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San Jose mayor posts bail after indictment

The Associated Press | Thursday, Jun 22 2006 1:15 PM

Last Updated: Thursday, Jun 22 2006 1:15 PM

Mayor Ron Gonzales was indicted by a county grand jury Thursday on six counts, his office said, but the allegations were not immediately clear.

Prosecutors have said they were investigating whether Gonzales committed any crime for secretly negotiating a trash hauling contract with Norcal Waste Systems that cost taxpayers an additional $11.25 million in labor costs.

Neither authorities nor Gonzales could immediately be reached for comment, but the mayor's office said he and aide Joe Guerra posted bail Thursday morning.

Guerra's lawyer, Alan Lagod, hadn't seen an indictment, but said his client and the mayor "self-surrendered at the sheriff's department and were released."

A lawyer hired by the city to investigate the garbage contract said in December that Gonzales and Guerra violated city policy requiring independence and impartiality when they privately assured Norcal the city would cover increased union costs.

Gonzales failed to disclose to city councilors that $1 of a $1.40 per month garbage rate increase was intended to cover labor costs.

The City Council censured Gonzales in December for the deal.

District Attorney George Kennedy had said that civil grand jury findings and those of independent investigator Chris Scott Graham raised "serious questions" about the deal-making process.

The men treated City Council procedure as a "mere formality" and failed to adhere to the concepts of open government by forging the agreement, Graham said in the report.

Gonzales had acknowledged that he agreed to the pay hikes without informing the council, but said members knew it was happening.