Smithtown officials may have to accept bids from Jody Enterprises for a new garbage-carting contract despite two of its employees facing criminal charges for fraud.
The town will begin soliciting bids June 19 for new residential solid waste collection and disposal contractors for all 12 of its solid waste districts. Its current contracts for trash pickup and collection expire on Dec. 31, 2013.
Jody Enterprises has continued to collect trash and recyclables in 4 of the town’s 12 solid waste districts more than nine months after two employees were accused of stealing more than $200,000 in tax revenue through a recycling scheme.
The Suffolk County District Attorney's office arrested Jody Enterprises employees William A. Stegemann, 55, of Lindenhurst, and Michael Dalessandro, 43, of East Patchogue, on felony charges of second-degree grand larceny in August 2012 for allegedly operating a recycling scheme in cooperation with West Babylon-based DeMatteo Salvage for a personal profit.
Suffolk investigators said Dalessandaro would drive a truck, picking up curbside recyclable cardboard and paper from Smithtown homeowners. He would then take the truck to DeMatteo Salvage in West Babylon - instead of delivering the truck to Town of Smithtown's municipal recycling facility off Old Northport Road in Kings Park - for a cash payout of $400 to $450.cThe Town of Smithtown would have been able to sell the same recyclables for $1,000 to $1,200 a load, depending on weight.
It is unclear how long this alleged scheme went on, according to the DA's office, and there is an open investigation into the matter.
Jody Enterprises currently provides residential solid waste collection and disposal services to waste districts 5, 6, 8, and 9; and could potentially bid to renew its contract for another seven years.
Supervisor Patrick Vecchio said he’s “not sure” if the town would legally be allowed to reject bids from Jody Enterprises based on the pending criminal charges. Town Attorney John Zollo said he could not comment on the matter.
The town is obligated to accept the lowest, responsible bidder to collect trash and recyclables in each solid waste district. The winning bidders will sign a new 7-year contract with the town starting Jan. 1, 2014.
Smithtown Town Board has voted to pursue legal action against Jody Enterprises on Sept. 4, 2012, but has held off to await the results of the district’s attorney’s criminal case.
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