Trash Hauler FBI Named in Bribery Scheme Gets Mixed Reception

Some towns that have or are considering trash contracts with Rizzo Environmental Services — which has underbid Waste Management, the world’s largest trash company, by tens of thousands of dollars a year — may now look elsewhere for services after the contractor was named in a federal public corruption investigation that resulted in the arrest of an elected Clinton Township official.

The FBI alleged that since 2012, Clinton Township Trustee Dean Reynolds, 49, has accepted bribes of between $50,000 and $70,000 in exchange for votes for vendor with a “significant contract,” which turned out to be Rizzo Environmental Services. The company received an $18 million contract with 10-year contract extension that was approved without any other bids.

Officials of other governments doing business with Rizzo are worried their reputations could be tarnished.

The Detroit Free Press reported the Huron Township Board of Trustees rescinded a contract recently extended to Rizzo and is seeking bids from other trash haulers. Township Supervisor David Glaab told the Free Press the contract was rescinded in the interest of transparency. The township’s current contract with Waste Management expires in December, and Glabb said he expects Rizzo to submit another bid.

• See Also: Clinton Township Trustee Took Up to $70K in Bribes for Contract Vote: Feds

Dearborn Heights officials are being cautious as well. The City Council is scheduled to vote Tuesday, Oct. 25, on whether to use Rizzo after tentatively choosing the contractor over Waste Management in August. Rizzo submitted the low bid — $20 million for an eight-year deal — but Dearborn Heights Council Chair Robert Constan told the Free Press the bribery allegations are a concern. The council needs to hear more information before making a final decision, he said.

“We have to look at the whole picture. This is a big contract. We have a lot of dollars to spend. We owe it to the residents to look at the entire picture,” Constan said
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Whatever company gets the bid must be ready to take over services by Nov. 1.

“If it’s not going to be Rizzo, we’ve got a problem, because we need someone to take the trash,” Constan said.

The Richmond Township Board of Trustees included an opt-out clause in its Wednesday vote approving a four-year contract with Rizzo, whose bid was tens of thousands of dollars a year cheaper than the current contract with Waste Management, Trustee Christopher DeVos told the Free Press.

DeVos said officials consulted with an attorney before signing the pact with Rizzo to make sure the “dark cloud” over the company doesn’t affect the township.

Rizzo Environmental Services is based in Sterling Heights. The family-owned company has been in business for 50 years.

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