City penalizes trash yards

The Citizens Nuisance Task Force was named by city attorney Peter Bade as a possible recipient of a $10,000 donation in a consent agreement with J & S Auto Salvage Inc. at the Flint City Council meeting Oct. 24.

The consent agreement between the city and J & S Auto Salvage resulted from testimony in a special hearing Oct. 17 to revoke the licenses of two salvage yards — Spooner Metals, 5032 N. Dort Highway, and J & S Auto Salvage Inc., 4068 N. Dort Highway.

The council voted 8 to 1 to revoke the license of Spooner Metals for 60 days and 8 to 1 to accept the consent agreement with J & S Auto. The one dissenting vote came from Scott Kincaid who abstained because he was not at the Oct. 17 hearing.

Bade explained that the city doesn't have the authority to levy a fine for accepting stolen property, but the $10,000 donation could be used by a nonprofit volunteer group to purchase digital cameras and other equipment needed in its pursuit of metal thieves.

David Caswell, a task force member, said the city is getting serious about stopping metal plundering thanks to pressure from  his group and an incriminating photograph taken at Spooner Metal's salvage yard showing sewer grates and covers marked City of Flint. The nuisance task force was not named in the consent agreement. According to Caswell, city council will decide how the money is distributed.

Caswell said Bade and Crystal Olmstead-Carter, assistant city attorney, asked city council to hold a special hearing on Oct. 17 to revoke the licenses of the two metal buyers. A state law prohibits purchase of stolen metal. After hearing testimony, the city council postponed making a decision until Oct. 24.

"Spooner is a multi-million dollar corporation," Caswell explained in an Oct. 21 interview. "They specialize in shredding metal and make millions. They are the only facility in Genesee County that does this. That's how the photo came about. The machine that shreds the metal broke and a repairman fixing it noticed the stash of iron grates and manhole covers," Caswell explained.

Caswell said that not only did this salvage yard possess stolen goods, they couldn't tell investigators where it came from — even though state law says each seller must provide a record of each purchase, including a picture identification and thumbprint of the seller at the time of sale.

"Salvage yards are required to keep weekly records of their purchases. Buying stolen goods is a violation of state law that carries a 10-year prison sentence," Caswell said.

The pictures showed at least 45 grates valued at $8,000, according to Robert Smith, Flint Water Department spokesman.

Smith told investigators that seven to 20 manholes and catch basins are stolen every week in the city. Each weighs from 100 to 150 pounds.

"Who's buying them," Caswell asked.

According to Caswell, council also heard from representatives of J & S Auto Salvage on Oct. 17. They were accused of selling vehicles that had Flint sewer materials inside to a Saginaw metal processor. Flint Police Lt. Marcus Mahan testified during the hearing that an anonymous tip in June led to an investigation into the stolen materials.

Caswell said Spooner voluntarily contacted the city and returned over 40 catch basin grates and manholes, but that the scrapyard failed to provide the source of the stolen materials and hasn't submitted weekly intake reports to police as required by local law.

In an Oct. 17 Flint Journal report, Bade told reporters, "We believe Spooner Metals failed to comply with city ordinances."

In his Oct. 24 closing arguments, Bade said ignorance of receiving stolen property does not excuse a person who violates the law.

The day after city council's decision to suspend Spooner Metals business license for 60 days, the company filed for a temporary injunction in Genesee County Circuit Court.

Spooner's attorney said the city didn't follow due process and called the decision "arbitrary and capricious."

Circuit Court Judge Richard Yuille upheld the city's decision to suspend Spooner's license for 60 days Oct. 26.

According to a Spooner spokesperson, the suspension will result in 23 people losing their jobs.