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October 2006


Norcal Waste loses contract due to scandal

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 Waste Solutions.

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.

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