County discusses possible HR split with MNPrairie

As it navigates a period of transition, Steele County is reexamining the next chapter of its involvement in the Minnesota Prairie County Alliance.

Steele County is one of three counties that participate in the human services collective, better known as MNPrairie, which offers a variety of programs including income and housing assistance. MNPrairie was established in 2014 through an agreement between Steele, Waseca and Dodge County.

Currently, the county’s human resources department supports MNPrairie, providing recruitment and selection of employees, benefits administration and other critical services.

However, the upcoming exit of Steele County HR Director Julie Johnson has opened a window of opportunity for the county to rethink its arrangement with MNPrairie. At recent work sessions, the Board of Commissioners has mulled over the possibility of withdrawing HR support from MNPrairie, requiring the collective to operate its own HR department.

Presenting to the board on Tuesday, Administrator Renae Fry said separating Steele County and MNPrairie’s HR operations may not result in a financial savings, but it would allow the HR department to better focus on the county’s needs.

“The question we’re asking the board to consider is whether the standing relationship that we have with MNPrairie to provide the HR support services is still in Steele County’s best interest. I know that the sentiment of maintaining a partnership and a collaborative relationship is important to the board, but partnership presumes that there’s an equitable division of burdens and benefits,” said Fry.

Along with Johnson and Finance Director Candi Lemarr, she’s been mapping out a plan to set both entities up for success. Under the plan, MNPrairie would hire two HR employees, who would receive training and support from Steele County personnel until they’re ready to operate independently. The county would gradually taper off its support over a year.

Johnson stated that supporting MNPrairie with HR services was the right decision early on when the agency needed help establishing itself.

“I think we have very successfully done that and continued to really successfully serve them, but it has come at a cost to Steele County,” she said.

In addition to MNPrairie and the county, the HR department also supports the joint Rice-Steele County 911 Dispatch. Johnson said juggling the needs of three employers has hampered the department’s ability to function as effectively as possible. She argued circumstances have changed since MNPrairie was founded, and the agency is now “poised and ready” to provide its own HR services.

Under the current plan, Steele County HR would continue to support 911 Dispatch.

Commissioner Greg Krueger suggested MNPrairie has grown to a level that it would be better served by its own HR department, and that the plan could be beneficial for both entities.

“We’re part of MNPrairie. We want to make sure, as Renae said before, that they’re set up for success because that makes both of us better,” said Krueger.

The board plans to discuss the issue further at its next work session.

Steele County is currently contracted with MNPrairie until the end of 2025. The contract requires a 12-month notice to withdraw services, but can be modified by mutual agreement.

Should the county find itself unable to provide the services the contract stipulates, it must notify MNPrairie 14 days in advance. Fry described that scenario as a “catastrophic meltdown” the county should avoid.