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untanglingwebs
El Supremo
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Let's face it, the trash collection business is lucrative and deadly in some areas, such as New York City, where it is reputedly "mobbed up". Even Soave's former company in Detroit was facing criminal charges in federal court before Judge George Steeh. It was alleged a rival's trucks were destroyed in a bidding war.
In the Mayor Stanley administration, the Director of Governmental Policy , was tried and convicted on corruption charges. FBI file # 194B-DE-72700 (transcribed 5/20/1994) for FBI Special Agents David A. Wintrode and Charles B. Rownd details their interviews with a cooperating witness regarding campaign financing and city vendors including waste collection companies. The cooperating witness was interviewed on three occasions.
The cooperating witness had been in the security business and bragged about his city and county contacts. He stated he was sometimes called upon for help with the city or when city service contracts came up for bid. He then spoke of his role with the privatization of trash collection for the City of Flint and in the securing of a permit for a local strip bar on Dort Highway.
Last edited by untanglingwebs on Mon Jul 04, 2016 3:26 pm; edited 1 time in total |
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Thu Jun 30, 2016 10:56 am |
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untanglingwebs
El Supremo
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The cooperating witness (CW) stated how former Mayor James Sharp, then employed with City Management, spoke with him in February 1994. Sharp allegedly complained how his employer (Soave owned it then) was upset about not getting a piece of the contract. "Sharp conceded that since City management's bid was substantially higher than the lowest bid, the city could not realistically award the contract to City management because of the obvious political ramifications. Nevertheless, Sharp told CW that he expected to get some of the "landfill business" after the garbage was collected. (City Management then owned the Brent Run landfill in Montrose)
The CW said he met Makokha after the CW donated to the Stanley campaign in 1991. The CW alleges he/she had conversations with Makokha regarding fundraising for Stanley modeled after that done for then Sheriff Joe Wilson.
The CW discussed alleged fundraising conversations with makokha, Henry Lembrick regarding soliciting money from Stanley supporters, Wilson supporters and all city vendors.
CW was assigned the task of contacting waste haulers as they needed "seed money" for the book and a golf event. Makokha wanted City management and BFI to each ante up $5,000 each for the outside cover of the book. |
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Thu Jun 30, 2016 11:12 am |
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untanglingwebs
El Supremo
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CW allegedly contacted Paul Tadonio of BFI for the $5,000 donation. Allegedly Tadonio only agreed to $750 and said "if that wasn't good enough, his company did not need the city's business that bad".
According to the CW Sharp agreed to possibly come up with the money, but reminded CW how City Management had already spent a lot of money in Flint , and they needed to see a "return on their investment". CW stated Sharp was "clearly disappointed that City management was not going to get the garbage contract and hinted they might not be as supportive in the future."
CW claims Makokha wanted CW to have the towing contract, but CW refused it. CW claimed Makokha did not like the current contractor, Jim Patton, which is why he wanted CW to take the contract. CW further alleged Makokha wanted to be a "silent partner" in the towing business, orr another business dealing with the city. Makokha was said to give CW the city vendor list and guaranteed a contract CW wanted awarded to them, but CW would run any business selected. |
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Thu Jun 30, 2016 11:24 am |
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untanglingwebs
El Supremo
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Union Printing was said to want $20,000 to print the book, but Cw said Lembrick wanted to have the price negotiated down to $5,000 because Union Printing was the city's largest printing contractor.
The "committee" was CW, Lembrick and Makoha as they planned the golf fundraiser.
CW did not want to handle the money and wanted a checking account.Allegedly Makoha wanted the money kept in his office. At a lunch at Floogles, CW stated money was to be discussed only with CW or Makokha. CW was convinced that Makohha and Limbrick intended to skim money from the event although it was never spoken of until Makokha allegedly suggested the "committee" could make money off the event. Makokha allegedly would be happy with a lesser amount.
James Sharp was not speaking to Makoha allegedly because City Management was not getting the contract."Makokha told CW that it was the best thing that ever happened to Flint because the City had been under a lot of public scrutiny for doing business with Sharp's company." CW said Makokha told him to get $5,000 for the book cover from Sharp because Bill Leone's garbage contract with the city ended in June, 1994.
Note: There was a controversy over the cost of removing a stinking compost heap from the E. Carpenter and Branch Roads. The nearly $1 million dollar cost was later bid out for under $100,000. |
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Thu Jun 30, 2016 11:42 am |
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untanglingwebs
El Supremo
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| "Makokha said he would "take care of BFI at lunch", as he felt he could pressure BFI into a $5,000 cover. Makokha also told CW that Jim Patton was going to have to pay a lot because he had a big contract with the city and the city allowed him to park his airplane at Bishop Airport without charge." |
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Thu Jun 30, 2016 11:45 am |
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untanglingwebs
El Supremo
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Allegations of collusion came up again with the trash contract less than 4 years later.
October 8,1997 Page A1 Flint Journal
GARBAGE-HAULING TERMS CHANGED; SANITATION OFFICIAL OBJECTS TO ALTERED CRITERIA FOR BIDS
"Flint's sanitation supervisor withdrew from the city process to award a multimillion-dollar contact after he was asked several times to "change the criteria"for vendors proposals, according to an Aug. 15 memo obtained by the Flint Journal."
Edison K. Henry Sr.sent the memo to then Public Works Director J. Bennett Jones, hat he was opposed to the revised methods of evaluation to be used for the trash hauling contract.
Then City Administrator,David Ready denied any changes and alleged the they were merely being recalculated. Ready stated the Purchasing Director told him the first calculation had an incorrect assumption about overtime going to the landfill. |
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Thu Jul 07, 2016 10:03 am |
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untanglingwebs
El Supremo
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Citizen's Disposal , the contract holder at the time,was the low bidder of four companies competing for the bid when the proposals were due in the early summer.
The recalculation made City Management Inc., owned by Anthony Soave, the new low bidder. "Former Flint Mayor James A. Sharp Jr.,a longtime ally and campaign contributor to Mayor Woodrow Stanley,is a top executive in the company."
The contract with Citizens Disposal ended June 30, and there were two 60 day contract extensions. |
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Thu Jul 07, 2016 10:12 am |
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untanglingwebs
El Supremo
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Council expressed reservations privately about the contract and some believed it demonstrated political favoritism.
Ready denied there were attempts to steer the contract to City Management.
Henry said in the memo he felt uncomfortable with the changed process as only one bidder complained. At a meeting that unnamed vendor came with materials indicating he had exact knowledge of the selection criteria. That vendor displayed city wage rates and indicated his company could beat them.
A second vendor complained they could not receive information regarding the bid despite repeated Freedom of Information requests. That vendor was City Disposal.
Citizen's Attorney Jerry O'Rourke told the Journal Citizens "wanted an opportunity to evaluate whether the ultimate factors and formulas used by the administration in determining the transportation costs are valid"The issue could go to court,said O'Rourke, if the information is not provided before council votes. |
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Thu Jul 07, 2016 10:26 am |
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untanglingwebs
El Supremo
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According to Ready, the city hired an independent auditing firm to ensure there were no impropriety.
Both companies contributed to the Mayor's 1995 campaign. However, Anthony Soave also had an employee PAC for City Management. The combined campaign donations from City Management were significantly higher.
The distance and time needed to transport to the landfill being used was one criteria in the contract. City Management needed 60 minutes to transport trash to their Montrose landfill which was 42 miles away. Citizens Disposal's landfill was in Grand Blanc and needed only 30 minutes to travel the 17 mile distance. |
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Thu Jul 07, 2016 10:37 am |
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untanglingwebs
El Supremo
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Henry in a second memo stated "Sanitation, as do other divisions, operate with limited personnel.Often it is necessary for crews to work more than one route. When this occurs, the proximity of he landfill to the collector and routes has a major bering on our ability to complete routes."
Jones also requested to be removed from the selection process.
In the first selection process Citizens was lowest with a bid of $4.45 million to City management's $5.08 million.
Even with the new criteria, Citizens Disposal was lower, $4.18 million compared to City Management's $4.52 million, stated Henry to Jones in a July 28 memo.
The city gave City Management the lowest price using varied calculations and according to the Journal, the final proposed cost was unclear. |
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Thu Jul 07, 2016 10:57 am |
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untanglingwebs
El Supremo
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The Journal also noted this wasn't the first controversial trash contract in the city. In 1992 council members fought the administration over attempts to steer a composting contract to Pollard Disposal INC. of Montrose, owned by City management.
Note: A city compost heap near Bray Rd and Carpenter Rd. received many complaints regarding the odor. Council rejected a nearly $1 million dollar proposal for removal and had the project bid out. The compost was removed for under $100,000. |
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Thu Jul 07, 2016 11:04 am |
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untanglingwebs
El Supremo
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| A new dispute is ongoing between the administration and council over the selection of Rizzo Services and Republic for the new contrat. |
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Thu Jul 07, 2016 11:07 am |
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