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Hollister City Manager Ana Cortez’s use of her own private firm to recruit a Human Resources and IT director has drawn criticism from at least one community member and raised questions about whether it represents a conflict of interest.
Cortez has defended her use of her firm Munitalent for city recruiting by pointing out that she is not charging the city and is providing the services pro bono.
A government ethics expert said even though the practice is questionable because of the potential value to Cortez’s firm, even though the services were being provided at no charge, and because the process appears to involve less transparency than a more typical approach, it’s on the “the very low end” of ethical risks or conflict of interest.
Cortez used Munitalent to recruit for a human resources, risk, and technology director after she took over as city manager earlier this year.
“It’s pro bono,” Cortez said. “I’m not getting paid to recruit my own [employee].”
Cortez told BenitoLink that using her firm benefits the city because the service was provided for free and because the firm’s social media network is larger than the city’s. She also noted that she is the only member of the firm.
“I think it’s great the city manager can provide consulting for free after we’ve spent millions in the past,” she said.
But at the April 20 Hollister City Council meeting, community member Andres Builes questioned Cortez’s use of her own firm for city business.
“I’m concerned as to why our positions within the city are made public through different channels than the hiring HR system that the city of Hollister has,” he said.
Though the position was being advertised by Munitalent and posted on the city’s website starting in March, it wasn’t until May 4 that the City Council approved the human resources, risk, and technology director position.
Asked about the issue, Cortez declined to answer what she called “personal” issues.
When the position was approved by the council, Cortez said the recruitment “went through all the processes according to governmental procedures, regardless of what the Facebook environment may say,” in an apparent response to criticism on social media.
Santa Clara University’s Markkula Center for Applied Ethics Director Davina Hurt said even though Cortez is not charging the city, the issue “shouldn’t be dismissed lightly.”
“It’s still a commodity,” Hurt said. “It still has value.”
Hurt added that while Cortez ultimately chooses who to hire, whether recruiting through the city’s channels or Munitalent, the latter has less oversight and accountability because she has control of both recruiting and hiring.
“There’s just no guardrails in this recruitment process because of her business involvement,” Hurt said. However, she added, “Of all the things I speak about and review, this is on the very low end of being concerned about ethical risks.”
Hurt said the issue is more about whether the city has a hiring policy that places ethical boundaries that can be applied no matter who is the top administrator.
“Guardrails and framework of governance are just so important so no one ever questions, ‘Did she profit? Did the brand profit? Did the firm profit? And who does the firm ultimately serve?’” she said. “Did it serve her, or did it ultimately serve the community?”
Asked to comment on the conflict of interest concerns as well as a complaint filed against Cortez by former city employees, councilmember Rolan Resendiz said it’s “not something I’m prepared to talk about.”
Mayor Roxanne Stephens and the other three council members did not respond to BenitoLink’s requests for comment.
The city’s personnel rules and regulations set a broad policy on recruiting, stating that vacancies “shall be publicized as determined by the Human Resources Department” for at least 10 days before the final application filing date without providing additional details on the recruiting process.
The city manager’s job description and municipal code say the top administrator has the duty to hire, discipline and dismiss personnel. The municipal code exempts the city attorney and city treasurer positions from being disciplined by the city manager.
When she got approval from the City Council to create the director position, Cortez said she basically had been acting as HR director because the department was “very thin” with the equivalent of less than three full-time employees.
She noted that the city had already interviewed a candidate but the panel, consisting of two city directors and a member of the business council, did not choose the candidate.
The position is still advertised on Munitalent and the city’s websites.
Since joining the city of Hollister in February, Cortez has reorganized several departments, resulting in the elimination of three positions. The three employees who were let go later filed a complaint against Cortez.
Cortez’s actions have received staunch support from the City Council and a group of contractors who have said the city has vastly improved the building permitting process, which was a source of widespread frustration before Cortez’s arrival.
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