Thank you, Mr. Chair. I just wanted to make a quick statement. I just really wanted to be able to, to give my heartfelt gratitude to all of the service providers here that worked hard on this and the Sterling group's service providers to this board to the Sterling group. I think we have a really good comprehensive contract that everybody has a clear understanding to make us successful. I look forward to the partnership and finding a path forward to have a wonderful facility being built that's going to be benefit to this region. But it couldn't have happened without many gratitude, and thanks to everybody in this room, and everybody that's not here. That was a part of it. So thank you, Mr. Chair for making this happen.
Absolutely. Thank you, Miss Lee. Okay. Next on our item is my resolution to approve lease agreement parking spaces. Do I have a motion? So moved. Motion and a second. Any discussion?
With amendments? Correct with the amendments? negotiated? Just for the record? Yes. Okay.
So call the roll again, Mr. Schroeder.
That Oh, I'm sorry. She was asking you. What was your question? Okay. I'm sorry.
Do you make call the roll again?
This is Director Abood? Yes. Director lane? Yes. Chairman millenary. Yes, Director preusse. Yes, Director Wiley. Yes.
Motion carries.
Question. Would it be appropriate I did realize but we approved the site plan on Item seven. And we all have it in our package. And I know there's a slide here because I just saw it pop it up just for the record. And for anybody that might be tuning in on us. Should we provide that slide of what we just proved so their clarity real quick, and it's not gonna change anything but I think we owe it to anybody watching anybody here? Just put that slide up real quick. What what the site plan we just removed Mr. Benfield?
Sure. So I just real quick, we prepared just a quick presentation just to memorialize the convention. Center expansion concept plan. So within this scope, it's the second street construction and also the new parking deck. I'll spare us the all the detail here, but I think we're pretty much familiar from the previous conversations, but this is the this is the site plan. That's been developed for your consideration and seemingly your approval here today. So it includes the construction of Second Street, the parking deck, on the underground tunnel and then the bridge. So I think you've seen previous iterations of this. I think that this represents the enhanced our understanding of how the board wishes to proceed with this convention center expansion concept. And then we just articulated some of the next steps which is to engage in the your resolution that along with PMR and aw to proceed with a logistics budget and schedule for this concept and bring that forward to you for consideration. That activity will take approximately 90 days.
Thanks. Wonderful. Thank you. Thank you. Next up, we have the purchasing of scale licenses and according to the RFP results, Mr. Toros present
Good morning, Mr. Chair, members of the board. So we have one leadership brief. It's the purchase of three years Scalla licensing. The scale of licensing enables the creation of both uniform and custom signage on our digital interior monitors located throughout the facility. So we did a RFP that was posted on bid net on September 7 2023 275. Companies were notified 15 of those companies downloaded the RFP document and three proposals were received on October 4. One of the proposals was received late so it was left unopened and is not considered for award. Their request is the Huntington place team is requesting approval for the purchase of 144 Scalla licenses from imperatives incorporated for a total cost of $33,162. This cost includes a price discount for pre payment for those three years of service.
Yes, I'm sorry, Tara. Um, whatever. Can you say again? What scale of licenses are
sure so it's all the it's licenses for the software for the digital boards throughout the conference center. So like all the meeting rooms, those digital boards right outside there? We
have some others in the foodservice area licenses to operate the software. It's okay. So basically software, right like that's buying life buying the software, buying the software, right. Okay. The licensing? Yep. 144 identifies
how many of them we have. I mean, people good but what is that?
That's the number of licenses or so that's how many pieces of equipment
Oh, boy. Okay, cool. Cool. Okay, okay. So do I have a motion to approve? So moved second, or do I have a second? Second? Second. Alright. So I have a motion a second discussion?
Yeah. Did Did Laura send this out to bed? She did. Okay. She usually she presents to so.
Yeah, I've asked that. The
subject matter expert who is making the initial request of why we need a procurement would be the primary presenter of why we need it. And if there were any specific procurement questions, then we would
I would love to recommend I think having Oh, sorry. No, I think that was a good plan. Yeah, but I also like because so much of our questions for our How did this go out? How long some of the processes I would love to make sure that like with each of these, Laura, Laura is able to kind of give us just a highlight of like, I put this on bed net, it was out for X number of days, and nobody mentioned him in
like to.
Thanks for
that morning, Chairman, board members of the board. Yes, with this leadership brief, I provided the procurement related information to Karen's group. We work very collaboratively together. When I issued the bid, posted it on Ben net. And I always allow at least 14 days normally about 21 days when I post the bids and the case for this one. So this one
so
yeah, so September 7, through October 4, so nearly a whole month. It was posted so and then when I have the bid opening, I always have someone there with me. It's open public bid opening and we open the bids and record them. Thanks. Thank you. Okay.
Any further discussion questions? No,
we're making the way that we're processing you know, it's
like a good answer. Yeah. Thank you.
All those in favor, Aye. Any opposed? Guys have it. Thank you. Thank you Mr. Carpenter.
Morning, all right.
The next item is leadership brief to discuss the benefit insurance renewal for the staff at Huntington place. A little bit of the background Dr. CFA utilizes Huntington insurance as our agent and broker to seek and obtain insurance coverage, including health dental vision, life, short term disability and long term disability. Current status. Huntington insurance received renewal quotes from the Blue Cross Blue Shield of Michigan and Blue Care Network which is included in the packet. starting on page the renewal presentation starts on page 50 of the packet. A couple of highlights for the board on page 52 of the packet which should look like this sir. We've got the medical renewal. At the bottom of the page, you'll see that the under the current rates, the annual premium is presented as 1,155,000. The estimated renewal rates assuming the same number of employees take the same plans. It's about 1.2 million. So 7% is the increased percentage on that about $81,000 cost increase. On page 53 of that presentation, we have the dental renewal with our current cost of about 54,000 increase into about 55,000. So that represents about slightly over a $1,000 increase or about 2% for dental. And then on page 54 of the packet. We have the vision which has our current at about $10,400 and the renewal at about 10,500. So just over a $100 in estimated increase or about 1.29%. So that's for our primary medical dental vision. In addition, we there was a request that hunting insurance look for additional bidders for our ancillary services. That's our life long term disability and short term disability. Our current carrier principal came in at a cost of 50,422 for all three of those combined, as you can see in the leadership brief there were three other bidders Guardian Lincoln and one America. There was also one carrier that declined to bid at the standard standard insurance declined to bid. And so our recommendation from leadership team is to recommend extending medical dental and vision coverage for calendar year 2024 With Blue Blue Cross Blue Shield of Michigan and Blue Care Network and then to switch coverage from principal group to Lincoln Financial for the savings of almost $15,000 for the year. So and then we do have director of HR and we do have a representative from Hunter Huntington insurance here today for additional questions the Board may have.
Okay, so thank you, Mr. Carpenter. So we have a request to approve employee benefits insurance coverage. Do I have a motion to approve so moved. Do I have a second? Go second. Anyone may have a second. We have a motion in a second questions.
I'm not going to elaborate too much on this but I do want to add an amendment to the motion before we approve it. Okay, and what I would like if the motion maker would accept. I would like to approve and authorize what the interim CEO has just recommended to us renewing our BlueCross BlueShield BCN. Health prescription dental vision coverage and to authorize the CEO to obtain coverage from Lincoln Financial life short term display long term. I would like also to include in that motion, effective immediately authorizing Laura Harrington to reopen, saying the word reopen the request for proposal for broker services for employee benefits to be concluded. And back to us in February. So by February 1, February 1. It would be vetted out and then come back to us for approval by February.
I support that.
My I guess I'd want to know I can continue discussion about two other is Huntington is our current broker. Correct. So you're saying we would put our with this. I guess my question not that I'm saying we should we should not. When is our contract up with with Huntington, a
little bit of background. We went out to bid. We went out to bid on this this year. Right and the proposal didn't got pulled and it was not concluded. And so in fairness to the process to fairness to all the parties that received that request for proposal and started to compile that opportunity to do our work, we need to include it now a broker. I was trying to ask him one of my emails who is the agent of record. So what I did find out as number one, we don't even need an agent. We could go directly Blue Cross and Blue Shield. This isn't changing the product. We will keep the Blue Cross Blue Shield. When you have an agent of record, they get paid a commission, right? So we don't even need the agent. So what we're saying is that the current agent we have would have to competitively bid with all the other agents that want this work, and we have to complete that process and that it would be completed in a timeline by February Laura would do her due diligence completed, and then the best qualified broker, she would bring in front of us to prove so this current broker would continue to maintain their services till such time in February. If they rise to be the best broker to continue that service, then they would be of record. If they're not then the person that was most qualified was then become the agent of record.
And why February? It's February just there's something triggered triggering with it. Well, because
we had it out in like, May 8, we stopped it to keep things going. I mean, there was a pretty good gap delay. Yeah. And now that we're renewing it, it's,
it's how long do the services like? What we're entering right now? Is it preset term? Or is it just kind of like ongoing? Yeah, so
there's two there's maybe some clarification there's two different pieces to this puzzle from my perspective, right. We have the actual carrier Blue Cross Blue Shield, Blue Care Network, the the insurance we would bind for the full year so it would be from one one of 24 to 1231 24. And then the other piece is when when we ask an agent to go find us kind of the best deal for our insurance, you know, negotiate with the carriers on our behalf. That's the kind of the broker and the and the agent services. And so we wouldn't change the carrier we wouldn't impact employee benefits and all during 2024. We would just go in look at the agent.
When's the next time that you would be going back what we'd be asking our brokers to once again, look at our benefits.
So I'd have to confirm the timeline. But a typical timeline is somewhere in the June ish timeframe, like six months in advance of a renewal, you would ask them to start looking at, okay, let's let's talk about our history. Let's talk about what the needs of our employees are. And then it's almost a six month process. To actually you know, evaluate and determine, you know, what, what options within plans you want to provide to the employees for the next year.
The market actually opens in February again, so they're gonna go October to December. I only know this too, because I'm doing Medicare right now. Yeah, the market will open again in February.
So the timing that's why you've chosen February February and March. Yeah. Okay, that's
ever comes in. So it really needs as much time as they possibly can to get familiar and shop it because when I looked at this quote, over last year, last year's quote, they got quotes from Aetna Health Alliance, Priority Health, United care, and there's other just like, have you seen the Medicare Bucha see all these agencies, we only got one product, Blue Cross Blue Shield, simple Renu it. So the next person that comes in here would have the due diligence, and if it's the same broker, then they're going to go do their homework and go get prices and see, is there other plans better plans? Because I'll tell you, I've been on this issue, as you all know, 2021 we had a 17% increase with this broker, and 2022 23 We had a 27% increase with this broker. And now we're 20 some point oh, and now our increase is gone down, thank God. But it didn't provide us a lot of other companies for whatever the reasons is they did or didn't do it and why they chose to renew it. You know, so basically
what you're calling for and what we're calling for is basically saying, look, it's not a done deal that we'd go with a different company, but we want them to everybody to sharpen their pencils, and come back to us with the best deal possible,
right? Because these costs are pretty extreme, you know, strapping 27% COVID-19 and it's due diligence. This is a large contract, we pay with large increases. It's like blase and that we need to make certain we have the best competitive price and service. And if that current person rises to showing that then Sobia then we know we did our job, but if there's somebody else they can provide us better service
currently doesn't impact the health care that employees are getting. No, it will just mean that we'll have somebody will have someone locked in. Now I also want to now one thing I would say, if we do, like, tremendous I would want to say that we don't buy I'm 100% for always us doing RFPs and regular bidding, but I do think to make things compelling for for vendors to want to work with us. I do think we should be thinking two to three year contract Absolutely. So that we're not so so could I would not be appropriate, Laura to call for like a like a two to three year maybe a two year contract with an option to renew the provider, the provider. Okay, yeah. So people definitely be allowed here as well to maybe three years to give them a three year you know, like a three year blend. Yeah. So then I so then I guess I amend my motion to say that. We we move we approve all of the requests related to health care and other insurance services with the understanding that we will absolutely go out to bid in February. No, no.
It's immediate. So like, she's gonna just pick up the process that was stopped.
Oh, oh, okay. What's the February I thought there'll be no later than we will later than February present present results in 10. No later than February right. Is that realistic? Yeah. Okay. So go that we will neatly go out to bid and reopen. It's already been immediately reopen the bid process. And with the understanding that that for this contract, it will be a three year track. That we will be bidding out for. And the provider chose to back to us by February. Yeah. And we must have an option back by February 1.
So the first board meeting in February Yeah, yep. That's why the first step Yeah.
Absolutely. If make me make sense
together, Mr. Schatz Sure. So
the motion is to approve item eight, contingent upon the purchasing director reopening the bids for the insurance broker contract with the process to conclude no later than the first board meeting. In February 2024. With a expected three year contract to be negotiated with the bid awardee.
Perfect. Thank you. I want to state publicly that I did stop the process, the previous contract, because I wanted to understand more what the situation was. But I also want to state that while I did talk to a representative of hunting insurance, I was not told, nor was I asked to stop it. I took that initiative on my own to investigate the situation. I want to I want that to be clear. Thank you. I have a few questions. One is how many people are covered under this plan? Am I environment our employees?
Alright, let me ask a different question. How many employees do we have?
Thank you. The next question. When does this expire?
The coverage would last us until 1231 of 2024. And so then we would need to renew coverage again or through a new broker. Potentially, one identify
if we didn't approve this today, how much time will we have
if we don't prove this today? We have until December 31 until our current year coverage, but we need time for the employees to do open enrollment. Open enrollment is typically scheduled to start in the first of November.
So this would impact the employees if we didn't do something speeding.
It could it could it could delay the beginning of open enrollment, at least a current plan to timeline for open enrollment. And so it could have an impact on the time line that employees would have to decide which plan and or whether or not they're going to take the insurance.
I don't think so I don't
and something's changed then obviously because when we approve these last three contract, health care contracts, we the board had multiple choices and took a lot of time talking about each plan and its value and clause. The board chose a plan and that's what the board members received that there was no option for employees employees. If this is the plan we approved. And then if they choose they have coverage elsewhere that I'm assuming there's some kind of in lieu of coverage or must be some of the payment I never even asked him a question. But there was an employee's going to the open market and trying to figure out what they're going to get. It's what we the VOR and one of my one of one of my homeowners whether
they choose to join or die or which one of the
Yeah, so for example, if you look at page 52 of the packet really quick, it's the medical renewal, right. So there are two options that we offer. We offer an HMO plan through BCN. And we offer a PPO plan through Blue Cross Blue Shield of Michigan. So even within the board approved options, there are employee choice on which of those two plans they want to choose. And the the cost to the employee is different for those two plans. So we do want to give them enough time to feel educated on what the new cost for their premiums are, and how that would impact their paycheck. And so that's why we try to provide and I think it's fairly standard to provide approximately two months for open enrollment for them to be able to be educated and make that selection before before the one one start.
So that's
in the past we never gave them two options. This is new, we've only had a option. There wasn't two options.
I can't answer that question. Do these two options are identical. So it looks like we did have two options for 2023 and
because when I have what we approve is one and I have it here highlighted from 2023. So I don't know where the second one came. But we're going to make clear these days but I have a plan from last year. And it's highlighted, we prove there's no second option. So if there is a second option, something changed. So anyways, we need to get it resolved. So that and again, I agree with you at timewise. But typically, we would have had more options. I mean, just like this last year came, there was many options, because we were faced with a 27% increase. So we wanted to look at all the options we had. You know, of course we want to provide the best coverage that we can but what can we afford is the question. We don't want to give the best what can we provide? And, and I know from my experiences in this market, on a personal level, there's ways to drive that premiums down by raising deductibles. But the organization can backfill those deductibles to bring the premiums out. So there's creative ways it's not my forte I'm not pretending to be this my lane, but you give me no traces here like this is it, prove it? That's like, I don't operate like that. So that's why I really want to take this out to bed. And I want to have somebody do diligence and bring back all these options and help us drive our costs down for the future. And while still providing a good level of insurance for employees.
Thank you. Thanks for the questions. We have a motion and a second. Could you call the roll? Mr. Schroeder? Yes.
Director preusse? Yes, Director lane. Yes, Director Abood? Yes. Director Wiley.
Yes. Chairman millenary. Yes. Thank you.
Thank you. Thank you. Thank you and next we have the day August. consolidated financial statements. Mr. Webb.
Good morning. I'm Phil Webb, the Director of Finance. The financial statement start on page 65 of your board packet. I'd like to call your attention to for a few items I'll start with on page 69. And that's the facility statement of income for the Huntington place convention center operations. And about halfway down the page. It has the adjusted gross income. And the good news on that is in the year to date, actual column which is the fifth column of numbers. It's a $9,063,000 for the total adjusted gross income just to run one
doesn't have page numbers. What does that look like?
Right we for the next one, we've put the page numbers on the left side of the page going for her Okay, so.
So, on the left side the 3565 different landmark landscape.
Yep. 60s 60s parents pay 60 is the first member that gets can't see and then the next page is 6969.
Okay, thank you.
And so on the year to date actual column of an adjusted gross income row. It's $9,063,000 for year to date, adjusted gross income and in the far right column is the year to date from the prior year. So that's a 33% increase compared to where we were a year ago. So that means we're coming out of COVID but also the next column from the $9 million column is the $10.8 million column and year to date budget. So we're coming out of COVID but not as fast as we expected to louder coming out of the budget. And also on this page. Near the bottom we have total operating expenses. And we were under budget for the month by a $35,000 margin which is good, but I like to call your attention to the penultimate column which is the variance for a year to date. And that's a $694,000 savings from budget, which is about 4.1%. So that's due to the cost saving measures that we've had. And you know, some of it is due to utilities with electricity. We thought that the previous auto show would set a new peak sales not here, but he could further explain it better. We thought we'd set a new peak at like 12 kilowatt hours. No, it was really about 6.4. So we thought we would have an additional $30,000 each month from DTE for that but that didn't come to come true so we're able to save that money in this year. First what that means is that the auto show wasn't as big as it was yesterday didn't have the electrical usage that we anticipated. So that's good news and bad news. And I'd also like to move forward a few pages to page 77 which is the summary financial statement. And that just shows our all of our revenues and expenses kind of a one page summary by department. And so the good news on that is that for 11 months, the total year to date percent of a budget would be 91.7%. And then the almost to the far right column or each total expenses reviews 86% of the annual budget, which is less than that 91% budget mark. Any questions on that? I kind of jumped around but just to show that.
So Mr. Webb so we're nearly $3 million in additional revenue this year versus last year. Correct. But probably a little, little less than $2 million less than we budgeted for. Yes, yeah. 1.8. Yes. All right. Yeah. So strong. Year over year growth, no question. Correct.
And that's all I have. There are any questions?
Any questions? No. I would
just, again, encourage if we know we're missing our revenue projections and for whatever reasons it might be, even though we're going in a good direction from where we were pandemic, we have to adjust our expenses. And that's exactly what we did. I mean, we have to find how we're going to adjust that option. And it can't be on the backs of not doing capital projects or, or projects to affect this building. That's
also capital projects. We're not responsible for capital projects, and that comes from the authority.
The problem is that we have we're still working on it starts off as an app's project. By the time it gets to capital. It's over a quarter of a million a half a million. We don't have figured that line yet. So to kick the can I'm not picking on my budget ticket on your budget, but it's still all our budget. Okay. And so we need to think of it in terms of you know, we define Ops is just anything less than 10,000. And we'll manage the money on the other side, you know, but we're working through finding a good seamless way to that, but I just want to throw that out there. We do see money. What I've seen in the past is just reducing projects, or cutting out maintenance things that might need to be done. We might want to look for other ways that that compass
with some other ways to Okay, Mr. Robot, I assume at the next board meeting, you'll give a final Yes.
Yes, sir. About finished they weren't ready in time to go out into board. Picking. So.
Thank you. Any questions from Mr. Wet? No, thank
you. Alright, thank
you very much. Next, do we have any old business? We have any old business partners? Any new business? Um, do we have any citizens wishing to address the board?
Have nothing. Anybody in the audience interested in addressing the board? No. At this point, then I'd like to consider a resolution to adjourn. This meeting. So moved. Second. All in favor? Aye.
