Synagro Technologies has asked the Detroit City Council not to act in haste on the council’s threat to rescind the company’s contract with the Detroit Water and Sewage District (DWSD) over reports of attempted briberies by a Synagro representative. Instead, Synagro CEO Robert Boucher appealed to the council to delay any decision until after the FBI completes its investigation.
The FBI, as is their policy, is not revealing any information about the status of the investigation, but some council members have already been interviewed, and at least one has turned over documents. “I understand that the ongoing federal investigation has created a difficult environment in which this issue is being discussed and debated,” said Boucher in a letter to council members, “but I believe it is important that you have the results of the investigation before considering taking any action.”
Boucher pointed out that the contract with Detroit Wastewater continues to benefit the city, including providing 150 construction jobs and 55 full-time positions. “Our contract will also save the city of Detroit $5 million per year and over $125 million over the term of the contract,” he added.
Boucher reminded the council that Synagro is not a target of the investigation, that the company representative in question remains suspended without pay, and that ties have been severed with the contractor who worked with him. At this point, the city council reportedly has only discussed action on the Synagro matter. Reports were that council members were contemplating a vote last week, but that time passed by with no decision.
Synagro has referred questions to its communication firm, McConnell Communications, which in turn has not returned calls.
Actually, the council would be voting on contract modifications that were approved last November, DWSD spokesman George Ellenwood told Green Markets. “It isn’t a new contract as has been reported by the media and others,” Ellenwood noted. “It is an amendment to an existing contract, which was necessitated by the buyout of the original contractor.” He said he understands the council members have the city’s legal department and their own research staff looking into grounds for terminating the Synagro contract. Whatever reasons they come up with, suggested Ellenwood, the question will have to be decided on something besides contract performance. “At this point it would not be on the grounds of failing to perform as required by the contract,” he commented.
The main changes that Synagro brought with it when the Houston-based company took over the contract involved the manner in which the material was to be handled and the construction of a pilot fluid-bed incinerator that would provide the district with lower energy requirements and lower emissions. With the changeover, Ellenwood explained, Synagro would establish palletizing capability to handle the part of the sludge that wouldn’t be incinerated. Presently, DWSD is incinerating 10,000 tons or more per month, while Synagro takes care of the rest with land-application on farmland and land-filling of a smaller amount at a permitted disposal facility. Last month, Synagro land-applied a little over 8,000 tons and disposed of another 4,700 tons in a landfill, while DWSD incinerated 13,500 tons. Land application takes place on about 5,000 acres where the property owners are involved in non-food related agriculture.