Company loses two Milwaukee contracts after its employees displayed guns, KKK sticker

A company where several employees displayed guns and another brought a Ku Klux Klan sticker to a worksite will effectively lose two contracts worth $800,000 with the City of Milwaukee under a deal approved Wednesday by the Milwaukee Common Council.

Under the resolution, which passed unanimously, the city will terminate one American Sewer Services contract and reject another bid on an un-awarded contract where the company was the lowest bidder. The agreement also prohibits American Sewer Services from rebidding on either of the contracts, and says the company won't contest any part of the deal.

The Milwaukee Common Council may also push for harsher penalties for American Sewer Services. Those punishments could include compelling its owner, Dennis Biondich, to testify before aldermen.

Debate over the issue grew heated during a previous Public Works Committee meeting at City Hall — especially after two south side aldermen voiced concern that city officials were punishing the company too severely for the actions of a few employees — but the resolution passed without discussion Wednesday.

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Alds. Mark Borkowski and Bob Donovan previously insisted Biondich felt terribly that his employees had brought weapons and a cooler with a KKK sticker to worksites.

Donovan added that Biondich had apologized and fired the worker who brought the KKK sticker as well as another who displayed his weapon. He also said American Sewer Services had an otherwise stellar record from its 30 years.

Biondich was a no-show at a meeting last month, which had been previously delayed to accommodate his schedule. He has said he is dealing with medical issues.

After that meeting, Ald. Russell W. Stamper II proposed terminating all of American Sewer Services contracts with the city. The company has had $50 million in contracts with Milwaukee since 2013, and currently has 11 open contracts with Milwaukee.

Public Works Commissioner Ghassan Korban recommended against canceling American Sewer Service contracts where most of the work has been done, or where the remaining work was being done by other subcontractors.

The deal approved Wednesday followed those recommendations.