These figures, obtained through public information requests, do not include subcontracts with the city.
District 4 councilman Russell Schneider, elected in 2004, owns R.T. Schneider Construction in Belton with his wife, Joy. The company has secured four city contracts for airport, park and drainage improvements, and Cottonwood Lane extension totaling $3.19 million since 2005, the records show
Mayor Bill Jones III - elected in May 2002 - owned interests in Stampede Trucking and Miller Springs Quarry until last March. He is CEO of Materials Transportation Co. and through a holding company owns Temple Steel. His business interests with the city have earned $106,000 since 2005, according to the records.
Using a city-approved charge account, Temple workers regularly pick up materials from Temple Steel - from $87 for horseshoe pit work to $1,000 for steel for air-conditioning repairs, city records show.
When Jones had a financial interest in Miller Springs Materials, a quarry on Texas 317, city employees regularly bought products there using a purchase order system, the records indicate. The largest single purchase occurred on Oct. 17, 2007, when the city purchased $14,715 in “riprap rock.”
City staff does not need council approval for purchases of less than $25,000.
Following chapter 171 in the state’s local government code, elected city officials can do business with the municipality if they file a disclosure, and abstain from discussion and voting on projects they could have a financial interest in.
That’s not good enough, says a non-profit government watchdog group, and officials in other cities that have stricter policies.
On his blog, District 1 councilman Tony Jeter has criticized the current practice. In January, he brought it to the council’s attention. The discussion went nowhere.
“I think that for the last several years, that we have been in somewhat of an unprecedented situation. Maybe what you might call uncharted waters when you have two council people that own businesses, either directly, or indirectly, receive a significant amount of revenues from the city,” Jeter said.
To prohibit council members and the mayor from doing business with the city, voters would have to amend the city charter. To get the matter to the polls, the council would have to approve a motion, or 5 percent of registered voters would have to sign a petition. With Temple’s registered voters at 34,400, that means 1,720 signatures are required.
Temple’s city charter - regarding ethics and conflict of interest - hasn’t been amended since 1990, city attorney Jonathan Graham said.
Jones said the idea that there’s something unethical about city officials doing business with the city is “ridiculous.”
“I think it’s silly to prohibit a council member from doing business with the city if it’s to the benefit of the city,” Jones said. “Just as long as the council member announces there’s a conflict and doesn’t participate in the vote, there’s just absolutely nothing wrong with that.
“And you hate to prohibit somebody from being on the council just because they would potentially do business with the city, or force the city to go outside of town to do business because the one particular business in town that does that happens to be owned or operated by a council member,” Jones said.
Schneider agrees with Jones. He said one of his contracts saved the city $200,000 because that’s the amount he was below the closest bidder.
Schneider said contracts with the city comprise about 7 percent of his annual revenue.
“We don’t deal with the city directly when we’re doing (bidding) a project. We deal with an engineer who has been hired by the city,” Schneider said.
Taking a look at how others approach this situation brings opposing points of view. Trent Siebert edits Texas Watchdog, a news Web site that says it is an independent and nonpartisan voice that scrutinizes government agencies, bureaucracies and politicians in Texas.
“There’s not enough distance here. It’s a problem of ethics. Every time that one of these elected officials gets a sweet contract from the city, questions are going to be raised in the minds of the citizens of Temple,” Siebert said. “Let’s say it’s clean as can be - it’s hands-off, we don’t have any discussion - that question is still going to be in people’s minds. It’s going to leave a bad taste in people’s mouths.”
Comparison to other cities
The city of Tyler, about 96,000 population in northeast Texas, has a charter provision prohibiting any “officer, agent or city employee from having a financial interest, direct or indirect, in any contract with the city,” or “be financially interested, directly or indirectly, in the sale of land, materials, supplies, or services . . . ”
Tyler’s former city manager Bob Turner also served as chair of the Texas City Management Association Ethics Committee. He said this issue is black and white: be a public servant or city contractor, but not both. Tyler adopted its more stringent policy about six years ago.
“We inform them (elected officials) up front, you can still vote and you can still sit, but you cannot receive any of the bids,” Turner said. “It’s just the appearance of impropriety. If somebody says, ‘you know what, I don’t think I want to give up my ability to bid,’ OK, then don’t run. It makes it real simple.”
Killeen’s policy mirrors Temple’s, following the minimum state standard. But Austin’s policy, implemented in 1995, is like Tyler’s.
City of Austin integrity officer John Steiner said, “No penny traceable to a city contract can accrue to the benefit of a council member.”
The city of Georgetown, population 47,000, is now reviewing its ethics ordinance through an ethics commission. Public information officer Keith Hutchison said the committee is supposed to review the ordinance annually.
Temple does not have an ethics commission. Councilman Jeter said forming one would be a good place to start. From there, the matter to amend the charter and prohibit elected city officials from doing business with the city would go to the council, and ultimately the voters.
And that’s fine with the mayor.
“If a bunch of citizens think this is an issue, and this is a bad thing for the government, they can do one of two things,” Jones said. “They can hold a charter review, or they can vote us out of office.”
