GT rescinds no-bid contract [The Record-Eagle, Traverse City, Mich.]

Oct. 01--TRAVERSE CITY -- Grand Traverse County commissioners backed off a decision to award a no-bid contract worth at least $75,000 to a company partly owned by a former board colleague and current county road commissioner.

The county board voted 6 to 3 Wednesday to reverse an earlier stance that would not have required a bidding process for the county's health insurance contract.

Commissioner Larry Fleis switched sides and cast the vote that switched the county's position. Board Chairman Dick Thomas also switched his vote, and joined Commissioners Ross Richardson, Christine Maxbauer, Mike Stepka and Beth Friend in demanding the county seek health insurance bids.

"This is a good thing. It's what we proposed to do a year ago," said Richardson. "Maybe we can save some money."

The county's current insurance agent is Terry Roote, of Great Northern Benefits. His partner is Walter "Jay" Hooper, a Grand Traverse County road commissioner, trustee at Northwestern Michigan College and former county board member.

Roote negotiated a $75,000 commission with the county when it switched to Priority Health about six years ago.

Roote said he doesn't have a problem competing for the county's business, but contends the new process won't save any money.

"The 75 grand I get on this account is a ripple in the puddle compared to the $5.5 million in premiums," Roote said.

Roote said he works on commission. He negotiates bids from different insurance companies, then brings those bids to the county board to select its insurance provider.

"Commissions are pretty standardized across the board," Roote said. "Typically, you go with a guy that you trust."

Roote said he was the county's agent when he worked for Northmed, a managed health care provider run by Hooper that was bought out by Priority Health. Roote remained the county's agent when he started his own agency in 1999. Hooper joined him in 2001.

County board members told its administrators in 2009 to put Roote's job out for bids because of Hooper's connection. They also noted the county hadn't sought bids in more than a decade.

Jen Seman, the county's new human resources director, cited a heavy workload and asked the board to postpone a bidding process for a year. Fleis initially agreed with her.

"But the more I thought about it, I thought if she had too much on her plate, she needs to change her priorities," Fleis said. "We can have her put something else on the back-burner."

Commissioners Larry Inman, Addison Wheelock Jr., and Bruce Hooper stuck to their previous vote to postpone the bid process.

"My issue was not necessarily going out for bid, because I think we should," Inman said. "It was just a matter of timing."

Inman said it wouldn't be fair to have Roote do the work and not get the commission.

Roote is scheduled to present insurance bids in October.

"I've put hundreds of hours into the bids this year, and I'm going to bring them a lot of money to the table, a bunch," Roote said.

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