Dog Ate The Ordinance - Redux
Once you read this, you will understand why the current council has opted to withhold publishing the new Purchasing Ordinance until the last possible moment, even at risk of violating Anderson County Ordinance Section 2-38, Subsection B.
One of the more interesting aspects of the re-write of the County Purchasing Ordinance is the preferential treatment that will be provided to businesses that are based in Anderson County. If I recall correctly, as a current copy of the ordinance has yet to re-surface, that preference is conveyed in the following form:
Business A sells widget A and is from Anderson County. Business A sells widget A for “x” dollars.
Business B sells widget A and is from Greenville County. Business B sells widget B for “x” dollars.
Based on the last seen copy of the Purchasing Ordinance, Business B, by virtue of not being an Anderson County business, would be assessed a 10% charge. In other words, that Business B would actually sell widget B for “x” dollars PLUS 10%.
On the surface this sounds like an excellent idea. Take care of your local businesses and people in your community.
Ah – but this is the problem; a major, major problem.
Let’s change those generic businesses to car dealerships. Let’s also make those widgets automobiles, specifically Ford Crown Victorias in a Police Interceptor configuration.
Hold that thought for a moment while I explain procurement at the state level. I assure you it is pertinent to this discussion.
Now, for those that have been involved with State Government, the State of South Carolina leverages her buying power by working with businesses all across the state (it’s one of the few things the Palmetto State does and does well). SC State Procurement Contracts are used by state agencies to keep costs down. In addition, political subdivision across South Carolina can leverage the buying power of the state by utilizing these procurement contracts. Keep in mind that political subdivisions are not required to use the discounts, but it is available.
Back to our example of cars and car dealerships . . .
Vic Bailey Ford in Spartanburg is listed, with the state, as THE place to procure Ford Crown Victorias. From what I have read, a CV from Vic Bailey, using the State Procurement Contracts, will set you back some $27,000 or so.
Working from the basis that this revised Purchasing Ordinance passes in Anderson County, Vic Bailey, being based in Spartanburg, would have an “effective 10% upcharge” applied to the cost of a CV. That “effective upcharge” would take the cost of the vehicle to $29,700.
Enter a local Ford Dealership based here in Anderson. That dealership could charge Anderson County $29,699 for the Crown Vic and still be under the cost of the bid. Based on the proposed rules, the local dealership would win.
For those keeping score at home, we just gave $2,699 TAX DOLLARS to a business just because they are located here in Anderson. The local business is, in effect, given leeway to mark-up the good or goods for purchase to a 10% ceiling.
If you’re not outraged yet, let me keep going . . .
With this revision to the county ordinance, we are also looking at a potential for TREMENDOUS PATRONAGE AND GRAFT.
So SSHM, where does this patronage and graft come into play?
The answer is simple: Shell Companies.
Who WOULDN’T take steps to setup a shell company (or companies) here in Anderson County? If you are guaranteed a de facto 10% profit on EVERY transaction with the county just because your business is located here in Anderson, you would be a fool not to take steps to open a business here in Anderson County.
What does this mean for us, the taxpayers of Anderson County?
It means this: You should be happy to pay a 10% premium on everything the county procures, going forward. After all, we’re supporting local businesses, right? It’s almost like a hidden tax to support local businesses!
Be outraged! Be at County Council THIS Tuesday, July 7th. Let your elected officials know they will not return to office if they pass this hidden tax!
- SSHM
SSHM, are you absolutely sure that "10% effective upcharge" isn't included in the price under the state procurement codes? I need to know. If it isn't, I can join Rusty Burns on the list of those who royally screwed up a Federal grant in the last 20 years. And I'm getting too old to deal with cantankerous government auditors over details I sometimes can't even remember.
We didn't have to add ANYTHING to those state bid prices - not even state sales tax. All of those pricing details were worked out between the state and the vendors. (There's where your patronage comes in, by the way - not at the local level, at least as it pertains to items purchased under the state contract.)
I assume Pickens County would have heard something from the auditors by now. Since they haven't, I'll assume everything was okay and I'm in the clear, but one never knows nowadays. 
(And do we really need a "Dog Ate My Homework" REDUX when we haven't finished with the original DUX yet?)
Once you read this, you will understand why the current council has opted to withhold publishing the new Purchasing Ordinance until the last possible moment, even at risk of violating Anderson County Ordinance Section 2-38, Subsection B.
One of the more interesting aspects of the re-write of the County Purchasing Ordinance is the preferential treatment that will be provided to businesses that are based in Anderson County. If I recall correctly, as a current copy of the ordinance has yet to re-surface, that preference is conveyed in the following form:
Business A sells widget A and is from Anderson County. Business A sells widget A for “x” dollars.
Business B sells widget A and is from Greenville County. Business B sells widget B for “x” dollars.
Based on the last seen copy of the Purchasing Ordinance, Business B, by virtue of not being an Anderson County business, would be assessed a 10% charge. In other words, that Business B would actually sell widget B for “x” dollars PLUS 10%.
On the surface this sounds like an excellent idea. Take care of your local businesses and people in your community.
Ah – but this is the problem; a major, major problem.
Let’s change those generic businesses to car dealerships. Let’s also make those widgets automobiles, specifically Ford Crown Victorias in a Police Interceptor configuration.
Hold that thought for a moment while I explain procurement at the state level. I assure you it is pertinent to this discussion.
Now, for those that have been involved with State Government, the State of South Carolina leverages her buying power by working with businesses all across the state (it’s one of the few things the Palmetto State does and does well). SC State Procurement Contracts are used by state agencies to keep costs down. In addition, political subdivision across South Carolina can leverage the buying power of the state by utilizing these procurement contracts. Keep in mind that political subdivisions are not required to use the discounts, but it is available.
Back to our example of cars and car dealerships . . .
Vic Bailey Ford in Spartanburg is listed, with the state, as THE place to procure Ford Crown Victorias. From what I have read, a CV from Vic Bailey, using the State Procurement Contracts, will set you back some $27,000 or so.
Working from the basis that this revised Purchasing Ordinance passes in Anderson County, Vic Bailey, being based in Spartanburg, would have an “effective 10% upcharge” applied to the cost of a CV. That “effective upcharge” would take the cost of the vehicle to $29,700.
Enter a local Ford Dealership based here in Anderson. That dealership could charge Anderson County $29,699 for the Crown Vic and still be under the cost of the bid. Based on the proposed rules, the local dealership would win.
For those keeping score at home, we just gave $2,699 TAX DOLLARS to a business just because they are located here in Anderson. The local business is, in effect, given leeway to mark-up the good or goods for purchase to a 10% ceiling.
If you’re not outraged yet, let me keep going . . .
With this revision to the county ordinance, we are also looking at a potential for TREMENDOUS PATRONAGE AND GRAFT.
So SSHM, where does this patronage and graft come into play?
The answer is simple: Shell Companies.
Who WOULDN’T take steps to setup a shell company (or companies) here in Anderson County? If you are guaranteed a de facto 10% profit on EVERY transaction with the county just because your business is located here in Anderson, you would be a fool not to take steps to open a business here in Anderson County.
What does this mean for us, the taxpayers of Anderson County?
It means this: You should be happy to pay a 10% premium on everything the county procures, going forward. After all, we’re supporting local businesses, right? It’s almost like a hidden tax to support local businesses!
Be outraged! Be at County Council THIS Tuesday, July 7th. Let your elected officials know they will not return to office if they pass this hidden tax!- SSHM
-sshm
stupid less than an hour ago you were saying that a copy was not available, now you know details, what is up with that?
Mark Powell
JD,
I don't believe the revised county ordinance makes an exception for businesses or preferred vendors on the state listing.
Unless the revised purchasing ordinance specifically excludes the 10% effective upcharge to vendors on state contracts, state vendors not located in Anderson County would be subject to said upcharge.
Thats the real issue, JD. Honestly, I don't believe you screwed up anything in the grant writing department. Now as for Mr. Burns ... the record speaks for itself. Speaking of records, did anyone ever find that sewer money?
- SSHM
stupid less than an hour ago you were saying that a copy was not available, now you know details, what is up with that?
Mark Powell-mark-powell
A CURRENT copy is not available. Sometimes, you just have to go to press with what you have in hand.
- SSHM
Didnt cindi scream about the county not using state bids and state procurement on some issue? I thought that was why they REVISED the bid proceddures, so that local companies couldnt get any more "good old boy" contracts that were not the lowest bid.
How can she have it both ways?
MCW flips on whatever issues benefits her cause. Don't be surprised if there is family/friends waiting in the wings for these tasty county "bids" to be opened by her new master, Moore.
(And do we really need a "Dog Ate My Homework" REDUX when we haven't finished with the original DUX yet?)
-jdtippett
I've ridden on the "dux" in DC and Branson MO. I'm not sure a dog could eat one. They're pretty big and I would think tough to boot. It's a fun way to see the sights in either city. My dog only eats shoes. I know he would like a "dux"
But does it "quack" like one?
I worked with state contracts in other states.
Usually, when a customer is buying off state contracts, they don't have to go out for bid. But if that product is NOT covered under state awarded contracts, they do, depending on their purchase proceedures.
That may not be the same as here in SC.
But if it is, then buying a 27000. ford off state contract, you have to be authorized to sell under that as well. So if local Anderson dealer is not authorized, then they can't sell off the contract. Does not mean they can't sell for the same price.
Oh yes PN, in fact you get your very own quacker so you can quack at all the other dux as they roll past.
