WB awards stimulus project
to firm with Canadian ties
By Eric Czarnik
C & G Staff Writer
WEST BLOOMFIELD — Despite the complaints of a local union, the West Bloomfield Township Board awarded a stimulus-funded sewer project to a company with Canadian ties.
At a Nov. 16 meeting, the Board of Trustees initially voted 4-3 to spend federal stimulus money and hire Liqui-Force Services USA Inc. to do a sewer-lining project.
The yes votes were Clerk Catherine Shaughnessy and trustees Gene Farber, Howard Rosenberg and Larry Brown. The no votes were Supervisor Michele Economou Ureste, Treasurer Teri Weingarden and Trustee Steven Kaplan.
Later in the meeting, Ureste changed her mind and asked for another roll call vote. The new vote was 5-2 in favor of Liqui-Force.
The vote took place after the International Union of Operating Engineers Local 324 accused West Bloomfield of potentially sending taxpayer dollars across the border. Although Liqui-Force USA is based in Romulus, another Liqui-Force location is in Kingsville, Ontario.
Union members like West Bloomfield resident Ron DiPonio told the board that it was only fair to give the project to a completely American firm.
“Too much stuff is being farmed out, so hopefully you’ll do the right thing,” he said.
Township officials said Liqui-Force USA is technically a Michigan corporation. However, the two Liqui-Force businesses share a Web site, and township officials noted that the site’s principal contacts have Canadian phone numbers.
Throughout the meeting, the township board sometimes called the Canadian Liqui-Force a parent company of Liqui-Force USA. But Liqui-Force USA Vice President Max Gowdy said the two companies are separate firms that are basically owned by a Canadian holding company.
The prominence of Canadian phone numbers on the company Web site is a result of not updating it in awhile, he said.
Township officials specified that they have complied with federal guidelines while picking Liqui-Force USA. For instance, they said the stimulus’ made-in-America mandate requires that project materials be manufactured in America. The sewer-lining project will use resin and felt liner from the Midwest.
Because Liqui-Force was the lowest responsible bidder, board members said it could be risky to choose another company because the government only reimburses based on the lowest bid. The Liqui-Force bid was approximately $2.9 million compared to about $3.2 million for the second-lowest bidder. Officials feared that picking another company could force the township to pay $300,000 or more out of its own pocket.
Ureste said the entire Board of Trustees is comprised of Democrats who want to keep jobs in the U.S., and the board’s motion to approve the bid encouraged Liqui-Force to use American labor.
But she told union representatives that West Bloomfield could not afford to risk major costs while it is trying to prevent a $7 million deficit in 2012.
“Please, please take the message back to (the) construction union to lobby our legislators,” she said. “They have put this board and most likely many boards in a compromising position.”
Although Liqui-Force’s Gowdy was pleased with the vote, he said it was disappointing to see the controversy. He added that he would abide by the township’s request to use American labor.
“We do have 22 employees at this time,” he said. “Eighteen of those employees are Michigan residents. They will be the people on the job.”
Despite the board’s votes on the issue, board members revisited the Liqui-Force issue during a Nov. 19 special budget meeting. Per Ureste’s request, the board voted on a motion to reconsider the choice of bidder. But the motion failed 3-4, and Weingarden, Kaplan and Ureste were the supporters.
After the meeting, Kaplan insisted that the company was mainly Canadian. “Each of us proved that Liqui-Force is in fact a Canadian corporation with a very small Romulus office,” he said.
“The stimulus money is designed to galvanize and promote business and the economy and United States — and therefore should only be awarded to an American company.”
But Shaughnessy said the township’s legal counsel informed her that keeping Liqui-Force USA would avoid legal or financial trouble.
“The low bidder is a Michigan company,” she said. “They pay Michigan taxes, they hire Michigan workers, and the product that they are using is made in the U.S. and assembled in Michigan.”
For more information on Liqui-Force Services USA Inc., visit www.liquiforce.com or call (734) 955-2508.
You can reach Staff Writer Eric Czarnik at eczarnik@candgnews.com or at (586) 498-1058.
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