There is no reason why the example you gave would insert that value.
You need to make a standalone script that shows this error happening in SqlAlchemy.
If you can't reproduce the error, then no one can help you.
Look at this test script I made for your example:
It generates this SQL transaction, and shows everything working as-expected :
2014-07-10 11:20:29,707 INFO sqlalchemy.engine.base.Engine COMMIT
2014-07-10 11:20:29,707 INFO sqlalchemy.engine.base.Engine BEGIN (implicit)
2014-07-10 11:20:29,708 INFO sqlalchemy.engine.base.Engine INSERT INTO friends(name) VALUES(?)
2014-07-10 11:20:29,708 INFO sqlalchemy.engine.base.Engine ('MTIzNDU2Nw==',)
2014-07-10 11:20:29,708 INFO sqlalchemy.engine.base.Engine ROLLBACK