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HomeMy WebLinkAboutResolutions - 1990.10.11 - 18301REPORT (Misc. 90125) September 27„ 1990 BY: GENERAL GOVERNMENT COMMITTEE- Richard G. Skarritt, Chairperson RE: Miscellaneous Resolution #90125, Banning Cigarette Vending Machines on County Property TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: The General Government Committee, having reviewed the above referenced resolution, reports with the recommendation that the resolution be adopted. Mr. Chairperson, on behalf of the General Government Committee, I move the acceptance of the foregoing report. GENERAL GOVERNMENT COMMITTEE froAn COUNTY MICHIGAN DEPARTMENT OF CORPORATION COUNSEL Imom 1n1•IIIMM, 11•11111111M, August 16, 1990 Richard G. Skarritt Chairperson General Government Committee Daniel T. Murphy, Oakland County Executive Jack C. Hays, Director 858-0557 Linda E. Wasielewski, First Assistant 858-0553 Gordon R. Wyllie 858-0555 Donald F. Slavin 858-0554 John F. Ross, Jr. 858-0558 Karl W. Randall 858-0556 Michael Blaszczak 858-0551 FAX (313) 858-1003 Re: Miscellaneous Resolution 90125 Banning Cigarette Vending Machines on County Property Dear Mr. Skarritt: You have requested an opinion as to the legality of Miscellaneous Resolution No. 90125 banning cigarette machines on County property. Cigarette machines are currently allowed on County property as a result of a Purchasing Agreement with the Department of Management and Budget which provides for certain machines in certain locations in County buildings. It allows for the placement of cigarette machines in 9 locations in County buildings. That contract is with Vend-A-Matic. Contractually, it is a contract which we could be held to until the expiration of the current contract period. There would be no restriction in negotiating a contract prohibiting cigarette vending machines in the future. The interesting thing is that the President of Vend-A-Matic Co., Mr. Louis E. Hirsch, has agreed that his only request would be to replace the cigarette machines that are removed with some other vending machine. It happens that Vend-A-Matic provides machines to Oaks Management for several of the Oakland County Park locations. Therefore, it could be assumed that there would be no problem with the removal of the cigarette machines from the park's locations either. Apparently, there is no written provision concerning the vending machines with Oaks Management. In summary, it is my opinion that, even though Vend-a-Matic may have a contractual right to place vending machines in certain County locations in County buildings, they would abide quickly to a Board resolution requesting their removal. Certainly, any future contracts for vending machine services can be negotiated without cigarette machines. Very truly yours, OAKLAND COUNTY CORPORATION COUNSEL Gordon R. Wyllie Sr. Assistant GRW:Of Court iower ii1 - west Wing Pontiac, Michigan 48053 • (313) 858-0550 • 1200 North Telegraph Road • /r-IX .4.41Adt kum-,ncAmvx-- 1iies D. Ferrens, County Commissioner, District #7 a Cid& May 24, 1990 Miscellaneous Resolution # 90125 BY: James D. Ferrens, County Commissioner-District #7 RE: BANNING CIGARETTE VENDING MACHINES ON COUNTY PROPERTY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS, the major portion of county buildings have been designated as non-smoking areas in recognition of the health hazards caused by smoking; and WHEREAS, it is unlawful for minors to purchase tobacco products in the State of Michigan, but vending machines provide no safeguards from preventing children from buying cigarettes. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby direct the Oakland County Executive to take necessary action to immediately remove all cigarette vending machines from County property. Mr. Chairperson, I move the adoption of the foregoing resolution. EINAPPROVETHE FOREGOING RESOLUTION laaA'r\ Daniel T. Murphy, C .unt/ Date :October 11, 1990 FISCAL NOTE (Misc. 90125) BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON IN RE: BANNING CIGARETTE VENDING MACHINES ON COUNTY PROPERTY, MISCELLANEOUS RESOLUTION #90125 TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: Pursuant to Rule XI-G of this Board, the Finance Committee has reviewed Miscellaneous Resolution #90125 and finds: 1) Vend-a-Matic, Inc., is under contract with Oakland County for placement of vending machines on county property, six of which are cigarette machines; additionally, Parks and Recreation, through Oaks Management contracts for three cigarette machines. 2) The Vend-A-Matic contract is for the period June 4, 1989 through June 3, 1994 with the rates of commission on gross sales increasing from 13.5% to 15.5% over that period. 3) A change in the terms of the contract may require a renegotiation of the contract terms which could include additional food machines. 4) For the period of June 1989 through May 1990 total sales of $340,353 resulted in commission of $45,948 or 13.5% of sales; Sales of cigarettes comprised $22,463 (6.6%) resulting in commissions of $3,050. 5) Revenues for Commissions-Vending Machines is recorded in Food Services 1990-1991 Adopted Budget in the amount of $42,000 for 1990 and $44,000 for 1991. 6) The revenue loss from cigarettes is anticipated to be offset by an increase in revenue from the sales from other products. Therefore, no budget amendments are requested at this time. FINANCE /COMMITTEE cm7/se9060fn Resolution # 90125 October 11, 1990 Moved by Skarritt supported by Aaron the General Government Committee Report be accepted. A sufficient majority having voted therefor, the report was accepted. Moved by Skarritt supported by Bishop the resolution be adopted. AYES: Huntoon, Jensen, Johnson, R. Kuhn, Luxon, McConnell, McPherson, Moffitt, Oaks, Pappageorge, Pernick, Price, Rewold, Skarritt, Wolf, Aaron, Bishop, Caddell, Chester, Crake, Ferrens, Gosling. (22) NAYS: Calandro. (1) •A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND I. Lynn D. Allen, 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 October 11, 199Q _ with the original record thereof now r'emaining ln my office. In Testimony Whereof, I have hereunto of Oakland at Pontiac, Michigan this and affixed the seal of the County day ofell 0_0414r 199LL Lynn—V.. Allen, County Clerk set DY hand 11th