Norcal Waste loses contract due to
San Jose’s City Council voted unanimously
to reject a bid by Norcal Waste Systems to renew its trash-hauling
contract with the city.
The move is due to the trash-hauling company being
at the center of a corruption scandal with the city mayor, Ron Gonzales.
Norcal, Mayor Ron Gonzales and his top budget
aide, Joe Guerra, were indicted June 21 for allegedly negotiating
a deal in 2000 for the city’s trash-hauling contract.
The deal would give Norcal an additional $11.25
million in exchange for the company having its recycling subcontractor
switch to the Teamsters union and pay employees more. All three
parties have pleaded not guilty.
Norcal’s contract expires July 1, 2007.
The company had put forth a bid to extend the contract for another
two years. The city council voted 10-0, with Gonzales abstaining,
to award 6-year contracts to Garden City Sanitation and California
The new contracts will cost rate payers $6 more
per month and $1 more per month than Norcal’s proposed rate.
The decision could result in some service interruptions
while making the switch to the two new companies.