HomeMy WebLinkAboutResolutions - 2010.09.23 - 10345By 44enaLVI
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Title
grOAKLAND1 L. BROOKS PATTERSON, OAKLAND COUNTY EXECUTIVE
COUNTY MICHIGAN
I hereby acknowledge receipt of MR #10246 and the veto memo pertaining thereto.
EXECUTIVE OFFICE BUILDING 41 WEST • 2100 PONTIAC LAKE RD DEPT 409 • WATERFORD MI 48328-0409 • (248) 858-0484 • FAX (248) 452-9215
OAKLAND; L. BROOKS PATTERSON, OAKLAND COUNTY EXECUTIVE
COUNTY MICHIGAN
To: Oakland County Board of Commissioners
From: L. Brooks Patterson, Oakland County Executive
Re: Veto of MR #10246
Date: October 1,2010
I have vetoed MR #10246 for the following reasons:
1. Using taxpayer funds Oakland County purchases between $100 million and $150
million each year in goods and services. The goods and services purchased are those
considered necessary to meet taxpayer needs. Providing select businesses a 5%
preference means taxpayers will be expected to pay either an additional $5 million to
$7.5 million dollars for the same amount of goods and services purchased before
preferences were imposed or, as is more likely, it means they will receive between $5
million and $7.5 million less in goods and services for the same amount of tax
dollars. It is not an act of fiscal prudence to pay more than necessary for goods or
services when that means that those who earned the money in the first place, our
taxpayers, are worse off as a consequence of the preferences.
2. Preferences establish protectionist barriers to competition. Reduced competition
means higher prices for taxpayers.
3. Preferences carry implementation risks that lead to higher-cost government and a
larger bureaucracy. MR #10246 fails to define what constitutes "goods manufactured
or services provided by business located in the County of Oakland." Is the distinction
merely geographical? Is the answer provided by merely a mailing address? What of
Post Office boxes, telephone fronts or simply the presence of a registered agent'? Is
the answer found in a content measurement analysis? How are goods assembled in
another state from parts manufactured in Oakland County treated? What of services
sold by an agent in Oakland County, yet computer programmed, designed or
implemented in another state or country and then delivered in Oakland County'? The
rules are not clearly defined and no resources were identified or provided to
implement and enforce the ill-conceived preferences policy.
4. Local purchasing preferences politicize procurement. It invites establishment of a
"friends and family" environment that discourages innovation, participation and
competition. Unlike "Buy American" policies that promote the common interests of
these United States, local purchasing preferences encourage the Balkanization of
regional economies. It invites Oakland County's 62 separate cities, villages and
townships to establish similar protectionist policies that effectively tell employers
one city, village or township over, that they are not welcome here if they are not part
of the "local family."
EXECUTIVE OFFICE BUILDING 41 WEST • 2100 PONTIAC LAKE RD DEPT 409 • WATERFORD MI 48328-0409 • (248) 858-0484 • FAX (248) 452-9215
October 1, 2010
Page Two
5. In the name of creating and maintaining jobs for Oakland County residents, local
purchasing preferences can actually create an opposite affect. Citing US Census data,
SEMCOG reports that some 290,000 of our citizens, almost 41% of our workforce,
leave Oakland County every day to work outside of the County. By establishing a
purchasing policy that places companies employing those Oakland residents at a
competitive disadvantage, we deprive the companies of one of the benefits of hiring
Oakland County residents by reducing sale opportunities for those companies thereby
retarding their growth and inviting layoffs of our residents. If jobs are truly the goal,
shouldn't the preference be for employers who employ an Oakland County resident,
regardless of where the company is located?
6. Punitive local purchasing preferences will promote isolationism, discourage foreign
investment and adversely affect job retention and job growth in Oakland County.
Oakland County welcomes and enjoys the benefits of having 853 businesses
representing 700 foreign-owned firms from 35 countries. These companies employ
thousands of Oakland County residents. Companies like Siemens, Anheuser-Busch,
Honda, Food Lion and Nestle offer many products and services, not all of which are
"locally manufactured" or performed here, but may be of value to the county when
offered at the lowest responsive price as part of a competitive bid process. Sales by
these companies to local government can help these companies stay strong, thereby
supporting the jobs they provide here. Such sales also demonstrate that Oakland
County is a great place to grow. MR #10246's combination of divisive protectionist
rhetoric and punitive purchasing policies may tell these firms not to stay, grow or
expand here. If these firms leave, they take with them thousands of jobs Oakland
County's economy needs for there to be a real economic recovery.
7. Some of the "Whereas" justifications in MR #10246 are completely false. Oakland
County does not have a "higher than national average" cost of living or "higher taxes"
that makes conducting business "comparatively costly." According to the ACCRA
Cost of Living Index, the recognized authority, Oakland County's composite cost of
living index as of the second quarter of 2010 is 98.2, with 100 being the national
average. Oakland's cost of living is below the national average, not 22% higher as
falsely claimed. And Oakland County's 4.19 operating millage is effectively the
lowest in the state when one considers we are actuarially funding our OPEB
obligations within that 4.19 mill levy and not passing today's costs onto future
generations.
8. Oakland County businesses do not need a budget busting, multi-million dollar
expansion of government to succeed, even in these challenging times. What Oakland
County businesses have come to expect from Oakland County government, and what
my administration has worked to deliver, is a smaller government with fewer
employees and lower taxes. The only thing business wants, here in Oakland County
and across the country, is a less intrusive government, with lower taxes and
significantly reduced regulations. In other words, they want government to get out of
their way and let them succeed and prosper.
October 1, 2010
Page Three
9. I feel compelled in this veto message to mention one Democratic Commissioner by
name since he, Tim Bums (D/ Clawson-Troy) published an unauthorized picture of
him and me on his website claiming that he was "proud to have been able to vote
balanced budgets through 2013 that don't involve raising taxes or deficit spending."
One point that Mr. Bums conveniently left out of his self-aggrandizing proclamation
was that he, along with his entire Democratic caucus and one rogue Republican, had
voted earlier that day to spend an additional $5 million to $7.5 million on taxpayer
funded purchases through this preference scheme. It is Bums' preference vote that
prompts this veto in order to protect Oakland County's three year balanced budget.
MR #10246 is an ill-conceived piece of protectionist regulation that will discourage innovation,
reduce competition, politicize the procurement process, increase the size and cost of government
and may well result in the layoff of county residents working outside Oakland County, It is
vetoed.
C7- /, 7 2 01 0
Miscellaneous Resolution #10246
0" BY: Commissioner David Woodward, District #18 ft/11–qt/ 6-01- ' / .D/ 7—
RE: Board of Commissioners - Incorporating "Buy Oakland First" Policy in
Purchasing Procedures
TO: Oakland County Board of Commissioners REQUESTING SUSPENSION OF THE BOARD RULES FOR
IMMEDIATE CONSIDERATION Chairperson, Ladies and Gentlemen: UNDER NEW BUSINESS
WHEREAS a commitment to reinvesting in our local economy is an essential element to
the ongoing stability and growth of local businesses based in Oakland County and the
State of Michigan; and
WHEREAS in 1992, with the adoption of Miscellaneous Resolution #92057, entitled Made
in the USA, the Oakland County Board of Commissioners affirmed "that it was in the best
interest of the United States and the County of Oakland to promote the purchase and use
of goods and services manufactured and/or originating in the United States; and
WHEREAS MR #92057 is incorporated into Section 2400.1 of the Oakland County
Purchasing Policies and Procedures - providing that when Oakland County makes a
purchase of $10,000 or more, the County of Oakland shall give preference to products
manufactured in the United States when they are available at competitive prices and are of
equal, superior, or similar quality; and
WHEREAS small business enterprises and county-based enterprises employ or are more
likely to employ younger workers, who represent the largest segment of the unemployed
population; and
WHEREAS Oakland County has a compelling public interest in ensuring that there are as
many job opportunities available to residents of the county as possible; and
WHEREAS Oakland County has a compelling interest in economically strengthening
county-based enterprises and reducing unemployment among residents of the county; and
WHEREAS the cost of living in Oakland County is 22% higher than the national average.
Combined with higher taxes, this makes living and conducting business in Oakland County
and Michigan comparatively costly; and
WHEREAS offering incentives to retain and attract local businesses is necessary,
especially in light of the current economic downturn being experienced in the State of
Michigan; and
WHEREAS the Emerging Sectors strategy, wherein County Executive L. Brooks
Patterson travels internationally, seeks to diversify the economy in Oakland County by
attracting new companies and attracting a highly skilled workforce to help retain existing
businesses in Oakland County.
WHEREAS economically strengthening small and county-based enterprises would
improve the region's economy and aid in the reduction of the rate of unemployment
experienced by persons residing in Oakland County; and
Commissionef
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NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
hereby affirms that Oakland County has a responsibility to create and maintain job
opportunities for residents of the county and to ensure that county-based and Michigan-
based enterprises have a reasonable share of the contracts awarded by Oakland County.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners
establishes a purchasing preference policy for products manufactured locally and services
provided by businesses based in the County of Oakland, the State of Michigan and/or the
United States.
BE IT FURTHER RESOLVED that bids received for goods manufactured or services
provided by businesses located in the County of Oakland shall be deemed reasonable and
competitive if they are five (5%) percent or less above the cost of goods manufactured
and/or services provided by businesses not located in the County of Oakland.
BE IT FURTHER RESOLVED that bids received for goods manufactured or services
provided by businesses located in the State of Michigan shall be deemed reasonable and
competitive if they are two and one-half (2.5%) percent or less above the cost of goods
manufactured and/or services provided by businesses not located in the State of Michigan.
BE IT FURTHER RESOLVED that bids received for goods manufactured or services
provided by businesses located in the United States shall be deemed reasonable and
competitive if they are two and one-half (2.5%) percent or less above the cost of goods
manufactured and/or services provided by businesses not located in the United States.
Chairperson, we/pow the adoption of the foregoing Resolution.
ommissioner David Woodward
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Resolution #10246 September 23, 2010
Moved by Woodward supported by Coulter to suspend the rules and vote on Miscellaneous Resolution
#10246 — Board of Commissioners — Incorporating "Buy Oakland First" Policy in Purchasing Procedures.
Vote on motion to suspend the rules:
AYES: Greimel, Hatchett, Jackson, McGillivray, Nash, Schwartz, Taub, Woodward, Zack, Burns,
Capello, Coleman, Coulter, Gershenson. (14)
NAYS: Jacobsen, Long, Middleton, Potts, Runestad, Scott, Bullard, Douglas, Gingell, Gosselin. (10)
A sufficient majority having voted in favor, the motion to suspend the rules and vote on Miscellaneous
Resolution #10246 — Board of Commissioners - Incorporating "Buy Oakland First" Policy in Purchasing
Procedures carried.
Moved by Woodward supported by Coulter the resolution be adopted.
Discussion followed.
Vote on resolution:
AYES: Hatchett, Jackson, McGillivray, Nash, Schwartz, Woodward, Zack, Burns, Capello, Coleman,
Coulter, Gershenson, Greimel. (13)
NAYS: Jacobsen, Long, Middleton, Potts, Runestad, Scott, Taub, Bullard, Douglas, Gingell,
Gosselin. (11)
A sufficient majority having voted in favor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on September 23,
2010, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac,
Michigan this 23 1d day of September, 2010.
Ruth Johnson, County Clerk
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DATE:
TO:
FROM:
IN RE:
Ruth Johnson
d County Clerk/Register of Deeds
www.oakg ov.corniderkrod
SEPTEMBER 23, 2010
L. BROOKS PATTERSON, COUNTY EXECUTIVE
RUTH JOHNSON, COUNTY CLERK
RESOLUTIONS ADOPTED AT THE SEPTEMBER 23, 2010 BOC MEETING
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The attached resolutions were adopted at the Board of Commissioners meeting on September 23, 2010. The
meeting adjourned at 12:00 p.m.
#10221 Board of Commissioners — Tr-Party Improvement Program Fiscal Year 2010 Appropriation — Charter
Township of Commerce — Pontiac Trail at M-5 — Project No. 50471
#10223 Board of Commissioners — Tr-Party Improvement Program Fiscal Year 2010 Appropriation — Charter
Township of White Lake Gravel Road Improvement Program - Project No. 50582
#10227 Board of Commissioners —2010 Huron Clinton Metropolitan Authority Tax Rate
#10228 Board of Commissioners —2010 Parks and Recreation Property Tax Levy
#10229 Department of Management and Budget — Fiscal Year 2010 Third Quarter Financial Forecast and FY
2010 Budget Amendments
#10230 Clerk/Register of Deeds — Calendar Year 2010 Assistance for Survey, Monumentation and
Remonumentation Grant Acceptance
#10231 Oakland County Driver Safety Policy
#10232 Human Resources Department — Fiscal Year 2011 Collective Bargaining Agreement Extension for
Employees Represented by the Oakland County Employees Union (0.C.E.U.)
#10233 Human Resources Department — Fiscal Year 2011 Wage Re-Opener for Employees Represented by the
Oakland County Prosecutor's Investigators Association
#10234 Human Resources Department — Salary Administration Plan 3rd Quarterly Report for FY 2010
#10217 Department of Facilities Management/Parks and Recreation Commission — Request for Approval of
Residential Lease Agreement with Terry and Martha Foshia, Springfield Oaks County Park
#10218 Sheriffs Office — Contract for Law Enforcement Services at the Michigan Renaissance Festival — 2010
Season
#10219 Circuit Court — Family Division — Oakland County Child Care Fund Budget 2010-2011
#10235 Multidepartmental: Sheriffs Office, Circuit Court and Children's Village — 2010 Edward Byrne Memorial
Justice Assistance Grant (JAG) Program — Grant Acceptance
#10220 Water Resources Commissioner — Request for $125,000 Loan from the Long-Term Revolving Fund for
Administration, Design and Construction of the Lower Pettibone Lake Sanitary Drain
#10222 Board of Commissioners — Tri-Party Improvement Program Fiscal Year 2010 Appropriation — Charter
Township of Commerce — Cooley Lake Road — Project No. 50171
#10224 Board of Commissioners — Tr-Party improvement Program Fiscal Year 2010 Appropriation — Charter
Township of White Lake Cooley Lake Road - Project No. 50171
K-6ti10246 Board of Commissioners — Incorporating "Buy Oakland First" Policy in Purchasing Procedures
10248 Fiscal Year 2011 General Appropriations Act and 2011 County General Property Tax Rates
#10202 Board of Commissioners — Tr-Party Road Improvement Program Fiscal Year 2010 Appropriation —
Charter Township of Lyon; 8 Mile Road — Road Project No.49781
#10203 Board of Commissioners — Tr-Party Road Improvement Program Fiscal Year 2010 Appropriation — City of
South Lyon 8 Mile Road — Project No. 49781
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Ruth Johnson
•aktand County ClerldRegister of Deeds
www.oakgov.com/derkrod
RESOLUT4ONS RECEIV IN C NTY EXECUTIVE OFFICE:
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