The recent resignation of Kathryn Shen from her position as director of the city’s Human Resources Department was prompted by the department’s “changing needs” and reached by a mutual decision between Shen and City Manager James Keene, according to Keene.
Shen abruptly resigned from her title as “chief people officer” last month and was quickly replaced by Rumi Portillo, who currently serves as director of Human Resources for the City of Los Gatos. The City Council approved Portillo’s unanimously appointment this week. Portillo will officially start her new position on Jan. 19.
The change comes at a time when the city is wrestling with a gaping unfunded liabilities for employee pensions and health care. Palo Alto is also facing increasing challenges in recruiting workers for some of the more technical positions in the Public Works and Utilities departments.
Keene, who as city manager has the authority to fire and hire department heads, told the Weekly that Shen’s departure came after a “mutual decision” about shifting priorities within the department.
“In every organization, there are points where the fit between the team and the organization’s objective needs change,” Keene said. “We got to a point where I thought things we’ll need to do in the future were going to demand probably a little bit of a different mix of skill set and interests than Kathy has.”
Keene said Shen is particularly strong on issues such as training, employee development and health and wellness. These strengths notwithstanding, Keene said the city plans to make some systemwide changes with its enterprise resource planning (ERP) software (which is used to track employee performance), an effort that requires a more technical focus, he said. Keene and Shen “mutually agreed that changing direction was good,” he said.
“Kathy is a real professional and she realizes that if I want to go in a different direction, she also wants to go in a different direction,” Keene added.
Shen’s “release and transition agreement” notes that she “intends to resign from City employment” and that she releases the city from any and all future claims or other legal actions relating to her employment with the city.
As part of the agreement, Shen will also receive a payment of $59,607, consistent with her contract’s provision that she receive severance pay equal to three months salary. Keene said such a payment is typically offered to ensure employees have “transition money” when they conclude their employment.
“We’ve been talking for a while about going into a new direction,” Keene said. “She was out looking for what she will be doing next. She served us really well and we want to be sure she has some transition funding while we move on.”
Shen was hired by Keene in 2012.
Portillo, who had also served as employment manager for the cities of San Jose and Sunnyvale, made her public debut in Palo Alto this week. Moments after the council approved her contract, she said she is excited to join Palo Alto as the new “chief people officer,” as the director’s position is titled.
“I know we have challenges ahead on recruitment and retention,” Portillo said. “I bring 25 years of experience to help address that.”
Classic Orwellian circumlocution. Let’s say it more simply: we want a new hatchet person to go after the deadwood, and Kathy isn’t sufficiently vicious.
The new director’s “glam” photo seems a bit inappropriate for a professional woman. Can’t help wondering how it may reflect the Manager’s taste.
http://www.paloaltoonline.com/news/2015/12/07/palo-alto-hires-new-human-resources-director?utm_campaign=magnet&utm_source=article_page&utm_medium=related_articles
If everything about Shen’s departure was so mutual, amicable and cheerful, why was it necessary for her to sign a contract promising not to sue the city? (The Weekly should give a hat tip to the Post for finding this story in the first place.)
Yes, why not acknowledge the Daily Post’s important contribution here? The Post reported in yesterday’s lead story (based on its own California Public Records Act request) that documents released to it Thursday prove that Shen “didn’t leave voluntarily” (contradicting her statement to the same paper that she’d “resigned to pursue other opportunities”) and that under Shen’s employment terms, her departure amounted to being “paid to resign.”
There’s more going on here than the stated reasons for this departure. Just because the city wants to employ more technology is usually not a reason for the HR Director to be let go. Also, the “no-sue” provision indicates something is up behind the scenes.
Keen hired Shen a little more than 2 years ago, and now the head of HR is hindering Keens’ grand plan(s), what ever they may be? I don’t buy this, it does not pass the smell test, like much of what Keen does, and this cost the city a $60k severance gift. Thanks.
There has also been a lot of turnover in the City Auditor’s post.
Harriet Richardson –City Auditor Apr 2014 – Present
Houman Boussina –Acting City Auditor Sep 2013 –Apr 2014
James Pelletier –City Auditor Jan 2012 –Sep 2013
Michael Edmonds –Acting City Auditor Oct 2010 –Oct 2011
Lynda Flores Brouchoud –City Auditor Sep 2008 –Apr 2011
A city auditor is basically a CPA who has rules they must follow. A CPA must not and cannot bend or break those rules. The City Auditor(s) could bail out because of City malfeasance in office and they cannot or will not “ work with the system “.
This creates a real problem for the HR department. To be blunt, a CPA cannot lie and the HR department usually does.
( My ex is a CPA and I have had a history of the HR people lying to me )
Auditors doesn’t have to lie, they can just bury the information so deeply that the public won’t go through all the trouble it takes to find it.
That’s what the Auditor did to the last National Citizens Survey
http://bit.ly/1hGAAo9
The actual survey results are deeply buried in tables of comparisons, tables of previous years, and more, until you give up in despair.
You can find the actual survey results showing what citizens think of Palo Alto administration if you look hard enough. Use the Table of Contents.
Regarding:
“Palo Alto is also facing increasing challenges in recruiting workers for some of the more technical positions in the Public Works and Utilities departments.”
I don’t understand why the city’s BMR Housing program isn’t changed so it is reserved for city employees only, to aid with recruitment and retention.
WHY are comments being removed here for just touching on Daily Post coverage of the case? This editing appears gratuitous and contrary to Palo Alto Online’s own Terms of Use: http://www.paloaltoonline.com/about/terms_of_use/
I mentioned that the Post had opened this whole subject with its California Public Records Act request, which I’d read about in a print story cited. I certainly have no connection with the Post. I quoted 11 words (well under the 50-word copyright use protocol) from the Post, on apparent contradiction between Shen’s public claims and contract terms.
That and other harmless references to the Post story in other comments disappeared without explanation, while purely speculative comments remain here. What kind of journalism is that? A publication like the Weekly should be happy to credit work by others in the field (just as it cites bylines in news-service stories). Again: there was no issue in the deleted comments either of fact (the Post story is public record), copyright, respect, or propriety.