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San Jose mayor arraigned on bribery, conspiracy charges

BY MAY WONG, | Monday, Jun 26 2006 2:15 PM

Last Updated: Monday, Jun 26 2006 2:15 PM

The embattled but defiant mayor of San Jose was arraigned Monday on public corruption charges stemming from a secretly negotiated garbage contract deal.

Mayor Ron Gonzales, 55, did not enter a plea to six felony counts in the indictment unsealed last week, including conspiracy, bribery, misappropriating public funds and falsifying records. If convicted, he could face up to eight years in prison.

Gonzales, who is in his final year as mayor of the nation's 10th largest city, made an initial appearance in Santa Clara County Superior Court before Judge Rene Navarro. He did not speak, standing next to his attorneys while they waived a formal reading of the charges. Another court appearance was scheduled for July 26.

His co-defendants, Gonzales' budget aide Joe Guerra and Norcal Waste Systems Inc. also did not enter pleas at their arraignments Monday.

The mayor is accused of pressuring Norcal into using the Teamsters union - instead of a lower-paid union - at a recycling plant. Prosecutors allege he then secretly agreed to help the trash contractor recoup the extra labor expenses at a taxpayer cost of $11.25 million.

Though Gonzales may not have personally received any gains from the agreement, prosecutors invoked a rarely used provision of state law to allege that the Norcal deal leading to the hiring of the higher paid Teamster's union constituted bribery. Under the law, a public official who solicits a bribe for himself or a third party is illegal, prosecutors said.

The indictments of Gonzales, Guerra and Norcal culminated a six-month grand jury investigation.

Guerra is charged with three counts of conspiracy and misappropriation of public funds and could get a maximum sentence of five years and eight months in prison if convicted; Norcal, charged with four counts, could face more than $100,000 in fines, plus repayment of the extra $11.25 million it got from the deal with San Jose.

The indictment said Gonzales suggested to Norcal officials that he could make the city reimburse the company, and enacted an elaborate plan to persuade the council to approve the extra payments without knowing where the money was going.

Gonzales, who was already censured by the City Council last December over the backroom deal, is now also facing mounting pressure to resign.

During a special meeting Wednesday, the council will consider a formal resignation request and a plan to strip the mayor of his power - or remove him from office - if he doesn't step down.

Gonzales became one of the first Hispanic mayors of a major U.S. city in 1998, and addressed the 2000 Democratic National Convention in Los Angeles.

Gonzales was barred by city law from seeking a third term. His current term ends in December.