The Mandan City Commission is expected to make a decision at tonight's meeting on outsourcing of the city's human resources functions.

Earlier this year, the Morton County Commission made a similar decision to outsource human resources, payroll and risk management activities, choosing Avitus Group.

Avitus and Fargo-based CBI Business Services are the two companies the city commission will be considering. These companies responded to Mandan's request for a proposal. Avitus is headquartered in Billings, Mont., but does have offices in Bismarck. City management team members heard proposals from the two organizations and is recommending the city contract with CBI.

The Avitus proposal was that of a professional employer organization, which is a co-employer relationship with the city. Through this arrangement, Avitus does assume some liability. CBI's proposal is as an administrative service organization providing management services.

Avitus is requesting 1.88 percent of the gross payroll for its fees, amounting to about $93,000. CBI is charging $50 per month per employee. Mandan employs about 125, bringing the total to about $75,000 annually.

City Administrator Jim Neubauer said that, with the severing of the accounting services agreement with the Mandan Park District and various other staffing changes, it was decided to look at outsourcing as perhaps a more efficient manner to provide human resources. The city did have one full-time position for human resources, and it was felt another half-time position was needed. About $100,000 would have to be paid in salary and benefits for the two positions.

"If we account for the salary and benefits for the current position and another position at half time, we are at roughly $100,000. Thus, with either firm we chose, we would realize a savings," Neubauer wrote ,in documentation provided with the city agenda.

The management team recommendation calls for the city to move into a contract with CBI for human resources and payroll services.

The Mandan City Commission meeting begins at 5:30 p.m.

(Reach reporter Gordon Weixel at 250-8255 or gordon.weixel@;bismarcktribune.com.)