Kenner Mayor Michael Glaser is terminating his predecessor’s contract with a trucking company that hauls sewage “sludge cake” from treatment plants to landfills.
It was the latest example of Glaser overturning a decision made by Ben Zahn, whom he defeated in the March 26 election.
The deal was approved in the waning days of Zahn’s government, against the advice of wastewater director Joanne Massony.
Lawsuit exposure
In August 2021, Massoni selected Kenner-based Cross Road Centers Transportation LLC from seven competitors for the sludge transportation contract. But when she was asked to sign final contract language in June, she declined. In an email to the city attorney, she wrote that it was “highly likely” that Kenner would be indicted given how the contract differed from the scope of work Kenner described in his request for proposals.
Massoni, who continues to serve as wastewater director under Glaser, said she has not received a response to her email. Zane later signed the contract.
As part of the contract, Kenner agreed to pay $513.36 for each trailer of sludge cake, a fertilizer-like byproduct of sewage treatment, that Cross Road trucks haul to the landfill. There are two provisions that specifically relate to Massony.
minimum guarantee
First, the contract guaranteed that Kenner would pay for a minimum weekly load. A minimum of 8 loads per week was set for the first seven months of the protocol.
Sludge from Kenner’s wastewater treatment plant rarely required so many hauls, and records show the city paid the hauler $10,267.20 over a seven-month period to meet the minimum obligation.
Kenner produced just three batches of sludge cake in a matter of weeks, said Justin Gibson, chief financial officer of CRC Global Solutions, the truck’s parent company. He said he asked for a weekly minimum to keep the business in business and cover the company’s fixed costs, which the Zane administration did not refuse.
In objecting to the city attorney, Massony said haulers knew what they were contracting for, noting that Kenner’s request for proposals indicated that “loads may vary from week to week” and that the estimates provided “are not intended as guaranteed amounts.”
Gibson also pointed to wording in the request for submissions stating that Kenner reserves the right to increase or decrease the loads it pays “if greater or lesser quantities are required.”
Maintenance, Reimbursement
Massony also objected to the second clause of the contract, in which Kenner agreed to reimburse Cross Road up to $35,950.86 for repairs to city-owned trailers used to hold sludge.
The request for proposals stated that the contractor would be “responsible for preventive and corrective maintenance (repair/replacement) of each sludge trailer,” and directed the company to factor these costs into its proposed fee schedule.
A trailer full of “sludge cake” is parked at a sewage treatment plant in Kenner.
Massony argued in her email that Cross Road should cover the cost of the repairs, and warned that including compensation in the contract could lead to lawsuits from other suppliers. Massoni said in an interview that the trailers had passed annual inspections and were used by the previous sludge hauler until Cross Road took over.
However, Gibson said the trailers were in such a disrepair that it was unsafe — and likely illegal — to leave them on the road. Among other issues, the trailer’s seals were not properly secured in the frame, causing cargo to leak.
“We’re pushing them to be safer,” Gibson said.
Zane defended the reimbursement, saying “on inspection of the trailers, they were found to be in such a state of disrepair that they could not legally be on the road.”
“It’s bad”
Earlier this month, Kenner gave Cross Road a 30-day termination notice. Glaser called the contract an example of “bad government” and said he was particularly annoyed by the clause guaranteeing a minimum weekly load amount.
“We’re paying for services that weren’t provided,” he said. “It’s bad. It needs to be re-tendered.”
Zane responded by saying, “It’s time for Glaser to put on his big boy pants and run the city of Kenner” and “stop blaming past administrations.”
Glaser, who took office in July, said he was running for mayor “to make government run the way it should.” He reversed several Zahn decisions, including moving city workers out of the Macy’s in the Esplanade mall.
Kenner is developing specifications for the new tender. Glaser said his government has asked Cross Road to stay on until a new contract is finalized.
