San Jose’s Mayor Faces Charges

San Jose Mayor Ron Gonzales has been indicted by a grand jury on bribery and conspiracy charges, authorities said Thursday. The development follows a long-running investigation into his dealings with a local waste contractor.

Gonzales, 55, and his top budget aide, Joe Guerra, surrendered to authorities Thursday and were released on $50,000 bail each, according to the Santa Clara County Sheriff’s Department.

The indictments also accused Gonzales of misusing public funds and destroying or falsifying government documents. Guerra, the city’s budget and policy director, faces counts of conspiracy and misusing public funds.

The Santa Clara County district attorney’s office will discuss the indictments at a news conference today, authorities said. A court hearing is set for Monday.

Gonzales, whose second and last term ends in December, could not be reached for comment. “He broke no laws,” a statement from his office said.

Allen Ruby, a lawyer for Gonzales, said the mayor was troubled by the development.

“Any innocent person who is wrongly accused of wrongdoing is troubled by that,” Ruby said.

Guerra’s lawyer did not return a telephone call.

The indictments come as the district attorney and the grand jury investigate whether Gonzales helped Norcal Waste Systems Inc. win a major boost to its contract in 2004.

The indictments threaten to upend governance of California’s third-largest city, with at least four of the 10 City Council members calling for Gonzales to resign.

Vice Mayor Cindy Chavez, once among Gonzales’ closest allies, not only suggested that he step down, but recommended that the council strip the office of mayor of “all vestiges of power and authority” if Gonzales refuses.

The civil grand jury had joined with the Santa Clara County district attorney’s office to investigate whether Gonzales committed crimes when he helped Norcal obtain an $11.25-million contract increase.

A different civil grand jury concluded in May 2005 that Gonzales and Guerra “concealed and misrepresented” facts to the City Council to persuade council members that the city was obliged to pay Norcal and its subcontractor, California Waste Solutions, the extra money for unanticipated increased labor costs.

But Gonzales and Guerra knew about the costs when the Norcal contract was approved by the council in 2000 and intentionally deceived other public officials by withholding that information, the grand jury said. A special investigator retained by the city later released a report concluding that Gonzales and Guerra had violated city policies.

Gonzales apologized to residents in December, but his council colleagues censured him, and 85% of respondents to a San Jose Mercury News poll last year said he should resign.