Sludge recycler appeals to Detroit council

Synagro Technologies Inc. of Houston said it is not a target of the FBI's corruption probe. A company representative who helped broker the agreement has been suspended.

Some council members have been interviewed by the FBI, and at least one has turned over documents. The FBI and U.S. attorney's office have declined to comment.

"I understand that the ongoing federal investigation has created a difficult environment in which this issue is being discussed and debated," Synagro Chief Executive Robert Boucher Jr. said 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."

The July 18 letter was released by the company Monday. There has been talk about rescinding the contract, which was approved 5-4 in November.

The council is awaiting advice on whether it has the authority, but no decision appears imminent.

"I think it's going to come down to what the facts show. ... If the evidence suggests there was wrongdoing, I would be supportive of rescinding the contract. But we're not there yet," said council President Ken Cockrel Jr., who opposed the deal last fall.

Boucher said Synagro employee Jim Rosendall remains suspended without pay, and the company has cut its ties to Rayford Jackson, a contractor who worked to get the deal to handle city sludge.

Earlier in July, Rosendall publicly acknowledged making a "mistake" in his dealings with the city and said he was "fully cooperating" with the FBI.

There are hints that wiretaps have been used in the investigation. Some council members have said they've received letters from the FBI informing them that their conversations were picked up on another person's bugged phone.

In his letter to Detroit council members, Boucher emphasized the benefits of the city-Synagro deal, including 150 construction jobs and 55 full-time jobs. The company handles waste from treatment plants in 37 states.

"Our contract will also save the city of Detroit $5 million per year and over $125 million over the term of the contract," Boucher wrote.

An e-mail to Boucher seeking additional comment was referred to a Detroit-based spokeswoman, Darci McConnell, who declined to comment.