MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD OF SUPERVISORS:
DECEMBER 15 AND 17, 1998
TABLE OF CONTENTS
Chairperson Bolkcom called the Johnson County Board of Supervisors to order in the Johnson County Administration Building at 9:03 a.m. Members present were: Joseph Bolkcom, Charles Duffy, Jonathan Jordahl, Stephen Lacina, and Sally Stutsman.
Bolkcom: Call to order the Johnson County Board of Supervisors for Tuesday, December 15th. Good morning everybody.
Lacina: Good morning.
Stutsman: Good morning.
Bolkcom: We have a very busy agenda this morning. We're going to item 2 and that's review of the formal meeting minutes of December 10th. Are there any comments on the minutes? If not, we're going to go down to item number 8, which is business from the Board of Supervisors. We're going to kind of jump around this morning as we go through the agenda. We have probably a day and a half's worth of agenda here to get through this morning so we're going to try to keep on track.
DISCUSSION: EMPLOYEE COMPUTER PURCHASE PROGRAM
Bolkcom: First item is discussion of the Employee Computer Purchase Program. Jean Schultz is with us whose been working on this, as well we Supervisor Stutsman. There are a number of questions that we need to talk about. Do you want to lead us through this?
Stutsman: I put together questions that have come up from time to time that the Board needs to make some decisions on if they're planning to propose this program to employees. Jean and I and Tom Slockett and Chris from the Auditor's Office have been working on some of these details. I think, Joe, you sat in on some of those meetings too. We could have some thoughts to bring to you about implementing this program. One of the first things that we need to make a decision about is the amount of money that we want to allocate to this program. I think Jean with input from your staff, it was suggested maybe $2,000 per employee. That they would be eligible for that amount of money for a loan from the County. They would pay back this money in full. But we were thinking $2,000 would give a good configuration for a computer. The idea would be... One of the other questions we had was a down payment amount. We were suggesting maybe a 10% down payment. The actual amount owed the County would be $1,800. I don't know if anybody had any thoughts about that or, Jean, how your staff came up with that decision or that recommendation.
Information Services Director Jean Schultz: They just looked at prices of PCs and software. We would want a minimum of a Microsoft Office software, probably the business edition or the subset, it's not as expensive for employees, then also a basic printer. If somebody wanted more than this amount they could certainly pay the difference themselves if they wanted a beefed up computer. We try to keep the costs so they could get a fairly good configuration. But still keep the costs kind of down so that the County could offer it to as many employees as they could too.
Stutsman: Our thoughts were up to $1,800. If somebody wanted to just upgrade or found a system that was a lot less, that would be all the better. But it would be no more than 18 per employee.
Bolkcom: OK. As we go through these let's check off, let's conclude whether the Board's in agreement on these so we can save some time. First question is a limit of 2,000 with a 10% down, roughly 1,800 maximum loan which would be paid back in full by each employee over the course of the term of whatever the agreement was not to exceed 3 years. Are people OK with the 2,000 maximum amount?
Duffy: No, I'm not OK with any of these because I'm against this. I just think I'll just sit here and not say anything.
Bolkcom: OK, that's fine. How about other members of the Board?
Jordahl: We've seen prices come down some. In buying our business computers maybe we're buying a higher end machine than what a consumer would want for their home.
Bolkcom: Do you have another number in mind?
Jordahl: No.
Bolkcom: OK. I'm OK with what's proposed.
Stutsman: To reiterate, Jonathan, it would be... The max would be 1,800. If somebody came back with all they wanted was 900 then that would be fine.
Bolkcom: Maybe at this point for people that are hearing this conversation for the first time, the general focus of this program is to try to improve the computer skills of County employees, many of whom work on computers here everyday, many of whom learn how to use those computers on our time as County employees. The thought is, and this is the program that works in other places, is for that employee to have that computer in home. On their weekend, during evening hours, they can improve their skills on their own time. When they do come into work their skills will be enhanced by having this machine at home. That's the theory of the program. The financial piece of the program is the County is simply going to provide financing. All right? Say we have $2,000 per employee and we say 50 employees next year will be able to participate. We'd have $100,000 in the program. The employees would sign a contract with the County. Money would be taken out of their paychecks to pay back that $100,000. The portion that the County would be paying for is the interest that we would forego on that money. That money now is sitting in CDs in local banks. We would take some of that money, loan it to our employees and they would pay back just the sum. Based on $100,000... we're looking at over 3 years on a $2,000 loan about $133 in financing that we would forego in interest. We're thinking in the neighborhood of 6 or $7,000 a year to basically operate this program. That would be the financial cost to the County.
Stutsman: The first year would be 6,000. The following years would be less. We're not talking about 6,000 every year.
Bolkcom: At roughly 5%... right now we're getting something less than 5% on our CDs. That's a thumbnail of the general essence of the program. Do you want to continue?
Stutsman: Thank you. If we're in agreement, offer 1,800 and then need to decide how many employees we will offer this to. It's been discussed at one time maybe 75 employees. I don't know if maybe we want to start out with fewer employees. Maybe 50 to begin with and see how this program goes and evolves.
Bolkcom: I would be more comfortable with the lower number just as a pilot to see how it goes.
Jordahl: I think what we're really looking at is a dollar amount rather than a number of employees. $100,000 in the program and...
Bolkcom: Maybe just leave it at 100 and when that's gone it's gone and we evaluate it.
Stutsman: There's a thought. Because don't know...
Jordahl: We don't know how much it's going to be for each one.
Bolkcom: Good point. OK. Maximum loan is $1,800. Total program that we would tie up would be 100,000. Sally, go ahead.
Stutsman: A down payment amount... both contracts that we've reviewed that were put together by the city and Coralville and North Liberty they have a similar program, they suggested a down payment of 10%.
Bolkcom: Everybody OK with that?
Jordahl: What's the argument for a down payment?
Stutsman: Just like with any loan agreement you usually have some kind of down payment. It's just an idea of a commitment from the employees and things. Then too, a good faith effort that employees are sharing in the responsibility.
Jordahl: But they're going to be paying for it anyway. I could see the program without it too. If we really want to put these computers in their homes and have them becoming proficient at home they're going to have to make the monthly payments anyway. We're taking it right out of their paychecks. It's not like they have the choice not to make it. It might be easier for someone to... say around Christmas time for example, to decide to get into something like this without having to lay out extra cash when they have other obligations that they want to keep up with at that time. I would suggest at least that we discuss at least that we discuss the idea of not having a down payment.
Lacina: 10% allows you to get 5 more employees computers. It's what it amounts to.
Stutsman: That's a good point.
Lacina: That little 10% gets a few more in there.
Jordahl: There's a good argument. I was asking what the argument was.
Lacina: If anybody has to pay for something you feel a little stronger about being involved, learning and that.
Stutsman: I'm comfortable with the down payment.
Bolkcom: I'm OK with 10%.
Jordahl: OK.
Stutsman: Who can participate in the program? Do we want only full time employees? Another option is to also include permanent part time employees, anyone who is a County employee, anyone who is past the probationary period. We just need to decide who is eligible for this program.
Bolkcom: I think for starters they should be past the probationary period, whether they're permanent part time or permanent full time.
Lacina: Given the demands by Coralville and Iowa City from the employees, I would suggest you go with only your full time employees.
Bolkcom: OK.
Stutsman: Permanent full time.
Bolkcom: Permanent full time. Any other comments on that?
Lacina: You go with part time and others, you may or may not keep them in the County's employment. If we're looking at an investment over time to educate employees loyal to the County, I would say go with your full time employees.
Bolkcom: OK. Good point. I'm fine with that.
Stutsman: We just want to limit it to permanent full time employees. Jonathan...
Jordahl: We could see how this goes. It might be that there are any number of people who are permanent full time employees who don't want to buy computers and don't use them in their work. Whereas there may be permanent part time people who do use computers at work full time whenever they're here part time. It may be that too in some offices a permanent part time person is highly valued and really is permanent. They've been here for a long, long time. I'm not real strong about excluding those folks. We might give priority to full time employees.
Bolkcom: OK.
Stutsman: I would consider too the permanent part time.
Bolkcom: I'll support permanent part time.
Stutsman: OK. How will people be selected to participate in the program if there is more interest than we can accommodate? Will we have a lottery system or just first come first serve?
Jordahl: I wasn't satisfied that we had really finished that discussion from the previous item.
Stutsman: I'm sorry.
Jordahl: No, no. With regard to this one. This raises the question. I had raised the question of priority for full time employees and that's a possible answer to number 5. How will people be selected to participate? Do we give priority to permanent full time?
Bolkcom: I don't think so.
Schultz: I guess...
Stutsman: Part of why I'm saying this too, Jonathan, is that I want to keep the administration of this at a minimum.
Jordahl: So first come first serve?
Stutsman: Yes. I think the more restrictions you put on, the more complicated it becomes and the more administration gets into this.
Bolkcom: I think we should have a lottery system, where everybody applies, puts their name in, I want to be involved with this, and then we choose. First come first serve I can just see... whoever's going to take the application is going to be absolutely swamped with this onslaught of people and interest. And then 5 people...we're going to have people standing in line waiting to drop their thing off at 8:00 on Monday morning. I think we could have a more relaxed system by having a lottery system. We ask everybody that's interested, if you're interested, give us a note by this date. Then we're going to do the lottery on this date and then everybody will know.
Jordahl: That shouldn't be real far apart. End date and the lottery date should be real close.
Stutsman: Are you comfortable with that?
Lacina: I think there could be some hard feelings if part time employees get the lottery selection and you have somebody that's been in the County 20 years that's trying to modernize and they're left out.
Jordahl: That's a good point.
Bolkcom: The program isn't going to serve everybody. I think we need to make that clear up front. The demand's probably going to exceed... and there is probably going to be somebody, under any scenario we choose, that fits that demographic of a County employee that's not going to be involved with this program, at least for in the first year.
Lacina: My opinion would be that you take the requests in, and in the event that it goes over the amount that you've set aside, some will drop out, so you've got a waiting list. Those that have applied and aren't able to participate in the first round, they're on the list for next year if you do this again.
Bolkcom: But how do you choose who's on the list in the first year? Everybody applies and you look at the list and then who chooses?
Jordahl: It could be length of service. You could do length of service.
Stutsman: Who's been employed the longest.
Lacina: If the idea, and this is going to be difficult and not popular to implement, but if the intent is to invest in employees that use computers, one of the criteria would be for those that use computers. If they are in a capacity that they don't touch one at the County at all, they would fall down on the list. They would still be eligible but they might be on the waiting list. The priority would be with those that use the system in the County.
Stutsman: The other part of that would be what if you have an employee that currently doesn't use a computer but is interested in transferring into another position that would use the computer.
Lacina: If they can show that they're going to have that need, then I think that's a good investment and that should be counted. The department head could indicate that.
Stutsman: In the scenario you're proposing, we would have to review each individual employee?
Lacina: In your request, you have a box, do you presently or within the next 6 months, will you be using a computer network. If the intent is to train our employees...
Bolkcom: I think that makes sense. But we still have the selection thing. Somebody's going to be making selection. Somebody's going to be in the program. Somebody's going to be unhappy and not in the program. I think we maybe need to think about this some more. But we need to have a defined process that we don't put whoever's making that decision in a tough spot with our employees...
Jordahl: (Inaudible) personality is innate.
Bolkcom: That might be one filter. That's why I like the lottery. It's more kind of random instead of saying...
Lacina: If your requests exceed the amount and you have these filters, then you may end up doing a lottery. But if we could think of another logical way of making another cut that would make sense. Narrow it down as far as you go before you have a lottery.
Stutsman: This may not be an issue. We don't know exactly how many employees... at one time we did send out a survey and there were over 100 employees that expressed some interest in the program. But when we lay out all the terms of it there may be people that might not be interested and there may be a lot more that might. We really don't know.
Bolkcom: Are we saying though that in order to participate in the program you have to either be using a computer currently in your job or sometime soon you're going to be using a computer in your job?
Stutsman: If that's what the Board wants to...
Lacina: Well that would be the first cut...
Jordahl: Not if... I like Steve's thinking here. We'd have... if they're not currently using a computer in their job, they'd be like a 2nd rank of people to participate in the program because the idea is training. The main idea is training. If we don't have the complete demand with those people, then we do a lottery or something.
Lacina: I can see some of the employees not using the entire amount. If they have a computer at home now, they may want to upgrade Microsoft Office. The business package is, what, around $500?
Schultz: If you get the business edition, it's less than the regular edition. I think it's more like a couple hundred (inaudible).
Lacina: But I could see them using a component as opposed to replacing everything.
Bolkcom: Do you have enough detail, Sally, to write that up?
Stutsman: Right. Requesting that employees currently use in their jobs or have future plans to... Aside from either the permanent part time or full time permanent employees, that will be the only other criteria? Is that what I'm...
Bolkcom: Probation.
Jordahl: Which is not to say it will be an exclusionary criterion. If they don't use the computer at all and want to participate in the program, and we have money left that we've set aside, then they should be able to participate.
Stutsman: OK, all right.
Lacina: But this is a way of prioritizing first.
Stutsman: This will be the first...
Stutsman: All right.
Bolkcom: Molly?
League of Woman Voters Representative: I just want to make a statement about permanent part time. My experience is that a lot of your permanent part time people are doing it out of choice or there's something else in their life or because they haven't been able to get a full time position. They're just as loyal as the full time and I'd hate to see you discriminate against them (inaudible).
Bolkcom: Sure.
Lacina: Depending upon what department we're looking at, we do have a lot of permanent part time positions where people rotate through the County. But again its a filter that we can consider. Jean, any comments that you might have that would help us narrow this down? Are we on the right track do you think on this?
Schultz: Whether it's full time or part time I guess I don't have a preference one way or the other.
Lacina: But I mean like on the filters of people that use computers within the County would have the first cut?
Schultz: I think that makes sense, that they use computers.
Bolkcom: You have an office or 2 that's evolving from not having very many computers to having computers, where I think you'll want to be somewhat flexible about that. Those are the people that are going to see, frankly, that are going to see the most benefit from such a program.
League of Women Voters Representative: That's true. Deborah Conger was talking about if there had been such a program with her employees, it would have made a big difference this past year.
Bolkcom: Sure, all right. Board, we need to keep moving.
Stutsman: OK. Will we have a minimum amount to the lease? This came up in our committee meeting. Talking about... we have a set amount of money and what if somebody just wants a software package, a Microsoft Office package. There's still going to be some administrative cost in this. Do we want to set a minimum amount? The more I think about this and just talking about it, I say no. We just...
Bolkcom: I would think you'd want one, myself.
Lacina: The smaller...
Bolkcom: To go through the hassle of $500...
Stutsman: Or $25. I don't know if you can find any kind of computer...
Bolkcom: If somebody wants to borrow $25, you can lend it to them.
Stutsman: Do we want to put an amount on it then?
Jordahl: Is $500 a reasonable figure?
Stutsman: Jean, I don't know... what's the lowest on some of these thoughts about software?
Schultz: You can get games and other software for $20. What we wanted to make sure was that they had the Microsoft Office because that's what people use in the County. But if they already have that, to add other kinds of software, you can get really cheap...
Bolkcom: :Like a printer...
Lacina: $170 for a color printer. But they're buying this themselves so they're going to have to pay it back. A couple hundred dollars, minimum.
Schultz: You can do a couple hundred dollars. A Desk Jet printer like that type of a printer is usually around 250. You can get some that are less.
Bolkcom: How about 250 minimum loan?
Stutsman: That sounds good. Will we have a computer fair with 2 specific vendors or issue purchase orders so employees can buy from a vendor of their choice? Jean had sent out a letter to a number of vendors in the area, as a matter of fact I think all the vendors in the area, asking them to participate in a computer fair where they would come in and set up a couple of configurations that we had approved, and then would tell employees about these computers and then employees would make their choice. We sent it out to all the people who sell computers in the area, Iowa City and a few in Cedar Rapids that we have dealt with. We only heard back from 2 vendors, that was Gateway and CompuServe.
Schultz: Compucom.
Stutsman: Compucom. They said they would be interested in setting up a computer fair here at the Administration Building. Then we had a discussion about maybe we'd be better off to just issue purchase orders and then employees could take that purchase order and then go to any local business that they wanted to to buy that computer. There again with the emphasis being on supporting local businesses in computer purchases. Allowing employees to do some work in trying to get the best that they could for computers. Purchase orders is going to be more work. Chris is here. I don't know if anybody has any questions about how exactly a purchase order would work. It would be a contract, from my understanding with our discussions yesterday with Tom, that there would be specifications in the purchase order. This is all anybody could buy with the purchase order, a specific amount would be put in. But it is going to require some additional administrative work. If we just went with the 2 vendors, the orders would be submitted that day and that would be it. There's pros and cons to both ways of doing it. This is not the way other Iowa City, Coralville, or North Liberty has done it. It would be a new program. There was some talk of this being a pilot program that might be a good lead for other groups to follow.
Lacina: From the employees that I've talked to, they like the idea of a technology fair were they can come up and kick the tires and look at one vendor's printer and compare it to the other vendor's and then have an informal setting where they can talk about the differences. Whether they purchase there or go back to the purchase order, I also think it would be wise to have them talk about the speed of modems and be able to compare one against the other. It's no cost other than some time and allocation of employees so they can come up and look at the stuff. I like the idea of some type of technology display that they can look at.
Stutsman: Are you in favor then of the purchase order, still having a fair...
Lacina: I think that's probably a separate issue. I like the idea of the technology display. They would come in and show everybody here's what we've got. Here's what you can do. Here's what this package will cost you if I hook it together. No, you can't use this because it's incompatible with this. They can answer a lot of questions. The technical aspect, I guess I'm going to ask Chris, what would facilitate this in the easiest way. Do they bring a receipt in to us, they fill out the contract and we review it?
Deputy Auditor Chris Edwards: What would be the easiest way would be for them to shop around and decide what they want, bring in the cost and the specs to us. Put that one in the purchase line. They could give that to the vendor and the vendor would just bill us (inaudible).
Lacina: You and Jean would have oversight for the compatibility with County systems so we're training them for County systems and we don't end up with something that's different. That would give us oversight. Would that work?
Jordahl: I think we should do both.
Stutsman: OK.
Bolkcom: I think that's what Steve's kind of saying.
Lacina: Doing technology but doing this way for processing the paperwork.
Stutsman: I think maybe, Jean, if we make a decision about this and then present it to vendors and say come and be available to answer questions. There might be more people that might be interested in giving some time to do that.
Lacina: If more vendors want to come in, we want more, if more than the 2 will come in. But so far only 2 have shown interest.
Schultz: Yes.
Lacina: We'd have more if they wish.
Jordahl: We set a date and say hey.
Schultz: It's been some time since we contacted them so other people now may be able to do it that couldn't before. We could certainly send out letters again.
Lacina: For as many as wanted. That'd be good.
Stutsman: We'll go ahead then with the purchase order concept. Is that the consensus?
Bolkcom: Yes.
Duffy: I will say that's been changed. They were talking about one vendor and buying them wholesale. It ended up out of the County so I'm glad I really squawked about that. At least you're thinking...
Bolkcom: Buy local.
Duffy: ...right. That wasn't like it was the first time we discussed this. But I still don't like this. I'll have a statement after this is over.
Bolkcom: OK. Thank you.
Stutsman: When will we be starting the program? We will not be able to do this at the earliest, the middle of January, if not the first of February. I don't know if the Board has any feelings about date.
Jordahl: There are probably people who would like to configure this for their families as a kind of Christmas gesture like a family Christmas present.
Bolkcom: There's no way.
Jordahl: I understand that it's not the intention of the County to provide Christmas present opportunities. But at the same time we are so close, that it would be nice to get it started sooner rather than later so that people might still be able to do that kind of thing.
Bolkcom: I don't think there's any way that that's going to happen.
Lacina: They'll be cheaper after Christmas.
Stutsman: I think there is something to be said about that.
Bolkcom: I'd say March first, February first.
Stutsman: OK, next question. Can people buy just software or printer.
Bolkcom: Yes.
Stutsman: Minimum specifications we need to include... Suggestions that we kind of talked about is that we definitely want to have any kind of computer that we put in somebody's home that is compatible with what we have at the County. Talking about IBM compatible, we would simply say no Macintoshes. Certain level of PCs, either a Pentium, or a Pentium II. New equipment only? Is the Board comfortable with saying that, no used or reconfigured equipment? Asking for a warranty... we thought maybe if a warranty was specified, like a 3 year warranty... Nobody's going to put a 3 year warranty on a redone computer and have certain software specifications. There again, we're not interested in games. We're interested in Microsoft Office or something. They can transfer those skills to the workplace.
Bolkcom: I'm fine with that. Jean can help develop that list of criteria.
Stutsman: I didn't know if anybody had any specific concerns about new versus used.
Bolkcom: I think we should have people buy new equipment. Any other comments? Do we have enough direction?
Lacina: 2 additional points...
Bolkcom: Go ahead.
Lacina: When the employees enter into this program, at that time I think they should be alerted to a set of rules to protect us from viruses and software problems.
Stutsman: Oh right.
Lacina: Any training or work, if a disc goes home and they utilize it, then a son or daughter has downloaded of the Web and they bring that disc back we have certain fire walls to protect things now. But I do think a statement needs to made in there alerting them top the fact that there is a risk of contamination and we have some criteria as far as disc scan and those types of things that should be implemented just as protection for the County system. The second point, some of this may be getting the cart before the horse, but ultimately, where's the money going to come from? Are you going to increase the tax asking initially to keep your fund balances up or will your fund balances just decrease? If you're going to set the money aside and encumber it, you have tied it up from the standpoint of being able to utilize it. If you wish to keep your fund balances the same, then initially you need to put in a 100,000. Over time they're going to pay you that back so then you can later on drop that tax asking or allocate it somewhere else. But those are things Chris is going to need to know. Where's the money going to come from?
Bolkcom: I don't think it's the Board's intention to raise taxes to do this program.
Stutsman: No, no.
Bolkcom: I think what we're going to do is use some of the County's reserve, which is in a number of different areas, to basically take money out of CDs that sits in the bank 12 months out of the year and make it fluid and assist County employees in gaining skills. But I do think it's a good point and we need to work with the Auditor's office and Chris to identify which pool. I mean we've got many 100,000s already in capital funds that could be...
Duffy: Joe, that statement you've made, let's not give the taxpayers the idea we have all this money in reserve just sitting there because we don't any more (inaudible)...
Bolkcom: We don't. Probably the biggest amount...
Duffy: Our fund balances have been going down year after year. I'll remember that statement. When we get through with these budgets, I expect no tax increase whatsoever. If we have this kind of money then we can't say...
Bolkcom: So you're not going to give the County employees any raise... If you're saying there's going to be no tax increase, you're talking about... She Sheriff has asked for 4 deputies. We've got all sorts of things as you know, Charlie, in reviewing the budgets that people are asking for a new ambulance...
Duffy: The wage increases are not in the budget Joe. You ought to know that.
Bolkcom: 4 new deputies on patrol for the Sheriff. We have kind of a lot of requests actually. I would caution you on making a statement about no new tax increase when you probably know there are some things that we just can't get around here.
Duffy: I said in the budget the wages are not in there.
Bolkcom: What do you mean they're not in there?
Duffy: In the budget that was presented to us, to leave out the wages. We handle the wages different. But don't...
Bolkcom: We have Union contracts already settled at 3 % next year...
Duffy: We're saying that we're loaded up here and we're not.
Bolkcom: I'm not saying we're loaded. I agree with your point on that. We are running a tight ship.
Jordahl: And we're getting the money back, Charlie. It's not like we're spending $100,000.
Duffy: You think so, Jonathan?
Stutsman: Oh yes.
Jordahl: Yes. With the automatic payroll deduction then we're getting the money back.
Duffy: If I were a County employee, I wouldn't even get mixed up in this for 3 years and tying myself down in the first place. They'll be obsolete in 3 years. They better know what they're doing.
Lacina: We need a certain amount of reserve and balances in order to just cash flow the bills and payroll. For example, we have 2 major revenue times in the year when we collect taxes. To get from one to the next we have to set aside reserves and make those payments until we get into the next general revenue collection, excluding grants. Most of the money we try to tie up in interest bearing CDs and accounts and make the money work for us so we don't have to ask for additional tax asking. But there's a certain amount of money which is in low interest bearing checking accounts. Instead of the 4.7%, we're in there at 1.75 and 2%. I don't know how tight we are on the cash flow side. But instead of cashing in a CD if we work with the Auditor, there may be a possibility of utilizing that cheaper money. But we have to work closely with Betty Sass in the Treasurer's Office to make absolutely sure that when the insurance bill comes in at a couple hundred thousand we can cash flow that. Hopefully, if we watch this carefully, we won't have to mess with the CDs and we can operate off of cheaper money. But again we're really going to have to watch it close because I think we're down around 16 or 17%.
Bolkcom: Right. Sally, you need to get with Tom when he gets back and come back with a recommendation to the Board on that point.
Reverend Bob Welsh: If a person during the 3 year period leaves the County employment, does the loan become...
Lacina: Due in full.
Bolkcom: The loan is immediately due.
Lacina: We do not take the equipment back. They have an obligation for the dollars.
Bolkcom: The money that the employee will pay back will come directly out of their paycheck before they get their paycheck, kind of like automatic withdrawal to us.
Stutsman: It's a very specific contract that the employees sign, laying out all these details as far as whose responsibility. There is no responsibility from Information Services as far as maintaining or giving service on these pieces of equipment and things. That's all very clearly laid out in the contract. I think we passed around copies that have been...
Bolkcom: A couple more comments.
KCJJ Representative Terry Muhlenbruch: Sally, a couple weeks ago when this was brought to light, one of the names that was thrown out there was Gateway 2000. I'm not a representative of Gateway 2000. But it appears to me that there's an opportunity...maybe you guys have contacted Gateway 2000.
Stutsman: We have. They were one of the 2 vendors that would come in.
Muhlenbruch: Did you talk to them about their purchase program? They have got a fabulous program out there that one would allow the County to have unlimited number of people get involved in purchasing a computer and 2 it would be no cost to the County at all except as an administrative cost. OK. Their program... A computer color monitor and a printer for 1,598 and it's $48 a month. They way that I look at it is can you go to Gateway 2000 and say our employees, 100 employees, want to purchase this. Can they get involved in this program but the County will administer it. Every month you write the check to Gateway 2000. That money is coming in from the employees' paychecks. That $100,000 that you were concerned about losing interest on, you still have. This allows an unlimited amount of employees... it could be 200. There will be no cost to the County except as an administrative cost.
Bolkcom: We need to do some more research on that point.
Muhlenbruch: It's 1,598 and that's...
Lacina: There's pros and cons. On the positive side, that program also allows you to have a residual value of the machine so that down the road if you want to upgrade...
Muhlenbruch: Exactly. Within 3 years you can trade it back in and they guarantee X amount of dollars for it.
Lacina: One of the negatives that we're struggling with is it's definitely an out of County vendor. So we're trying to balance...
Muhlenbruch: Are there any Gateway 2000 vendors in the area? There's got to be.
Lacina: They are now starting to open doors. But pretty much you go direct. That's part of the reason why also we want to have the technology fair and invite everybody in and then try to weigh things. Under that program, right, there'd be no finance expense to the County whatsoever.
Muhlenbruch: There'd be zero and it would be unlimited number of people allowed to get involved in it.
Bolkcom: Maybe we need to do some more research. Deborah?
County Recorder Deborah Conger: The only problem with that is you take $48 a month over 7 years and they end up paying around $3,000 for that computer.
Muhlenbruch: It's 3 years.
Conger: Even though it's 1,599 a unit. It doesn't actually cost them...
Bolkcom: Did you mean 3 years? You said 7 years.
Conger: Whatever the rate is. They end up paying a lot more than 1,599. That's their cash out cost.
Bolkcom: What's the financing charge that we pay then?
Conger: It doesn't cost 1,599 in the long run.
Bolkcom: No. I realize that. OK. Question in the back.
?: Why in the heck are you going to be a banker? For God's sakes we've got bankers all over town that'll loan money to people. As a taxpayer, I'm firmly opposed to this kind of arrangement. There's no reason we have to do it.
Bolkcom: One of the reasons I think, as was mentioned at the outset of the meeting is, the County spends 10s of thousands, hundreds of thousands of dollars on computers in trying to get people's skills improved on their use of those computers. One of the areas you do it with is training. You can have a budget. You can hire somebody to assist training people. We do training. One thing to buy a computer, it's another to have people skilled in using it. And we think that as an extension of our training effort is having people work on these computers at home. What we're finding is the demand for this seems to be strong. Employees aren't going out using lending institutions to put a computer in their home. They're not doing it, all right. So we see this as a frankly very low cost if it costs the County $6,000 a year to have 50 more people improve their skills, that's pretty cheap. That's pretty low cost.
?: There are people going out and borrowing money and buying computers. I know them all over town all over the County.
Bolkcom: We may disagree about this. That is the rationale about that. All right.
?: It's wrong.
Muhlenbruch: I think, Joe, if you go to Gateway and ask them can the County be the administrator on this... He just figured it up and the interest is $130 over 3 years.
Bolkcom: I don't have any problem with doing some more researching and looking at that. Steve has pointed out a point about sending a couple hundred thousand dollars out of County. What value do we place on shopping locally with businesses that pay property taxes in this County. That's the flip-side of it. Back in the back.
?: How many people do you actually have that use computers that work for the County?
Bolkcom: Jean, do you have a number on that, approximately?
Lacina: Well in terminals we have at least 127 terminals and PCs when we did the computer needs assessment.
Bolkcom: Jean, do you have an updated number?
Schultz: We have probably now 180 to 185 PCs in the County. We do have some people who are on terminals not on PCs yet, but will be switching over to PCs.
Bolkcom: A little less than maybe half the work force, half the County employees.
?: And you're allowing this program for all the employees.
Lacina: That's why we're discussing those that use it...
Bolkcom: I think we're going to have... The priority is people that use computers.
?: But I mean after the first year then you'll have more people that can come on it...
Bolkcom: I think that's possible.
?: ...eventually people that don't even use computers, you're going to let them buy it?
Bolkcom: Right, right, right. The Board is going to have to decide whether that's the case or not. I think there's a case to be made that people have to be using computers or soon going to be using computers to qualify for this program. I think that would be a preferable approach.
?: The way your talking, the person that comes to you and say I want to be good on a computer because I want to change up. Maybe they don't want to change jobs here they're going to go some place else. So you're going to allow them to have a computer so they can practice their skills eventually they might even leave. They could leave.
Bolkcom: Any employee under this program could leave. There's no guarantee. Your point's made. We can buy a computer for a 10 year employee and they can get a better job across town and leave.
Lacina: Sometimes, though too, if we increase their productivity they may feel better about the position they're in and they may stay longer too. Let's take the worst case example. Supposing it did cost us 4.7% interest for every machine we financed and from what we've been able to gather we have the full request of the 100 individuals. Our maximum exposure is going to be roughly $47 per individual that uses this program. But on the other side of it, we're looking at an investment over $1,000,000 in technology in computer systems and trying to teach the employees to use it. I think it's a very small investment in the employees. If we go with Gateway, or something like that, the investment goes from $47 per individual to zero. Somewhere we're going to fall in the middle of spending very little per individual to use this and the benefit is they're going to understand the software and technology. Instead of calling Information Services for help in some of these things they're going to know how to hook up their own computer and do some trouble shooting and be familiar with Excel. Right now we've got a training officer that puts on classes and does a great job. But there just going to be better trained like somebody running a truck. If we put them though the snow plow school, which we do at Ames, and somebody running a grater, we invest in them in schooling and training. This is very low cost.
Bolkcom: Charlie?
Duffy: The only problem with Gateway would be with me there's 4 pages of computer vendors and people in the business in the phone book. They pay taxes and that's why I'm against this whole thing, one of the reasons why. We've got 8 computers in our office, they're laying idle at night. If we really want people to practice on computers they could practice down here. We don't own them. Also in the libraries... The consensus was that when we started all this computer business we'd have computers for the public and evidently Iowa City Library has 41. Coralville has 8. North Liberty has 4 and County... There'll be more of these. I'm sure Solon when they get their library. But they're free. If not there's people in the business that will teach people that want to run a computer.
Bolkcom: OK.
Duffy: Anyway you look at this thing I just don't like the whole thing.
Lacina: 3 quick points.
Bolkcom: Quickly.
Lacina: All 8 pages of vendors are invited in to the trade show. We're not going to exclude anyone.
Jordahl: And were the first time.
Lacina: We did go to the banks and ask them if they would put together some kind of a package and have found that their interest rates were quite high. By going this route it's going to be very inexpensive for the employees. Again, using Gateway, as an example, it's built into the program. 3, I'm real nervous about employees coming in at night experimenting with my tax bill on our live system. If they make a mistake and the system crashes we've got problems. The judges are worried about security. We've got security concerns as far as the money in this building. If they want to go home and experiment and lock up the system and it crashes it' s one thing. But when you've got the data that we do, we need to safeguard the integrity of the system and the data. So I'm not (inaudible)...
Bolkcom: We're going to take 2 more comments, Joe and then back here.
Joe Gjovig: The question I've got is what is going to happen if the employee quits before the computer's paid for? Aren't you going to end up with the computer?
Lacina: On the contract we will not take the computer and it's due in full. And since we pay them after they leave we've got control of that paycheck. They've signed a contract. Even if there's not enough in the paycheck, they are still obligated and we can file that contract in the Recorder's Office. They pay it.
Bolkcom: Iowa City and the other places that have it they have not found a problem with employees leaving and not... and having to get a bill collector and go after people. Yes.
?: Is the year 2000 going to make any difference on how these computers are going to run in '99?
Bolkcom: I think that they've solved that for anything you're buying right now.
Stutsman: That's right...
Lacina: The Pentium computers will handle the year 2000 program. If they go back into 386s or something then there would be a problem. If we go with the Pentiums then they'll be compatible.
Duffy: I didn't mean that we give people a key to come up here and play with our computers. But it's something that could be worked out. They could start with mine, well it really isn't mine, it's on my desk.
Jordahl: I'd like add one concept into this discussion in to this discussion that hasn't been said yet, and that is the idea of employee benefits. That we provide health insurance coverage, for example, to employees. We have a wellness program for employees where they get training in how to take care of their health. This is part of what we offer as a package to try and keep employees happy at Johnson County to allow us to keep them without having to pay outrageous wages. We take care of them in a variety of ways. I really appreciate the health insurance coverage here. I think everybody who works here does. You can see it both as training and as a benefit. If you want to talk about employees who don't use computers at their work being allowed to participate in the program, think of it as an employee benefit that we provide at very very low cost. We do training. We provide benefits. This fits in under either one of those rubrics.
Stutsman: I think ultimately the goal is to provide more efficient services to taxpayers. If people are more proficient on computers, they're going to do a better job in the workplace and that, to me, equates to better service to taxpayers.
Bolkcom: One final point. The cost in terms of having someone skilled on a computer, the cost is this: The cost of the computer is about this much. All right? It's in all the time that the employee has to take to get from here to here in total cost, in hours that we pay people. The cost of the computer is a very small part of having an employee knowledgeable about computers. We hope that for those employees that use computers every day, if they take advantage of this, Charlie, they're going to be sitting at home at night on their time, not ours, gaining some more knowledge, clicking around understanding the programs, working with it. So that when they show up here the next morning we get the value of that for an incredibly low cost. The time is where the money is. It's not in the cost of the computer although computers are not cheap.
Duffy: I doubt whether... In other words what we're saying when you take this computer home then you do County business with it and nothing else?
Stutsman: No. We're not asking them to do County business on this computer. I would not feel comfortable expecting employees...
Bolkcom: We wouldn't mind if they did and some will.
Duffy: The next time we should have Betty Sass up here on the interest rate. I don't think we have any interest at one and a half percent. That's not...
Lacina: We have money that's drawing zero on some of the checking accounts. The other side of it is the 2 other government agencies that have initiated these programs are telling us they're seeing results. People are able to utilize their equipment. They're much more knowledgeable about it. They're seeing results in the employees in personal growth and operating the systems. It isn't like we're jumping into this. Sometimes it's better to follow than lead. In this case, we're pulling from Iowa City's contract and Coralville's the good points and we're proceeding on something that 2 other agencies have shown us does have good results.
Schultz: Actually 3. North Liberty also.
Bolkcom: North Liberty, too. OK. We're going to move on. Appreciate all the comments we've received about this this morning. We'll look to Jean and Chris and Sally and others that have worked on this to draw some more, based on the conversation this morning and other details of what we're going to do.
Lacina: I do want to compliment you on the time that you've spent checking with the banks, with the vendors, with the employees, doing the survey of employees... a lot of time and careful thought that you've put in to this. This isn't something that's a quick type of thing. It's being done thoughtfully and carefully so that it is a benefit to everybody.
Jordahl: And not just copying those other governmental entities. But doing it in Johnson County's own way. Taking into account the idea of including all the vendors in the County. That's something different.
Bolkcom: We're moving on.
Stutsman: Any other comments from anybody? OK.
Welsh: Since one citizen said they were opposed to it, let me say as another citizen, I'm for that.