2003-741-Minutes for Meeting March 24,2003 Recorded 4/3/2003DESCHUTES COUNTY OFFICIAL RECORDS CJ 1443'141
NANCY BLANKENSHIP, COUNTY CLERK
COMMISSIONERS' JOURNAL 0410312403 08;09;33 AM
IIIIIIIII IIIIII
II�IIIII II I VIII III
2003-000741
DESCHUTES COUNTY CLERK
CERTIFICATE PAGE
This page must be included
if document is re-recorded.
Do Not remove from original document.
Deschutes County Board of Commissioners
1130 NW Harriman St., Bend, OR 97701-1947
(541) 388-6570 - Fax (541) 388-4752 - www.descl►utes.or
MINUTES OF ADMINISTRATIVE LIAISON
DESCHUTES COUNTY BOARD OF COMMISSIONERS
MONDAY, MARCH 24, 2003
Commissioners' Hearing Room - Administration Building
1130 NW Harriman St., Bend
Present were Commissioners Dennis R. Luke, Tom De Wolf and Michael M. Daly.
Also present were Mike Maier, County Administrator; Susan Ross and Anna
Johnson, Commissioners' Office; and media representative Chris Barker of the
Bulletin, who are in attendance for part of the meeting. No other citizens were
present.
The meeting began at 1: 30 p.m.
1. Employee Leasing Program Presentations.
Connie Worrell Druliner and a representative of Robert William James &
Associates made a presentation of the services they could provide regarding
County employees who are consideration retirement but who want to remain in
their jobs for a year or for several years. Ms. Druliner indicated that these
people could become employees of her company, and her company would
handle all the payroll details. Her firm would charge the County for these
services based upon the salary of the individual. She added that this is not an
unusual arrangement within the private sector.
Mike Maier stated that this would also enable the County to recruit for qualified
persons already working in the public sector who perhaps want to work for a
limited period of time. An example of this would be the current opening for
County legal counsel.
Attached is a copy of their presentation document (Exhibit A).
Minutes of Administrative Liaison Monday, March 24, 2003
Page 1 of 4 Pages
Later in the meeting Andy Parks and Larry Patterson (via conference phone) of
GEL Oregon (Government Employee Leasing Specialists), along with Melissa
Hochschild of Flash Marketing, made a similar presentation. They indicated
that their firm would charge the County a flat fee of $275 per month per
employee regardless of the salary of the individual, since the processing costs
are the same in any case.
The group then discussed the possible problems of this program, including the
opinion of PERS, and the potential negative public reaction.
Attached (as Exhibit B) is a copy of the information provided by GEL Oregon,
along with a spreadsheet that was provided by them later in the day.
This item will be addressed further at the next Administrative Liaison.
2. Update on Eastern Oregon Rural Alliance.
Commissioner DeWolf indicated that he has not received full information on
this group yet, so the item will be addressed at the next Administrative Liaison.
3. Update on County Projects.
Susan Ross said that some employees have expressed concerns regarding
security in the new building. Some ideas discussed were the installation of
security cameras or panic buttons, and the use a security guard. It was
suggested that wiring be put into place for possible future security cameras, if
proper locations for the wiring can be determined.
Commissioners Luke and DeWolf said that there is no money for this, so issues
will be addressed as needed. Commissioner Daly expressed his concern that
one lawsuit resulting from a perceived lack of security could cost the County
more than the installation of security features would have, and added that he
thinks someday a security guard station will be needed in the lobby of the
building, given the number of government employees who will be working in
one location.
Minutes of Administrative Liaison Monday, March 24, 2003
Page 2 of 4 Pages
4. Discussion regarding a Funding Request from Central Oregon Senior Living
Communities, Inc.
The group discussed the situation in regard to the assisted living center located
in La Pine, which is now facing bank foreclosure. At this time no grants are
available to help this facility, and it was pointed out that the community has not
stepped forward to help out in any way. It was felt that the organization owes
too much money (around $2 million) and time is too limited to be able to be of
any assistance to them.
5. Discussion of Medical Issues.
A brief conversation took place in regard to St. Charles' charges and the small
discount St. Charles has allowed the County. A letter from the Board to Jim
Lussier will be drafted to make him aware of the County's concerns in this
regard.
The group then talked about a request from Dan Peddycord of the Health
Department for $5,000 to help keep the Community Care Clinic in operation
until July. Sometime after July the Volunteers in Medicine organization will be
able to take over this work. The Commissioners indicated that this issue should
be addressed at the next regular Board meeting.
6. Update regarding Training Committee Recommendations.
The group then discussed employee training and the associated funding
questions. It was decided that a video should be professionally made to
complement the regular training that will be required of all new employees, and
that funding would come from dedicated training dollars. This will allow for
consistency in training, and the video can be edited with any future changes as
necessary.
Commissioners Luke and DeWolf approved of the idea; Commissioner Daly
expressed his concerns about the cost and voted against it.
Minutes of Administrative Liaison Monday, March 24, 2003
Page 3 of 4 Pages
Being no further items brought before the group, the meeting adjourned at
3:00 p.m.
DATED this 24th Day of March 2003, for the Deschutes County Board
of Commissioners.
ATTEST:
Recording Secretary
Tom DeWol
ommissioner
Mi&fclfael M. Daly, C mmissioner
Minutes of Administrative Liaison Monday, March 24, 2003
Page 4 of 4 Pages
�.o
Robert William James & Associates
Contract Staffing/ Professional Search
Deschutes County Proposal - March 2003
"A Circle of Excellence Award Winning Office"
901 N.W. Carlon, Suite 3; Bend, OR 97701
541/330-1585 FAX 541/330-5037 www.rwjbend.com
A division, of Fxpress Services, Inc.
County
RWJ Payrolling
Earnings (Employee A)
Standard Base Pay
$106,490.15
$106,490.15 ($51.20 /hour)
Overtime Pay
Other Pay
Longevity 100%
$1,968.00
n/a
Total Earnings
$108,458.15
$106,490.15
Deschutes County Paid Benefits
Health ins non -rep
$6,706.80
$6,706.80
Life ins nonrep-dependent
$12.60
n/a
Life ins nonrep-employee
$249.66:
n/a
Long term disability
$264.00
n/a
Medicare
$1,560.10
n/a
Pers employee portion
$6,507.49
n/a
Pers employer portion
$10,759.08
n/a
Pers reserve employer portion
$852.45
n/a
Social Security i
$5,263.80
included
Workers comp
$14.15
included
Workers comp assessment
$63.06
included
Total Benefits
$32,253.19
$6,706.80
RWJ Bill Rate:
n/a
$128,544.00
Total Burden
$140,71.1.34
$135,250.80
Difference
$5,460.54
"A Circle of Excellence Award Winning Office"
901 N.W. Carlon, Suite 3; Bend, OR 97701
541/330-1585 FAX 541/330-5037 www.rwjbend.com
A division, of Fxpress Services, Inc.
i
9TL Linc
govemment employee leasing specialists
Proposal to Deschutes County Commissioners
Government Employee Leasing Program
March 24, 2003
r
. 7
i
gF
ORE GONinc
gwemmenl emp!cYee:easing spetialils
March 24, 2003
Commissioner Tom DeWolf
Commissioner Dennis Luke
Commissioner Mike Daly
Re: Government Employee Leasing Program (GELP)
Dear Commissioners:
We appreciate your invitation and the opportunity to present our
proposal to you that proactively addresses County's concerns about
current and potential vacancies in key executive, management and
professional positions within the organization.
As you are aware, the recent issues surrounding PERS have many
!
public sector employees, including key experienced staff, considering
retirement before they otherwise would to reduce risks to their earned
retirement and to secure other opportunities. Although this issue
initiated the discussions between your staff and us, our experience and
d
research confirmed a much more complex set of circumstances. In the
dozens of conversations Larry and I have had around the state with
appointed and elected officials of local and state government, private
citizens and business leaders, all are very concerned with the PERS
n
issue and much more. They're concerned that they have little or no
control over the rising costs of PERS; they're concerned the most
experienced employees throughout their organizations are considering
retiring when these employees would prefer to be working to solve
issues, or teach children or help seniors and others with services;
they're concerned that special interests seem to be more interested in
the process than the decisions that result; they're concerned that the
I
state's fiscal situation continues to worsen and solutions seem to be
few. They have witnessed the events in Salem with the forced
departure of experienced legislators due to voter approved term limits.
y
They are concerned with what may happen in this state if there is an
--Z:
_f
exodus of good executive, management and professional staff from
the public sector.
The people we've spoken to understand that recruiting talented
leaders and professional staff has become increasingly more difficult.
They understand that filling these positions now generally takes more
than six months and often up to a year or more. They understand that
with the state's current fiscal issues, and in particular the impact the
fiscal issue is having on schools and higher education, that recruiting
talented leaders and professionals will become more challenging. They
understand that talented up-and-coming leaders and professionals are
pursuing other opportunities, often outside the state of Oregon. They
understand that government's credibility has been waning. And they
understand that the public's support for increased taxes is practically
non-existent.
All of this did not occur because of PERS. PERS may be the issue that
could break the camel's back, but it is but one of many issues that has
brought the state of Oregon to this point. Presently, as reported in an
on-going series in the Oregonian, the state of Oregon, from the top
levels of state government to the grass roots levels of individual
citizens, has made or failed to make decisions that have resulted in
many cases in requiring the state of Oregon and its various public
sector entities to provide services on an unsustainable basis. A
situation that cannot continue.
So as Larry and I talked through all of this with others we were
encouraged that people felt we might be able to help. We believed we
could, if only in a. modest way, partner to advance communities with
sustainable solutions. Our first step was to form Patterson Parks, LLC
last June. Patterson Parks is a public management consulting firm
based in Bend. Since August of last year we have provided assistance
to eight public entities and a private sector firm and have spoken
throughout the state on leadership and sustainability in local
government. Our second endeavor was to form GEL Oregon, Inc. GEL
Oregon, Inc. was incorporated in February 2003 to meet an existing
and increasing need within the state of Oregon for temporary,
transitional and longer term staffing requirements for executive,
management and professional public sector positions.
Without getting into the specifics of our business plan I can tell you
that we do not believe there is an existing firm that is able to offer the
expertise, the flexibility, or the wide range of contacts Larry and I
have developed over the years throughout Oregon, or better'answer
the needs of government employers. Our independent private research
has found that public employers are increasingly seeking creative and
lower-cost solutions to the challenge of filling short-term, interim, and
longer-term staff vacancies with effective employees experienced in
public operations. In addition, employers want to avoid running afoul
of PERS regulations and the charge of "double-dipping." We feel we
have created an approach that will meet public employers' needs on a
sustainable basis.
As for the timely evaluation by your key executives, managers and
professionals, of their options going forward we would suggest the
following. GEL is willing to employ and lease current unrepresented
key employees of the County, that the County desires to retain, at a
cost to the County of the employee's current total cost to the County
less the County's total PERS payment for the employee and workers
compensation cost. In addition to the monthly contract amount for
each leased employee, GEL will assess a monthly administrative fee of
_ $275 per employee, and the County, in compliance with legal
.y
requirements, will continue to pay the associated workers
compensation expenses (generally less than $100/year per employee).
Additionally, the County will need to provide reasonable office
accommodations for the contracted employees.
Our proposal provides the County an opportunity to retain key
executive, management and professional staff of their choosing and
allows the County an opportunity for an organized transition of
selected positions. And it does so at a meaningful cost savings. The
projected savings to the County through our proposal ranges from 8-
10.5 percent of each employee's current total payroll costs to the
County (please see Exhibit B1 attached) increasing to 10-12.5 percent
' July 1, 2003 when PERS rates are scheduled to increase (please see
Exhibit B2 attached). This savings does not include other internal
} administrative costs the County should no longer incur.
GEL envisions drafting contracts with the County that address the key
y elements of the County's Draft Government Employee Lease Program
(please see attached Exhibit A). We will offer flexibility as necessary to
meet the needs of the County. However, the contracts must address
the minimum Internal Revenue Service (IRS) and Bureau of Labor and
Industry (BOLI) requirements related to independent contractor versus
' employee issues. Strict adherence to IRS and BOLI requirements will
address a significant concern identified by our research related to
PERS acceptance of longer-term agreements. Additionally, GEL has
held discussions and will partner with firms located in Deschutes
County to provide employee benefits administration for health
211
insurance, 401(k), section 125 plan and other benefits earned by
employees of GEL.
If you desire, we are open to discussing additional temporary,
transitional and or long-term employment issues with you. We
appreciate you providing us the opportunity to present our thoughts
and proposal to you. And we appreciate your consideration of our
proposal. We are pleased to respond to any questions you may have
and look forward to further discussions with you.
z Sincerely,
Andy Parks
F
President
Larry Patterson
Executive Vice -President
attachments
-4-
Ta
r'
5 Exhibit A
Provided by Deschutes County
GOVERNMENT EMPLOYEE LEASE PROGRAM (GELP)
The goal of this program is to secure quality employment services for government
agencies at a meaningful cost reduction.
The cost reduction will be realized because of the fact that PERS expenses will not
be incurred when utilizing leased employees.
4. fit will be for a minimum of one year, to a maximum of five years.
5. Contracts will reflect all terms of employment; i.e. compensation, the number
of hours to be worked, contract termination procedures, and so on.
6. The leasing agency will provide payroll services that will include the following:
■ Salary
■ FICA (employer)
■ 125 Plan
■ 401(k) Plan
7. In general, the terms of the employment contract will provide for the same
performance requirements as are expected of a regular employee.
b Proposal for Government Employee Lease Program (GELP) Page 1 of 2 Pages
- 12/10/2002 -5
Exhibit A
Provided by Deschutes County
8. Termination provisions in the contract will also be consistent with termination
for cause provisions, as outlined in the personnel rules.
9. After a contract is approved, one of the following will happen:
A. The contract is completed in the time frame as agreed.
B. By mutual agreement, the contract is terminated early.
C. The employer terminates the contract without cause (pays off an agreed-
upon sum of money).
D. The contract is terminated for cause (i.e. in accordance h
rules).
Proposal for Government Employee Lease Program (GELP) Page 2 of 2 Pages
12/10/2002 -6.-
Exhibit 131
Projected Costs - Employee versus Contract
FY 2003
160,000
140,000
120,000
100,000
m
0
U
80,000
0
F
60,000
40,000
20,000
90,000
80,000
70,000
60,000
0 50,000
u
m
f 40,000
30,000
20,000
10,000
0
0
Employee A
Savings 10.5%
Employee Contract
Employee B
Savings 8.2%
Employee Contract
ElPERS
■Workers comp
®Soc Sec/Medicare
■ Life/disability
13Health insurance
❑Earnings
■Administration fee
®Employee leasing
agreemen
EIPERS
■Workers comp
®Soc Sec/Medicare
■ Life/disability
❑Health insurance
❑Earnings
■Administration fee
®Employee leasing
agreement
w
Exhibit B2
Projected Costs - Employee versus Contract
Projected FY 2004
Employee B
Employee A
Savings 10.1%
90,000
Savings 12.5%
—
80,000
160,000 -
F
•i li
li�
VIII 'III � III
140,000
O PERS
iq t1
x�r
■Workers comp
60,000
Sec/Medicare
U 50,000
:Life/disability/work
■Life/disability/work comp
,°+
®PERS
OHealth insurance
120,000
OEarnings
30,000
■Administration fee
■Workers comp
in
100,000
■Employee leasing
20,000 -
agreement
Ill Sec/Medicare
U
80,000
0
■Life/disability
0
Employee Contract
O Health insurance
H
❑Earnings
60,000 -
■Administration fee
40,000 -
®Employee leasing
I
agreement
20,000
0
Employee
Contract
Employee B
Savings 10.1%
90,000
—
80,000
F
70,000
O PERS
x�r
■Workers comp
60,000
Sec/Medicare
U 50,000
:Life/disability/work
■Life/disability/work comp
,°+
OHealth insurance
40,000
OEarnings
30,000
■Administration fee
■Employee leasing
20,000 -
agreement
-
10,000
0
Employee Contract
a
j
gel oregon, inc.
4-0—i
p.o. box 1277
bend,Or97709
1 n c 541.419.3253
government employee leasing specialists
Increasingly, government entities are facing employee shortages in executive, management
and professional positions. These critical positions need to be staffed with experienced workers
who understand the complexities of government service. GEL Oregon, Inc. was created to answer
this need. GEL Oregon, Inc. provides government employers with carefully selected personnel for
short- and long-term assignments in the management, professional and executive areas.
the GEL advantage
_r
Working with GEL, local and state governments realize three key benefits. First, they take
advantage of highly qualified and experienced leadership to fill temporary, transition and
permanent vacancies; second, they better contain their labor expenses by using contracted
j workers; and third, they gain flexibility and control in their management of the assignment.
the GEL difference
Employees contracted from GEL all have considerable, relevant public work experience in their
fields, allowing them to get up to speed quickly and contribute meaningfully in their assigned
positions. Employers can be assured that GEL systems and contracts are specifically designed to
address government employment requirements. Employers realize significant cost savings and
flexibility through contracting with GEL—two demands repeatedly raised in initial research.
the GEL creation
GEL Oregon, Inc. was developed by a team with significant expertise in local and state
government. Larry Patterson and Andy Parks have a combined 46 years of executive, management
and financial service to governments. When forming GEL, they conducted in-depth research
among city, county and state administrative officers and elected officials to gain a clearer
understanding of current staffing issues and concerns. This knowledge enabled GEL's creators to
design the company specifically to fit the unique needs of public employers
contact us
For more information on how GEL Oregon, Inc. can meet your high-level staffing needs, please call
us at 541.419.3253.
:b
patterson
gWiparks
Today, community prosperity requires
governments to continuously evolve and adapt
to meet the increasing demands from
constituents and competing interests. To meet
these demands, governments must have a clear
vision of what they are trying to accomplish and the
kind of community they wish to be. This requires
consistent and cohesive goals, objectives,
strategies, and policies. Governments need objective
and sound measures of their performance to enable them to evaluate their progress. Successful
governments must have a governance model that clarifies roles and empowers people. When these
components are in place and supported, it is truly possible for the community to achieve its vision.
about patterson parks
Patterson Parks was formed in 2002 by two executives with a combined 45 years of executive,
management and financial service to governments. Larry Patterson and Andy Parks offer
their practical, professional expertise to advance communities in the West Coast region of the
United States. They are partnering their efforts to provide comprehensive executive, management
and financial advice and services to result in strategic, sustainable solutions for governments.
what we offer
Patterson Parks has significant practical experience with the following services:
Strategic Planning
Executive and Staff Recruitment
Board and Organizational Development
y
Management and Financial Services
Economic Development Assistance
Research—Best Practices
Patterson Parks, LLC
P.O. Box 1277
Bend, Oregon 97709
p: 541-419-3253
w: pattersonparks.com
Partnering to advance communities.
M
O
O
N
Ln
N
M
0
0
0
0
0
0
0\
p
O
NO�CnNM
GMO�Nr,�OO
C
O
OOOl6000
N
_
�
dI�
0
rNir-1
r-1000)
c0i�
d
O
i
O
dV
CL
41
r(
l0
O
M
M
Ln
tD
mt
0)
d'
N
M
Ln
N
d'
O
Q1
r1
M
N
N
M
r1
It
Ln
Ln
m
�tA
0d+i�OMI�O
��
01NMM�CF'�
_
_
O
0
t0
Ln
=
=
Nt0
It
N
O
00
t0
,>
rl
ri
rl
r♦
rl
U
j
U
Ln
tD
0
o
Ln
m
0
M
Ln
o
0
o
Ln
ts
,..,4
N
to
tD
,.i
O
tp
M
r.1
N
tp
O
,i
It
M
N
d
r,
01
N
't.
ia
M
N
Ln
N
O
N't
+fo+
O
N
rl
N
O
t0
m
Ln
Co
Ln
N
Ct
tD
O
0
N
Ol
r(
0
O
r,
O
t0
00
tD
n
Ln
tD
C
1.-1O
C)
C
0
3:p
U
3:
U
O
i
0000000
0000000
d7
00000.00
OM
OM
Q
4)
cuL-
M
�iMMMM'MM
(M
(M
M
M
(M
M
Q
Q)
M
MMM(�M(�iM
M
M
M
M
.fl
W
QE
QU-
W
m
00
0
M
0
00
rl
M
m
00
O
M
N
0
LnCL
d.
0
It
o
Ln
d.
M
O�
N
tD
'i
D1
0
r 1
M
L11
00
O
4-1
001
000
rNi
M
00
O
OL
O
Ln
Ln
M
N
NCL
C
N
r!
ri
ri
O
0
n
t0
�
O
Cn
0
N
l0
CL
O
O
V-4
m
U
U
s
E
3
W
It
0
t0
tD
0
M
Ln
M
Orn
M
tt
N
oo
0
LD
O
4t
M
p
O
rl
t0
N
I�
M
Cn
M
L()
M
00
r1
M
t0
t0
D1
Ip
4-J
M�O0�10tOD
�
�tMNOCn0�0f�
O
V
J
�
od
r♦
rf
ri
ri
°
ri
ri
ri
,-1
v
•
U
~
U
~
i
tj
C
H
O
C
O
in
CL
I�
N
N
n
^
N
N
^
N
N
LclN
+'
O
0
U
o°
U
C
L
O
�
�
M
rl
t0
O
Lo
M
Ln
t0
T
m
N
M
Ln
N
O
m
r1
M
N
N
M
ri
qt
Ln
Ln
M
3
O
W
U.)
rinOMt0OM
00
t0
Ln
Cil
O
NmtDtDNNN
3
UI
LU
LU
rl
T-1rl
r I
•-1
T-1
v-4
0
LL1
r-1
N
(n
ri
N
ri
L(1
ri
M
r(
-+-I
r(
m
_
H
i
NOM'
O
N
0
Ln
O
Ln
0
Ln
rn >
c
Q
Lo
N
t0
0
M
Ln
0
N
tD
0
.N -(M
Ln
0
aj
C
o
U
u
O
n
t0
t0
Ln
d
M
C
Q
U
00
n
t0
tD
Ln
"i,
M
LL
Q)-aQ7
V
U
V��
M
M
00
L
o 0
o O
t0
0
tD
t0
t0
tD
tD
N
i
tD
tO
lD
to
tO
tO
tD
V
41 •
Ln
Ln
Ln
Ln
Ln
Ln
Ln
7
+'
t!1
Ln
Ln
In
Ln
Ln
Ln
Ln 01
M
c.o
O
c�
�
01�R
-_�
O
w
N
``-�a0+
m
V4 Gt
W�
C
N
L
J�
U
^^^^^^^w
O
O
o
o
O
O
O
L
J
C)
M
M
M
M
M
M
M
4a
C
H A-
f0 f0
41
j
u
O
nnnnN�n
t
ri
nnnt\t\nn
rl
ri
r(
r1
v-4
r -4u
O
i d7
to
t0
t0
ltj
t0
tD
t0((U
t\
N
n
N
N
N
N
•OCU
:3
m
faL
= O
4-0
C
C
N
0
0
0
0
0
0
0
0
0
0
0
0
0
i�
N
�v,ado
o
o
o
o
o
It
0
0
0
0
0
o
H
dC0000000
rc
oorno�l�tOln
,W
u
��
ac
0000000
00mcoNtoLn
C'>
O
JEEN
L
E.�
c)
L
ri
r-(
a; nfu
L
�w
O
V)W
=
mU
f
V
a
+0+
O
d
LU EVj
ZMCL
M
O
O
N
Ln
N
M