Department of Administrative Services

Rate Development

January 2014

2Sarah Jo ChaplenDeputy AdministratorDepartment of Administrative Services

Greetings

Introduction of Customer Utility Board Members

Chair: Jean Straight, Department of Consumer and Business Services

Vice Chair: Keri Nelson, Department of Environmental Quality

CUB Members: Bob Brew, Terri Chandler, Janet Lee, Cheryl Miller, Pam Nass, Mitch Swecker, Dacia Johnson, Leann Wilcox, David Zerbe

Introduction of DAS Staff

Darrin Kazlauskas, Administrator, Enterprise Human Resource Services

Donna Haole-Valenzuela, Administrator, DAS Business Services

Chris Wilcox, EHRS Rate Analyst, DAS Business Services

3 Entrepreneurial Management

Entrepreneurial Management Finance Team (EMFT) Formed in June of 2011

Final report approved February 2012

Pre-cursor to the formation of the Customer Utility Boards

DAS transitioned all rates, accounting and ORBITs structure in July 2012 to compliment the EMFT model

Transparent Rate Setting embarked July 2013

4 Customer Utility Board Website

www.Oregon.gov/das/cub/ Information about the CUB

MembersMeeting dates, detailed minutes and documents

of all meetingsBoard Charter

News & Alerts Rate-Setting Information Service Level Agreements

5Donna Haole-ValenzuelaAdministratorDAS Business Services

Rate Development Overview Rate Setting Statistics

Guiding Principles of Rate Setting

Factors of Rate Development

Hourly Rate Calculation

Price List

6 Rate Setting StatisticsAll Customer Utility Boards

55 meetings 76.5 CUB meeting hours 270 hours preparing minutes and documentation of each

meeting 45 hours to post all electronic documentation to each CUB website 45 hours to prepare & maintain paper copies of each rate meeting

Average staff attending rate setting meetings, per meeting, 10

7 Guiding Principles of Rate Setting

Established by all Customer Utility Boards The most controversial and discussed?

Subsidies should be avoided if possible

Handout

8 Factors of Rate Development

Personal Services with one step increase and COLA; applied 13% inflation factor provided by Chief Financial

Office

Services and Supplies applied 3% inflation factor provided by Chief Financial

Office

Policy Option Package Four Human Resource Consultant 1 position(s) and related

services and supplies

60-day working capital and overhead transfers

9 Hourly Rate Calculation

Calculated hourly rate based on 3,291 hours worked for the biennium

10 Price List

Printed and posted March 2014 Biennium comparison by agency posted to CUB

website

11Darrin KazlauskasAdministratorEnterprise Human Resource Services

12Jean StraightChair, Customer Utility Board, DCBS

13

Enterprise Human Resource ServicesRate Development & Methodologies

DAS Business Services, EHRS Team, CUB Members

January 2014

14 Mission of EHRS

EHRS provides human resource management services to many of the smaller agencies, boards and commissions that do not have the resources to perform these functions. In providing these services, EHRS provides an alternative to the smaller agencies which otherwise would have to establish their own human resource management office at a significantly higher cost.

15 Rate Methodologies & Discussion

HR SystemsPosition & Personnel Data Base (PPDB)Oregon eRecruit SystemiLearn Oregon

Client Agency RatesStand Alone Rates

16

Position & Personnel Data Base PPDB

17 Position & Personnel Data Base (PPDB) Usage model rate methodology for PPDB:

PPDB provides system development, revision, operational and security services for the statewide-computerized human resource (personnel-related) systems, their databases and tables. This group also provides custom reporting as requested by its stakeholders. The rate incorporates charges based on historical figures from 2011-2013.

The PPDB rate is based on actual PPDB usage from the 2011-2013 biennium plus any manual PA’s keypunched for that agency.

Calculated rate: (Total PPDB usage by agency/total usage of all users x PPDB program cost for 2015-2017) + (Manual PA’s entered into PPDB by EHRS Staff).

18 Position & Personnel Data BaseCustom Reports

Custom reports rate methodology for PPDB: PPDB offers custom reporting for its stakeholders.

The rate for custom reporting is based on net biennium hours available for work and 83% or 20 months of 1 FTE.

Calculated rate: (Net biennium hours available for work x 83% of personal services = hourly rate)

19 Position & Personnel Data Base (PPDB)Comparison

Activity 15-17 Rates:13-15 Rates: Diff

Large User Base Charge (monthly average PAs 26 or higher) $11,724 $16,768 ($5,044)

Small User Base Charge (monthly average PAs 25 or less) $2,931 $4,192 ($1,261)

Cost per PA processed $1.06 $1.32 ($0.26)Cost per PA Keypunched $24.00 $44.00 ($20)

One-off special report hourly rate $47.00 $80.00 ($33)*PA = Personnel Actions

20

Oregon eRecruit System

21 eRecruit

eRecruit Rate methodology:

eRecruit is an online system that offers customer agencies and state HR professionals the ability to create and approve job postings or requisitions; to perform electronic and manual candidate screenings; and to access and review candidate applications. The rate was developed based upon number of actual job postings in the 2011-2013 biennium.

Calculated rate = (Job Postings per Agency / Total Job postings) x Program Cost

Partitions

Job Postings – This is the number of postings recorded in the eRecruit system within the 2011-2013 biennium, by agency

Total Job Postings - This is the summation of all job postings

Program Costs – Personal Services, Services & Supplies, Overhead Tranfers

22

iLearn Oregon

23 iLearn Usage model rate methodology:

iLearn is a database training system that can be used by employees and non-employees for training purposes. The rate incorporates charges based on historical figures from 2011-2013.

The rate is based on active users, customers in the system and is any content that is not being shared between the enterprise

24 iLearn Usage model rate methodology:

Calculated rate: ((53.42% x portion of active user) + (41.58% x portion of customer) + (5% x portion of non shared content)) x Program Cost

Three PartitionsActive UserCustomerNon-shared content

25 iLearnActive User

The 53.42% is based on a regression model for optimization. This was accepted in the 2011-2013 biennium. This has been accepted as a palatable base rate for 2015-2017 as it has been deemed fair to small agencies and respectable to the larger agencies as well

Active user defines the number of users that have logged into the system within the 24 months

26 iLearnCustomer

41.58% is based on a regression model for optimization. This was accepted in the 2011-2013 biennium. This has been accepted as a palatable base rate for 2015-2017 as it has been deemed fair to small agencies and respectable to the larger agencies as well

Customer is defined as a yes/no test. If the agency is not a customer of iLearn, then they will not be charged in this model. This is established as a uniform charge that is shared equally between all agencies due to the potential of being able to use the system

27 iLearnNon-Shared Content

5% was chosen as a modest way to motivate agencies to share content.

Non-Shared Content has the intent of encouraging agencies to share courses within the system in order to add value to iLearn

28 iLearnComparison

iLearn Activity 15-17 13-15 Variance

Rate Model for 2015-2017 Cost per Active User $15.80 $19.50 ($3.70)

Cost per Exclusive Course Taken $6.61 $10.18 ($3.57)

Cost per Non-Exclusive Course Taken $0.00 $0.00 $0.00

Base Cost per Customer $3,008.00 $3,345.0

0 ($337.00)

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Client Agency

30 Client Agency Services Include

Recruitment and Position Management Services Training and Development Services Investigations Worker’s Compensation & Safety

Does not include Systems Charges, PPDB, eRecruit, iLearn

31 Recruitment & Position Management Services

This program provides the following services: Full-cycle recruitment including development of recruitment and advertising strategies; creation of recruitment announcements and evaluation criteria; applicant evaluation; interview process support, applicant testing and, reference checking support; recruitment records management; position classification allocation and reallocation.

These services are generally included as a service package as part of the Client Agency Human Resource Management Services.

If any agency chooses to utilize only Recruitment and Position Management Services they will be able to purchase these services on an hourly rate basis.

Stand Alone Rate: $85 per hour

32 Training and Development Services

This program provides the following services: Administration of agency domain in the iLearn system to manage and report employee training and development records; training needs assessments; creation and delivery of customized training; post-training evaluation.

These services are generally included as a service package as part of the Client Agency Human Resource Management Services.

If any agency chooses to utilize only Training and Development Services they will be able to purchase these services on an hourly rate basis.

Stand Alone Rate: $171 per hour

33 Investigations This program provides full service for investigations directly related to

employee boards or commissions

If any agency chooses to utilize only Training and Development Services they will be able to purchase these services on an hourly rate basis.

Stand Alone Rate: $106 per hour

34 Policy Option Package

Staffing for Client Agency Workload Human Resource Consultant 1 – 4 POS/FTE Related Services and Supplies Total cost of package $810,209

35 Rate per FTE per Month - $124

Agency    2015-2017 Rate per FTE ChargesNumber Agency Name FTE per month for Biennium

10700Oregon Dept of Administrative Services 784.68 $124 2,335,208 11400Long-Term Care Ombudsman 14.56 $124 43,331 11500Employment Relations Board 13.00 $124 38,688 11900Bd. of Tax Practitioners 4.00 $124 11,904 12000Board of Accountancy 8.00 $124 23,808 12100Governor's Office 56.50 $124 168,144 12200Psychologists Examiners Bd. 3.50 $124 10,416 12400Oregon Board of Licensed Social Workers 6.00 $124 17,856 13100Advocacy Commission 2.00 $124 5,952 52400Oregon Education Investment Board 15.00 $124 44,640 52500Higher Education Coordinating Commission 20.65 $124 61,454 54300Oregon State Library 19.63 $124 58,419 57500Student Assistance Commission 25.67 $124 76,394 58600Community College and Workforce Development 58.70 $124 174,691 63200Dept. of Geology & Mineral Industries 49.20 $124 146,419 81100Chiropractor Examiners Board 4.88 $124 14,523

833417Health Related Licensing Boards 13.71 $124 40,801 833417Mortuary & Cemetery Board 5.71 $124 17,130 833418Board of Naturopathic Medicine 0.00 $124 - 833420Occupational Therapy Licensing Board 0.00 $124 - 833426Board of Medical Imaging 3.00 $124 9,216 833428Board of Examiners Speech Language Pathology & Audiology 0.00 $124 - 833429Veterinary Medical Examining Board 0.00 $124 - 91900Real Estate Agency 30.00 $124 89,280

36 Historical

Biennium Rate Charged Rate Calculated

2007-2009 $ 36 $ 127

2009-2011 $ 34 $ 138

2011-2013 $ 19 $ 150

2013-2015 $ 36 $ 99

2015-2017 $ 124 $ 124

If the amount billed to the client agency is less than the rate calculated HRSD subsidized the difference.*as noted from 2007-2009 rate development documentation through 2013-2015.

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Questions