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The Threat of Privatization: The structure and sordid history of the Detroit Incinerator Oct 1991 to July 2009 and beyond Brad van Guilder, Ph.D. Ecology Center 339 E Liberty St, Suite 300, Ann Arbor, MI 4750 Woodward Ave, Suite 307, Detroit, MI http://www.ecocenter.org
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An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 1 Year Month  Action 1984 Greater Detroit Resource Recovery Authority (GDRRA) created by cities of Detroit and Highland Park 1985 *  City of Detroit enters into Service Contract with GDRRA until October 2021 for waste disposal 1986 *  Construction Bonds issued in excess of $500,000,000 1989 Construction begins on facility 1990 Amendments to Clean Air Act create tighter emission standards for trash incinerators. *  Test burns at Detroit incinerator fail emission limits (Mercury and Dioxin?). John Engler wins Governors race.  Over the next 12 years his administration strongly favors private landfills with state policy and financial tools causing landfill prices to plummet and stranding the GDRRF as an oversized regional facility.
An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 2 Year Month  Action 1991 *  Air Pollution Bonds issued by Economic Development Corp. of Detroit in amount of $171,500,000. *  GDRRF sold to private trust consisting of 70% Philip Morris Capital Corp. and 30% Aircraft Services Corp. (General Electric Capital Corp.).  The sale price is $634,900,000 of which the city of Detroit receives $54,000,000 to confront budget crisis. 1996 Settlement between GDRRA and MWE over facility performance.  City of Detroit loses case and pays $6.5 million. 2001 2002 Air pollution permit renewed.  Permit delayed by community complaints but approved by MDEQ and USEPA without changes. 2003 Detroit Thermal, subsidiary of Thermal Ventures, takes over steam distribution from DTE.  MPSC requires DTE to purchase steam at above market rate from GDRRA and resell to Detroit Thermal at lower price to subsidize both GDRRA and Detroit Thermal.
An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 3 Year Month  Action 2005 Sept.:  GDRRA board initiates rapid Request for Proposals for planning of solid waste disposal after July 1, 2009. Oct.:  GDRRA selects Detroit Waste Solutions, LLC as winner of RfP, but defers awarding of contract to December 21 st  meeting.  Detroit Waste Solutions was formed in September 2005 as a partnership of Synagro Corp. with James Rosendall, Rayford Jackson, James Bazen, James Sype, Perry Schnuck, and James Carmichael. Dec.:  On December 19 th  Detroit Waste Solutions, LLC withdraws its proposal for planning as this may be a conflict of interest with being awarded the contract for actually operating Detroit’s solid waste disposal.
An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 4 Year Month  Action 2006 March:  GDRRA board initiates new solid waste planning process with Dvirka & Bartilucci Consulting Engineers of New Jersey. July:   *  City of Detroit imposes $300 per household Solid Waste Fee to stem yet another budget crisis. Fall:  Detroit City Council endorses creation of Environmental Task Force. GDRRA begins “stakeholder” meetings to inform consultant, but consultant never attends any of the three meetings. 2007 Jan:  City Council Environmental Task Force releases  City of Detroit Future Solid Waste Plan . July:  GDRRA consultant releases  Strategic Operating Alternatives Report .
An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 5 Year Month  Action 2008 Coalition of over 10 community and environmental organizations adopts the name Coalition for a New Business Model for Detroit’s Solid Waste (CNBM). April:  CNBM provides Detroit City Council with plan and alternative budget to implement recycling and end use of incinerator. May:  MOSES community rally sees Deputy Mayor Anthony Adams commit to curbside recycling pilot program.  *  GDRRA issues first version of RfP for solid waste disposal. *  Detroit City Council approves plan for new business model and adopts alternate budget with $3.85 million for pilot curbside recycling program. June:   *  GDRRA directs Covanta to NOT pursue lease renewal with owners.  GDRRA decides to NOT attempt to purchase facility. Sep:  Bids received from first RfP expire.
An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 6 Year Month  Action 2008 Dec:   *  GDRRA steam contract with DTE/Detroit Thermal expires. Direct contract with Detroit Thermal negotiated with drop in revenue for GDRRA.  Air pollution permit expires.  EC submits FOIA request for first bids. 2009   Jan-Feb:  GDRRA issues new RfP claiming to be extension of expired RfP.  Denies, partially grants, fully grants and eventually fully denies FOIA request. EC threatens lawsuit of bids not released.  GDRRA agrees to release on or before April 30 but does not release until May. April:  GDRRA presents $23.3 million budget to Detroit City Council with no explanation as to how that money will be spent other than waste disposal. May:  GDRRA releases new bids to city council the day before budget hearing. June:  City council approves GDRRA budget with no details of method, structure or multi-year cost projections.
An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 7 Year Month  Action 2009 June 17  Waste Management opens recycling facility in Detroit. June 18  GDRRA board snubs Great Lakes Recycling and instead awards recycling materials recovery contract to Waste Management. *  GDRRA board claims to pass resolution to permit sale of GE share to Covanta and allow GDRRA to purchase that share at a later date.  Councilwoman Watson specifically asks whether the resolution provides for the continued use of the incinerator.  Mr. Beckham and Mr. Prymack declare that it does not create a contract.  During public comment Mr. Prymack claims he has never stated that a contract would be awarded at this meeting. June 19  Owners send letter to GDRRA to compel delivery of Detroit’s waste to the incinerator.
 
An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 8 Year Month  Action 2009   June 23   *  Charles Beckham signs agreement to allow sale of GE share to Covanta. The agreement commits GDRRA to deliver Detroit’s waste to the incinerator July 1, 2009 through June 30, 2010 to match GDRRA’s alternative cost to transport and dispose waste.  The agreement also stipulates that if GDRRA purchases Covanta’s share anytime between January 1, 2010 and June 30, 2013 that would trigger a renegotiation of the disposal fee to “an industry standard” (likely about $75+/ton) and commit GDRRA to a 5-year contract. Kenyatta resolution demands GDRRA provide full documentation immediately for council review. June 30  Watson resolution calls for city council to seek injunction against delivery of waste for disposal at incinerator. July 1  Agreement for continued use of incinerator (undated) for one year goes into effect under the signature of John Prymack.  Agreement is for a cost of $25/ton.

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Great Lakes Waste and Environmental Justice

  • 1. The Threat of Privatization: The structure and sordid history of the Detroit Incinerator Oct 1991 to July 2009 and beyond Brad van Guilder, Ph.D. Ecology Center 339 E Liberty St, Suite 300, Ann Arbor, MI 4750 Woodward Ave, Suite 307, Detroit, MI http://www.ecocenter.org
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  • 6. Detroit Solid Waste Cost Scenarios
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  • 16. An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 1 Year Month Action 1984 Greater Detroit Resource Recovery Authority (GDRRA) created by cities of Detroit and Highland Park 1985 * City of Detroit enters into Service Contract with GDRRA until October 2021 for waste disposal 1986 * Construction Bonds issued in excess of $500,000,000 1989 Construction begins on facility 1990 Amendments to Clean Air Act create tighter emission standards for trash incinerators. * Test burns at Detroit incinerator fail emission limits (Mercury and Dioxin?). John Engler wins Governors race. Over the next 12 years his administration strongly favors private landfills with state policy and financial tools causing landfill prices to plummet and stranding the GDRRF as an oversized regional facility.
  • 17. An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 2 Year Month Action 1991 * Air Pollution Bonds issued by Economic Development Corp. of Detroit in amount of $171,500,000. * GDRRF sold to private trust consisting of 70% Philip Morris Capital Corp. and 30% Aircraft Services Corp. (General Electric Capital Corp.). The sale price is $634,900,000 of which the city of Detroit receives $54,000,000 to confront budget crisis. 1996 Settlement between GDRRA and MWE over facility performance. City of Detroit loses case and pays $6.5 million. 2001 2002 Air pollution permit renewed. Permit delayed by community complaints but approved by MDEQ and USEPA without changes. 2003 Detroit Thermal, subsidiary of Thermal Ventures, takes over steam distribution from DTE. MPSC requires DTE to purchase steam at above market rate from GDRRA and resell to Detroit Thermal at lower price to subsidize both GDRRA and Detroit Thermal.
  • 18. An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 3 Year Month Action 2005 Sept.: GDRRA board initiates rapid Request for Proposals for planning of solid waste disposal after July 1, 2009. Oct.: GDRRA selects Detroit Waste Solutions, LLC as winner of RfP, but defers awarding of contract to December 21 st meeting. Detroit Waste Solutions was formed in September 2005 as a partnership of Synagro Corp. with James Rosendall, Rayford Jackson, James Bazen, James Sype, Perry Schnuck, and James Carmichael. Dec.: On December 19 th Detroit Waste Solutions, LLC withdraws its proposal for planning as this may be a conflict of interest with being awarded the contract for actually operating Detroit’s solid waste disposal.
  • 19. An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 4 Year Month Action 2006 March: GDRRA board initiates new solid waste planning process with Dvirka & Bartilucci Consulting Engineers of New Jersey. July: * City of Detroit imposes $300 per household Solid Waste Fee to stem yet another budget crisis. Fall: Detroit City Council endorses creation of Environmental Task Force. GDRRA begins “stakeholder” meetings to inform consultant, but consultant never attends any of the three meetings. 2007 Jan: City Council Environmental Task Force releases City of Detroit Future Solid Waste Plan . July: GDRRA consultant releases Strategic Operating Alternatives Report .
  • 20. An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 5 Year Month Action 2008 Coalition of over 10 community and environmental organizations adopts the name Coalition for a New Business Model for Detroit’s Solid Waste (CNBM). April: CNBM provides Detroit City Council with plan and alternative budget to implement recycling and end use of incinerator. May: MOSES community rally sees Deputy Mayor Anthony Adams commit to curbside recycling pilot program. * GDRRA issues first version of RfP for solid waste disposal. * Detroit City Council approves plan for new business model and adopts alternate budget with $3.85 million for pilot curbside recycling program. June: * GDRRA directs Covanta to NOT pursue lease renewal with owners. GDRRA decides to NOT attempt to purchase facility. Sep: Bids received from first RfP expire.
  • 21. An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 6 Year Month Action 2008 Dec: * GDRRA steam contract with DTE/Detroit Thermal expires. Direct contract with Detroit Thermal negotiated with drop in revenue for GDRRA. Air pollution permit expires. EC submits FOIA request for first bids. 2009 Jan-Feb: GDRRA issues new RfP claiming to be extension of expired RfP. Denies, partially grants, fully grants and eventually fully denies FOIA request. EC threatens lawsuit of bids not released. GDRRA agrees to release on or before April 30 but does not release until May. April: GDRRA presents $23.3 million budget to Detroit City Council with no explanation as to how that money will be spent other than waste disposal. May: GDRRA releases new bids to city council the day before budget hearing. June: City council approves GDRRA budget with no details of method, structure or multi-year cost projections.
  • 22. An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 7 Year Month Action 2009 June 17 Waste Management opens recycling facility in Detroit. June 18 GDRRA board snubs Great Lakes Recycling and instead awards recycling materials recovery contract to Waste Management. * GDRRA board claims to pass resolution to permit sale of GE share to Covanta and allow GDRRA to purchase that share at a later date. Councilwoman Watson specifically asks whether the resolution provides for the continued use of the incinerator. Mr. Beckham and Mr. Prymack declare that it does not create a contract. During public comment Mr. Prymack claims he has never stated that a contract would be awarded at this meeting. June 19 Owners send letter to GDRRA to compel delivery of Detroit’s waste to the incinerator.
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  • 24. An Orwellian Timeline of the Detroit Municipal Trash Incinerator (Greater Detroit Resource Recovery Facility) Part 8 Year Month Action 2009 June 23 * Charles Beckham signs agreement to allow sale of GE share to Covanta. The agreement commits GDRRA to deliver Detroit’s waste to the incinerator July 1, 2009 through June 30, 2010 to match GDRRA’s alternative cost to transport and dispose waste. The agreement also stipulates that if GDRRA purchases Covanta’s share anytime between January 1, 2010 and June 30, 2013 that would trigger a renegotiation of the disposal fee to “an industry standard” (likely about $75+/ton) and commit GDRRA to a 5-year contract. Kenyatta resolution demands GDRRA provide full documentation immediately for council review. June 30 Watson resolution calls for city council to seek injunction against delivery of waste for disposal at incinerator. July 1 Agreement for continued use of incinerator (undated) for one year goes into effect under the signature of John Prymack. Agreement is for a cost of $25/ton.

Hinweis der Redaktion

  1. Cost projections made in May 2008