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Residents and subcontractors press Detroit council over 'dirty dirt,' unpaid invoices and missing bonds
Summary
Public commenters and subcontractors told the council that demolition backfill placed by Guyanga Company contained contaminated material, that some subcontractors remain unpaid and that required bonds may be missing; their comments preceded the appeal hearing on the OIG suspension.
Dozens of residents, subcontractors and attorneys used the public-comment period at the Detroit City Council meeting on Nov. 18 to press officials over allegations that demolition contractors placed contaminated backfill in residential lots and that the city’s procurement and oversight processes failed to protect neighborhoods and small businesses.
Carla Osborne, a public commenter who said she had worked for the contractor, told the council she was labeled a whistleblower and fired after reporting contaminated dirt and urged that the contractor be held accountable: “He should be held accountable,” she said. Subcontractor Michael Villegas, who said he had performed concrete work on about 200 properties for Guyanga, told the council he was owed roughly $274,000 for completed work and asked who would secure payment if no bond exists.
Attorney Peter Kavanaugh, representing Kaylo and Sons Construction, said his client’s FOIA request and subsequent subpoena for payment and performance bonds produced no bonds for Guyanga and that the city paid the contractor millions without requiring statutorily required bonds. A city abatement representative said the contractor owed the city about $611,000 related to abatement work, and other speakers demanded an ordinance or a citywide study to identify contaminated sites and measure health impacts.
Speakers described neighborhood impacts and urged stronger city oversight: “What about where our children play?” one caller asked. Another commenter called for criminal accountability if the allegations are borne out.
Those comments framed and intensified the council’s later appeal hearing of an OIG interim suspension; the council ultimately voted to uphold the suspension while the OIG completes its investigation. The public record contains multiple unresolved claims about payment, bonds and source attribution for backfill; city departments and the OIG said investigations and record reviews are ongoing.
