1. Department of Administrative Services Rate Development January 2014

2. Sarah Jo Chaplen Deputy Administrator Department 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 2

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 3

4. Customer Utility Board Website  www.Oregon.gov/das/cub/ www.Oregon.gov/das/cub/  Information about the CUB  Members  Meeting dates, detailed minutes and documents of all meetings  Board Charter  News & Alerts  Rate-Setting Information  Service Level Agreements 4

5. Donna Haole-Valenzuela Administrator DAS Business Services  Rate Development Overview  Rate Setting Statistics  Guiding Principles of Rate Setting  Factors of Rate Development  Hourly Rate Calculation  Price List 5

6. Rate Setting Statistics All 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 6

7. Guiding Principles of Rate Setting  Established by all Customer Utility Boards  The most controversial and discussed?  Subsidies should be avoided if possible  Handout 7

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 8

9. Hourly Rate Calculation Calculated hourly rate based on 3,291 hours worked for the biennium 9

10. Price List  Printed and posted March 2014  Biennium comparison by agency posted to CUB website 10

11. Darrin Kazlauskas Administrator Enterprise Human Resource Services 11

12. Jean Straight Chair, Customer Utility Board, DCBS 12

13. Enterprise Human Resource Services Rate Development & Methodologies DAS Business Services, EHRS Team, CUB Members January 2014 13

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. 14

15. Rate Methodologies & Discussion  HR Systems  Position & Personnel Data Base (PPDB)  Oregon eRecruit System  iLearn Oregon  Client Agency Rates  Stand Alone Rates 15

16. Position & Personnel Data Base PPDB 16

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). 17

18. Position & Personnel Data Base Custom 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) 18

19. Position & Personnel Data Base (PPDB) Comparison Activity15-17 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 19

20. Oregon eRecruit System 20

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 21

22. iLearn Oregon 22

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 23

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 Partitions  Active User  Customer  Non-shared content 24

25. iLearn Active 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 25

26. iLearn Customer  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 26

27. iLearn Non-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 27

28. iLearn Comparison iLearnActivity15-1713-15Variance Rate Model for 2015-2017Cost 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 Base Cost per Customer$3,008.00$3,345.00($337.00) 28

29. Client Agency 29

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 30

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 31

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 32

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 33

34. Policy Option Package 34  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 2015-2017Rate per FTECharges NumberAgency NameFTEper monthfor Biennium 10700Oregon Dept of Administrative Services784.68 $124 2,335,208 11400Long-Term Care Ombudsman14.56 $124 43,331 11500Employment Relations Board13.00 $124 38,688 11900Bd. of Tax Practitioners4.00 $124 11,904 12000Board of Accountancy8.00 $124 23,808 12100Governor's Office56.50 $124 168,144 12200Psychologists Examiners Bd.3.50 $124 10,416 12400Oregon Board of Licensed Social Workers6.00 $124 17,856 13100Advocacy Commission2.00 $124 5,952 52400Oregon Education Investment Board15.00 $124 44,640 52500Higher Education Coordinating Commission20.65 $124 61,454 54300Oregon State Library19.63 $124 58,419 57500Student Assistance Commission25.67 $124 76,394 58600Community College and Workforce Development58.70 $124 174,691 63200Dept. of Geology & Mineral Industries49.20 $124 146,419 81100Chiropractor Examiners Board4.88 $124 14,523 833417Health Related Licensing Boards13.71 $124 40,801 833417Mortuary & Cemetery Board5.71 $124 17,130 833418Board of Naturopathic Medicine0.00 $124 - 833420Occupational Therapy Licensing Board0.00 $124 - 833426Board of Medical Imaging3.00 $124 9,216 833428Board of Examiners Speech Language Pathology & Audiology0.00 $124 - 833429Veterinary Medical Examining Board0.00 $124 - 91900Real Estate Agency30.00 $124 89,280 35

36. Historical Biennium Rate ChargedRate Calculated 2007-2009 $ 36 $ 127 2009-2011 $ 34 $ 138 2011-2013 $ 19 $ 150 2013-2015 $ 36 $ 99 2015-2017 $ 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. 36

37. Questions 37