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Behind the Veil: Nepotism at City Hall?

cityhallsteps.jpgIn recent weeks, news out of Austin City Hall hasn't been too great. In fact, as more and more stories of "improper" or, shall we say, "uncomfortable" relationships between our elected officials and businesses float to the surface, it looks as though one of the nation's most admired muncipal governments may, in fact, be a tad more crooked than we all thought. Of course, only time will tell, but things are not looking so good at present.

A few weeks ago, there was this story, in which the facts suggested (quite strongly) that our city government may be a little too friendly with local development contractors. Thanks in part to that story, it looks as if journalists from across the state - most notably those at the Austin-American Statesman - have caught the scent of blood and are now barking up and down City Hall's tree, hunting diligently for controversy within Austin's government. Sadly, it also doesn't look as if journalists are being forced to dig too far below the surface to uncover a whole mess of nepotism and possible corruption at the highest levels. So, in the end, this all begs the question: What's going on at City Hall?

Here's the latest: Yesterday, the Statesman reported that Jan Stephens, the wife of retiring city Chief Financial Officer John Stephens, was given a consulting contract worth about $48,000 to open City Hall's retail shop. According to John Steiner, the city's chief integrity officer, this "clearly shouldn't have happened" because an Austin ordinance prohibits spouses of top city officials from contracting with the city. Credit should be given to the Statesman for bringing Mrs. Stephens' contract with the city to Mr. Steiner's attention.

And then, a month after the City Hall shop opened, Mrs. Stephens was awarded another contract with the city, this time to help lead a sweeping review of the city's certification process for minority- and woman-owned business entities. That contract was signed by Assistant City Manager Rudy Garza and was worth around $35,000.

In response to allegations of wrongdoing, several city officials have stated that they either (1) didn't know about the city ordinance that bars such nepotistic hiring or (2) that, since Mrs. Stephens worked with the city until 2002 (when she retired), she already had an excellent track record and thus deserved hiring on her own merit. Both of these, in our opinion, are excuses that simply don't hold any water.

When a city is undergoing a huge amount of growth and expansion, as Austin is, there's a lot of money floating around and a lot of contracts to be doled out to the most qualified parties for particular jobs. And the more money being thrown around in government, the more corruption you tend to see. When that money is being spent, we can hardly expect every single municipal officeholder in charge of granting contracts to third parties to possess the fortitude and self-control to stay on the right side of ethical dilemmas. After all, nobody's perfect, and there's usually at least one bad apple. Right?

But at the same time, as more news like this comes out over the following months (and it probably will) and the veil shrouding the machinery of City Hall is gradually pulled further and further back, we may begin to realize that, while nobody's perfect, our elected officials should be pretty damn close. Maybe this kind of stuff goes down in other cities and is considered an acceptable norm (or, as Michael Corleone would say, "just business"), but perhaps, as Austinites, we should hold our elected officials to higher standards.

In the end, this story is less about a silly gift shop in City Hall (which, by the way, is losing money) and more about your taxpayer dollars. Don't you care how it's spent, who's giving it out and to whom it's given? And, at this crucial moment in Austin's developmental history, don't you care which parties get your hard-earned taxpayer dollars to develop our city, and whether they're the best person or company for the job?

Image of Austin City Hall steps courtesy of K.E.B. of flickr.

Contact the author of this article or email tips@austinist.com with further questions, comments or tips.

Comments [rss]

  • guest

    The lacks observance of the city ordinances in this instance is nauseating. A few months ago,we observed a Water Utility employee lose his job over buying signage from his son. Other Water Utility employees were disciplined less severely. Yet here we have a highly paid finance chief's wife awarded two contracts. But where is the justice?



    I am fuming, and I wish I could vote, as I live outside our desecrated city limits, I cannot. The Council, the people' representatives, should step up and purge this malignancy (unless they're too implicated as perpetrators).



    Tone at the Top? I am ashamed to be associated, as a City employee, with the sordid string of ethical lapses: convention center snafus, expensive executive going away parties, "that man is not my kin", three quarter million dollar giveaways, "burn baby burn", improper spending of seized funds, killer cops, and a still born financial report... What else can we expect from the most liveable city in America? Hopefully, we can expect major regime change soon...



    Sadly, I admit that I am throwing a rock and hiding my hand. My fear is that the council and management have repeatedly demonstrated that they will do economic lynching to truth speakers. Still, something needs to be said: the outrage is palpable...

  • guest

    The item from a comment above that says "I don't think that the hiring of Ms. Stevens necessarily raises any serious issues of impropriety (outside of the fact that it apparently is against the rules)" must be a joke. So it's not a problem if it is against the rules? What kind of logic is that? Is that you Ms. Stephens?

  • guest

    Surly you see the problem with lawmakers and civic leaders hiring family members for consulting jobs....

  • guest

    I don't think that the hiring of Ms. Stevens necessarily raises any serious issues of impropriety (outside of the fact that it apparently is against the rules). She had worked at the city for many years, and she shouldn't be banned from working there again simply because she's married to someone who also works there.

  • guest

    I hate our City Council, I just can't decide if they are completely stupid, totally corrupt, or a combination of both. They need to step up and do away with this kind of thing...for example, the misguided loan (and misguided is being kind) to Las Manitas that it didn't deserve, now this. The Council needs to send a powerful message and shut down this shop and state this kind of corruption/nepotism will no longer be tolerated. They also need to fire Rudy Garza for his part in this episode.



    Oh, and maybe the Council could also issue a statement saying they will try to stop being such idiots. But do idiots know they are idiots? I'm guessing not, they probably think they do a decent job, which if it wasn't so sad would be funny.

  • guest

    DAMN! $83,000!?!? That's a lot of cash! I wish they would have used that money for a couple more copies of The Road at Faulk. I've been waiting to check that damn book out for about a year now.

  • Scooby

    I am shocked- SHOCKED!- to hear of nepotism at the city of Austin.



    For that matter, I'm also shocked to see the city spending tax money to run a business that competes with legitimate businesses.



    What's next? Council-critters fighting to get TV time to toot their own horns?

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