 from the available General Fund balance to the Human Resources operating budget to fund the agreement.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378, and therefore, no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a Resolution amending FY 2026-27 Human Resources Operating Budget to appropriate $250,000 for additional consulting services and recommendation to authorize the City Manager to execute a service provider agreement with Nicholson Strategic Services LLC for Executive Human Resources Services through June 30, 2027, with total compensation not to exceed $250,000.
Respectfully submitted,
Noelle White, Human Resources Director
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. Agreement