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Exclusive Deal With Chinese Company Passes One Hurdle

The Public Service and Finance Committee took up the issue in a contentious afternoon hearing that saw testimony 'for' and 'against' the project - several council member outbursts, dozens of questions to guests, and hundreds of pages of documents introduced for inspection.

The central issue is a partnership with the Chinese firm Sunpu Optu, to replace city lights using its' new L-E-D technology - but without ever putting the project to bid; eliminating possible proposals of firms from Akron, Cincinnati, and East Cleveland's General Electric, among others.

That upsets General Electric CEO Michael B. Petras Junior. He argued that his company would not have minded losing the bids - even to a foreign firm - if it had had the chance to compete.

Plus, he warns the city that it shouldn't commit to a ten year deal, when the L-E-D industry is reinventing itself virtually every six months.

MICHAEL PETRAS, JR:
"How can the city possibly keep up with that kind of pace, if it's locked into one company for a decade? To do so with a company that has not attracted any U-S customers, and that does not have U-L or Energy Star rated products, is frankly, incomprehensible."

But Cleveland's Chief of Regional Development Chris Warren calls the proposal unique, and defends the agreement as one that no other firm could match.

CHRIS WARREN:
"One of the pivotal requirements of the contract that no other company was willing to step up and say they would do - including GE - was that they make the product here in Cleveland and they use local suppliers."

Councilman Michael Polensek was one of many committee members who liked the idea of 350 new jobs - but questioned a lack of documentation; and the pay scale those jobs seemed to provide - for instance, a proposed $15,000 salary for a full time receptionist.

MICHAEL POLENSEK:
"You cannot verify all the information, and yet you sit here and you tell us, without going out for bids, that this company - Sunpu Optu, is the company that can meet all our needs. How are we to take that? We're gonna be locked into a ten year, no bid contract.

Mayor Jackson was not present at the committee meeting - nor was any representative of the Chinese firm - which also angered council members.

Rick Jackson is a senior host and producer at Ideastream Public Media. He hosts the "Sound of Ideas" on WKSU and "NewsDepth" on WVIZ.